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Safe Deposit Insuring Arts Center Future

July 13, 2016

by:

Joe Patti

Well here is a novel idea for funding an arts organization–using the proceeds from leasing space in storage vaults.

The inspiration for building the largest underground storage vault in China was finding a way to fund an art museum.

The idea for the vault came to the company’s founder, Liu Feiguo, while he was lobbying to open an art museum in the Shanghai Tower. He realized that the high revenues from the Baoku Treasury could fund the museum’s daily operations.

Baoku Treasury clients are given a 15-year membership pass to the Shanghai Guanfu Museum and the Baoku Art Center, allowing free access to exhibits and events. Most of the proceeds from deposit box sales are reinvested in the museum.

Baoku China has already announced plans to expand and build community vaults. According to Zhou, “Community vaults are actually cheaper to build than high-end swimming pools.”

It isn’t cheap to rent a deposit box and the security measures sound like they are from a Mission Impossible movie. The least expensive option is $10,300 for 15 years. I assume since clients get a 15 year membership pass to the museum and art center that must be the standard lease length.

This exact idea probably isn’t viable for everyone and everywhere, but shows a little creative thinking may be worthwhile.

Arts Facilities, Finance, Working In The Arts

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Slightly Exceeding Expectations As An Ideal Outcome

July 12, 2016

by:

Joe Patti

A recent post on Ken Davenport’s The Producer’s Perspective caused me to engage in a bit of internal debate.

Ken says a one of the worst things you can do is greatly exceed audience expectations:

“..But it also means that before they step into the theater, they have no clue what they’re about to see . . . and they aren’t expecting it to be anything to write home to Mama about.

Exceeding an audience’s expectations isn’t a creative problem. It’s a marketing problem. It means that however you are promoting your show, from the title to the blurb to the website, it’s not generating enough excitement with your potential buyer. And, unfortunately, when audience’s expectations are low, that means that most of them won’t make a purchase. People buy tickets to things that they expect to be good great. They are buying entertainment, remember? They want to be entertained. And in 2016, with the cost of tickets as high as they are . . . entertaining an audience isn’t enough. They want to be wowed.”

This is all contrary to the outcome I want.

One of the greatest pleasures I get from my job is when people enjoy a performance they didn’t expect to. There isn’t a lot of financial remuneration in non-profit arts, but hearing people say “Wow” when they leave the performance hall…and having them continue to talk about their experience weeks, months and even years later, is pretty gratifying.

The mission of most non-profit arts organizations is to provide an opportunity for exploration and learning versus the profit making goals of Broadway shows, so you might argue that you aren’t going to want to emphasize the entertainment value of the event. If you aren’t charging Broadway prices to enter the door, then the burden of expectations is relatively lighter as well.

The problem is, most people, even those who attend your events, don’t know you are a non-profit organization. They aren’t discerning between the entertainment or education value your organization is offering versus those of a profit seeking entity. Chances are, it is all the same to them.

Regardless of whether you think people want to come for the entertainment value or to learn new things, Davenport has a point that if people are arriving not knowing what to expect, then you are probably under- or mis- communicating the event to the wider community.

Note, he is just talking about generating enthusiasm for being there. People may have an entirely wrong concept about the event and have their minds blown and that is okay. If they are tentative about being there in the first place and hoping they have a good time, that is another thing altogether.

The reasons why non-profits aren’t doing a better job at this are myriad. In some cases, it is a matter of bad decision making when it comes to allocating money and personnel to marketing efforts.

There is often a desire, and perhaps a sense of obligation, to invest money in the artistic product rather than advertising and personnel, both of which can be regarded as overhead expense.

As has been noted many times before, donors and funders want to know money is going toward results and impact, delighting people and changing their lives. Even though marketing isn’t explicitly listed as something most foundations doesn’t fund, there is less support and tolerance for the costs to reach those people and generate interest and excitement in them.

It definitely requires a careful balancing act. Some organizations are good at it, some aren’t and some probably aren’t really making an effort.

It really feels strange to read Davenport brag that his team did such a good job marketing Altar Boyz, seeing the show only slightly exceed audience expectations. But if the audiences truly expressed a high level of satisfaction with the experience and seeing the show only slightly added to that, then it a measure of success if their satisfaction extended hours, if not days prior to, and after the performance.

Is that a feeling your arts organization can lay claim to generating?

Even though the discussion inevitably circles back to issues of time, personnel and money, these questions and ideas are worth regularly revisiting, regardless of your situation. Sometimes just thinking about them provides a little inspiration about a resource or opportunity specific to your community that can be tapped into.

Audience Relations, Marketing/PR

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Arts Center, I Choose You!

July 11, 2016

by:

Joe Patti

I was walking in to work on Saturday and met a woman who has offices in the arts center who told me that there was a Pokemon in the fountain in front of the building.

