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   Arts Funding at Twenty-Five (318Kb)

Introduction

The easy convenience of typing a few key words into a search box and promptly being immersed in data can make one forget that this capability has existed for a remarkably short period of time. Just twenty-five years ago — a point in time well within the recollection of most members of the arts and culture sector — Stanley N. Katz, then president of the American Council of Learned Societies, observed, “the serious study of arts philanthropy is less than a generation old, and we are just beginning the sorts of data collection and analysis…we need to make sound judgments about the field.”¹

The mission of the James F. and Marion L. Miller Foundation, established in 2002, is to enhance the quality of life of Oregonians through support of the arts and education. In the midst of the 2009 recession, the foundation began a six-year grantmaking initiative that provided general operating support to Portland’s five large arts organizations. The foundation made important shifts in its grantmaking strategy to help shore up the financial strength and stability of the Portland Opera, Oregon Ballet Theatre, Portland Center Stage, Portland Art Museum, and the Oregon Symphony.

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   Building a Resilient Sector (9.2Mb)

Grantmakers in the Arts began work on capitalization in 2010. Ever since then we’ve debated not using the word “capitalization,” but it has prevailed. In our work, the term is synonymous with financial health and the resources needed to meet an organization’s mission. In 2010, GIA published recommendations for grantmakers regarding actions they could take that would improve the undercapitalized nature of the nonprofit arts sector.

Since the Ford Foundation’s institutional stabilization programs of the 1960s, arts funders have explored and implemented initiatives intended to promote the sustainability of arts organizations. Funding approaches, programs, and special terminology have been developed in support of the arts’ economic and social contributions to society. Artists and arts organizations are evaluated on the basis of their fiscal prudence and community contributions as well as artistic merit.

Fearless Journeys: Innovation in Five American Orchestras is the report of a 2009 study, funded by MetLife Foundation, which explored and documented five examples of promising innovative practices in American orchestras. This is the first formal attempt to define and to understand the organizational factors that support innovation in orchestras.

The current economic climate has forced many nonprofit arts organizations to confront underlying issues. Tensions mount, dollars are scarce, and unresolved weaknesses or fissures often grow. We have seen heartening examples of artists, donors, audiences, and funders rallying to support the art and organizations that they love. In some cases, streamlined, more focused organizations are forging ahead with renewed determination. But in other cases, the economic downturn may herald the time to close the doors.