Arts on the Verge II. Keith D. Lee, MA, MFA, PhD. Grassroots and Arts Funding in Memphis. Tennessee. Social Theory, Politics, and the Arts

Transcription

1 Arts on the Verge II Grassroots and Arts Funding in Memphis. Tennessee, MA, MFA, PhD Social Theory, Politics, and the Arts Seattle, WA 2013 October 24-27

2 Arts On Verge Series Summary This paper, the second in a series of four, investigates the arts and culture environment in Regional Memphis. Among topics covered in this series are community development, arts funding, ethnic diversity, career development, and comprehensive arts infrastructural development. and Arts Funding in Memphis, TN 2

3 Memphis Arts Environment City and county governments have conducted at least three economic development plans since 2000 that only included entertainment arts such as music, film, and television industries policy discussions City of Memphis contributes to building construction via tax incentives for arts facilities; has an Percentage for the Arts Program that supports public arts; but does not have a consistent history of funding arts operations Neither the city nor county has a policy agency dedicated to the Arts which means that local practices and procedures of the largest art funders influence local arts policies and funding objectives The de-facto arts policy agency is ArtsMemphis, an arts united fund that grants operating support for 8 to 12 large member organizations and provides project only support of less than 6% of $4M ($240,000) annual distributions to 20 to 35 small to mid-sized organizations and Arts Funding in Memphis, TN 3

4 Memphis Arts Environment (continued) Racially defined and divided into African American and Caucasian cultures and the divide remains significant since the Civil Rights Movement of the 1960s The city is 63% African American and the county is 50/50% African American and Other/Caucasian Small increases in Latino and Vietnamese populations Large nonprofit arts organizations adapt the programming of smaller nonprofit arts organizations and do not act as fiscal agents In 50 years, no African American arts organization has achieved a budget over $1 M even when begun in the same decade as Caucasian arts organizations and Arts Funding in Memphis, TN 4

5 Paper Quote Philanthropy as practiced in Regional Memphis relies heavily on social networks and individual donors/family interests. One local foundation administrator explained that donor interests in specific projects and disciplines drives philanthropy in Memphis and this practice represents the Medici Model in philanthropy. and Arts Funding in Memphis, TN 5

6 Definitions Emerging Nonprofit Organizations (ENOs) Include grassroots, small, and mid-sized nonprofit organizations Include small nonprofit arts organizations Emerging Arts Organization (EAOs) Include small, grassroots, and mid-sized nonprofit and commercial arts organizations Include small upstart organizations and independent artists, contractors, and researchers and Arts Funding in Memphis, TN 6

7 AOVII: Paper Summary Part II specifically focuses on funding for grassroots and small arts organizations verses funding for large organizations Southern Philanthropy concentrates on social services and community development activities that rarely include the Arts Southern Philanthropy addresses social justices and ethnic relations but those issues are not addressed in Memphis philanthropy Early analysis suggests that local funders follow the lead of the UAF when establishing funding guidelines and membership eligibility and Arts Funding in Memphis, TN 7

8 AOVII: Paper Summary (continued) Many local funding policies and practices inadvertently affect the ability of ENOs to secure annual operating funds. Memphis ENOs fear retaliation, whether actual or perceived, and do not challenge local funding policies Multiple EAOs and ENOs are founder-director organizations EAOs have been unwilling to participate in arts funding research A small social services organization, Metamorphoses, is utilized to highlight the same limitations in grassroots funding that affect ENOs and EAOs to develop a comparative portrait of local philanthropy for grassroots nonprofits and Arts Funding in Memphis, TN 8

9 The Question: What s going on in Grassroots and Arts Funding in Memphis? and Arts Funding in Memphis, TN 9

10 Methodology and Methods Methodology Environmental Scan Arts Administration Case Study Organizational Theory and Behavior Ethnographic and Action Research (Participant Observation) Methods Interviews: Art Leaders and Foundation Administrators NEA Awards for Memphis and 990 Tax Documents AFA Arts Economic Prosperity Study IV and National Arts Index Document Research (Newspaper, Guidelines and Annual Reports) IUPUI Million Dollar Donor Index and Arts Funding in Memphis, TN 10

