Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Monday, May 13, 2013

News from State Comptroller Thomas P. DiNapoli


News From State Comptroller Thomas P. DiNapoli

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For the week ending May 12, 2013 


DiNapoli: IDA Performance Improves, But Concerns Remain

New York’s Industrial Development Agencies (IDAs) supported nearly 4,500 projects and provided $560 million in net tax exemptions in 2011, increasing estimated job gains by almost 36,000 from the previous year, according to areport issued Tuesday by State Comptroller Thomas P. DiNapoli. DiNapoli’s sixth annual report examining the performance of the state’s IDAs found improved reporting of data but recommended that IDAs do more to objectively weigh incentives against economic benefits to communities and evaluate projects receiving tax and other breaks.

State Pension Fund Invests $568,000 In Fieldlens

New York State Comptroller Thomas P. DiNapoli announced a $568,000 investment in FieldLens, creator of a mobile and web application designed for the construction industry. The investment was made through High Peaks Venture Partners, SoftBank Capital and Contour Venture Partners. The New York State Common Retirement Fund is an investor in these funds through its In–State Private Equity Program.

DiNapoli: Empire Continuing to Overpay for Special Medical Items

New York State health insurance provider Empire BlueCross BlueShield overpaid hospitals by nearly $490,000 for special medical items such as implants, drugs and blood, including more than $77,000 to just one hospital, over a six month period, according to an audit of the New York State Health Insurance Program released Thursday by State Comptroller Thomas P. DiNapoli.

Comptroller DiNapoli Releases Municipal Audits

New York State Comptroller Thomas P. DiNapoli Wednesday announced his office completed the following audits: the Village of Arcade; the Town of Ballston; the Town of Eastchester; the Halfmoon–Waterford Fire District No. 1; the Village of Herrings; the Village of Lewiston; the Village/Town of Mount Kisco; the Town of Northampton; and, theTown of North East.



Also in the News

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Wednesday, January 16, 2013

Data Are Transforming Philanthropy and the Social Economy

Data Are Transforming Philanthropy and the Social Economy

Lucy Bernholz Joins Forces With GrantCraft, Predicts Big Shifts in 2013

New York, NY — January 7, 2013. A GrantCraft publication released today,Philanthropy and the Social Economy: Blueprint 2013, written by leading philanthropy scholar Lucy Bernholz, captures the changing landscape of what it means to use private resources for the public good. No longer the purview of foundations and nonprofits alone, philanthropy is now defined by an array of increasingly diverse activities, such as impact investing, social businesses, peer networks, and crowdfunding. The Blueprint outlines how these and other innovations are transforming the "social economy."
The fourth edition of the Blueprint has joined the suite of materials in GrantCraft — a joint project of the New York-based Foundation Center and Brussels-based European Foundation Centre — which taps the collective knowledge of funders to share insights to help them hone their craft. The analysis and forecasting showcased in the Blueprint provides the GrantCraft community with keen observations about the current landscape, emerging trends, and important breakthroughs likely in the year ahead.
Bernholz notes that the big shifts that matter for donors and "doers" are data-related, and she provides more than a dozen examples of foundations embracing data. Looking into the future, she sees data as transformative for philanthropy, in terms of both practice and policy. Indeed, Bernholz asserts that the use, ownership, and access rules of data will be as definitional for the social economy in the 21st century as the charitable tax deduction was for nonprofits in the 20th century.
"I’m hopeful the Blueprint can contribute to a global discussion about philanthropy, nonprofits, and how we use our private resources for public benefit," said Lucy Bernholz, visiting scholar at Stanford University’s Center on Philanthropy and Civil Society and author of Blueprint 2013. "There are big changes ahead, and theBlueprint gives readers a heads-up on the most meaningful trends."
In this year’s report, Bernholz includes a scorecard for the previous year’s predictions and a list of 2013 forecasts covering crowdfunding, social impact bonds, and political advocacy. She also points out the catchiest philanthropy-related buzzwords of the year and lists possible "wildcard" world events — legislation, scandals, or disasters — that have the potential to mitigate or accelerate the timing of big shifts in the social economy.
"The Blueprint serves as a finger on the pulse of the social economy," said Lisa Philp, vice president for strategic philanthropy at the Foundation Center. "Lucy’s insights about the changing nature of philanthropy have become required reading for funders and anyone concerned with aligning resources toward the greater good."
Throughout 2013, Bernholz will explore the ideas in the Blueprint, as well as trends in Europe and other regions of the world, in an ongoing conversation atField Notes, the GrantCraft blog, as well as on her own blog, Philanthropy2173.
Philanthropy and the Social Economy: Blueprint 2013 can be downloaded for free at www.grantcraft.org.
About the Foundation Center
Established in 1956, the Foundation Center is the leading source of information about philanthropy worldwide. Through data, analysis, and training, it connects people who want to change the world to the resources they need to succeed. The Center maintains the most comprehensive database on U.S. and, increasingly, global grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of more than 470 funding information centers located in public libraries, community foundations, and educational institutions nationwide and around the world. For more information, please visit foundationcenter.org or call  (212) 620-4230.
About the European Foundation Centre
The European Foundation Centre, founded in 1989, is an international membership association representing public-benefit foundations and corporate funders active in philanthropy in Europe, and beyond. The Centre develops and pursues activities in line with its four key objectives: creating an enabling legal and fiscal environment; documenting the foundation landscape; building the capacity of foundation professionals; and promoting collaboration, both among foundations and between foundations and other actors. Emphasising transparency and best practice, all members sign up to and uphold the European Foundation Centre Principles of Good Practice. For more information, please visit www.efc.be.
We respect your right to e-mail privacy. If you are not interested in receiving periodic messages about Foundation Center events, or have other comments or suggestions, please send e-mail to communications@foundationcenter.org.
The Foundation Center • 79 Fifth Avenue, New York, NY 10003 •  (212) 620-4230

