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	<description>The most important issues in the arts...and what we can do about them.</description>
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		<title>The Last Word: Our Recommendations for Arts Philanthropists</title>
		<link>https://createquity.com/2017/12/our-recommendations-for-arts-philanthropists/</link>
		<comments>https://createquity.com/2017/12/our-recommendations-for-arts-philanthropists/#comments</comments>
		<pubDate>Fri, 08 Dec 2017 23:23:25 +0000</pubDate>
		<dc:creator><![CDATA[Ian David Moss]]></dc:creator>
				<category><![CDATA[Analysis]]></category>
		<category><![CDATA[Features]]></category>
		<category><![CDATA[arts philanthropy]]></category>
		<category><![CDATA[arts policy]]></category>
		<category><![CDATA[Createquity]]></category>
		<category><![CDATA[lessons learned]]></category>
		<category><![CDATA[recommendations]]></category>

		<guid isPermaLink="false">https://createquity.com/?p=10526</guid>
		<description><![CDATA[After a decade of inquiry, here’s what we’ve learned about how to support the arts most effectively.]]></description>
				<content:encoded><![CDATA[<div id="attachment_10530" style="width: 650px" class="wp-caption aligncenter"><a href="https://unsplash.com/photos/uXWPg9uMwt8"><img fetchpriority="high" decoding="async" aria-describedby="caption-attachment-10530" class="wp-image-10530" src="https://createquity.com/wp-content/uploads/2017/12/freddie-collins-309833-1024x683.jpg" alt="" width="640" height="427" srcset="https://createquity.com/wp-content/uploads/2017/12/freddie-collins-309833-1024x683.jpg 1024w, https://createquity.com/wp-content/uploads/2017/12/freddie-collins-309833-300x200.jpg 300w, https://createquity.com/wp-content/uploads/2017/12/freddie-collins-309833-768x512.jpg 768w" sizes="(max-width: 640px) 100vw, 640px" /></a><p id="caption-attachment-10530" class="wp-caption-text">Photo by Freddie Collins on Unsplash</p></div>
<p><i>This article summarizes lessons learned, as well as recommendations going forward for foundations, government agencies, individual philanthropists, and others providing resources to support the arts. A <a href="https://createquity.com/2017/12/our-recommendations-for-arts-researchers-and-those-who-pay-them/">subsequently published piece</a> contains further recommendations aimed at people who commission and/or conduct arts research.</i></p>
<p>For the past three years and change, Createquity’s mission has been to research “the most important issues in the arts and what we can do about them.” During that time, in networking meetings with potential donors or friends of the organization, I would often get questions along the lines of, “so what <i>are </i>the most important issues in the arts?” Or people might ask for advice on where a donor should give if she were interested in making the most impact in the field. For a long time, I resisted answering these kinds of questions directly, because Createquity’s approach involved deeply investigating a wide range of potential issues <i>before</i> coming to firm conclusions about which ones might be most deserving of our attention, or what kinds of actions we might want to advocate for. Now, however, with Createquity having <a href="https://createquity.com/2017/10/a-milestone-and-a-sunset-for-createquity/">announced its intention to cease operations at the end of 2017</a>, the time has come to share what we <i>do </i>know – even if there are still significant gaps in that knowledge – and what we think it means for those trying to improve people’s lives through the arts.</p>
<p>Please note: the analysis that follows is a hybrid of formal evidence review, informed opinion based on our collective firsthand experiences working in the field, and logical inference. While we have tried to make it as clear as possible throughout, we welcome questions about what is (and isn’t) backing up specific assertions, and will respond to them in the comments as they come in.</p>
<p>&nbsp;</p>
<h2>Consider Your Funding from an Ecosystem Perspective</h2>
<p>From the very beginning, Createquity has advocated for an ecosystem-level view in arts funding. We’ve actually gone so far as to write out a detailed <a href="https://createquity.com/about/a-healthy-arts-ecosystem/">definition of what a healthy arts ecosystem looks like</a> in practice.</p>
<p>Okay, that sounds nice, but what does it actually mean? Think about it like this. An ecosystem is kind of like a big theatrical production. There are a bunch of different roles to be played, and effective casting in those roles is crucial to giving the audience a good show. Right?</p>
<p>So, the huge difference between a theatrical production and the arts ecosystem is that there is no director making those casting decisions. A bunch of people just walk up to the stage, pick a part they want to play, and go to it. Some of those people might be better suited to playing a different role than the one they chose. In some cases there are two (or more) people duplicating the same part, and constantly stepping on each other’s toes. Another actor might play a role brilliantly, but disappear for the second half, or refuse to share the stage with anyone else. It’s all just a big uncoordinated mess.</p>
<p>Our only hope of bringing some order to this chaos is to recognize that, whenever we design strategy for a new program or redesign an old program, we&#8217;re casting ourselves in one of these roles. And it might seem obvious to say, but I’ll say it anyway since it&#8217;s so important: when designing the role we want to play, we <i>must</i> ask ourselves, who else is in the cast? What are the roles that aren&#8217;t currently being covered? And which of those roles am I or my organization best suited for?</p>