11 Paper Quote Social welfare funding related to economic development, education, health, housing, poverty, transportation, and safety dominate philanthropic interests in the Memphis and the Mid-South. Though some minor philanthropic interests connected economic development and education to the Arts, for the most part, Memphis philanthropy has not been organized to broadly support emerging arts organizations or Arts activities.... Additionally, arts leadership has not been active in economic development practices and policy constructions related to either social welfare issues or the Arts. and Arts Funding in Memphis, TN 11

12 Focused Giving in Southern Philanthropy Poverty and Social Welfare Social Justice: Race and Race Relations Crime, Health, and Safety In South/Mid-South, Neighborhood Blight Not in Memphis Housing and Transportation Economic Development Education Utilizes the Arts and Entertainment Low Graduation: K-12 Community Re-vitalization Higher Education and Arts Funding in Memphis, TN 12

13 Memphis Arts Funding History & Patterns National Grants NEA Our Town for South Main Arts District Only 70 NEA Awards in 13 years Highest Awarded $357,000 in 2010 that included $225,000 from Mayors Institute of City Design 1 each in 2002 and since 2010 Artsplace for Memphis Music Magnet Project and Board Avenue Arts District and Arts Funding in Memphis, TN 13

14 Memphis Arts Funding History & Patterns (continued) Local Grants Channel arts funding and support through ArtsMemphis Create small grants for project only funding Require 3 consecutive years in funding and programming Do not have seed and startup funds or viable fiscal agents to support ENOs or EAOs Do not support professional or career development for individual artists and arts professionals and Arts Funding in Memphis, TN 14

15 Local Foundations Funding the Arts Assisi Foundation of Memphis Community Foundation of Greater Memphis Hyde Family Foundations 1. Want to observe community returns on funding investments 2. Fund mostly large arts organizations 3. Longtime supporters of select Arts Organizations Jeniam Foundation Other Foundations 4. Has limited capacity building and technical assistance funding for Arts organizations and Arts Funding in Memphis, TN 15

16 Paper Quote Funding for grassroots and arts organizations in Regional Memphis is virtually non-existent. Small to mid-sized organizations have few funding options as local philanthropic organizations favor large and more established institutions, especially in the Arts. Additionally, large nonprofit and arts organizations have not understood a more comprehensive role in developing funding infrastructures to support emerging and smaller nonprofit organizations and grassroots programming. and Arts Funding in Memphis, TN 16

17 ArtsMemphis Funding Priorities Keystones 6 to 8 Core Member Arts Organizations Milestones 4 to 5 Community Arts Organizations Mosaics 25 to 30 Arts Nonprofits Other Arts Education Community Enhancement TAC Art Builds Community Funded a $27.6 M Endowment in 2005 and has four funding areas General Endowment Enhancement Fund Designated Funds Other: Special Initiatives Distributes $4 M annually Over 94% of Annual Distributions go to Keystones and Milestones Members Less than $240,000 go to Mosaics and Arts Funding in Memphis, TN 17

18 ArtsMemphis Funding Distribution to Large Arts Organizations D Column 1 Large Organizations Small Organizations Special Arts Innervision Donor Designated Enhancement Fund and Arts Funding in Memphis, TN 18

19 United Arts Fund: ArtsMemphis Pros Ability to consistently raise and leverage more funds from a broad business constituency and individual donors Cons Creates misconceptions about local arts funding in business and policy communities Ability to organize business leaders, policymakers, and corporate donors Ability to expand and promote the Arts simultaneously with its own brand Reduces number of applications for arts funding to local businesses, foundations, and individual donors Possess expertise in fund development and grants making processes Represents a limited core membership Lacks expertise in Art disciplines, Arts Education, and/or Arts Management Funding allocations and distributions can be unfair Ability to create predatory practices and policies and/or become a monopoly Does not support failing EAOs with significant histories in arts impact and community development and Arts Funding in Memphis, TN 19