For the Full Online Article Click Here

Saturday, May 15, 2010

Arts Groups See Mayor’s Budget Plan and Shudder

The NY Times reported that It has become a New York version of Washington’s cherry blossoms: the springtime tussle over the city’s culture budget. The mayor puts forward his plan for the coming fiscal year, as he did on May 6; arts institutions insist they will be ruined by the cuts to their allocations; and the City Council puts in additional funds — sometimes more than the mayor has taken out — to ease the pain.

This year, however, the doomsayers may have legitimate reason to fear the worst. Mayor Michael R. Bloomberg’s $63 billion budget for fiscal year 2011, which starts July 1, calls for a 31 percent reduction in financing for arts groups and a 25 percent cut for libraries — steeper than any such measures he has proposed at this stage of the budget cycle in the last eight years. And the City Council will most likely have to draw from a smaller pool of funds to help make up the difference than it has in the past.

“I don’t think I can remember a more difficult time for cultural institutions in New York City,” said Ellen V. Futter, president of the American Museum of Natural History, which she said would see its city financing decline under the mayor’s proposal to about $6 million from about $12 million in fiscal year 2008, when the appropriation to the Department of Cultural Affairs was at its highest point in the last decade. “Many are experiencing record attendance at the same time that funding from the city has been drastically reduced.”

The budget will not become final until its details are hashed out between the mayor and the council between now and the end of June. But institutions are already steeling themselves to make do with much less. The New York Public Library says that if the mayor’s proposed cut of $37 million — the harshest in the library’s history — goes through, it will have to close 10 branches, cut service across the system to four days from six, reduce staff by 36 percent and offer 25,300 fewer programs and classes for children and adults. Read more here.

Wednesday, January 6, 2010

In the Arts, Bigger Buildings May Not Be Better

A recent blog, The Data Stream, discussed the "Bilbao effect," which resulted in an overexpansion of arts and cultural organizations. As the post relates:

Within months of its opening in 1997, Frank Gehry’s Guggenheim Museum Bilbao had given the language a new term and the world a new way of looking at culture. The “Bilbao effect,” many came to believe, was the answer to what ailed cities everywhere — it was a way to lure tourists and economic development — and a potential boon to cultural institutions.

Municipal governments and arts groups were soon pouring hundreds of millions of dollars into larger, flashier exhibition spaces and performance halls.

Now the economic downturn has reined in a lot of these big dreams and has also led to questions about whether ambitious building projects from Buffalo to Berkeley ever made sense to begin with. Some are arguing that arts administrators and their patrons succumbed to an irrational exuberance that rivaled the stock market’s in the boom years.

Organizations were “blinded by the excitement of what it would be like to have this great new facility,” said D. Carroll Joynes, a senior fellow at the University of Chicago’s Cultural Policy Center.

The recession, he said he believed, is not solely to blame for a recent wave of projects that have been delayed (like additions to the St. Louis Art Museum and the Cincinnati Art Museum); scaled back (like the new building of the Parrish Art Museum in Southampton, N.Y.); put into question (the new Avery Fisher Hall at Lincoln Center and the renovation of the New York Public Library’s main Fifth Avenue branch); or abandoned altogether (the expansion of the Albright-Knox Art Gallery in Buffalo).

In Mr. Joynes’s view, “The recession is exposing the weakness of a lot of institutions that were seriously overstretched” before it began.

“It’s exposing poor management and poor planning,” said Mr. Joynes, who is collaborating on a study of 50 cultural building projects completed from 1994 to 2008 and their planning processes. These were situations, he added, in which “nobody actually asked: ‘Is there a need here? If they build it, will they come?’ ”
Read more here.

Thursday, September 17, 2009

United Ways 2009: A Confusing Mix of Missed and Missing Goals

In the Nonprofit Quarterly’s Nonprofits in the Age of Obama project, we have committed to following significant trends in and around nonprofits as our economic and political environment re-calibrates. This has led us to follow news reports of the traditional goal setting of the nation’s United Ways. We noticed some interesting trends and wanted to get your input on what you see happening in your locale.