<p>I want to specifically call out that, in my experience, the highest-leverage decision points are often the ones least likely to receive this level of scrutiny. Sure, you may have set up a committee or commissioned an external consultant to decide how to refine and move forward on some specific program that you piloted last year. But how much due diligence went into deciding why your organization exists at all? Its geographic focus and target population? The originating logic behind its flagship initiatives?</p>
<p>People are fond of calling for more leadership in the arts sector. But the thing about an ecosystem is that it is fundamentally leaderless. <b>Which means that we </b><b><i>all </i></b><b>have to be leaders if any leadership is going to happen.</b> And to me, in the context of grantmaking, that means all of us taking the time to thoroughly understand the arts funding landscape before deciding what role is most appropriate for us to play.</p>
<p>A good rule of thumb is to start with the premise that every other funder is <i>not </i>doing this – in other words, that every other funder is <i>less </i>strategic than you. That flies in the face of the philosophy of humble servant leadership that we’re taught to model in philanthropy. Even so, I would argue that it is a useful working assumption, because if you believe it, then you must believe that it is <i>your </i>responsibility to be the actor in the ecosystem who fills the gaps, who does what needs to be done and what no one else is willing to do. It is up to <i>you </i>to find out what what is needed and neglected, and prioritize <i>that</i> over what might get the best press or the fanciest gala tickets.</p>
<p>And the reality is that my assertion above is likely to be more true than not for anybody reading this. The <a href="https://www.arts.gov/sites/default/files/how-the-us-funds-the-arts.pdf">majority of philanthropic contributions to the arts</a> comes from individual donors, most of whom have a very transactional relationship with specific charities they support and who are notoriously difficult to organize as a constituency. A landmark study of donor motivations commissioned by the William and Flora Hewlett Foundation concluded that <a href="http://static1.squarespace.com/static/55723b6be4b05ed81f077108/t/55d24c66e4b05537993238fc/1439845478132/%24FG+II_2011_Full+Report.pdf#page=137">only 16% of individual major donors are motivated by impact</a>, and only 4% consider the effectiveness of an organization the “key driver” of a gift; I would guess that these numbers are even lower for arts donors. Another fifth or so of arts philanthropy comes from corporations, <a href="https://link.springer.com/article/10.1007%2Fs10551-004-1777-1?LI=true">many of which are motivated</a> less by the mission outcomes achieved by grantees and sponsorship recipients than by the benefits those relationships can offer to the brand.</p>
<p><b>The overarching lesson to take from all of this is that it’s crucial to conceive of arts philanthropy </b><b><i>broadly. </i></b>Resist the temptation to overspecify the solution before you truly understand the problem. We see a lot of programs, especially at organizations that give out smaller-sized grants, that have tons of restrictions on what can be funded, for how long, how the money must be spent, etc. While there may be reasons (like internal capacity constraints) that justify these decisions from the perspective of the granting organization, at a system-wide level this practice results in intractable gaps in the funding landscape and strongly distorts incentives for prospective grantees. Wherever possible, we recommend pushing for the maximum level of flexibility that your donor or ultimate stakeholder is comfortable with – and if the donor/stakeholder is you, pushing yourself to be as clear as possible about the outcomes you’re interested in while being as open-minded as possible about the pathways to accomplishing them.</p>
<p><b>Regardless of the more specific advice below, this is the most important. </b>Take the time to understand how your work fits into the overall landscape of needs and opportunities in the sector. An eager audience is depending on you to do it.</p>
<p>&nbsp;</p>
<h2>Don’t Put Your Name on That Fancy Building</h2>
<p>Several years ago, the philosopher and ethicist Peter Singer made a splash in the arts community by writing a New York Times op-ed piece entitled “<a href="http://www.nytimes.com/2013/08/11/opinion/sunday/good-charity-bad-charity.html?pagewanted=all&amp;_r=0">Good Charity, Bad Charity</a>,” which compared the merits of donating to help construct a new museum wing and donating to an organization fighting a disease that can cause blindness in the developing world. Whipping together a back-of-the-envelope cost-benefit analysis, Singer wrote, “a donation to prevent trachoma offers at least 10 times the value of giving to the museum,” adding, “the answer is clear enough.”</p>
<p>Predictably, the arts blogosphere <a href="https://createquity.com/2013/12/uncomfortable-thoughts-are-we-missing-the-point-of-effective-altruism/">kind of freaked out</a>, writing response after response defending or deflecting the practice of giving to the arts while characterizing Singer’s argument as “<a href="http://www.giarts.org/blog/janet/either-or-harmful-charities-and-society">a shocker</a>,” “<a href="http://www.artsjournal.com/realcleararts/2013/08/peter-singer-says-never-give-to-the-arts.html#comment-31415">absurd</a>,” and “<a href="http://creativeinfrastructure.org/2013/08/11/eitheror-or-and/">tyrannical</a>.” It turns out that Singer’s piece was part of a broader outreach effort on behalf of a movement called <a href="https://www.effectivealtruism.org/">effective altruism</a>, which is devoted to the idea of figuring out how to do the most good with the money and resources available to you. Effective altruists believe that answering such questions involves hard tradeoffs, and necessitates a discipline called “<a href="https://causeprioritization.org/Cause%20prioritization">cause prioritization</a>” at the very highest strategic level. Not surprisingly, the arts often serve as a convenient example for effective altruists of the sort of “bad” philanthropy to be avoided in favor of higher-potential giving opportunities.</p>
