• The IRS has proposed a new Form 1023-EZ, which would allow some smaller organizations to apply for tax-exempt status with much less hassle. The National Association of State Charity Officials has objected out of a belief that completing the longer form is an important educational experience and a fear that applications could skyrocket.
• A report from the R Street Institute argues that copyright terms, which have ballooned while patent terms have barely inflated, are so long that they are not only stifling to creativity but actually unconstitutional.
• With the recent passing of Cornelius Gurlitt, hoarder of over 1,000 works of art suspected to be looted from Nazis, the official investigation into the provenance of the artworks in his collection ended. Unexpectedly, Gurlitt bequeathed his trove to the Kunstmuseum Bern, reopening legal and ethical questions surrounding the new acquisitions.

MUSICAL CHAIRS

• MacArthur President Robert L. Gallucci will step down when his term expires on July 1. Julia Stasch, VP for US programs, will act as interim president while the board searches for a replacement.
• Jarl Mohn, chairman of Southern California Public Media and former MTV executive, is the new head of National Public Radio. Mr. Mohn has the enviable charge of pulling NPR out of its deficit, sowing harmony among member stations, and figuring out how to fundraise in the post-pledge drive era.

ALL ABOUT THE BENJAMINS

• The Knight Foundation has awarded Theaster Gates $3.5 million to transform an office space on the south side of Chicago into an incubator “where neighborhood residents will come together with artists, designers and urban planners to work on revitalization projects through art.”
• Reflecting on the Hewlett Foundation’s recent announcement of the end of its Nonprofit Marketplace Initiative, Tony Proscio wonders whether the funder pulled the plug too soon. Meanwhile, in another frank self-assessment, Hewlett undertook a field scan of evaluation spending and found room for improvement in its own practice, particularly regarding embedding evaluation strategies in the early life of programs. As a result, the foundation plans to up its evaluation spending from roughly 1.2 percent to 2.3 of its overall grant budget.
• Bad news for “cultured professionals” looking to buy art at auctions: the average price for fine art has doubled over just four years, leaving many to settle on prints. And in other art market news, between 2012 and 2013 online art purchases increased 83 percent. Total sales have finally exceeded $1 billion.
• Angie Kim summarizes the origins and history of the 5 percent payout rule for foundations and argues a variable payout rate, based on a foundation’s performance over 25 years, would better ensure that foundations’ wealth does not grow disproportionately to their support of the greater good.

IN THE FIELD

• The San Diego Opera’s financial situation is looking up: in the last two weeks, the organization has raised more than $1 million through a crowdfunding campaign and received a $500,000 matching gift challenge – although, in the other column, the city is expected to cut its funding for the opera by $223,000. The Opera’s new board leadership’s desire to save the company now has the vocal support of the members of the San Diego Opera Association and the solo singers’ union. They aren’t out of the woods yet, though, since a 2015 season will still require about $2.7 million in additional funds.
• After seven years, the Seattle Dance Project is shutting down as artistic director Timothy Lynch moves to Ohio’s BalletMet. And the Green Bay Symphony Orchestra‘s next season will be its last after over 100 years of performances in Wisconsin.
• Say what? The Colorado Symphony Orchestra will host a series of bring-your-own marijuana events in collaboration with Edible Events, a pro-pot company, as a way to be more inclusive and raise money for the orchestra.
• We have no idea how much Comcast and Verizon are charging Netflix for more direct access to users’ homes – and that’s not a good thing.
• Some remarkable numbers from the academic field about the extent to which hiring for administrators has outpaced the hiring of professors. A similar dynamic to arts organizations, perhaps?

BIG IDEAS

• As Piketty-mania continues to drive interest in income inequality, a comparison of the prices of various goods in the United States over the last ten years yields grim insights about its effects. While the cost of education and health care — i.e. services that can’t be outsourced — has risen dramatically, the cost of electronics, clothing, and other personal goods has fallen. One commentator sums things up nicely: “Prices are rising on the very things that are essential to climb out of poverty.”
• Mania being what it is, it’s not surprising that some conversations about income inequality have taken an interesting turn, suggesting that the widening gap between rich and poor may be good for artists. As at least one author has pointed out, that argument fails to demonstrate that the arts are “more dynamic under high inequality than… under conditions of low inequality,” and even if great art has been produced in awful social conditions, that by no means justifies those conditions. Add to that mix confusion about the difference between rising wealth creation and wealth inequality, and you’ve got a growing debate on your hands.
• Design methodology is increasingly used to solve unwieldy social problems at a policy level in the European Union, but the US has been slow to catch on. The National Endowment for the Arts contracted the Design Council to organize a webinar addressing how to use design “to create public services around the people who use them, to introduce new methods into the civil service skill set, and as a tool to aid the process of public policy development” as part of the Learning from Abroad series.
• The National Committee for Responsive Philanthropy has launched Philamplify, a collection of in-depth assessments of the top foundations in the country. Assessments of the Lumina Foundation for Education, William Penn Foundation, and Robert W. Woodruff Foundation are included at the moment, though the site plans to add about one hundred more within the next few months. Website visitors can indicate whether they agree with Philamplify’s recommendations for the foundations and add comments.