One of the most important barometers of the recession's impact on nonprofits—and how nonprofits are adjusting to this increasingly terrible economic downturn—maybe found in the 1,400 affiliates and chapters of the United Way. At Nonprofit Quarterly, we increasingly find ourselves noticing changes in the United Way system that raise additional questions about the direction of this network

It's not simply that most reports on last year's campaigns, at least those reported in the press, describe fundraising shortfalls of as much as 20 percent, though some sites such as the Twin Cities appear to have made or surpassed goals. There are significant changes in United Way fundraising strategies across the nation.

During the past month, the NPQ Newswire has run several stories about an apparently new practice among United Way campaigns. United Ways in Sudbury, Ontario; Stanly County, North Carolina; Belleville, Ontario; Lee County, Alabama; and Kansas City, Missouri have eschewed the longstanding tradition of establishing fundraising targets for their annual campaign in favor of no-target or no-goal campaigns.

Ditching the longstanding common practice of setting a fundraising target is a major cultural shift in the UW system. Explanations of the fundraising shift vary from agency to agency. In Sudbury (Sudbury Star, September 10, 2009), the UW is substituting a target of increasing the number of individual donors from 9,000 to 12,000 for a dollar goal. Oddly, this is not because of poor campaign totals in 2008; Sudbury actually did well, surpassing its 2007 total by raising $2.4 million. But entering 2009, the locality faces layoffs in two ma-jor employers, thousands of job losses in the mining supple and service sector, and labor turbulence between local employers and locals of the United Steelworkers and others. Read more here.

Tuesday, September 1, 2009

Pro Bono Work Helps Firms Fight Economic Slump

The Wall Street Journal reported that aome small businesses are following the recession playbook of the unemployed.

Just as many laid-off workers are volunteering more to fill up their free time and enhance their résumés, small-business owners and their employees are doing more pro bono services or volunteer work as a marketing and customer-relations strategy.

The recession hit Studio G Architects Inc. of Boston particularly hard last fall, causing 2008 revenue to drop 30% from the prior year, says Gail Sullivan, the principal. Clients of the 16-year-old architectural firm killed or put on hold 10 projects last October. With work slowing down, the company began providing 15 to 20 hours a week in pro bono services to keep employees occupied and potentially attract future contracts. It worked.

This spring the firm prepared preliminary design projects, such as a playground for severely handicapped children, for various charities. The projects later received full funding and Studio G obtained several contracts, which ranged in value from $16,000 to $100,000. "Offering the pro bono services has given us a chance to maintain our design vigor [and] resulted in people hiring us," Ms. Sullivan says.

For a small business that has lost clients or seen revenue-generating projects dry up, performing free work is a way to keep employees engaged while cultivating new relationships. Donating services to charity groups, churches, schools and other nonprofits can "increase local visibility, deepen local business ties and create opportunity for new business," says Christine Banning, vice president of marketing and communications at SCORE, a Washington-based group that provides free counseling to small businesses.

While it is a strategy that can bear fruit in a tough economy, she warns that small-business owners should set parameters in terms of how much they give away. With charitable giving falling in 2008 for the first time since 1987, dropping about 2% from a year earlier, according to a Giving USA study released last month, more nonprofits could be seeking donations from local businesses.

That is why Robert Politzer, president and chief executive of GreenStreet of New York Inc., made sure his pro bono work can benefit his company in the future.

At a networking event four months ago, Mr. Politzer met the director of the Hudson River Clearwater Sloop Inc., a nonprofit that aims to preserve and protect the Hudson River. Now, the green-building and consulting firm is serving as the volunteer construction manager of the group's new headquarters in Beacon, N.Y. As a public-relations move, GreenStreet is uploading videos on YouTube as it documents the pro bono work. Read more here.

How can your nonprofit position itself to take advantage of these opportunities? Do you have examples of your own success with pro bono work? Share them here.

Sunday, August 23, 2009

With Donations and Grants Down, Social Service Agencies Feel the Pinch

The NY Times reported that across the city, nonprofit groups that provide social services to New Yorkers are reeling, trying to fulfill their core missions as demand for those services rises and their ability to provide them shrinks. With government, foundation and individual grants down by as much as 50 percent — not to mention withering endowments or investments lost to Bernard L. Madoff — agencies are trimming and delaying programs and cutting staff, in essence contributing to the very problems they exist to fix.

According to a survey conducted by Baruch College and the Human Services Council, which represents some 750 nonprofit social service providers, more than half saw some reduction in government financing in the last fiscal year, with more than a quarter losing an entire contract. The survey, to be released Sept. 9, also found that 80 percent of the respondents lost private financing, and that 73 percent had no reserves like endowments or lines of credit. Read more here.