<p>Our instincts may tell us to get upset about this, but the reality is that museum wings are easy targets for effective altruists for a reason. There is an argument to be made that capital investments in fancy buildings are the single worst category of arts philanthropy there is, and may be among the most wasteful uses of (non-fraudulent) philanthropy in general.</p>
<p>How so? First of all, capital projects are enormously expensive. According to “<a href="https://culturalpolicy.uchicago.edu/sites/culturalpolicy.uchicago.edu/files/setinstone/pdf/setinstone.pdf">Set in Stone: Building America’s New Generation of Arts Facilities, 1994-2008</a>,” the most comprehensive review of the data on capital construction in the arts that we know of, the average cost of a building constructed by or for a nonprofit arts organization around the turn of the millennium was at least $21 million in 2005 dollars (equivalent to $26 million in 2017). At the extremes, a single project can cost as much as hundreds of millions of dollars, more than the <a href="https://www.arts.gov/open-government/national-endowment-arts-appropriations-history">entire annual budget of the National Endowment for the Arts</a>. Each year, arts organizations spend upwards of $1 billion on such campaigns, with most of that money coming from private philanthropy. Foundations devoted <a href="http://www.giarts.org/sites/default/files/28-1-vital-signs.pdf">at least 10% and possibly as much as 38% of their arts budgets to capital projects</a> in 2014, according to figures from the Foundation Center.</p>
<p>One major problem with capital projects sucking up so much donor interest is that they <a href="http://notjustmoney.us/">disproportionately benefit wealthy, established organizations</a> presenting European art forms, often smack in the middle of places with very large populations of color. Moreover, artists rarely see a penny of this money; the most immediate beneficiaries of these expenditures are construction companies and their suppliers. Beyond equity concerns, however, capital projects frequently turn out to be bad investments even on their own terms: “Set in Stone” documents numerous cases of projects that failed to meet visitation benchmarks, exceeded expectations for ongoing maintenance costs, and/or ran over budget (by an average of <i>82%</i> in the case of performing arts centers). The authors “found compelling evidence that the supply of cultural facilities exceeded demand during the years of the building boom … especially when coupled with the number of organizations [they] studied that experienced financial difficulties after completing a building project.”</p>
<p>This is not to say, of course, that every capital investment is a bad idea, or that arts organizations should never build new buildings. But given that buildings often come with ample opportunities to lure individual donors to the table (via naming rights, gala invitations, etc.), it’s even harder to defend institutional grantmakers’ investment in capital projects when there are so many more neglected priorities in the sector.</p>
<p>&nbsp;</p>
<h2>Where to Put That Money Instead</h2>
<p>I’m admittedly biased on this one, but I believe strongly that <b>our field has badly underinvested in knowledge.</b> Annually, according to the Foundation Center figures cited above, <a href="http://www.giarts.org/sites/default/files/28-1-vital-signs.pdf">just 2% of foundation arts grant dollars and 0.7% of grants go to research and evaluation</a>. If my experience over the past decade is any guide, individual donors add virtually nothing to this total.</p>
<p>Even more concerning than the overall level of spending is the distribution of those resources. Existing research initiatives are heavily weighted toward primary data collection and analysis for specific, one-off projects, and most are limited in scope to a single geographic area, arts discipline, or both. As part of Createquity’s business planning process in 2016, we put together an exploratory graph of arts research initiatives, plotting them by breadth of geographic scope and where they sit on the <a href="https://en.wikipedia.org/wiki/DIKW_pyramid">spectrum</a> between isolated data-gathering and more holistic efforts at building knowledge. You’ll see that, prior to its demise, Createquity stood virtually alone in the sector in focusing on the cumulative construction of knowledge through synthesis and interpretation of existing research – and yet even Createquity’s paltry annual operating budget for this work <a href="https://createquity.com/2017/10/a-milestone-and-a-sunset-for-createquity/">proved impossible to sustain</a>.</p>
