The Detroit Institute of Arts’s Woodward entrance. (Image courtesy the Detroit Institute of Arts)

After a two-year battle, a federal ruling to approve Detroit’s bankruptcy plan brought to an end the threat to auction off the Detroit Institute of Arts’s collection. The plan includes the “grand bargain,” an $800 million deal that partly consists of a $366 million investment from the Ford Foundation, Kresge Foundation, Knight Foundation, and other heavy-hitters. In the bargain, DIA supporters are providing funding to save Detroit’s public pensions, with the caveat that DIA be administered by an independent charitable trust, and not by the City of Detroit, which has owned the museum since 1919. While all hail these developments as positive, DIA still has a tough road to financial stability ahead. As it looks to shore up its finances and secure its future by raising its endowment to $400 million, DIA faces hefty legal bills incurred during the bankruptcy battle, and the daunting task of fundraising from donors whose pockets may have been emptied into the grand bargain. Regardless of what the future holds, the foundations will be keeping a close eye on their investment–the Knight Foundation’s Dennis Scholl has been appointed as an observer of DIA’s board.

Publisher Hachette Wins the Right to Set E-Book Prices from Amazon: In a multi-year agreement, “Big Five” publisher Hachette won the right to set prices for e-books from Amazon, which had attempted to pressure the company to price all e-books at $9.99. The retail giant suffered in the court of public opinion for its strongarm negotiation tactics, including long shipping delays of Hachette books, disallowing advance sales, and steering customers to similar books by other publishers. Some authors are calling for Amazon to be investigated on anti-trust grounds; at the same time, Amazon has questioned the need for traditional publishing houses in the digital era. While all sides seem to be breathing a sigh of relief over the deal, it seems clear that the fight isn’t over–publishers have long had a difficult relationship with digital retailers, and observers are think the next negotiation may be just as acrimonious.

Mid-Term Elections Offer Mixed Results for the Arts: In case you were living under a rock last month, we had some elections and the Democrats lost their shirts. So what does that mean for the arts? With the Republican-majority Congress, Americans for the Arts forecasts the passage of a comprehensive tax reform bill, which will likely impact charitable giving rules. The chairship of the subcommittee that oversees funding for the Arts in Education will change, while Representative Ken Calvert (R-CA) will continue to govern the subcommittee that controls the National Endowment for the Arts budget. Barry Hessenius predicts a possible attack on the NEA’s budget, given its symbolic weight for some in Congress, and recommends that arts leaders work to build stronger relationships with our elected officials. Meanwhile, at the state level, arts-friendly candidates suffered losses in Illinois, Massachusetts, and Maryland. In better news, Rhode Island passed a ballot referendum providing $35 million in bonds to renovate arts facilities in the state, and pro-arts measures passed in Palm Beach County, Salt Lake City, Scottsdale (AZ), and Middlesex County (NJ).

Three Foundations Purchase Pittsburgh’s August Wilson Center: The embattled August Wilson Center for African American Culture now rests in the hands of three foundations, which purchased it for $7.9 million from Dollar Bank, its mortgage holder. The Pittsburgh Foundation, Heinz Endowments, and Richard King Mellon Foundation had attempted to close on an $8.49 million deal by October 31, but the sale was torpedoed when a creditor appealed an earlier $200,000 judgment in the Pennsylvania Superior Court, and the foundations refused to proceed until the debt was settled. Dollar Bank was forced to move ahead with a foreclosure auction on November 3, which cleared the Center of its debt and allowed the foundations to complete their purchase.The Center plans to re-open in 2015 under new nonprofit leadership and will continue its mission as a focal point for African American arts and culture.

Obama Says the Internet Should Be Treated as a Public Utility: Net neutrality supporters got an unexpected boost from President Obama this November. The White House released a plan recommending that the Federal Communications Commission reclassify Internet broadband as a public utility under Title II of the Telecommunications Act, which proponents argue would give the FCC the increased regulatory power necessary to protect net neutrality. The president seems to agree with this line of thinking — his administration’s plan also rejects the FCC’s proposed rules to allow for paid prioritization of Internet traffic. Just after the President’s announcement, though, FCC Chairman (and Obama appointee) Tom Wheeler stated that he favored a different approach, one friendlier to the concerns of large Internet service providers like Comcast, AT&T, and Time Warner. The Washington Post speculates that Obama’s announcement may merely represent shrewd political positioning, since if the FCC enacts strong rules, and the Republican Congress votes to overturn them, a presidential veto would put Obama and the Democrats squarely in the camp of millions of voters who have asked the FCC for powerful net neutrality protections.