Sunday, August 16, 2009

NYS Arts Action Update

NYS Arts related that Rocco Landesman was confirmed by the Senate as the new Chairman of the NEA. In an article in the NY Time on August 8, Mr. Landesman said that as chairman he will focus on the potential of the arts to help in the country's economic recovery. "'I wouldn't have come to the [National Endowment for the Arts] if it was just about padding around in the agency,' he said, and worrying about which nonprofits deserve more funds.' We need to have a seat at the big table with the grown-ups. Art should be part of the plans to come out of this recession.' 'If we're going to have any traction at all,' he added, 'there has to be a place for us in domestic policy.' He talked about starting a program that he called 'Our Town,' which would provide home equity loans and rent subsidies for living and working spaces to encourage artists to move to downtown areas. The program would also help finance public art projects and performances and promote architectural preservation in downtown areas". Mr.Landesman has already shown himself to be an outspoken, forceful, and passionate promoter of the arts. He has a loud and bold style.

Fractional Gifts Bill introduced in Senate
The Wall Street Journal, 8/82009
"Donating art to museums could soon become attractive again for wealthy collectors. Reacting to museums' complaints of sharp declines in art donations, a bill announced [August 7] by Sen. Charles Schumer, a New York Democrat, could revive the practice of so-called fractional gifts by making the process easier and more tax-advantageous. Before the 2006 Pension Protection Act, collectors were allowed a tax break when they donated a work of art incrementally, giving away a certain percentage of rights to the work each year. Pieces like the Hope Diamond, given to Washington's Smithsonian Institution, and New York's Metropolitan Museum of Art's Annenberg Collection can be attributed to fractional giving. Restrictions in the act prevented donors from realizing tax benefits on the appreciation of the art's value and limited the time allotted to complete the donation to 10 years." read the article

Monday, August 10, 2009

Community Forum recording now available: Behavioral Economics

Columbia Business School announces the Community Forum Series on the Economy is available to watch in its entirety.

Moderated by Columbia Business School Dean Glenn Hubbard, this forum's topic focuses on the burgeoning field of behavioral economics, whose insights into human decision-making are reshaping business, public policy and regulation. Included in the discussion are three faculty members who have done provocative research in the science of human behavior:

Gita Johar, Meyer Feldberg Professor of Business in the Marketing division, shares findings from her research examining unconscious influences on consumer behavior.

Eric Johnson, Norman Eig Professor of Business in the Marketing division, discusses how insights from the behavioral sciences can be leveraged to modify behavior.

Nachum Sicherman, professor in the Finance and Economics division, addresses the so-called "ostrich effect," or investors' reluctance to review their financial portfolios when markets decline.

To watch the recording, click here or visit http://www4.gsb.columbia.edu/execed/community-forum-jul?emailid=CommunityForum.

Monday, July 27, 2009

Economic Downturn Forces Groups to Get Creative

The NY Times reported arts groups, hit hard by the economic downturn, are seeking strength in numbers by forming alliances, pooling resources, networking and accommodating one another’s diminished circumstances.

The efforts, which sometimes bring together dissimilar groups, don’t always go smoothly. But by and large, the atmosphere is one of growing cooperation that works to artists’ benefit — and the public’s.

“There’s more of a willingness to work together because there’s a unique cause right now, and the cause is the fact there are economic issues,” said Stephen Sansone, president of the Untermyer Performing Arts Council in Yonkers and executive director of the Yonkers Downtown/Waterfront Business Improvement District.

Since May 1, four museums in Westchester County (the Hudson River Museum in Yonkers, the Hudson Valley Center for Contemporary Art in Peekskill, the Katonah Museum of Art and Purchase College’s Neuberger Museum of Art) and two in Fairfield County, Connecticut (the Bruce Museum in Greenwich and the Aldrich Contemporary Art Museum in Ridgefield) have allowed any of their members to be admitted to all six. The same goes for visitors who buy a same-day pass.

The plan — advertised as an alliance — has been slow to catch on, with only a handful of museum visitors taking advantage of it in a typical week. Still, arts groups say it is the first pact of its kind in memory among museums in Connecticut and New York, and its very existence is evidence of greater cooperation.

“It’s symbolic of our efforts to be creative in a very tough time,” said Peter C. Sutton, executive director of the Bruce, who, noting that his museum’s endowment was down 20 percent over the past year and its corporate support depleted, hosted the meeting in March at which the plan was formulated.

“Almost all nonprofits have suffered some loss in their endowments and had to institute economizing efforts, as we have,” he said, “and this is a good way for people to make the most of their local museums.”

Another kind of joint effort — one enjoying greater participation this year, its sixth — is Art Along the Hudson, a cooperative media campaign to promote the visual and performing arts in seven cities lining the river. Read more here about this and other efforts.

Monday, July 20, 2009

More towns and villages consider merging services

The Times Herald-Record reported on the debate of savings versus services around consolidation in local government and associated entities. As the article relates:

Maybrook Village Clerk Tina Johnson gets lots of compliments. Residents walk into Village Hall just to say thanks for the snowplowing and street sweeping.