<p><a href="https://createquity.com/wp-content/uploads/2017/12/2x2-grid.png"><img decoding="async" class="aligncenter wp-image-10527" src="https://createquity.com/wp-content/uploads/2017/12/2x2-grid.png" alt="" width="640" height="380" srcset="https://createquity.com/wp-content/uploads/2017/12/2x2-grid.png 1028w, https://createquity.com/wp-content/uploads/2017/12/2x2-grid-300x178.png 300w, https://createquity.com/wp-content/uploads/2017/12/2x2-grid-768x456.png 768w, https://createquity.com/wp-content/uploads/2017/12/2x2-grid-1024x608.png 1024w" sizes="(max-width: 640px) 100vw, 640px" /></a>This is a tremendously neglected area of arts funding, and that neglect has real consequences for how we all do our work. There is <a href="https://createquity.com/2017/10/a-milestone-and-a-sunset-for-createquity/">ample evidence</a> that arts leaders are increasingly overloaded with information and need help making sense of it all. Because our field has not invested in the resources to make it possible to do so, it is likely that <b>every day we are missing out on opportunities to shape the arts ecosystem for the better because we do not understand the evidence that’s already right in front of us</b>. Indeed, the choices we are making may even be causing active harm.</p>
<p>As Createquity’s experience demonstrates, filling this gap and others related to our field’s knowledge infrastructure will require a <b>new will to invest in field-building more generally</b>. One of the persistent structural factors holding back such efforts is the difficulty of engaging individual donors in field-building conversations. Despite their importance to the arts ecosystem generally, in 15 years of working in this field I have yet to encounter a single effective strategy for organizing and communicating to individual donors about field leadership issues. Overall, individual donors represent a tremendous untapped opportunity to increase the arts field’s leadership capacity and overall potential for impact.</p>
<p>Moving on to more programmatic issues, there is a strong case to make that a worthy focus of arts philanthropy is <b>advocacy to restore arts education cuts, especially for underprivileged youth at all age levels</b>. Our judgment on this issue derives from several related observations. First, there is <a href="https://createquity.com/2016/12/everything-we-know-about-whether-and-how-the-arts-improve-lives/">a lot of baseline evidence that arts education is beneficial for children</a>, especially for those who have not yet entered formal schooling. Second, we know that in the United States, <a href="https://www.arts.gov/sites/default/files/2008-SPPA-ArtsLearning.pdf">arts education cuts have disproportionately fallen on low-income families and black and Latino children</a>. Finally, we have some <a href="https://createquity.com/2016/12/everything-we-know-about-whether-and-how-the-arts-improve-lives/">glimmers of evidence</a> that disadvantaged children <i>benefit</i> disproportionately from <a href="https://createquity.com/2014/10/the-impact-of-museum-field-trips-on-students/">exposure to arts education</a>. These factors, combined with the incredibly broad reach of arts education as compared with other types of arts interventions, suggest that evidence-based arts funders will find arts education of great interest. With that said, we should add the caveat that it is an arena already receiving a lot of attention, which may mean that much more work is necessary to create the political conditions for donor impact.</p>
<p>Speaking of evidence, Createquity’s <a href="https://createquity.com/2016/12/everything-we-know-about-whether-and-how-the-arts-improve-lives/">review of the literature on the wellbeing benefits of the arts</a> found that some of the strongest available research indicates that <b>older adults and adults in clinical settings</b> can benefit disproportionately from the arts. <a href="https://createquity.com/2016/11/engaging-with-the-arts-has-its-benefits/">Participatory activities like singing, in particular</a>, help to reduce anxiety and depression, improve subjective wellbeing, and even fend off the onset of dementia. And when it comes to attendance, according to the<a href="https://www.arts.gov/sites/default/files/when-going-gets-tough-revised2.pdf#page=46"> NEA’s research</a>, nearly a quarter of adults aged 55 and older in persistent poor health were interested in going to an exhibit or performance in the past year but were not able to, which is a greater percentage than any other demographic examined in the report. This appears to be a highly neglected focus area; I am not aware of arts programs at any foundations in the United States with more than $1 billion in assets that have older adults or people in hospitals as the primary target audience.</p>
<p>Finally, on a more speculative note, it seems likely that the health of the arts ecosystem in the United States and beyond is more generally tied up with the <b>health of the social safety net</b> in those places. Many of the problems in the arts are reflections of larger issues that affect wide swaths of society. While the details of how they play out in the arts may be unique to the field, we can’t hope to solve them by focusing solely on our sector. When Createquity began developing a formal research agenda three years ago, I assured my colleagues on the editorial team that if our inquiry were to reveal that the most important issue in the arts is not an arts issue at all, they could count on me to make that case. Sure enough, after a decade of closely observing trends and shifts in arts policy, I’m more confident than ever that we are wasting our time if we are not taking society-wide issues like health care, wealth inequality, rapid technological progress, and structural racism into account when we develop arts and culture policy. We would do well to shift our working assumptions such that we believe an issue affecting the arts is <i>not </i>specific to the arts until proven otherwise, <i>and therefore the solution to the issue is likely to live outside the arts as well</i>. How can we work more effectively across issue-area and industry silos to make unified progress on these challenges that affect us all so deeply?</p>