RESEARCH CORNER

• Arts marketing specialists LaPlaca Cohen released the sixth edition of their CultureTrack report on participation in cultural events and held a panel discussion about it. The report characterizes American audiences as promiscuous (we range across media) and social (we hate to go alone, and personal recommendations and invitations are among the main drivers of participation). The verdict on attendance is mixed: more people are attending museums, musical theater, and classical music each year (though not straight plays, theater, or opera), but overall they are going less often.
• A new study by researchers at the London School of Economics concludes that engaging in the arts makes people happy – as happy as if you paid them $100-150 per month. Michael Rushton, as is his wont, argues caution.
• The NEA has an update on three current projects that aim to support continuous learning in the field: 1) an assessment of the artistic excellence of grantees’ work products, 2) a pilot survey of grantee organizations’ audiences, meant to measure the extent to which they were engaged and moved by arts experiences, 3) a new evaluation by the Urban Institute of the the NEA’s Arts & Livability Indicators.
• inBloom, a massive educational data collection effort supported by the Gates Foundation, is shutting down following mounting concerns voiced by parents regarding their children’s privacy. Besides serving as a cautionary tale of how philanthropic efforts can stumble when they lack appropriate buy-in, the example may portend a backlash against collecting data on children — and arts audiences of all types.
• Of 7,000 Victorian novels, only a few dozen are read today. How does an author pass the test of time? Salon interviews cultural historian Franco Moretti, who uses big data to analyze bad books.
• Speaking of not getting read today, do you ever feel like posting reports online is adding to a virtual wasteland of PDFs that will never be opened? You’re probably right. The World Bank decided to test that feeling by running analytics on its website and discovered that a whopping one-third of its research reports have never, ever been downloaded. Only 13% were downloaded more than 250 times.

ETC.

• Positive reviews on sites like Yelp and Amazon translate into real money for businesses – even though as many as a third of reviewers may be fake and the real ones may not be representative of customers.
• The Gray Lady suddenly appears to find itself in the business of hiring actors, thanks to a new “Verbatim” series that features “recreations of actual events from the halls of law and government” by “transform[ing]… legal transcripts into dramatic, and often comedic performances.” The first one comes courtesy of a 2010 lawsuit involving photocopying public records. It has to be seen to be believed.

• Americans for the Arts’s Narric Rome provides a vital update on the reauthorization of the Elementary and Secondary Education Act (ESEA, also known as No Child Left Behind), and what it all means for arts education, as it makes its way through the Congressional committee process.
• Proposed copyright legislation called the Stop Online Piracy Act (SOPA) is mobilizing a lot of opposition from the “geek” community – and within the arts.
• A transportation bill making its way through Congress is potentially bad news for public art.
• This isn’t good: citing “budgetary constraints,” the NEA will no longer accept consortium grant proposals in FY13. It’s one organization, one grant from here on out.

ART AND THE GOVERNMENT – INTERNATIONAL

• The European Commission is betting big on culture, with a €1.8 billion ($2.4 billion) commitment to film, visual, and performing arts over six years under the name “Creative Europe.” ARTINFO is calling it “the world’s largest-ever cultural funding program,” although that seems doubtful once you take the six-year time horizon and inclusion of film into account. For example, in 2007 alone, Germany allocated more than 1.2 billion euros to culture. (via quiet.quiet.quiet.)
• Arts Council England is cracking down on unpaid internships among its grantees (they’re already illegal in the UK). Good for them.
• The Toronto Arts Council is facing a 10% cut.