But at tax time, they're not so congenial.

"It is a common refrain we hear all the time. 'We hate our taxes, but we love our services,'" said Scott Sittig, a senior research associate with the Center for Governmental Research in Rochester.

Sittig spends his days crunching numbers on proposed government consolidations in New York. With more than 10,000 local taxing agencies, this state also has the nation's second-highest tax burden, according to The Tax Foundation, and a mind-boggling system of overlapping special districts and governments.

In Orange County, there are 302 local governments with taxing power, including municipalities, school districts and special districts that tax for water and sewer.

In Montgomery alone, there are four fire districts, 22 elected board members, 100 full- and part-time police officers in four departments, and a town and three village governments whose 2009 budgets add up to almost $29 million.

It's just the type of place where consolidation could equal lower taxes and higher efficiency.
"Where there is clear overlap of governments, it makes a lot of sense to look at eliminating layers," Sittig said.

Easier said than done
In the last two years, more than 20 mid-Hudson localities have talked merger and efficiency, although none have acted. Read more here about the barriers and a new law Gov. Paterson has signed that should make consolidations easier.

Wednesday, July 8, 2009

Bloomberg Announces Package of Media Initiatives for Economic Development

New York Future Initiative (NYFI) related the following announcement from Mayor Michael Bloomberg about a package of initiatives designed to strengthen New York's media sector, part of a broader push to diversify the city's economy and trigger some economic gains to make up for what's been lost on Wall Street.

The initiatives include a research center for media companies and universities, a tax-exempt bond program to help companies purchase new facilities, a media and tech fellowship, and a city affiliated co-working space for freelancers. Read the full details here.

Monday, June 29, 2009

Foundation offers reduced office space

The Chronicle reported that the New York Foundation for the Arts is offering some help to recession-plagued arts groups in the city: a chance to claim some discounted office space, according to Dana Variano on the PhilanthroMedia blog.

Citing a report in the Philanthropy News Digest, Ms. Variano says the foundation is now soliciting proposals from groups and artists that are affiliated with it. Read the article here.

The article suggests that this may be an opportunity for other nonprofits to explore by renting out space they may have to generate additional income.

Sunday, June 21, 2009

Foundations Trim Staffs After Assets Slide Lower

The NY Times reported that foundations are decreasing their staffs in large numbers.

The Robert Wood Johnson Foundation was the latest to announce a voluntary severance plan, offered this month to 42 percent of its 250 employees. In May, the Ford Foundation offered a similar plan to 140 of its 550 staff members.

Bradford K. Smith, president of the Foundation Center, a research organization, said foundations were resorting to job cuts after having adopted other cost-saving measures, like hiring freezes and reductions in benefits and travel budgets. Read the article here.

Monday, June 15, 2009

Arts organizations forge collective

The NY Times reported on 11 diverse downtown arts organizations that have come together to forge a collective and active response to the grim economic climate. Calling themselves the Lower Manhattan Arts Leaders, they meet once a week to plan strategy and exchange ideas about helping government policy makers and grant-making foundations become aware of the vital ways in which small arts groups feed the life of a neighborhood.

Support for the arts, in their view, is not simply a matter of cultural philanthropy, it’s also a smart and necessary way to sustain a vibrant urban environment, to keep any city from becoming a patchwork of chain stores, steroidal gyms and name-brand coffee shops. It’s forward-thinking city planning.

“I think we need to pay more attention to the artistic and cultural work that goes on in every neighborhood in this city,” Ms. Marting said. “We are part of what makes New York unique. It’s amazing the mixture of experiences you can have in a night. We are in danger of losing a lot of the fabric of our neighborhoods as they become more expensive, and arts organizations are on the front line.”

It’s a dangerous place to be right now because as everyone involved in the arts has become painfully aware, the steep economic slide of the past months has radically altered the climate. Grant-giving foundations have watched their endowments plummet in tandem with the stock market and have tightened the purse strings accordingly. Corporate giving has become scarcer still, with some companies even shying away from taking the usual generous credit for money already given rather than be seen spending on philanthropy as they slash costs and set employees adrift.

You might expect that the sudden scarcity of arts dollars would bring out a ruthless streak in the administrators charged with keeping their organizations afloat in rough economic waters. It would be only natural for companies to fight hard and fend for themselves as the never exactly enormous pie of arts money shrinks to the size of a two-bite tart. And yet the members of the Lower Manhattan Arts Leaders reacted in just the opposite way, banding together to create a collective front to fight the tough times.

Nello McDaniel, who runs the consulting group Arts Action Research, said: “It makes a tremendous amount of sense and also says a lot about the strength of these organizations.” Mr. McDaniel, who has attended some of the new group’s meetings, added, “Not so long ago the mind-set was a sort of castle-island. If you were a theater or dance organization, you built a moat to protect your turf, and the thought of sharing or reaching out was antithetical.”

