Better ROI Than Thou

by:

Joe Patti

The Los Angeles Times has a video of the change over process between the LA Opera productions of Cosi fan Tutte and Eugene Onegin.

My first reaction was how cool the magic of theatre is that such transformations can take place in a short time to generate the illusion of two different places.

Then I started to think about the cost and whether it was all sustainable. They only repeat the same production once so this change over requiring 45 stage hands happens about 4 times a week- Onegin on Saturday, Cosi on Sunday, Cosi on Wednesday, Onegin on Thursday, Cosi on Saturday, Onegin on Sunday. Then I look at the design elements and wonder if they really need to have 800 gallons of water on stage for one act only to drain it and expose the Plexiglas for the second act.

Next I looked at the prices, $270 for orchestra down to $40 for an unobstructed view in the back of the balcony ($20 for an obstructed view). If they cut back on some of the design elements and changed the production schedule, they could charge less and be more accessible, right?

But you know, while I was thinking all this, I was also feeling a little torn. I felt like my grandmother who, having grown up during the Depression, would scowl at us for not washing aluminum foil and Ziploc bags so they could be used again. Was the only reason I was having critical thoughts like this because that is how those of we in the non-profit arts are brought up to think?

Opera is all about spectacle and that is what people expect from the experience. People complain about the high cost of rock concerts and Broadway shows, but there are few people arguing they have to lower the prices to make the shows more accessible. Usually the accessibility argument for rock concerts is about keeping companies from buying up huge blocks of tickets, not that the original price was too much. People complained that the Broadway previews of Spiderman were so expensive, but people kept buying and buying.

So if the demand is there, what business is it of mine whether the LA Opera is operating in a way that requires them to charge so much? The rotating schedule might actually make better financial sense for them after all. I worked at a theatre in a community with a high tourist rate where the rotating repertory schedule actually helped increase their audiences.

Yet, while it does have significant private support, Broadway shows and rock concerts don’t depend on public support the way non-profits like the LA Opera does. So the question is, do we in the arts mount bold productions that employ technology cleverly to bring our audiences delight. Or do we worry that people wanting to reduce the funding the arts receive will use groups like the LA Opera as an example of why the arts don’t need funding since they can afford to operate at such high standards.

Some of this fear comes from the hostile reception the idea of public funding for the arts receives. It is also reinforced by the practice of private funding sources. The big measure of not for profit effectiveness right now is low overhead. I can’t recall where, but I recently read a quote from an influential politician/business person who said if anything could be funded, it should be the arts because they generate such a great return on the investment.

While I am glad to hear this message repeated by people not working in the arts, the pressure to have low overhead and great results for the investment tends to create a mindset where an organization views themselves as more virtuous than a better funded one because they bring the arts to under served populations and children on a shoe string budget. Who needs hostile politicians when we are all too willing to cast a “better-ROI-than-thou” disapproving eye on each other?

That’s all well and good, but this attitude is what also contributes to few people taking an arts career seriously because no one gets well paid.

Is In-n-Out Burger more virtuous than Wendy’s because they have a smaller, leaner operation? Sure, for profits and non profits have different reasons for operating, but few people praise a commercial enterprise as being virtuous because their cost controls have kept them small.

So does it matter how much the LA Opera is spending?

Info You Can Use: Does Friending A Candidate Endanger Your Non-Profit Status

by:

Joe Patti

The Non Profit Law blog linked to a really great publication put out by the Alliance for Justice that explains whether your online activity might run afoul prohibitions in your 501 (c) 3 status. This is the clearest explanation of these issues I have read.

“This guide aims to answer the questions nonprofit managers most frequently face regarding the Internet and social media.”

The document covers situations that don’t involve online activity, but really it is the social media element that comprises the uncharted territory that people aren’t clear about. The document makes a distinction between lobbying, which a 501 c 3 non-profit can do and supporting a candidate, which they can’t.

Though sometimes the distinction is very subtle. For example, you can make a post on Representative X’s Facebook account, “Rep X, support the arts by voting Yes on Bill 123.”and that is direct lobbying. If you post a slightly different message, “People of My State, tell Rep X, to support the arts by voting Yes on Bill 123, ” and that is considered grassroots lobbying because it is a general call to others to take some action. If you post, “We love Rep X because she supports the arts and voted Yes on Bill 123,” that is promoting a specific candidate.

Except in some very specific circumstances, you can’t link to a candidate’s website. In fact, you can’t link to any website that promotes a candidate and you are responsible for making sure the content of the site doesn’t change since you first linked to it.