PHILANTHROPY NOTES

• It’s giving season, and that means the advice is flying fast and furious. The Wall Street Journal is out with its annual special section on philanthropy, which features some stupid debates like “Should Charities Act Like Businesses?” (Umm, you mean like Lehman Bros.?) This year, as in the past, I plan to entrust my non-arts giving to GiveWell, which conducts the most comprehensive and intellectually honest research on giving opportunities I’m aware of anywhere, a veritable wonky wet dream. GiveWell just released its top recommendations for 2011, and they include two disease control charities, Against Malaria Foundation and Schistosomiasis Control Initiative.
• Philanthropy futurist Lucy Bernholz is out with her annual forecast for philanthropists and social investors, Blueprint 2012. Here’s Lucy on the importance of open data as the building block for the future.

RESEARCH CORNER

• The National Endowment for the Arts is convening a multi-agency task force to fund and promote research on the arts and human development, and has already published a white paper on the subject. This level of engagement with other agencies of government, centering on Health & Human Services, is unprecedented for the NEA’s research department, and has the potential to turn into a big deal if they stay on it. Sunil Iyengar has more.
• Whaddya know? Two of the ten happiest jobs in the United States, according to the highly respected General Social Survey, are authors (#4) and artists (#7). In fact, every single one of the top 8 exist largely or entirely within the nonprofit and public sectors.
• Speaking of happiness, a new study from the co-creator of the “Mappiness” iPhone app, who happens to be a Ph.D. candidate at the London School of Economics, attempts to determine the association between various kinds of (self-reported) activities and (self-reported) happiness for the app’s UK-based users. Clay Lord did some honest-to-goodness journalism and found out that four out of the six happiest activities are arts-related. (#1 on that list, of course, is “intimacy/making love.”) Linda Essig has more.
• WESTAF has published the proceedings of a symposium called “Engaging the Now” featuring the participation of leading arts research lights Ann Markusen, Julia Lowell, and Steven Tepper among others.
• Theatre Communications Group has published the latest version of Theatre Facts.
• Alex Tabarrok on the problems of regression-based studies regressing to the mean. (Translation: small sample size can be a problem even when your sample size isn’t that small.)

MUSICAL CHAIRS

• Adrian Ellis is stepping down as executive director of Jazz at Lincoln Center to return to his consulting firm, AEA Consulting.
• And the arts journalism attrition continues: the Denver Post has offered buyouts to a number of longtime staffers, including at least two arts critics.

IN THE FIELD

• Things that make you go hmm: Knoedler & Company, a 165-year-old New York art gallery that was one of the most prestigious in the country, abruptly ceased operations last Wednesday. The next day, a lawsuit was filed by a collector claiming that Knoedler & Company sold him a fake Jackson Pollack for $17 million. ARTINFO has more.
• Well, it was just a matter of time: Occupy Wall Street Occupied Lincoln Center, with composer Philip Glass joining in a protest outside a performance of his own opera, Satyagraha.
• Videos from the National Arts Marketing Project conference are now available on Livestream.
• The blog series from the Americans for the Arts Emerging Leaders Council on notable trends in the field continues with Gabi Jirasek’s entry on the Grand Rapids Lip Dub project and Ebony McKinney’s analysis of arts incubators.
• Some blog salons going on now: Grantmakers in the Arts is having a discussion of Holly Sidford’s recently published cultural equity manifesto “Fusing Arts, Culture, and Social Change” from December 6-16, and Americans for the Arts is hosting its first ever local arts agency salon December 5-9.
• Rachael Wilkinson writes up some of the crowdfunding options available to artists. It’s worth noting that Fractured Atlas has partnerships with both IndieGoGo and RocketHub that allow fiscally sponsored projects to receive tax-deductible contributions through those platforms. For for-profit crowdfunded concepts, a bill making its way through Congress would loosen the investor regulations that currently apply.

ETC.

• The Pittsburgh Steelers have a unusual way of selling season tickets: fans can buy a “personal seat license” that gives them theright to buy season tickets for that particular seat. These PSLs are like real estate – they are durable goods, so therefore they increase in value over time. And boy, are they a hot property – Freakonomics reports that on average, prices have increased over 700% in ten years. And you thought dynamic pricing in the arts was bad! (Actually, could this be applied to the arts?)