20 Local Policies and Procedures: Funding Guidelines Local philanthropic organizations have neither been friend nor foe to ENOs and usually reward social welfare and economic development issues while penalizing the Arts Operation funding for ENOs come with the same requirements for comprehensive organizational management in board construction, fundraising, marketing, curricula development, and other administrative activities as their larger counterparts Guidelines are inadvertently developed to hinder the growth and expansion of grassroots and smaller nonprofit organizations, especially related to the Arts Small project grant categories range for $1000 to $10,000 and can not be used for operations or capacity building activities; most awards fall under $5000 and require a one to one dollar cash match Foundations and other donors do not recognize in-kind services as match contributions in budget and planning projections Favors Single Donor Patronage or the Medici Model in Philanthropy and Arts Funding in Memphis, TN 20

21 Local Practice: Single Patronage Most local philanthropic organizations follow this traditional patronage strategy in funding where prominent patrons, families, associations, and corporations fund independent and individual projects of their own preference The Single Patronage Philanthropy Model shares similarities with newer models Social and Venture philanthropy Donor support often includes both in-kind and cash resources Organizational missions and initial work has readily available support in funds and expertise during times of crisis and with strategic planning Risks are the same in social and venture philanthropy When donors dictate the types of arts to be supported in communities and neighborhoods When donors become too involved in organizational operations and practices When idiosyncratic preferences do not correspond to the needs and wants of a community When donors over-invest in promoting private agendas, rather than in long-term concerns about the solvency of the organization When the health and/or financial status of a single donor/family changes suddenly and Arts Funding in Memphis, TN 21

22 Paper Quote Most arts organizations would not discuss specific shortcomings in funding or their relationships with local funding organizations for fear of retaliatory actions from the philanthropic community. For this reason, a non-arts organization, Metamorphoses is being used as case study to test assumptions about the philanthropic environment and challenges for grassroots and small organizations in Regional Memphis. and Arts Funding in Memphis, TN 22

23 Operation Summary: Metamorphoses Founder-Director developed innovated educational programs in Childhood Behavior Modification as a Social Welfare Organization Increased in-kind staff resources through paid service learning opportunities for AmeriCorps Exchange Club graduate students Contracted an organizational development consultant to address board, operations, and fund development Hired public relations and event promotion firm Hosted the special event Basketball to Business Summit as marketing and fund development event Diversified local donor and corporate sponsorships Applied for national and local funding in programming and capacity building but could not show local funding history Attended funders meetings and networking meetings and Arts Funding in Memphis, TN 23

24 The Analysis: Metamorphoses Confirmed that Foundation requirements included Provisional requirements such as Before You Ask 12- week sessions in organization mission, vision, communications, etc, management Expectations for small organizations to mimic other organizations with larger staffs Confirmed that Foundations applications and reviews Were based primarily on the Foundations own interests in community development Instructed to ENOs to merge with larger organizations doing similar work in other communities Confirmed that ENOs and EAOs are disadvantaged due to organizational size and staff capacity By Unwittingly create barriers that hinder organizational growth and expansion By preventing organizations from developing local and national funding histories Confirmed that Foundations do not understand capacity building when ENOs operate with volunteer staff who work primary jobs full-time to cover organizational expenses In-kind resources are projected as income throughout the transition and transformation phases Confirmed that Foundations do not recognize varying levels in organizational advancement and achievement when reviewing nonprofit organizations Attempt to advance administrative operations via contracts with consultants and other professionals Attempt to diversify funding within local and national limitations and Arts Funding in Memphis, TN 24

25 Recommendations Work with local public policy and community planners to increase and include arts organizations in established incubation programs for small business startups Create graduating levels for ENOs and EAOs in project, operating, and capacity building funding Create Affinity Funds at the Community Foundations of Greater Memphis to match income with other local and national funding and To support the Arts Artist Fellowships Artist Residencies Arts Research Change funding and programming requirements histories to 3 to 5 years for ENOs and EAOs Create funding opportunities for independent artists, contractors and researchers working in partnership with EAOs and commercial organizations To support Ethnic Organizations African American Asian Latino And Etc Create a Graduate Degree Program in Arts Management at a local University and Arts Funding in Memphis, TN 25

26 Follow-up Analyses Arts on the Verge III: Scans African American Arts Organizations Scans African American Arts Leadership Connects local arts environment to Tennessee State Arts Environment Arts on the Verge IV: Career Development Explores Arts Leadership Scans for Career Development in the Arts and Arts Funding in Memphis, TN 26

27 The End For more information: and Arts Funding in Memphis, TN 27