<p>&nbsp;</p>
<h2>Suggestions for Individual Donors This Holiday Season</h2>
<p>Createquity has always focused on the broad strokes of arts policy and philanthropy, and we’ve never positioned ourselves as a source of recommendations for individual charities to support. Still, every once in awhile I get requests to make those recommendations, particularly from people who don’t know the arts field very well and do not have strong existing commitments to specific organizations.</p>
<p>Although our recommendations are not as strongly rooted in evidence as those of, say, <a href="https://www.givewell.org/">GiveWell</a>, we do have a few ideas for donors whose primary area of concern is the United States:</p>
<ul>
<li><b>If you are interested in knowledge-building and field leadership issues in the arts</b>, we recommend supporting <a href="http://www.giarts.org/"><b>Grantmakers in the Arts</b></a>. GIA is the only entity deeply engaging grantmakers across disciplines, geographies, and sector boundaries, and is therefore best positioned to make strides organizing this constituency for greater impact. GIA has an existing knowledge-building function that we would like to see become significantly more robust. We’ve been pleased to see that the organization has begun engaging more foundation trustees in recent years, as well as more arts grantmakers outside the United States. In addition, it might be a good thing for the field if more individual donors, especially high-net-worth donors, were part of GIA’s revenue base and governing constituency.</li>
<li><b>If you are interested in supporting arts education nationally</b>, a donation to the <b>Kennedy Center</b> for the national <a href="http://turnaroundarts.kennedy-center.org/"><b>Turnaround Arts program</b></a> may not be a bad idea. An evaluation of Turnaround Arts from several years ago <a href="https://createquity.com/2015/10/white-house-artists-in-the-school-house/">offered reasonably promising evidence</a> for the effectiveness of its ambitious model (which uses arts integration as a holistic strategy to “turn around” failing schools), and the program has since expanded considerably. <a href="http://www.giarts.org/article/arts-education-funders-coalition">GIA</a> and <a href="https://www.americansforthearts.org/by-topic/arts-education">Americans for the Arts</a> have national arts education advocacy initiatives, though we are not in a position to judge their effectiveness. <a href="http://www.aep-arts.org/">Arts Education Partnership</a> is a national arts education leadership organization that also has a research database called <a href="http://www.artsedsearch.org/">ArtsEdSearch</a>.</li>
<li><b>If you are interested in supporting arts opportunities for older adults or in clinical settings</b>, several organizations in the US and UK have programs with solid evidence behind them, including <a href="http://www.timeslips.org/">TimeSlips</a>, <a href="http://www.estanyc.org/">Elders Share the Arts</a>, and Sing for Your Life’s <a href="http://www.singforyourlife.org.uk/silver-song-clubs">Silver Song Clubs</a>.</li>
<li><b>If you are interested in supporting organizations in your local area</b>, consider that smaller, grassroots arts organizations, particularly those rooted in communities of color, are <a href="https://createquity.com/2016/08/making-sense-of-cultural-equity/">more likely to be under-resourced relative to the benefit they are capable of providing</a>. If you are not from the community that leads the organization you’re interested in supporting, however, do your homework first to confirm that your help is wanted before you offer it. Many local communities also have well-regarded arts education initiatives, such as <a href="https://www.bigthought.org/">Big Thought</a> in Dallas and <a href="https://ingenuity-inc.org/">Ingenuity, Inc.</a> in Chicago.</li>
<li>Finally, while not a donation, we strongly suggest supporting <a href="https://www.artsjournal.com/"><b>ArtsJournal</b></a> by purchasing a <a href="https://www.artsjournal.com/subscribe-to-ajs-premium-newsletters">premium email subscription ($28/year)</a> or <a href="http://www.artsjournal.com/about-aj-classifieds">classified advertising</a>. ArtsJournal is a crucial news aggregation resource that has been the source of more than half the links offered in <a href="https://twitter.com/createquity">Createquity’s Twitter feed</a> and monthly <a href="https://createquity.com/category/newsroom/">Newsroom articles</a> over the past several years. Its content is generated from following <a href="https://www.artsjournal.com/sources">hundreds of both mainstream and niche media publications</a> and methodically curating the most relevant and thought-provoking content, six days a week, 52 weeks a year. Information resources like these are notoriously fragile in the digital era, and ArtsJournal is no exception: founder Doug McLennan has seemingly not taken a vacation from it in the ten years that Createquity has existed. Supporting ArtsJournal is a great option in particular for small-dollar donors who are not itemizing their deductions.</li>
</ul>
<p>As much as we wish we could, we are unfortunately not in a position to make recommendations regarding charities outside of the United States at this time. We would love to see someone else take on that challenge, however!</p>
<p>&nbsp;</p>
<h2>Parting Thoughts</h2>
<p>To be a philanthropist, whether the money is yours or simply has been entrusted to you, is a remarkable privilege in every sense of the word. The world is probably never going to see the day when literally everyone seeking to make the world a better place through the arts does so strategically and wholly without regard to self-interest. But the more we can nudge individuals, organizations, and actions in that direction, the more meaningful all of our work will become.</p>