MUSICAL CHAIRS/COOL JOBS

• Indonesia has named the U.S.-educated Anies Baswedan as the new Minister of Culture and Elementary and Secondary Education.
• The NEA’s Director of Folk and Traditional Arts Barry Bergey will retire after 29 years of service.
• Chorus America is seeking a new President and CEO. Posted November 22, closing date December 19.
• Kansas City’s Charlotte Street Foundation is looking for a new Director of Artists’ Programs. Posted October 29, no closing date.
• The Foundation Center is hiring for a Director of Community Foundation Services position. Posted November 4, no closing date.
• The Barr Foundation seeks an Arts and Culture Program Assistant. Posted November 20, no closing date.

NEW RESEARCH OF NOTE

• A study by the U.S. Trust finds a big bump in charitable giving among wealthy donors in 2014, and projects further growth.
• New research from the Bureau of Labor Statistics shows that nonprofit employment rose during the recession.
• The BFAMFAPhD collective published Artists Report Back: A National Study on the Lives of Arts Graduates and Working Artists, which asserts that “the fantasy of future earnings in the arts cannot justify the high cost of degrees.”
• The researchers behind the Crystal Bridges field trip experiment that we reported on back in October have released another study, this time focused on high-quality theater productions.
• A report by the U.S. Department of Agriculture looks at how well rural areas with a higher proportion of “creative class” workers fared during the recession.
• Suby Raman takes a deep dive into gender representation in America’s top orchestras.
• New research from Italy indicates that those with a need for “cognitive closure” are less likely to appreciate abstract art.

• In a reversal, the FCC has drafted new net neutrality rules that critics claim are unworthy of the name: they would allow broadband companies to provide a “fast lane” for content providers willing to pay a “commercially reasonable” fee. The FCC’s public comment period opens on May 15. Related: if the Comcast-Time Warner merger is approved, “the combined company’s footprint will pass over 60% of US broadband households.”
• A belated tax tip for artists: emigrate to Mexico. Or, for those committed to staying in the US of A, consider launching a worker cooperative as a means of upping income while maintaining time for artistic pursuits. For those on the collector side, there’s always lending your new purchases to a museum in Oregon, Delaware or New Hampshire first.
• Several record companies have filed suit in New York against Pandora to secure royalties under state law for the use of recordings made before 1972, which are not protected by federal copyright. Sirius was targeted by a similar lawsuit last fall.
• Classical musicians may now have a harder time leaving and re-entering the United States thanks to a ban on ivory meant to protect African elephants.

MUSICAL CHAIRS

• Grant Oliphant, former Pittsburgh Foundation leader, will begin a new role as president at Heinz Endowments this June.
• Also in June, the Canada Council for the Arts will welcome its new CEO and president Simon Brault. Brault was previously vice-chair of Canada Council’s board before moving to the National Theatre School Montreal, and will serve in his new position for a five-year term.
• Michael Kaiser, a man who wears many hats, will add another one in co-chairman of IMG Artists, which will also involve managing a new cooperation between IMG Artists and DeVos Institute of Arts Management at the University of Maryland.
• Jonathan Fanton, former president of the MacArthur Foundation and of the New School, has been named President of the American Academy of Arts and Sciences. Former president Leslie Cohen Berlowitz resigned last July in the wake of a scandal over her compensation and qualifications.
• Lorin Dunlop will join the M. J. Murdoch Charitable trust this June as Program Director. Most recently, Dunlop was responsible for public safety grant programs of the Oregon Criminal Justice System.

ALL ABOUT THE BENJAMINS

• PonoMusic, a new high-def digital audio business, raised $6.2 million on Kickstarter to become the third-best-funded project in the site’s history. Neil Young, who started Pono to provide a higher-quality alternative to current digital formats, set the initial goal at $800,000.
• Yet another contender is trying to elbow its way into the crowdfunding game: Crowdrise, a new(ish) platform dedicated exclusively to nonprofits, just received an additional $23 million in financing.
• The Walter & Elise Haas Fund, working together with the Foundation Center and Mission Minded, has developed an open-source, free solution that any grantmaking entity can use to make its grantmaking data searchable, publishable, sharable, and fully accessible. You can see “Open hGrant for WordPress” in action on the Haas site.

