Scan sheds light on scale and trends in arts grantmaking

The best local arts strategies are informed by knowledge of the larger arts funding landscape. That’s the premise of a project initiated by and for the nine community foundations engaged in Irvine’s Communities Advancing the Arts initiative.

These community foundations are developing new sources of funding while investing in programs supporting local arts. As these catalysts build plans for the new year, they have keen interest in understanding the broader picture of current arts funding in California. In particular, group members are hungry to know what major funders of California arts are doing, so they can in turn examine opportunities to complement existing efforts or address unmet needs.

Timely research

In fall 2010, Helicon Collaborative was commissioned to undertake a rapid research scan to support the interests of these community foundations.

Helicon went right to work — interviewing a cross-section of 11 national and local funders that support the arts in California, and combining these findings with results of a national study the firm completed in September 2010 for Grantmakers in the Arts. In addition, Helicon analyzed Foundation Center data on giving to the arts nationally and in California specifically, and reviewed recent data on public funding for the arts provided by the National Assembly of State Arts Agencies.

Highlights

The study, titled “Arts Funding in California: Where Do We Stand?,” helped define the size and nature of arts funding in California, using the most recent data available. For example:

• State funding for the arts has declined 13% during the recession, and is down more than 30% compared to its high in 2001; local public funding has also declined by more than 10% since 2008.
• Foundations provided $375 million to California arts, culture and media organizations in 2008. California-based foundations provided $287 million of this amount, and foundations outside California provided the remaining $88 million. Three community foundations (in Silicon Valley, San Francisco and Marin) alone contributed $33 million.
• Of the $375 million total, $125 million (33%) was awarded to museums; $89 million (23%) to performing arts organizations; $59 million (16%) to media and communications; $58 million (15%) to multi-purpose arts organizations; $18 million (5%) to humanities; and $26 million (8%) was divided between historic preservation; policy, management and information; and other.

Distribution of $375M in foundation funding to California arts organizations

The study also illuminated broad trends. For example, nationally, arts funders are increasing general operating support and decreasing funding for facilities and capital projects. About one-third of foundation arts funders have increased levels of funding, about one-third have maintained previous levels and about one-third have diminished their support. While few foundations indicate a change in their strategic direction as a result of the recession, an increasing number of national, corporate and community foundations are integrating their arts funding with work in other sectors such as community development, education or youth development.

In addition, this research surfaced important perceptions of California held by arts funders:

• Given the number and quality of arts organizations in California, reductions in funding at national and local levels have powerful and disproportionate impacts relative to other states.
• Significant numbers of artists and arts organizations in California are pioneering socially responsible, cross-sector partnerships, linking the arts to pressing social issues such as health care, immigration, education, civil rights and equity issues.
• The cultural sector in California has a history of innovation — many field-wide models and cross-sector partnerships have begun here.
• California’s technology and entertainment industries attract and employ diverse artists and provide opportunities for innovative collaboration.
• Despite the recession, there is enormous personal wealth in California and potential for expanded philanthropic activity.

Implications for community foundations

Helicon described three specific areas where the state’s community foundations can generate greater impact:

• California’s leading-edge demographic change provides unique opportunities for community foundations to exert leadership in recognizing and supporting art forms, programs and audiences that herald the future for the nation as a whole.
• Cuts to state education budgets make the role of cultural institutions and artists in arts education and youth development more important than ever.
• Technology can be harnessed to make diverse cultural resources more visible and accessible, and connect artists and arts organizations to community needs.

The Helicon study makes the case that community foundations are well positioned to achieve a lasting difference in the arts sector today. “California community foundations are master collaborators,” according to Marcelle Hinand Cady, the Helicon research leader for this project. She adds, “They work with diverse people across multiple sectors; they are skilled at building partnerships and organizing disparate interests around a common cause. Community foundations can bring their broad networks and credibility to the work of building coalitions and inspiring donors to advance the arts in service of stronger communities.”

Download the report.

Communities Advancing the Arts is a major funding initiative of The James Irvine Foundation.

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