Sunday, May 17, 2009

Financial Management in Tough Times: Free Advice for Managing Your Organization Through the Recession

The Nonprofit Finance Fund is partnering with the Chronicle of Philanthropy to offer free, live, online chats on “Financial Management in Tough Times: Free Advice for Managing Your Organization Through the Recession”. Each chat will offer practical tips on some of the most pressing financial issues currently facing the social sector. A schedule of dates and topics can be found below. Note, the first event in this series is scheduled for Thursday, May 14. Click here or visit http://philanthropy.com/live/recession_series/ to learn more.

All online discussions will begin at 12:00 pm and will last one hour.
  • May 14, 2009: Beyond the Grant: What Nonprofit Leaders Need to Know about PRIs, Loans, Tax-exempt Bonds and Recoverable Grants
  • May 28, 2009: New Business Models for Arts Organizations
  • June 11, 2009: The Changing Role of Foundations
  • June 25, 2009: Making Capital Campaigns Work in the Recession
In addition, the Nonprofit Finance Fund offers a variety of services designed to help nonprofit organizations survive difficult economic times. To learn more, click here or visit www.nonprofitfinancefund.org.

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.

Thursday, May 14, 2009

Charities Rethink Glitz Quotient for Their Galas

A recent Wall Street Journal article explored how you throw a famous Wall Street gala fund-raiser when conspicuous consumption and investment bankers are no longer cool. As the article relates:

The Robin Hood Foundation faced that issue on Tuesday when it held its annual benefit in Manhattan. A year ago, the antipoverty charity's dinner included the auction of a trip to Australia to scuba dive and have lunch with Hugh Jackman. It went for $420,000. This year, the only prizes offered at New York's Javits Center were things like opportunities to feed hungry families, enroll children in charter schools and teach new parents to care for newborns.

"Consider this ... your Yom Kippur," quipped host Jon Stewart, referring to the Jewish Day of Atonement. "You're going to donate a lot of money. Not enough, obviously, to offset all the s- you've done, but a lot."

The toned-down event reaped nearly $73 million, topping last year's $56.5 million haul. Robin Hood, founded by hedge-fund manager Paul Tudor Jones II, used some Wall Street-style financial incentives to motivate giving in a potentially tough year: Financier George Soros and Robin Hood's board of money managers and corporate executives joined forces to match contributions dollar for dollar from guests' tables during a scaled-back auction. Tables donated about $28 million during the auction, and ticket sales for the event generated another $17 million.

As New York's first spring gala season since last year's market crash kicks into gear, all sorts of charities are facing a difficult juggling act: They need to tone down the glitz to respect the terrible economy and the bubbling anger toward Wall Street excess. But they still need to stage high-profile events to attract wealthy donors.

A bad night can seriously dent a charity's ability to maintain its programs. "For many nonprofits, a gala could be 25% of their annual income, and those dollars aren't going to come from somewhere else," says Melissa Berman, president and CEO of Rockefeller Philanthropy Advisors. This year, she says, charities are trying harder to frame their events as "people coming together to help those less fortunate" to avoid the perception of "a bunch of clueless, thoughtless people drinking too much."

Project Sunshine, a New York charity that provides services to hospitalized children, plans to cut down on corporate signage and honor several volunteers instead of individual donors at its benefit later this month. (It does plan to honor a corporate donor.) But the charity will still auction a weeklong Caribbean trip and dinner with Kristen Dalton, the recently crowned Miss USA.

City Harvest, which distributes food to New York soup kitchens and pantries, shared the costs of its April benefit with another nonprofit. It also did away with large floral centerpieces and seating cards with fancy calligraphy. But donors could still bid on dugout seats to a Los Angeles Dodgers game. Rock star Rob Thomas performed. City Harvest's haul: a bit over $1 million, down slightly from $1.3 million in 2008. Read more here.

Network for Good Offers Free Trainings

Learn How to Create Sustainable Funding (Even in Rough Times) and Make the Most of Online Marketing Opportunities
Register now for any or all of the upcoming, free (as always) Nonprofit 911 teleconferences:
Last Chance to Register!

Tuesday, May 19: Creating Sustainable Funding, with Terry Axelrod of Benevon
Details and registration here.


Tuesday, May 26:Create an Online Strategy to Thrive in Tough Times, with Eric Rardin of Care2
Details and registration here.