IN THE FIELD

• The San Diego Opera has outlined a new fundraising strategy to avert closure and announced a meeting on Monday of its 850-person membership. It’s been a bumpy ride: half of the 58-member board has resigned; a new chair, Carol Lazier, has taken over and personally pledged $1m to save the organization; general and artistic director Ian Campbell has been placed on indefinite leave; and protests by unions and members have added financial and legal complications. The opera’s plan includes a new $1m crowdfunding campaign with a deadline of May 19; it is actually only one of several San Diego cultural institutions that have been shuttered or are imperiled.
• A closer look at the end of the Trey McIntyre Project.
• A bid by a group of philanthropic organizations to buy out Pittsburgh’s failed August Wilson Center for African American Culture was dropped, with the foundations claiming a preference on the part of the Center’s court-appointed receiver for a commercial developer.
• New York City is facing a sudden rash of failing institutions. The Incubator Arts Project is closing, citing — you guessed it — difficulties raising revenue. The Brecht Forum, a Marxist educational and cultural space, is buckling under the weight of a lawsuit for back rent. And Manhattan’s legendary Canal Street art supply store Pearl Paint has shut its doors and is mourned.
• Is an arts-centric Coursera in our future? Barry Hessenius decries the state of professional development in arts administration and calls for a virtual “one stop shop” of on-demand courses, articles, and networking/mentoring opportunities.
• A handful of arts organizations have been experimenting with a lesser-known organizational structure called the “disregarded entity,” which may offer non-profits a more flexible alternative to independence on the one hand and fiscal sponsorship on the other.
• In The Foundation Review, authors Gary Cunningham, Marcia Avner, and Romilda Justilian of the Northwest Area Foundation note declining philanthropic investment in communities of color and make a pointed call for foundation leaders to commit to reducing racial inequality. And across the pond, British comedian Lenny Henry is leading an effort to secure better representation for minorities on the BBC.

BIG IDEAS

• National Arts Strategies’s Sunny Widmann suggests arts organizations create their own Skunk Works® divisions — originally conceived by Lockheed Martin and not as stinky as the name suggests — to nurture innovate programs and practices.
• We hear a lot about the intersection between creative placemaking and gentrification, but is dealing with it just a matter of saying hi to your neighbor and identifying your privileges? At The Atlantic Cities, Daniel Hertz suggests that if we really care about gentrification, we should be paying a lot more attention to housing policy.
• Global inequality of wealth is at a 100-year high, with the infamous 1% owning half of the planet’s wealth, according to a hot new book by French economist Thomas Piketty. One consequence: “professionals have now been priced out of the [art] market and it’s shifted more toward investment bankers.”
• Barry Hessenius is looking for the next set of big ideas – and the people behind them – with another edition of the Arts Dinner-vention. Nominations are due May 15.

RESEARCH CORNER

• A music psychologist found that introducing random repetition into a piece of music makes it more appealing – and makes people think it was more likely to have been composed by a human being.
• Research suggests literary fiction can help short-circuit ethnic stereotypes.
• A new paper examines the intersections of the arts and health via case studies from Cleveland on interventions including art therapy and the artistic design of healthcare facilities.
• The NEA is out with a new report on the Education Leaders Institute Alumni Summit, a five-year effort on the part of the NEA to strengthen arts education policies at the state level. The Endowment’s Arts Education director Ayanna Hudson discusses the report in the context of the agency’s new strategy.
• A new center at Stanford will focus on meta-research in the medical sciences and examine how much publication bias — which raises questions about all research fields, including the arts — really is a problem.
• The Pew Research Center has published a new report on demographic and generational trends in America. The findings themselves are what you might expect – our population is aging, becoming more diverse, and moving away from religion; immigration and interracial marriage are on the rise; and Democrats and Republicans are at odds – but the presentation brings these and other trends to life.
• Seen any good movies at the theater lately? Probably not, according to new data on film reception by month of release as aggregated by Rotten Tomatoes and Metacritic. The numbers show that the summer and holiday seasons have the best pickings. Don’t believe it? You can play around with the data yourself.

