Sustaining arts in a time of economic turmoil

Arts funders and nonprofits agree: We are in an unprecedented time of financial distress, and no one knows when we will reach bottom. This new reality is causing reactions that range from caution to crisis in arts organizations.

“We’re seeing lots of white knuckle behavior at the moment,” reports one community foundation CEO. “Arts leaders are hanging on with everything they have and trying to prepare for what may be an even scarier ride to come.”

Much is being written to help provide perspective and practical suggestions to foundations whose concern for arts nonprofits is rising at the very moment when grantmaking assets are plummeting. This post provides summaries and links to some of these resources.

Don’t assume giving will go backward

Starting with a positive, a recent report indicates that, while charitable giving is affected by a roiling economy, the impact is not nearly as much as might be expected. In fact, tracking the numbers since 1969 shows that total giving in the U.S. has risen (in current dollars) every year but 1987—including many years that represented slow or negative economic growth. Of course, the rate of increase in giving is often less in lean years. The report Giving During Recessions and Economic Slowdowns (Giving USA 2008, Giving USA Foundation™) is available for purchase at www.givingusa.org

Keep investing, and making personal asks

In hard times, arts groups should continue to invest in and publicize their art, according to Michael M. Kaiser, president of the John F. Kennedy Center for the Performing Arts. And Ronald Levy, president of Lincoln Center counsels that this is a good time to remember that “shoe leather trumps mail” when it comes to development efforts. “It is harder to turn down a request to meet face to face for 50 minutes than a written proposal for $50,000,” says Mr. Levy. And don’t let a “no” discourage you. “For great fund-raisers,” he writes, “’no’ is just the beginning of a conversation.” These excerpts are from The Nonprofit’s Guide to Surviving a Downturn, The New York Times, November 11, 2008.

www.nytimes.com/2008/11/11/giving/11ARTS.html?_r=1&ref=giving&p

Stay in the know

The Foundation Center’s new online feature, Focus on the Economic Crisis, provides an array of resources to help nonprofits and foundations alike as they face the challenges of an unstable economy. Updated regularly, it contains news, interviews, research, blog posts, and podcasts about the crisis and its impact on philanthropy—as well as information on training and scholarships that will help grantseekers become better fundraisers in an increasingly competitive environment.

http://foundationcenter.org/focus/economy/

Check out additional resources

Crisis or Bad News: A Solid Crisis Plan is Your Lifeline
Crisis communications guidance; from the Communications Network

20 Emergency Funding Sources for Nonprofits
Ideas for revenue sources that can be accessed quickly; from the consulting staff at Fieldstone Alliance

Managing in Tough Times: 7 Steps
Insights and advice from experts in the field to help organizations weather the current economic storm; from the Bridgespan Group

Emergency Hardship Scholarships/Grants to Individuals
Keys for foundations to satisfy charitable purpose requirements in providing relief to persons impoverished as a result of low income or lack of financial resources; from the Council of Michigan Foundations

Changing Times Call For Foundations To Try New, Innovative Approaches To Sustain Nonprofits
Opportunities for foundations to more effectively serve nonprofits; from the Council of Michigan Foundations

Strategies for Foundations to Save Resources
Advice for coping with dwindling resources; from the Financial Times

A to Z Survival Guide for Uncertain Times
Tips for addressing financial challenges; from PhilanTopic

Making Informed Decisions in Uncertain Times [PDF]
A report on the impact of the economic downturn on community foundations, including information on grantmaking, spending policies, budget implications and communicating with stakeholders; from Community Foundation Insights

Weathering an Uncertain Economy [PDF]
Research on the impact of economic slowdowns on charitable giving; from the Center on Philanthropy at Indiana University

A Survival Kit for Fundraising in a Bad Economy
Tools for fundraisers, including articles, advice, books, and web and audio conferences; from the Association of Fundraising Professionals

8 Ideas for Finding New Donors in Today’s Economy
Advice for acquiring donors; from The NonProfit Times

Today’s challenges, Tomorrow’s Strength Nonprofits can Avoid Pitfalls – and Even Grow – in Tough Times [PDF]
Guidance for leading nonprofits through economic uncertainty; from Achieve

Bracing for Lean Times Ahead
Article on the impact of the economic crisis on philanthropy; from The New York Times

Hold a key thought

And keep in mind these words from George C. Ruotolo Jr. (chair of Giving Institute: Leading Consultants to Non-Profits)…

“Charities with a clear and compelling case and an established, loyal donor constituency will continue to succeed, even in difficult times.”

www.givingusa.org/press_releases/gusa/Giving during recessions 2008.pdf

This post is assembled in support of Communities Advancing the Arts, a major funding initiative of The James Irvine Foundation.

Filed under: Supporting nonprofits