<p>The magic of knowledge is that it is highly leveragable. What you have just read is a summary of a decade of inquiry into the inner workings and external context of the arts ecosystem. If the insights from that exercise ultimately guide even a mere handful of important decisions by well-placed individuals, it will all have been worth it in the end.</p>
<p>Until then, in this season of holiday generosity, and for many more on the horizon, we wish you happy giving and many happy (impact-adjusted) returns.</p>
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		<item>
		<title>Capsule Review: Do Donors Care About Results?</title>
		<link>https://createquity.com/2017/08/capsule-review-do-donors-care-about-results/</link>
		<comments>https://createquity.com/2017/08/capsule-review-do-donors-care-about-results/#respond</comments>
		<pubDate>Mon, 21 Aug 2017 16:13:03 +0000</pubDate>
		<dc:creator><![CDATA[Talia Gibas]]></dc:creator>
				<category><![CDATA[Insider]]></category>
		<category><![CDATA[arts philanthropy]]></category>
		<category><![CDATA[capsule review]]></category>
		<category><![CDATA[cultural asset mapping]]></category>
		<category><![CDATA[nonprofit sector]]></category>

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		<description><![CDATA[A US study find that foundation contributions decrease as organizations’ audiences and web viewerships grow.]]></description>
				<content:encoded><![CDATA[<div id="attachment_10299" style="width: 570px" class="wp-caption aligncenter"><img decoding="async" aria-describedby="caption-attachment-10299" class="wp-image-10299" src="https://createquity.com/wp-content/uploads/2017/08/Money-300x201.jpg" alt="Money" width="560" height="375" srcset="https://createquity.com/wp-content/uploads/2017/08/Money-300x201.jpg 300w, https://createquity.com/wp-content/uploads/2017/08/Money-768x514.jpg 768w, https://createquity.com/wp-content/uploads/2017/08/Money.jpg 1024w" sizes="(max-width: 560px) 100vw, 560px" /><p id="caption-attachment-10299" class="wp-caption-text">&#8220;Money,&#8221; by Flickr user Clayton</p></div>
<p><b>Title: </b>Do Donors Care About Results? An Analysis of Nonprofit Arts and Cultural Organizations</p>
<p><b>Author(s)</b>: Cleopatra Charles and Mirae Kim</p>
<p><b>Publisher</b>: Public Performance and Management Review</p>
<p><b>Year</b>: 2016</p>
<p><b>URL</b>: <a href="http://www.tandfonline.com/doi/abs/10.1080/15309576.2015.1137775?journalCode=mpmr20" target="_blank">http://www.tandfonline.com/doi/abs/10.1080/15309576.2015.1137775?journalCode=mpmr20</a></p>
<p><b>Topics</b>: Cultural Data Project, nonprofit success metrics, philanthropy</p>
<p><b>Methods</b>: Analysis of attendance, website engagement, and financial data from a subset of arts and culture organizations that complete Cultural Data Profiles between 2005 and 2015</p>
<p><b>What it says</b>: This study examines whether nonprofit arts organizations with better “performance outcomes” – defined by higher attendance numbers, audience “awareness of arts and culture activities” (measured through website visits), and “increased access to diverse audiences” (measured through the number of free tickets provided) – receive more contributions than other arts nonprofits. It also examines whether nonprofit arts organizations with lower overall fundraising costs (measured through the ratio of development expense to dollars raised) receive more contributions than organizations that spend more to bring money in the door.  The authors find that foundation contributions decrease as organizations’ audiences and web viewerships grow. The impact of audience growth on individual donations is also negative but much smaller, while the impact on corporate donations is not statistically significant. The relationship between fundraising expense and donations is similarly split, but in the opposite direction: as organizations spend more per fundraised dollar, foundation giving goes <i>up</i>, while individual and corporate donations are not visibly impacted.</p>
<p>In discussing these findings, the authors conclude that certain performance outcomes for arts organizations have little to no relationship to their success with donors; in fact, “better performance outcomes in terms of increased awareness and attendance have a negative rather than a positive influence on charitable giving,” specifically related to foundations.</p>
<p><b>What I think about it</b>: It’s tempting to get hung up on this study’s limitations – for example, its dubious use of attendance numbers and website visits as proxies for success, it’s reliance on self-reported Cultural Data Project (CDP) data, and it’s lack of a random sample. The latter point is particularly problematic because it’s difficult to glean the total sample size of the organizations analyzed. The authors note they only focus on organizations with audited financials (which excluded a whopping 52% of the overall pool) and further removed organizations with no expenses, revenue, government support, website visitors, or free tickets. Far from examining a cross-section of arts nonprofits in the United States, this study is focused on about half of organizations that submitted CDP profiles – meaning they are also located in one of the 12 states (including the District of Columbia) that have active CDP partnerships. Only one of those states (California) is located on the West Coast. None are in the South or Pacific Northwest.</p>