• A consortium of City of Detroit creditors have made the first legal move towards pressuring the Detroit Institute of Arts to sell city-owned artworks to help pay for debts owed. Executive Vice President Annemarie Erickson defends the museum against Emergency Manager Kevyn Orr’s demand that the museum find one way or another to contribute $500 million in assistance to the bankrupt city.
• The California Arts Council will apply a $2-million funding windfall it received from Assembly member John Perez to several new initiatives in arts education and community improvement, including Creative California Communities, The Arts in Turnaround Schools, and Jump stARTS. In the face of a 7.6% budget cut handed down last year, the state arts council is taking a gamble on the success of these programs winning fresh credibility with policymakers and an increase in annual funding.

MUSICAL CHAIRS

• Jamie Bennett, chief of staff and director of public affairs at the NEA, will take over as executive director of the creative placemaking funder collaboration ArtPlace America starting in January. He succeeds ArtPlace’s founding director Carol Coletta, who joined the Knight Foundation back in March, and interim head Jeremy Nowak.
• After a decade serving Californians as president of the James Irvine Foundation, James E. Canales will step down in the spring to become the first president of another arts funder, Boston’s Barr Foundation.

• There has been some shuffling in the world of state and local arts councils. Ohio Arts Council ED Julie Henahan has retired after thirty years; Milton Rhodes, President of the Arts Council of Winston-Salem and Forsyth County in North Carolina, has retired and been succeeded by Jim Sparrow; and Glenda Toups was dismissed from her position as ED of the Houma Regional Arts Council in Louisiana in the wake of the discovery by the board that the Council was not in compliance with state reporting law.

• We’ve known for a while that Michael Kaiser is leaving his post as President of the Kennedy Center for the Performing Arts; now it turns out he’s taking the DeVos Institute of Arts Management with him. Both are moving to the University of Maryland, where Kaiser will be a professor of practice beginning in the fall, and hopes to expand the Institute to include a master’s program.
• Financial news giant Bloomberg has decided to discontinue its cultural journalism brand, Muse, in favor of focusing more on leisure and luxury. Along with the reassignment of Muse editor Manuela Hoelterhoff and a cadre of employees and contracted writers, the news outlet laid off theater critic Jeremy Gerard.

ALL ABOUT THE BENJAMINS

• The Hewlett Foundation has announced a rigorous new “Openness and Transparency” policy, which assumes from the outset that information the foundation creates should be made public to improve outcomes, spark debate, and foster collaboration. Hewlett’s President Larry Kramer offers context in a post on the foundation’s new blog; transparency watchdogs celebrate the policy.
• The D5 Coalition has released a scan of best practices and a guide to online resources for foundations wishing to advance diversity, equity, and inclusion at every stage of their work.

IN THE FIELD

• Eric Booth and Tricia Tunstall share profiles of El Sistema “encounters” in five of approximately 55 countries – Sweden, Austria, Korea, Japan, and Canada – that have borrowed from Venezuela’s seminal movement to realize youth development goals through “intensive investment in ensemble music.” The global umbrella for El Sistema has also released the first literature review of “research, evaluation, and critical debates” related to Sistema-inspired programs around the world.
• The Arts Council of Lawrence, New Jersey has shut down after 42 years, having, in the words of one member, “outlived [its] usefulness.” Originally formed by a group of female volunteers, the Council struggled to recruit younger members throughout the recession.
• The August Wilson Center for African American Culture in Pittsburgh is struggling mightily. After a struggle to find an audience and keep backers the organization has been forced to move further and further from its original intention to create a cultural home for the people portrayed in Wilson’s plays, working class African Americans. A conservator has been appointed to try to avoid liquidation.
• The Warehouse, an all-ages music venue in La Crosse, Wisconsin, has filed to become a nonprofit after 22 years as a for-profit, prompting some musicians to wax lyrical about their time there. Financial pressures were the primary impetus, but owner Steve Harm has indicated he will open the space to the local community in new ways to provide a public good.
• Fractured Atlas has added another tool to their encouraging-and-rewarding-arts-entrepreneurship tool belt. The Arts Entrepreneurs Awards will recognize artists and arts organizations who have “innovated new business practices or paradigms” or  “developed novel solutions to old problems.” Nominations will be accepted until December 22nd at 5:59pm.