PUBLIC POLICY AND THE ARTS – FEDERAL

• The State Department, though the New England Foundation for the Arts, is funding a major new cultural diplomacy program aimed at bringing foreign artists to small and midsize cities across the United States.
• Alyssa Rosenberg apparently wasn’t done going through the arts records of the 2012 Presidential candidates; here’s her take on Barack Obama.
• The Future of Music Coalition is really developing a top-notch policy shop within its ranks. No other arts service organization I know of is as on top of current (non-NEA-related) legislation as they are. Policy Fellow Liz Allen takes a thorough look at a proposal put forward by Senator Amy Klobuchar (D-MN) that would make streaming a work without the copyright owner’s permission a felony in certain circumstances.
• Some big-name fashion designers are agitating for copyright protection of their works. I haven’t yet formed an opinion, but I have yet to read a commentary from outside of the fashion industry who thinks this is a good idea.
• Judith Dobrzynski reports that the Smithsonian’s proposed budget appropriation for FY2012 has suffered little impact from the Hide/Seek controversy late last year.
• As mentioned, the same House of Representatives budget has a 16% cut for the NEA included for next year. But at least the House defeated an amendment that would have cut an additional $10.6 million.
• Scott Walters has been hard at work analyzing the proportion of the NEA’s recently-announced Our Town grants that went to small and rural communities. Bottom line: although there were some out-of-the-way areas that received grants (more than I personally expected to see, in fact), Scott shows both that the overall distribution is still weighted towards big cities even after population size and the number of applications from different-size communities are taken into account. A follow-up post offers some interpretations.

PUBLIC POLICY AND THE ARTS – STATE AND LOCAL

• Denver has consolidated its Office of Cultural Affairs within a larger city agency, and some people are not happy about it.

PUBLIC POLICY AND THE ARTS – INTERNATIONAL

• More on the Dutch arts cuts, which are apparently supported by 60% of the population despite the fact that the burden will fall mostly on local organizations.
• An expansion of the comprehensive Compendium of Cultural Policies and Trends in Europe will include countries in Asia. When is the USA going to get in on this?
• The invaluable Christopher Madden has penned a helpful two–part rundown of New Zealand’s cultural policies.

RESEARCH CORNER

• The NEA has released a new research note looking at the proportion of the national GDP accounted for by (mostly for-profit) cultural industries including performing arts, museums, movies, music, publishing, and, uh…sports.
• CEOs for Cities finds a clear connection between walkability and real estate values. It would be an interesting research project to disentangle the effects of walkability from arts amenities in examining their shared influence on housing prices.
• Missed this nugget before: is it true that we’ve lost 50% of the arts journalism jobs in America over the past 5-8 years? Dennis Scholl doesn’t cite a source, but if so, wow.
• Pew Research is out with a new study featuring some eye-popping stats about the disparity with which the recession affected different racial groups. The median wealth of whites dropped 16%, but 53% for blacks, 54% for Asians, and an astounding 66% for Hispanics. Hispanics in particular are concentrated in states where housing values dropped through the floor, meaning that much of the drop is from plummeting home equity (made worse by increasing consumer debt). Perhaps even more amazing is the disparity between whites, blacks and Hispanics in terms of current median wealth: the median white household had 19 times as much wealth as the median black household and 15 times the wealth of the median Hispanic household in 2009; by far the highest ratios recorded since 1984. And yes, Tommer, this is relevant to the arts. I’ve said it before and I’ll say it again: it should be no great mystery why arts institutions have a hard time reaching nonwhite audiences. Sure, it’s about the content to some extent. But really, it’s about the money. (More from the Center for Social Inclusion’s Maya Wiley.)
• Here’s some more information about the UK’s new national wellbeing measurement project. Household members will answer four questions (as part of a larger survey) about how satisfied they are with their lives generally, whether they find meaning in their activities, and how happy or anxious they felt yesterday. ReadWriteWeb’s Marshall Kirkpatrick has further commentary.

SOCIAL MEDIA AND DIALOGUE

• Barry’s Blog has another gigantic forum going on this month, this time focusing on arts education. The Hewlett Foundation’s Julie Fry is co-hosting.
• Ron Evans does us all a favor, poring through the tweets from the Americans for the Arts Convention and picking out his personal top 50. (Part I; Part II)
• Devon Smith, not surprisingly, is all over Google+.

MUSICAL CHAIRS

• Leah Krauss is the new dance program officer for the Mertz Gilmore Foundation, after having previously served as a consultant.

ETC.

• RIP Tactical Philanthropy Advisors. Long live Tactical Philanthropy!
• Boo to the vandals who robbed Silent Barn of $20,000 worth of gear earlier this month. And a reminder that if you have a performance space, you need insurance!