Sure enough, as part of the new augmented reality game Pokemon Go, when she pointed her phone at the fountain, the virtual map overlay showed a Pokemon in the fountain. She then lamented that someone else was battling to capture it. I assume it was the kid standing on the sidewalk just south of the fountain.

Then she explained that she and her kids had seen some Pokemon in a tree at the Farmers’ Market that morning, but the virtual critters got away.

As we walked into the arts center, her phone informed her my building was a Pokemon center and she told me if I downloaded the app, I could capture them every morning when I came into work.

I asked her how the building and fountain had been designated as spawning points and she said someone must have come along before her, taken a picture of the building and added it to a list of possible points.

At that point, I realized it could be a great boon for getting younger people in the door if they could get their venues included in the game.

Jason Evangelho at Forbes Magazine had the same idea and suggested businesses use the game to lure in customers. Unfortunately, if you read down to the Update postscript at the end, the game creators are the ones who designated these locations using Google Maps, not the general public.

However, Evangelho figures given the opportunities the game represents, they may come up with a way for different places to get themselves added or offer some sort of premium features for game players.

One of the things he mentions places that already are designated as “Pokestops” can do is buy a lure module that attract Pokemons to the location for 30 minutes. (for 100 Pokecoins currently selling for 99 cents.)

It may be worth checking if your location is already designated as a central location in the game so you can think about how to adapt that into your activities.

It should be noted, you may not have any choice in whether you want to accommodate game players. Some police stations designated as Pokemon centers have had a steady stream of people coming in to capture them. It may be necessary to brief staff very soon on whatever customer service policies and procedures you create in response to these visitors. Especially since there have been an increase in accidents due to people paying even more attention to their phones as they swing them about trying to locate their virtual prey.

On the other side, players have posted on social media about the Pokemon company’s sneaky attempts to get them to go back to church.

The game is getting people to wander around in places they haven’t been before so it may increase foot traffic near your organization even if you aren’t a designated game location. Though in an incident echoing the movie Stand By Me, a girl found a dead body when she jumped a fence to find a Pokemon.

All in all, something to be aware of and keep an eye out for associated opportunities. Once it becomes clearer what sort of promotional opportunities exist, I will probably get a post up on ArtsHacker.

Arts in an Age of Technology, Info You Can Use, State of the Arts

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Same Idealism, Potential For Same Mistakes

July 6, 2016

by:

Joe Patti

Some time back I read a piece on the Bridgespan Group’s website that made me realize that non-profits and funders/donors may adopt similarly flawed approaches to addressing social issues. When you think about it, it only makes sense that two groups that are passionate and idealistic about bringing change to communities might make the same errors in policy and execution.

Because donor/funder is perceived as having more power in the funder-non-profit relationship, it can be easy to assume their decisions are based on criteria that differs from the non-profits seeking their support.

In fact, funders can make inefficient and inconsistent decisions for the exact same reasons non-profits do.

In the article, What Are the Five Most Common Traps I Should Avoid in My Philanthropy?, trap number one is:

Trap #1: Fuzzy headedness

As a philanthropist, your passions, values, and beliefs will fundamentally drive your giving. But unfortunately, “fuzzy headedness” occurs when donors allow their emotions and wishful thinking to completely override logic and thoughtful analysis. One common symptom: When asked “what are you trying to accomplish?” do you respond with broad, hopeful statements (like “curing cancer,” “ending poverty,” or “stopping global warming”)? If so, you’ll need to get more specific because at that level, your goals are still too undefined (and therefore unattainable)…

I realized this is almost the exact same mistake some non-profits make. They embrace vague mission statements and goals and define everyone in a geographic radius as the people they intend to serve instead of having a clearly defined focus.

I wondered if there might be a feedback loop between funders and non-profits with one saying their goal is to completely fix X and the second getting excited and inspired by the goal (or the money now available for that goal). Each party seeing the other is excited and invested in the goal decides it is worthy to pursue and goes on to mutually reinforce this too broad goal upon each other and others around them.

The second trap, Flying Solo, also has a similar overlap. Both funders and non-profits can fall into the trap of believing they know the solution to a problem either through lack of research about previous efforts or ego. The result is they spend a lot of time and effort repeating the mistakes others have made. Or they fall short having overestimated their ability to marshal the required resources alone.

The remaining traps are more funder oriented and have a little less in common with non-profits. Number three deals with under-estimating what it will take to achieve a goal and therefore underfunding the project. The fourth deals with using overhead cost as a measure of effectiveness.

Non-profits could contribute to reinforcing these traps by keeping their numbers low in order to keep their overhead ratio low, resulting in underperformance due to lack of sufficient funding. Which may, in turn, result from less funding from a donor or foundation that expected better results.

Some of the ideas in the article are new to me, some I have heard before, particularly regarding suggested changes in philosophy by funding organizations. The piece could be worth further reading if you are trying to find an effective line of reasoning to convince a funder to adjust their expectations and criteria.

Fundraising

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