BIG IDEAS

• A report from the Next Generation Evaluation Conference forecasts “game-changing” trends in impact evaluation, including shorter evaluation cycles and simpler measurement systems.
• “Is social practice gentrifying community arts out?” Arlene Goldbard parses the difference between the art world’s latest obsession and community cultural engagement.

RESEARCH CORNER

• Southern Methodist University’s National Center for Arts Research is about to release its inaugural report, drawing on what it calls the “most comprehensive set of data ever compiled” on arts organizations.  In addition to a statistical overview of the field – did you know that performance of an arts organization is lower in communities with a higher concentration of graduate degrees? – the report attempts to answer the question, “What makes one arts organization more successful than another?” The key turns out to be leadership.
• Speaking of data aggregation, Markets for Good has a progress report on the BRIDGE (Basic Registry of Identified Global Entities) project, an ambitious collaborative effort to identify and map philanthropic entities across the world.
• A new report by the Consumer Federation of America bashes “abuse of market power by a highly concentrated music sector,” argues against the need “to expand copyright holders’ rights,” and suggests that digital file-sharing (aka “piracy”) may, in some cases, actually be good for both artists and consumers. One well-circulated chart suggests that it is the proceeds of live performance, not recordings, that drives artists’ income.
• Gold standard at Crystal Bridges? In a rare, randomized, controlled (albeit “natural”) experiment on the effects of art on students, a single school-group visit to the major new museum appears to have raised students’ scores on vague but desirable traits such as critical thinking, social tolerance, historical empathy, and likelihood of future museum visits. It’s too soon to parse out the effect of contemporary art in particular.
• A study of STEM graduates from the Michigan State University’s Honors College found that graduates who went on to earn patents or start companies had more arts and crafts experiences than the average Americans – and believed their ability to innovate was influenced by that experience. (The paper itself is behind a paywall.)
• How “rampant” is gentrification? New research suggests that most urban areas experienced only “moderate” gentrification in the past decade, with significant variations across cities. Unsurprisingly, gentrification was most prevalent in large and dense metro regions with solid public transit infrastructure.

ART AND THE GOVERNMENT

•  At the end of April, the City of Philadelphia unveiled a free online tool called CultureBlocks for “research, planning, exploration and investment” in creative placemaking. Gary Steuer, the Chief Cultural Officer of the City of Philadelphia, gives an inside look at the tool, and the Philadelphia Inquirer has more on how it can be used.
• The Metropolitan Museum of Art is returning two statues to Cambodia, where they were determined to have been looted from. Tess Davis, a researcher on Cambodian antiquities, told the New York Times, “The Met Could have treated Cambodia’s request as an obstacle. Instead, the museum recognized it as an opportunity to set the moral standard for the art world.”

MUSICAL CHAIRS

• Jeremy Nowak, the co-founder and former CEO of  The Reinvestment Fund in Philadelphia, was named the interim Director of ArtPlace, a collaboration of organizations focused on creative placemaking.
• Tim Mikulski, the current editor of ARTSblog, is leaving Americans for the Arts, and posted a warm farewell. (ARTSBlog really flourished under Tim’s leadership, and he’ll be missed. -IDM)
• The Greater Pittsburgh Arts Council’s new Research and Policy Director David Pankratz, who came to the organization and the city at the beginning of this year, offers his thoughts on Pittsburgh as a dream city for the arts policy enthusiast. Read David’s guest post for Createquity on creative placemaking here.

ALL ABOUT THE BENJAMINS

• The Doris Duke Charitable Foundation has announced its 2013 Doris Duke Class of Artists. The Doris Duke grant includes up to $25,000 for audience development and up to $25,000 for personal reserves or creative exploration during retirement.
• New Music USA has announced changes to its grantmaking strategy, uniting five  programs into one flexible fund targeting a wide range of music projects.
• You may have noticed that a new model of TV programming has emerged in the last ten years — dark, gritty shows — but shows like The Sopranos and Breaking Bad are the product of a new model behind the scenes, as well, one that pay networks are better positioned to use, according to a New York Times article last week. YouTube just announced that it is piloting a system in which 30 channels will offer paid subscription access to additional content. I wonder whether these channels will find the same advantage pay networks on TV have, or whether paid YouTube will fizzle as a latecomer competitor to Netflix and Hulu Plus.

