San Francisco Bay Area Arts Funders CAPITALIZATION ANALYSIS - REQUEST FOR PROPOSAL

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1 San Francisco Bay Area Arts Funders CAPITALIZATION ANALYSIS - REQUEST FOR PROPOSAL Statement of Purpose A consortium of San Francisco Bay Area arts funders is commissioning an analysis of the collective impact of their respective capitalization and capacity building efforts. The consortium is comprised of funders operating within the San Francisco Bay Area and includes the William and Flora Hewlett Foundation, the Kenneth Rainin Foundation, the San Francisco Foundation, and the San Francisco Arts Commission. The Capitalization Analysis will be focused on select grantees of the consortium, all of which are Bay Area arts organizations, and their financial and organizational health in relation to capitalization and capacity building funder strategies. Our funding framework is based on the definition of capitalization used by Grantmakers in the Arts: the accumulation and application of resources in support of the achievement of an organization s mission and goals over time. The resulting analysis should inform how participating funders can explore the development of aligned strategies in their collective capitalization and capacity building work. It should also identify ways to maximize the impact of these efforts toward improved outcomes in the Bay Area arts ecosystem. Background In 2010, Grantmakers in the Arts (GIA) created the National Capitalization Project in response to research that the nonprofit arts sector has been poorly capitalized for some time. Representatives from sixteen national and regional arts funders, along with subject experts, came together to discuss what funders can do individually and collectively to address the issue. In 2012, GIA held two meetings with Bay Area arts funders to discuss capitalization. In 2013, the San Francisco Foundation convened funders to share the resultant strategies developed through their commitment to the work of capitalization. In these early meetings, funders recognized that several among them had recently launched capacity building or capitalizationspecific programs, and that most had established learning communities or cohorts of grantees, for whom they would organize convenings and other professional development opportunities. To date, the consortium has gathered data on each funder s programs (described below) ranging from 2012 to present, to better understand their work in this area collectively. With this data set in place, and the programs reaching critical points in their maturation, the consortium feels this is a strategic moment to conduct an analysis of their respective offerings. 1

2 The organizations supporting this Capitalization Analysis contributed an estimated $28 million to San Francisco Bay Area arts organizations in 2013; approximately $4.3 million was allocated to capitalization and capacity building activities. Previous Research Resources National Capitalization Project 2010 Summary, Grantmakers in the Arts: (Additional resources on Grantmakers in the Arts National Capitalization Project available here: Tasks to be Accomplished Phase 1 Identification of Indicators and Metrics The consultant will facilitate a convening of the consortium in which members will agree on metrics used to analyze the financial health of funder grantee cohorts and a shared definition of capitalization, surface questions that will drive research and analysis, and finalize a timeframe for the work. With the guidance of the consultant, the funders will also develop shared values and objectives around their capitalization and capacity building work. Definitions used in the National Capitalization Project Summary may be of reference (link above). Phase 2 Review of Materials The consultant will conduct a scan of the participating funders related arts grants data spanning back to 2012, as well as other relevant materials such as California Cultural Data Project reports, past capitalization studies commissioned by the William & Flora Hewlett Foundation, the Foundation s Center Grant Craft website, case studies and interviews with funders and grantees. Phase 3 - Programs Analysis and Recommendations Utilizing comprehensive data representing the funder consortium s programs, the consultant will analyze and interpret the information according to the indicators developed in Phase 1 to assess the financial health of funder grantees and the cohort aggregate. This analysis will be presented to the funders consortium as a final report with raw data, calculations, and other relevant research such as comparative data sets and case studies. The consultant will identify common organizational challenges, best practices, effective interventions and obstacles to successful capitalization strategies. The research may lead to a larger field-wide report of key findings, capitalization trends, and recommendations for the future financial health of the field. Summary of Deliverables The project deliverable, due by the end of the contract period, will be a report that includes: 2

3 - Shared definitions, values and objectives in relation to capitalization and capacity building. - A set of indicators that can be collected, analyzed and tracked. - Analysis of funder grantee cohorts financial health with a comparative analysis to a CA CDP data set of Bay Area small and mid-sized organizations. - Case studies of grantee participants in funder s capitalization and capacity building programs. - Strengths/Weaknesses/Opportunities/Threats (SWOT) analysis of funder s collective capacity building initiatives. - A summary of wider findings on financial health and capitalization needs for the field, if relevant, as agreed upon with funder consortium. This summary will position the findings within the larger context of regional and national funding trends and/or sector needs. - Recommendations on programmatic strategies based on analysis of current funder consortium activities and grantees. Proposal Requirements Please submit the following as part of your proposal: - Approach and Timeline Assuming a start date in June 2015, describe the approach to the project and indicate the timeline for each phase, allowing sufficient time for consultation with the funder consortium and data collection. Provide details of other recent, completed projects that will help inform the approach of this project. (Meetings as necessary). - Project Team - Describe the roles, skills and expertise of the personnel that will be undertaking this project, along with the percentage of their time that will be allocated. Please provide resumes for each team member, and indicate who will take the overall lead in communicating with the funder consortium. - Project Budget Provide a detailed budget for the project, with an estimate of the fees to be charged across tasks, deliverables, and team members, and an estimate of expenses that will be incurred. - References Provide names, organizations and contact details of three nonprofit organizations who have been your clients during the past 24 months, and who are willing to act as references. Deadline We are accepting proposals to lead and implement this project, which has an allocated budget in the range of $30,000-40,000 and a desired end date of no later than December 15, Please submit proposals and address any questions to or The proposal due date is May 31,