Kevin Cunningham, the executive artistic director of 3-Legged Dog/3LD Art & Technology Center, which presents theatrical and multimedia works, was among the first to sense the seriousness of the impact as the economy began to sour last summer. Mr. Cunningham had weathered catastrophe before; 3-Legged Dog was the only arts producing organization to have its headquarters destroyed in the Sept. 11 attacks. Read the remainder of the article here.

The Group has also collected their combined economic impact to people and businesses. Have feedback or your own ideas to share? Post here.

Friday, June 12, 2009

Aspen Institute Taps Business for Social Change

BusinessWeek reported that at a time when the world's economy is in crisis, what could be more timely than a gathering of 160 innovative leaders from business, government, and the nonprofit sphere? The Aspen Institute, a public policy think tank, is hoping to set off some constructive frisson this week in Aspen, Colo., by bringing together representatives from its young global leadership programs around the world.

The three-day event is billed as a "reflective retreat." But based on the agenda, this is no peaceful monastic experience. The participants are taking on challenging topics. The programs include: "Leading in a Typhoon: Keeping Afloat in the U.S. Financial Crisis;" "Oops: Learning from Mistakes;" and "Biotech and Ethics: Where Do You Draw the Line?"

The conference will serve as the official launch of the institute's Aspen Global Leadership Network, a community of entrepreneurs who share a passion for tackling some of society's thorniest problems. Aspen's goal is to inspire participants to take on individual projects that put those values into action. "We say, 'You've been successful. Now what will you do that's significant and is going to change the direction of your country?' " says Peter Reiling, executive vice-president of the Aspen Institute.

A Call to Action
The gathering doesn't have the star-studded cast of the annual World Economic Forum in Davos, Switzerland, but it may end up producing more concrete results. The WEF is known for its public posturing by governmental leaders and movie stars. This Aspen event is at its essence a call to action. It worked in the past. Ever since the institute established the Henry Crown Fellowship program in 1997, it has been challenging young business and government leaders to become social-change agents. Reed Hastings, chief executive of Netflix (NFLX), was inspired after he became a Crown fellow in 1998 to get involved in public education and later served on California's Board of Education.

Among some of the high-profile presenters at the conference are Sonal Shah, the newly appointed head of the White House Office of Social Innovation; John Wood, founder of Room to Read and author of Leaving Microsoft to Change the World; David Rubenstein, co-founder and managing director of The Carlyle Group; and Walter Isaacson, CEO of the Aspen Institute and former CEO of CNN, owned by Time Warner (TWX).

The Aspen Institute invited a handful of journalists to observe the event and publish dispatches. The setup is a little awkward. Some sessions are entirely off -limits. At others, quoting people directly is not allowed unless they give permission.

Still, the opportunity to give BusinessWeek readers a view into the minds of this group seems too valuable to pass up. So please check in often on this page for updates from the conference. And, of course, please weigh in with comments.

Saturday, May 30, 2009

On the Street and On Facebook: The Homeless Stay Wired

The Wall Street Journal offered an article about how even the homeless are connected online. As the article relates:

Like most San Franciscans, Charles Pitts is wired. Mr. Pitts, who is 37 years old, has accounts on Facebook, MySpace and Twitter. He runs an Internet forum on Yahoo, reads news online and keeps in touch with friends via email. The tough part is managing this digital lifestyle from his residence under a highway bridge.

"You don't need a TV. You don't need a radio. You don't even need a newspaper," says Mr. Pitts, an aspiring poet in a purple cap and yellow fleece jacket, who says he has been homeless for two years. "But you need the Internet."

Mr. Pitts's experience shows how deeply computers and the Internet have permeated society. A few years ago, some people were worrying that a "digital divide" would separate technology haves and have-nots. The poorest lack the means to buy computers and Web access. Still, in America today, even people without street addresses feel compelled to have Internet addresses.

Skip Schreiber goes online in his van, which is also his home, in San Francisco's Bayview district.
New York City has put 42 computers in five of the nine shelters it operates and plans to wire the other four this year. Roughly half of another 190 shelters in the city offer computer access. The executive director of a San Francisco nonprofit group, Central City Hospitality House, estimates that half the visitors to its new eight-computer drop-in center are homeless; demand for computer time is so great that users are limited to 30 minutes. Read more here.

Tuesday, May 26, 2009

Some cities look to save money by merging nonprofits

The San Francisco Examiner features a story about the mayor's call for nonprofit mergers. As more and more cities, counties, and states look at options like this, what are the factors being examined? Is the true impact of the nonprofit community understood? The article below offers few details about why the City arrived at this decision. As the article relates:

The City lacks a clear vision and plan for the $500 million it spends annually on nonprofit organizations that provide vital services to residents, according to a new report.

That assessment comes as nonprofits face an uphill battle to survive during the recession, and as demand for charity increases. More than half the 804 nonprofits that received financial aid from The City last fiscal year provide health and human services to residents.