For example, you are doing a renovation and link to the website of the company that is providing you with sustainable wood as a way of proving to your constituency that you are acting responsibly. If the supplier changes their website to criticize a candidate’s stance on logging, your organization might be in trouble.

There are also restrictions on allowing employees to use company equipment, even on their time off, to express support for a candidate.

In answer the question posed by the title of this entry, no, you can’t friend a candidate on Facebook or follow them on Twitter. They are free to friend and follow your organization. Even though etiquette suggests you follow them in return, the IRS suggests you don’t.

About the only time you are safe to have a promotion of a candidate on your website is if you allow Google to place ads on your website and have no control over what they are placing.

There are a lot of other questions answered in the document as well. Since a lot of 501 (c) 3 organizations are associated with 501 (c) 4s which have looser restrictions, they provide some detailed guidance about how closely connected their activities can be. The guide also deals with setting policies for renting your mailing lists, guest bloggers, moderating blog commenters, using photos, hosting videos.

It is clear that there are going to be a lot of nuances specific to the activities of different organizations. However, if you have had questions about what is permissible as lobbying and prohibited as campaign support, and don’t have a tax lawyer immediately available, this is a good place to start to find your answers.

Can Devotion To The Arts Be Considered An Addiction?

by:

Joe Patti

Since I tend to travel to China every other year or so, I have started taking a class in Chinese.

The class has taken over my life.

It used to be that the rule of thumb for college classes was 3 hours of home work for every hour in class. In recent times, it has been scaled back to 1-2 hours per hour in class. My Chinese class seems to be old school because I spend about 10-12 hours a week doing the homework. I usually finish home work for Tuesday on the Saturday before and then start the homework for two Tuesdays hence on Sunday morning. Every morning, I wake up and do 1-1.5 hours of homework before heading off to work for the day. Saturdays I usually do several hours of work.

I figure I have to keep this schedule because our production season is starting very soon and will keep me from completing the homework before Monday or Tuesday unless I start 8 days early. What is slowing me down is writing everything in Chinese characters. It is like reproducing pictures rather than writing letters. If you write the letter J and don’t dot the lower case or cross it as an uppercase, no one will care. You leave a dot or line out on a Chinese character and it is a different word.

The thing is, I love it and anticipate taking the more advanced class next semester. While my pronunciation of the tones is probably off, I can grasp the vocabulary and grammar rules pretty well.

But it has gotten me to wondering– can I afford another time and energy consuming obsession alongside my career in the arts? I also wonder if my enthusiasm for learning the language comes from a similar place as my enthusiasm for the arts. While I was a good student when I was younger, I was never as diligent as I am with this class.

I have written a number of times on the idea that people in the arts are sustained by the emotional satisfaction they get from their jobs. This can lead to decision making which values devotion to the arts to detriment of their professional and personal development, financial situation, relationships and health.

Now given I actually have time to have something non-arts related monopolize my time is probably a sign that the amount of time I devote to my arts career may be at a healthy level. Or that I have merely displaced other portions of my life to accommodate both activities. (The pile of dirty laundry and unwashed dishes does seem higher lately…)

My brain may be releasing chemicals into my pleasure centers in relation to both arts and Chinese class, but I don’t think it comprises some sort of addiction. Still, I wonder if there is a tendency among arts people to exhibit personality traits common to those prone to addictions. If anyone has seen any studies, about arts people having addictive personalities, I would be interested to learn more.

In any case, it is something to which I will have to give more thought.

After I finish my Chinese homework.

Info You Can Use: Emergency Planning Tools For The Arts

by:

Joe Patti

Two entries today you lucky readers. My list of things to blog on is getting longer than I handle and still have the subjects remain relevant.

Technology in the Arts blog had a very cool tool for the arts featured this week- Arts Ready, an online tool to help arts organizations create a plan for any emergency, including “incapacitation of a key staff member, a financial crisis, and of course a natural disaster.”

The tool helps you create a readiness assessment which generates a to do list of changes to be made and sends you periodic reminders about deadlines or to re-evaluate the plan. It also offers the ability to store critical documents at a cloud computing site in case the physical documents get damaged. They also have a “battle buddy” tool used to develop relationships with area organizations.

“…so that you can build a relationship and eventually become Battle Buddies- pledging to lend a hand if the other needs help. If you do need to declare a crisis, you can choose how much information to share with whom, and you can track your progress towards gathering the needed resources online.”

It would be great if organizations developed partnerships and alliances constructive to their daily operations in the course of seeking allies to assist in the event of an emergency.

There is a cost to the service, but because this sort of thing is only really effective if a lot of organizations are involved, the developer, SouthArts, is seeking support from state arts agencies to help offer discounted memberships.