<p>Furthermore, just because such correlations exist in the CDP dataset doesn’t mean donors are making decisions based on the metrics the authors examine. There is no way to know whether foundations in the regions studied were closely following attendance rates at the organizations they funded, to say nothing of website traffic. To be fair, the authors acknowledge most of these problems, and they call for further research to better examine the relationship between organizational performance, fundraising, and donor behavior. That said, drawing firm conclusions from this study is difficult. What does seem clear is that a) foundations in the regions where CDP is used appear to behave differently from corporate and individual donors; and b) that behavior implies they are more likely to decrease their support as an organization builds a larger audience base. Similarly, foundations in those regions are more likely to respond positively to organizations that spend more money on fundraising.</p>
<p><b>What it all means: </b>Given the unique role that foundations play in the nonprofit arts ecosystem as gatekeepers and, oftentimes, thought leaders, this study raises several intriguing questions about the extent to which they actually respond to the metrics of success to which they ask their grantees to adhere. It’s very possible that most funders eschew attendance and website data altogether, and focus on different outcomes that are tied to their own theories of change. It’s also possible (though not likely) that they are easily charmed by development officers and/or fundraising galas. Whatever the case may be, it’s worth noting that their decisions do not align with individual or corporate donors. Perhaps that’s how it should be; perhaps it indicates a flaw in how most foundations decide who to support. Without more research into the questions the authors raise – and more comprehensive datasets with which to analyze them – it’s difficult to know.</p>
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		<title>It&#8217;s Time to Break Arts Philanthropy Out of Its Silo</title>
		<link>https://createquity.com/2017/02/its-time-to-break-arts-philanthropy-out-of-its-silo/</link>
		<comments>https://createquity.com/2017/02/its-time-to-break-arts-philanthropy-out-of-its-silo/#comments</comments>
		<pubDate>Thu, 02 Feb 2017 16:47:31 +0000</pubDate>
		<dc:creator><![CDATA[Ian David Moss]]></dc:creator>
				<category><![CDATA[Analysis]]></category>
		<category><![CDATA[arts philanthropy]]></category>
		<category><![CDATA[silos]]></category>
		<category><![CDATA[wellbeing]]></category>

		<guid isPermaLink="false">https://createquity.com/?p=9760</guid>
		<description><![CDATA[Connecting arts goals to a foundation’s larger vision can make support for the arts more targeted and impactful.]]></description>
				<content:encoded><![CDATA[<div id="attachment_9764" style="width: 610px" class="wp-caption aligncenter"><a href="https://www.flickr.com/photos/davedude/83043869/" rel="attachment wp-att-9764"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-9764" class="wp-image-9764" src="https://createquity.com/wp-content/uploads/2017/02/83043869_49a2cb473b_o-1024x668.jpg" alt="&quot;silo&quot; by Flickr user davedude" width="600" height="391" srcset="https://createquity.com/wp-content/uploads/2017/02/83043869_49a2cb473b_o-1024x668.jpg 1024w, https://createquity.com/wp-content/uploads/2017/02/83043869_49a2cb473b_o-300x196.jpg 300w, https://createquity.com/wp-content/uploads/2017/02/83043869_49a2cb473b_o-768x501.jpg 768w" sizes="auto, (max-width: 600px) 100vw, 600px" /></a><p id="caption-attachment-9764" class="wp-caption-text">&#8220;silo&#8221; by Flickr user davedude</p></div>
<p><em>(<a href="https://ssir.org/articles/entry/its_time_to_break_arts_philanthropy_out_of_its_silo">Originally published</a> by Stanford Social Innovation Review, December 22, 2016; reposted here with permission. This piece was conceived before the recent election, but is perhaps even more relevant in light of the events of the past few months. -IDM)</em></p>
<p>About a decade ago, as a fresh-faced summer intern halfway through my MBA program at the Yale School of Management, I found myself given the extraordinary task of helping one of the largest foundations in the United States map out the first-ever logic model for its $20 million a year performing arts program. My colleagues on the program team had come up with a set of well-articulated impacts that spoke to the foundation’s goals for its performing arts grants. But we had not tried to connect these impacts to the foundation’s overarching mission statement emphasizing human welfare. Shouldn’t we close that gap, I wondered? When I brought it up, I was gently told that wasn’t part of the plan, and being the fresh-faced intern that I was, the matter quickly dropped.</p>
<p>That summer internship was one of the highlights of my career. Every day I was in an environment that crackled with intellectual curiosity and constantly reminded me how much I still had to learn about the world. The logic model was finished, and ultimately helped guide the distribution of hundreds of grants over several years. And yet that conversation about tying program-level impacts to organization-level objectives somehow felt unresolved to me, even years later. I didn’t have the vocabulary for it at the time, but I was sure there was a way to treat investments in the arts as part of an integrated strategy to make the world a better place, without casting aside what makes the arts unique.</p>