IN THE FIELD

• After a 191-day lockout, the musicians of the Saint Paul Chamber Orchestra finally ratified a three-year contract. However, the Minnesota Orchestra’s season has been canceled, following an ongoing labor dispute.
• Finding ways around traditional funding and production models is also one of the goals motivating a growing movement of a very different kind — public libraries as performance venues. By bringing in artist talks, concerts, and comedy acts in the evening, libraries become more of a community hub, while the performers get a place to share their most expressive works, away from the pressure to bring in big ticket sales that they find at many venues.
• The 9/11 museum has decided to charge a mandatory admission fee when the museum opens next year, citing high security costs and questioning whether a donation-only model would support them after the first year. Not directly in response, but on-topic, Jim Undercofler wonders aloud why contributed revenue is considered less stable or predictable than earned revenue.
• The Rio Theater, a beloved mom-and-pop cinema in Monte Rio, California, recently raised $63,993 in a Kickstarter campaign to switch to digital projection and stay open in the face of rapid technological change.
• “How do you reconcile the desire to be inclusive with the practical imperative to target?” asks Santa Cruz Museum of Art and History director and Museum 2.0 blogger Nina Simon. She’s referring to museum marketing and mission, but it can apply to any organization striving for community relevance. Her answer is “social bridging,” deliberately creating programs that appeal to and “matchmake” unlikely segments of the population.
• The Archivists Round Table of Metropolitan New York recently surpassed 500 members, many of whom are young metropolites. The New York Times provides a style-section type look at who these people are and what goes on at their gatherings.
• A growing number of business colleges and schools are using art as a teaching and learning tool, and some are amassing important collections of modern and contemporary art. Meanwhile, MIT is teaching young people computer programming as a thinking tool, with some artistic results.
• Dayton, Ohio may soon be the home of two separate museums dedicated to funk, leading some to speculate whether it can support two of them.

BIG IDEAS

• In an interview Laura Zabel, director of Springboard for the Arts in St. Paul, talks about the new CSA (Community Supported Art!) supporting health care for artists rather than health insurance for artists, and other projects. She says, “In the work we’ve done in the Central Corridor we have seen that artists can see the opportunity in a challenge… and have nuts-and-bolts skills that can draw people, attention, and dollars to a place.”
• In a new book, Jaron Lanier asks, “Who Owns the Future?” and presents a manifesto for an economy in which the middle class is supported by micropayments for all data we create online, from tweets to purchasing decisions. For a summary, see Evgeny Morozov’s skeptical review in the Washington Post.
• How can foundations become leaders in their communities? The Center for Strategic Philanthropy and Civil Society has just published an essay on how the one group has done it,  Changing the Game: Civic Leadership at The Boston Foundation, 2001-2012, authored by the president of The Boston Foundation.

CONFERENCES AND TALKS

• In New York on May 23, and in Berkeley on June 2, Author Arlene Goldbard will give book talks to launch her two new books: The Culture of Possibility: Art, Artists & The Future, a collection of short essays on the potential for positive social outcomes through art and creativity, and The Wave, a novel set in a future in which the hopes and predictions of The Culture of Possibility have come true. Goldbard presents both books on her blog, and last week, Barry Hessenius interviewed her on his blog (parts I, II).

RESEARCH CORNER

• The Center for Effective Philanthropy’s experiments with a tool called Strategy Landscape have drawn to a close (at least for now; they are considering re-releasing it open-source) and Kevin Bolduc shared some lessons learned from the project on their blog.
• The National Center for Arts Research has a short summary of the implications of the Nonprofit Finance Fund’s 2013 State of the Nonprofit Sector survey.
• The Centre for Economics and Business Research has released a report demonstrating the economic benefits of the arts and culture on the UK.
• The European Expert Network on Culture has released a report on strategies for export and internationalization of cultural and creative industries in the European Union. Find a brief summary here, and the report here.
• Pacific Standard Magazine reports on two studies that suggest musicians — or at least men holding guitars — are more attractive to women than non-musicians. I’d like to see more scientific (and less heteronormative) studies, but it’s an interesting theory.

Createquity Office Hours: Pittsburgh
Thursday, June 13
9-11pm
Tonic
971 Liberty Avenue
Pittsburgh, PA
RSVP here by June 9 (required)

See you soon!