Tuesday, May 12, 2009

NYC Entrepreneurial Ventures for the Arts Program Free to Attend

Entrepreneurial Ventures for the Arts, supported in part by the New York State Council on the Arts, is set for Thursday, June 25th in NYC. The training will be presented by Doug Sauer, CEO, NYCON & David Watson, Esq, Sr. VP, of Legal Accountability & Compliance Services, NYCON.

In increasingly challenging fundraising times it is more important than ever for arts organizations to consider Entrepreneurial Ventures that can generate revenue. This type of endeavor takes calculated risk based on sound facts and adherence to rules and regulations around these types of activities for nonprofits. But entrepreneurial ventures have proven successful for many nonprofits. This full-day session can help you figure out if this type of activity is right for your organization.

This specialized training will address the interests and markets of arts organizations in exploring alternative revenue generating activities. This training course is a highly interactive immersion into the world of innovation and revenue generation. Participants will learn how to develop and practically apply "real world" elements of entrepreneurial ventures to their organization, including strategies on developing board understanding and support for such ventures. At the conclusion of the program, participants will have access to follow up support and information as they explore venture development.

Date: Thursday, June 25th, 2009
Time: 9am to 4:00pm (included lunch!)
Cost: FREE!
Location: NYCON NYC Regional Office
305 7th Avenue at 7th
11th Floor
NY, NY 10001

Register Here

Friday, April 24, 2009

Innovative Responses to the Current Funding Crisis in the Arts

The Center for Research, Regional Education and Outreach (CRREO) and the Samuel Dorsky Museum of Art (SDMA) at the State University of New York at New Paltz, along with the Dutchess Council for the Arts, will host a program for artists, arts organizations and interested residents throughout the region, titled “Innovative Responses to the Current Funding Crisis in the Arts” on Tuesday, April 28.

The program begins at 4 p.m. with a director’s tour of the Samuel Dorsky Museum of Art. At 5 p.m. in Lecture Center 102, Heather Hitchens, executive director of the New York State Council on the Arts, will speak about ways in which the council is addressing the state budget cuts and the future state of the arts in New York.

Following the keynote, Hitchens will moderate a panel discussion with the focus on the status of New York state arts funding and the innovative approaches that arts organizations and artists might use to maintain their programs and businesses. Panelists include:
• Carl Van Brunt, artist and director, Van Brunt Gallery
• Jeff Haynes, musician, founder and president of Komunyaka Music
• Lou Trapani, artistic and managing director, Center for Performing Arts at Rhinebeck
• Meira Blaustein, cofounder and festival director, Woodstock Film Festival
• Carole Wolf, executive director, Mill Street Loft

Each panelist will be asked to talk about their own innovative responses to the current funding crisis. This will be followed by a problem-solving discussion guided by audience queries. The event is free and open to the public.

Contact: Kathleen Tobin Flusser, x2901, tobinflk@newpaltz.edu
Web Site: http://www.newpaltz.edu/crreo/events.html

Thursday, April 23, 2009

New York City Seeks to Become Volunteer Central by Making Volunteering Super Easy

This post is from Joanne's Nonprofits Blog by Joanne Fritz, About.com Guide to Nonprofits:

As part of celebrating National Volunteer Week, Mayor Michael Bloomberg has taken steps to make volunteering very easy for people in New York City, through NYC Service. The program's goals are to use volunteers to mitigate the impact of the current recession; to make it super easy to volunteer; and to make sure that young people in NYC learn about civic engagement and have the opportunity to serve.


Besides creating the comprehensive NYC Service website, where New Yorkers can search for programs that need their volunteer help, the program is breaking new ground with its innovative "Go Pass." Go Pass sets up a central clearinghouse for background checks. It will reduce the need for multiple nonprofits to pay for background checks on the same volunteer, and will reduce the time that volunteers must now spend going through individual background checks at several nonprofits.

Background checks are commonly required for volunteers who work with vulnerable populations such as children and the elderly. It is an obstacle that may deter some volunteers, and a bureaucratic bottleneck for nonprofits who are trying to funnel volunteers quickly to address immediate needs. The Go Pass is a great idea and a model for other communities.

As always, New York City strives to be the biggest, the best, the first. NYC Service is a great way to harness that energy.