4 Background on the Funder Programs The Kenneth Rainin Foundation funds inspiring and transformative dance, theater and film in the San Francisco Bay Area. The Foundation seeks to achieve a more vibrant, sustainable arts ecosystem. Its Impact Grant Program, launched in 2013, provides multi-year capacity building support to small and mid-size dance, theater and multidisciplinary arts organizations that have received funding through the Foundation s NEW Program, formerly the Visibility Awards. The goals of the program are to: create optimal conditions for art to be made; strengthen individual theater, dance, and multidisciplinary arts organizations; strengthen the Bay Area performing arts ecosystem overall. Since 2009 the Foundation s Arts Program has provided nearly $12 million through approximately 200 grants to San Francisco Bay Area arts organizations. In 2015 the Arts Program will allocate $3.5 million in grants. Over the past three years, the Arts Program has supported 14 grantees through its Impact Grant Program. The program welcomes 4-6 grantees per year and offers multi-year grants totaling between $75,000 - $150,000. The San Francisco Arts Commission is the City agency that champions the arts as essential to daily life by investing in a vibrant arts community, enlivening the urban environment and shaping innovative cultural policy. Explanation of grantmaking: Over the last nineteen years, the San Francisco Arts Commission has distributed over $48 million to San Francisco-based organizations and individual artists through the Cultural Equity Endowment and Cultural Centers Fund. Cultural Equity Endowment funds average about $2 million annually and support historically underserved artists and communities in a number of legislatively mandated grant categories. The following two grant categories focus on organizational capacity building: Level One Cultural Equity (CEI-L1) grants are up to $25,000 and support short-term, one-time projects that assist organizations in strengthening their administrative infrastructure and organizational capacity, and preparing for the Level Two grants. Level Two Cultural Equity (CEI-L2) grants are up to $100,000 and support substantive organizational change by significantly enhancing organizational efficiencies and focusing on new or unrealized organizational capacity, in keeping with an organization s mission and long-range goals as articulated in the Board-approved strategic plan. Initiatives should demonstrate that they are well planned, undertaken at an opportune time, are of necessity, and will span a twoto three-year period for realization. Initiatives must lead to greater sustainability and financial health. 4

5 Applications are posted annually and open to all that meet the criteria and guidelines. Grants are awarded by a competitive, peer review panel process that is open to the public or by staff review. All grant recommendations are approved by the San Francisco Arts Commission. The San Francisco Foundation is a community foundation that believes the arts constitute an integral component of a healthy community, building bridges across generations, gender, and ethnicity. The Arts and Culture Program supports small and mid-size arts organizations with budgets between $100,000 - $2 million located within the counties of Alameda, Contra Costa, Marin, San Francisco and San Mateo. Launched in 2013, its Artistic Hubs Cohort program was created to provide additional support to fifteen arts organizations that deliver high quality arts programming, provide a voice for social justice issues, and serve as artistic hubs and/or neighborhood cultural anchors within the Bay Area. Many of these exemplary institutions serve emerging artists and a diverse population, yet are undercapitalized. Along with larger grants for general operating support, the Artistic Hubs Cohort strategy includes a multi-year funding commitment and technical assistance. In partnership with TSFF donor services staff, donors will be engaged as partners in building individual donor support for each organization. The Artistic Hubs Cohort will also raise the profile of a group of arts organizations that as a result of their geographic location and community focus tend to be chronically under-resourced. The cohort is by invitation only. Selection of the participating art organizations was based on the quality of artistic programming, institutional leadership role, and years of community service, along with each organization s commitment to bringing together persons of different races, ages, and religious beliefs through the arts. The fifteen art organizations represent a range of artistic disciplines, budget sizes and locations within the Foundation s geographic service areas. Together, these arts organizations serve as intersections of artistic excellence, community access, and social justice. In 2015, the Arts and Culture Program of the San Francisco Foundation will allocate $2.3 million in grants to a portfolio of 57 organizations. The Artistic Hubs Cohort will receive three-year grants representing $1,575,000 of this allocation. The Performing Arts Program at the William and Flora Hewlett Foundation makes grants to sustain artistic expression and encourage public engagement in the arts in the San Francisco Bay Area. The Performing Arts Program is one of the Bay Area s largest funders of the arts with 250 grantees and an $18 million grants budget in Its Organizational Effectiveness program awards approximately capacity building grants per year averaging $35,000-50,000 to organizations at critical inflection points. 5

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