San Francisco is also facing a projected $438 million deficit for next fiscal year — a deficit that will result in layoffs, service cuts and decreases in contracts with nonprofits.

Now, a survey commissioned by Mayor Gavin Newsom suggests that struggling nonprofits should merge with others or completely shut down. The report’s authors also want nonprofits to find funding from more than one source and will complete a plan that lays out future priorities for nonprofits.

The report also calls for better oversight of organizations that receive public money.
“City departments should more assertively implement, monitor and take action on corrective action plans for nonprofits with grave performance and compliance issues,” the report said.
San Francisco organizations that receive 100 percent of their funding from taxpayers are most at risk in a down economy, said Sandra Hernandez, CEO of the San Francisco Foundation, which co-authored the report with City Attorney Dennis Herrera.

The San Francisco Foundation is an umbrella organization that grants funds to a variety of smaller nonprofits.

Charity arms
A new report suggests some city nonprofits would be better off merging or shutting down entirely.
7,093: Registered nonprofits in The City
54,000: San Franciscans employed by nonprofits
804: Nonprofits contracted by The City in 2007-08
$483 million: Amount spent by The City on nonprofits
$58 million: Amount spent by The City on indirect costs

Thursday, May 21, 2009

The American Association of Museum Federal News Update

President Releases FY10 Budget Details
On May 8, President Obama released the spending details of his $3.6 trillion budget proposal for fiscal year 2010. The proposal calls for nearly $17 billion in cuts and reductions to 121 programs and supports reinstitution of pay-as-you-go (known as "PAYGO") budget rules, which require any new spending increases to be offset by revenue increases or spending cuts.

The Institute of Museum and Library Services (IMLS) Office of Museum Services (OMS) - which supports our nation's 17,500+ museums through a variety of competitive grant programs - is essentially level funded at the FY09 level of $35 million. Certain museums, however - which, by federal statute, are funded as quasi-government entities - fared well, with the U.S. Holocaust Memorial Museum receiving $49 million, the National Gallery of Art receiving $165.2 million and the Smithsonian Institution funded at $759 million.

The President's detailed budget plan also contains a measure - first proposed in February - to limit the deductibility of charitable gifts for those in the upper income levels.

Budget Highlights:
  • IMLS Office of Museum Services: $35 million (no increase)
  • National Endowment for the Humanities (NEH): $171.3 million (a $6.3 million increase over FY09, plus $10 million to move the currently independent National Capital Arts and Cultural Affairs program to the NEH).
  • National Endowment for the Arts (NEA): $161 million (a $6 million increase over FY09)
  • Arts in Education Programs at the Department of Education: $38.16 million (no increase)
  • National Science Foundation educational programs: $857.8 million (a $12.5 million increase over FY09). These funds support informal learning experiences designed to increase interest and engagement in the understanding of science, technology, engineering and mathematics (STEM).
  • National Park Service's Historic Preservation Fund: $77.6 million (an $8.1 million increase), including $20 million for Save America's Treasures.

Sunday, May 17, 2009

Survival Strategies for the Arts

Blue Avocado featured a great article by John Killacky, artist and arts funder, about ten survival strategies for arts organizations and one for audience members:

The arts are where hope lives. And right now, as the very tenets of civil society are being re-written, and as health and human service needs rise, there is legitimate concern about whether the arts will survive, how the arts can thrive.

The arts, like every other nonprofit sub-sector, are being challenged by significant contribution losses from government, corporations, foundations, and private donors. Box office and gallery admissions are also eroding as discretionary dollars evaporate. Almost everyone agrees funding problems will become more acute in the upcoming three to five years. Adaptability is replacing growth as a barometer of success.

There's no question to me but that the arts organizations that have dynamic, interactive, authentic relationships with their constituents, audiences, and neighbors are the ones that will come out of this maelstrom stronger. Here are ten ideas for organizations and a potpourri of options for audience members.

1. Do more with less by doing something different. Groups are mounting four plays instead of six, sharing co-production costs, presenting biannual seasons instead of annual, shortening performance runs, mining permanent collections, and altering gallery hours to allow for higher production values, deeper engagement, and higher audience satisfaction. Capitalize to mission delivery, not sustainability. Michael Kaiser from the Kennedy Center is adamant: "We mustn't be scared into thinking smaller. Small thinking begets smaller revenue that begets smaller institutions and reduces excitement and involvement."

2. Place matters. Make sure the neighborhood feels your building is their community center or assembly hall. I loved when Yerba Buena Center for the Arts hosted an election night party last November -- a wonderful cultural celebration.

When I go to the theatre I ask myself: why is this theatre presenting this piece at this time in this community? Through your marketing materials, your programs, your audience involvement, make sure your audience can answer that question. Audiences will respond when they know why you are presenting a particular play/exhibit/dance. Eric Chinski of Farrar, Straus, & Giroux offers a potent reminder of relevance: "The word necessary comes to mind for me. Beyond a good story, beyond good writing, does the novel feel necessary?"