<p>Over the past half-century, a few theories have sprung up to describe how and why we support the arts through philanthropy and government subsidy. These theories generally argue that participation in arts and culture generates certain benefits to individuals and societies, and that philanthropic support is necessary to activate or maximize those benefits. Scholars have further divided these benefits into <a href="https://www.khanacademy.org/partner-content/wi-phi/wiphi-critical-thinking/wiphi-fundamentals/v/intrinsic-extrinsic-value">two categories</a>: intrinsic—the notion of “art for art’s sake” or the idea that support for the arts is self-justifying—and instrumental—the idea that arts activities have non-arts-related outcomes that are valuable in their own right.</p>
<p>One problem with the intrinsic vs. instrumental distinction is that it’s <a href="https://www.arts.gov/art-works/2011/taking-note-intrinsic-versus-instrumental-benefits-art">something of a false dichotomy</a>: Interrogate a dedicated arts supporter about why she believes funding is important, and you’ll eventually uncover reasons that are not specific to the arts. The arts teach us how to see and understand the world? So do history books. The arts provide a space for exercising creative potential? So does electrical engineering. One could reasonably argue that all the benefits of the arts are instrumental at some level, in service of some larger goal. But what is that goal, exactly? When we try to maximize the good in the world, what does that actually mean in practice?</p>
<p>A loose community of scholars has been <a href="https://createquity.com/2015/08/part-of-your-world-on-the-arts-and-wellbeing/">trying to answer precisely that question</a> for the past 70 years or so. Drawing from fields as diverse as economics, public health, psychology, and philosophy, and variously using the terms “wellbeing, “quality of life” and other variants, this area of inquiry developed in large part as an effort to provide holistic alternatives for conceptualizing and measuring human progress and vitality, in contrast to narrow, siloed metrics such as gross domestic product (GDP). For a field so young and diffuse, it has nevertheless had some notable impacts on social policy. The nation of Bhutan was one of the first government entities to explicitly reject GDP, adopting the novel concept of <a href="https://en.wikipedia.org/wiki/Gross_National_Happiness">gross national happiness</a> in its wake. Nobel-winning economist Amartya Sen created the United Nations Human Development Index in accordance with his <a href="http://www.iep.utm.edu/sen-cap/">theory of human capabilities</a>—the notion that what makes life worth living is the freedom to be the person you want to be. Other attempts to construct integrated measures of social progress include the <a href="http://www.un.org/sustainabledevelopment/sustainable-development-goals/">Sustainable Development Goals</a>, the <a href="http://www.well-beingindex.com/">Gallup-Healthways Well-Being Index</a>, the <a href="http://www.oecdbetterlifeindex.org/">OECD Better Life Index</a>, and the <a href="https://en.wikipedia.org/wiki/Quality-adjusted_life_year">quality-adjusted life year indicator</a>. The UK government <a href="http://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/articles/measuringnationalwellbeing/sept2016">has gone especially far</a> in adopting “subjective wellbeing,” which is basically equivalent to self-reported happiness, in its own policy apparatus. Meanwhile, the burgeoning effective altruism movement has made efforts to institutionalize the practice of “<a href="https://causeprioritization.org/Cause%20prioritization">cause prioritization</a>” based on clear-headed analysis of how to do the most good.</p>
<p>Even though the various examples above represent a lot of variation, they are variations on a singular theme: What is most important in this world? They all attempt to answer that question from a holistic perspective, and share a willingness to make a connection between measurable, real-world outcomes and philosophical ideals.</p>
<p>Which brings us back to our logic model for the performing arts. If we think of wellbeing as a holistic measure of what is good in the world, then we can justify philanthropic support for the arts ever so simply by: 1) the arts’ contribution to wellbeing; and 2) philanthropy’s enabling of that contribution. Seen this way, the false distinction between intrinsic and instrumental benefits falls away, and instead we can think of them as <a href="https://createquity.com/2015/03/a-new-way-to-think-about-intrinsic-vs-instrumental-benefits-of-the-arts/">direct and indirect contributions to wellbeing</a>.</p>
<p>Like the dialogue about defining specific wellbeing and quality-of-life metrics, the research literature establishing the arts’ contribution to wellbeing is very much in active development. But already, we know for example that <a href="https://createquity.com/2016/11/engaging-with-the-arts-has-its-benefits/">participatory arts activities provide myriad benefits to older adults</a>, improving subjective wellbeing along with more concrete capabilities such as motor skills, cognition, and reduced dementia risk. As other benefits become well-established through better research, the role that the arts have to play in enabling a better world will become clearer to all.</p>
<p>My suggestion as fresh-faced intern to integrate arts outcomes into the foundation’s overarching strategy might have come 10 years too early. Today, however, there is evidence that others—including the Ford, Kresge, and Irvine Foundations—are starting to think beyond silos for their arts funding. As a society, we had good intuitive instincts when we deemed the arts worthy of philanthropic attention. Yet we didn’t engage in the analytical process of understanding exactly why. Now, we collectively have an opportunity to do just that, and make our support of the arts more targeted and impactful as a result. The entire world will benefit if we do so.</p>
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