3. Invite the public in. Expand gallery labels. Dramaturgical notes are needed in every discipline. Pre-concert talks frame and empower audiences. Cultural contextualization translates, bridges, and illuminates artistic expression for both the cognoscenti and the general public. Visual artist provocateur Marcel Duchamp got it: "The closer the ratio is of what the artist sees versus what the audience thinks they see, the greater the artist.
Be transparent and frank about challenges. Ask for help. When the New York Times ran an item on the financial plight of San Francisco's Magic Theatre, an anonymous benefactor from Manhattan (with no previous history of support) stepped up with a major gift.

4. Let audiences co-author meaning: experiment with social media. Link young professionals into your company's social networks. Trendies can then see who is attending opening night, at intermission tweet friends on how fabulous and sexy the new dance is, and do a post-mortem chat on Skype with the artistic director. Find genuine ways for audiences to contribute and find meaning -- before, during, and after events. Try something small and see how it goes; find what's right you're your organization. Arts consultant Holly Sidford reminds us, "Participation is the most important renewable resource."

5. The middle class can save the arts. Consistently, 75% of private donations come from individuals and another 7% from bequests (GivingUSA). Religion garners one-third of this largess; arts, culture, and the humanities only receive 4%. None of us minds tithing to our mosque, temple, synagogue, or church. In the arts, we too offer transformational experiences, so let's operationalize the "church ask." Start with the people you know: audiences, volunteers, donors, and neighbors -- and ask for modest gifts, often. The Obama campaign proved the power of this kind of fundraising.

Does this mean passing the plate in the audience? Well, why not? Keith Hennessy has a free night in every run of his Circo Zero troupe, where the audience is thanked for coming and then asked to pay what they can. He reports contributions on free nights are higher than the usual box office per night.

6. Support the little league players. Sports teams know that the first sport we play is the one we follow -- that's why little leagues are integral to professional sports marketing. Arts researcher Alan Brown found 74% of orchestra subscribers sing or play an instrument. Similar correlations exist in dance, visual art, and theater. His conclusion: "Supporting personal practice is audience development."

Dance and theater companies that have schools guarantee a built in audience, as well as diversified income. Further, The Nutcracker and other holiday staples prove putting kids on stage is good for business. Getting back to the sports analogy, open rehearsals including informal meet and greets with artists are like pre-game warm-ups and autographs: they connect the amateur practitioners with the highest version of the art.

7. The First Global Generation. Pollster John Zogby finds Americans adjusting to the economic realities by "living with less, embracing diversity, looking inward, and demanding authenticity." These meta-movements are shared equally by Baby Boomers and what he calls the First Global Generation of 18 to 29 year olds.

Both generations are looking for meaningful experiences. They don't want to be told everything is "extraordinary;" but they do want to know what they will encounter and how they might feel. The arts community is perfectly situated to appeal to these roving bands of "secular spiritualists," but needs to speak directly without hyperbole.

8. Risk failing. Nonprofit arts organizations are not supposed to be commercial presenters; they are meant to provide genuine alternatives. As the sector looks to increase earned income, both mission drift and diluted impact are concerns. Commercial entertainment does not do very well chasing after blockbusters. Under-capitalized nonprofits will never be able to compete, so let's not try. Arts organizations need to be counter-intuitive in their offerings, truly providing alternatives in our community. Samuel Beckett's words from Worstward Ho are apt: "Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better."

9. Have the Conversation. Small businesses seldom survive decade after decade. Do you still have a unique and necessary role in the cultural ecosystem? Imagine strategic partnerships, joint ventures, and back office collaborations to improve economy of scale, as well as efficacy of program and service delivery. Merger, consolidation, and sunsetting should also be examined. A rigorous analysis of internal strengths and weaknesses and external opportunities and threats is called for.

10. Become a cultural citizen. Playwright Tony Kushner tells us, "When you don't act, you act; when you don't vote, you vote." Demand all politicians have an arts platform. Support only those that do. Hold house parties for arts friendly politicos. Invite them to openings and receptions and let them be noticed. When over 200 artists showed up in Oakland's City Hall to protest the proposed elimination the arts budget, City Council had no choice other than to reinstate. And better yet, run for school board to ensure arts are in every school, every day for every child. Claim your cultural agency.

P.S. Things audiences can do (and all of us are audience members). Go to Open Studios and buy art. Attend theater. Donate. Take salsa or tango lessons. Enjoy dance performances. Bring a friend. Donate. Sing with a chorus. Listen to live music. Donate. Write a poem, short story, or memoir. Buy a local author's book. Make art with your kids at home and at a museum's family day. Participate. Donate. Debate the merits of an independent film and then upload your own onto YouTube. Have a bake sale to support an artist residency in a nearby school. Host a season announcement, Tupperware-style, for friends. Commission an artist to commemorate a birthday or anniversary. When you love something, tell your friends. Word of mouth remains the best box office motivator.