The economy is at a 40-year low. Safety net issues are on the rise at an alarming rate. So why sustain a commitment to the arts?

Jim Canales, president and CEO of The James Irvine Foundation, answers this question in the following op-ed appearing in the San Francisco Chronicle.

Why the arts matter
James E. Canales
Tuesday, February 3, 2009

The arts are in trouble. Many of the institutions that make the Bay Area’s cultural scene so compelling are facing financial difficulties. Some are severely cutting programs; others are on the verge of closing. The arts are particularly vulnerable because they rely upon ticket sales and memberships, which are often among the first to be cut from consumer spending during an economic crisis. At the same time, the philanthropic revenues that arts organizations rely on – from government sources, foundations, corporations and individual contributions – all stand at risk today, given shrinking endowments and discretionary income.

Thankfully, arts leaders are applying their creative powers to these economic challenges, thus finding new ways to cut costs or raise revenues. For example, the Magic Theatre recently announced that it will be able to complete its season, thanks to an emergency fundraising campaign that brought in $455,000 from 1,100 donors. And the San Francisco Opera, in announcing its 2009-2010 season, was able to reduce its costs without compromising on artistic quality.

These organizations and their leaders deserve credit for doing whatever it takes to stay afloat. But all the creative ideas to keep the doors open won’t be enough if we don’t fundamentally change our collective understanding of why the arts matter.

When times get tough and choices must be made, it is often the arts that lose. Why is this so? When compared to health or human service needs, the arts are often viewed as less important and therefore more discretionary in nature. But this line of thinking misses the point about why the arts are so important. Until we fully recognize how essential the arts are to the vitality of our communities and our quality of life, our cultural infrastructure will continue to be given short shrift. There are countless reasons why we should renew our commitment to the arts. Consider the following:

• In the Bay Area, the arts create more than 31,000 jobs and generate $1.2 billion in economic activity every year.
• The arts produce $105 million in local and state tax revenue for the Bay Area (far more than the government spends on the arts).
• Surveys report that 93 percent of parents believe that the arts are essential to a well-rounded education.
• Ten million new jobs in the next decade will be in the “creative class,” according to economist Richard Florida. These are jobs that involve imagination and ingenuity which are best developed by experiencing the arts.

But the importance of the arts extends well beyond economics and education. The arts expand our horizons, unleash creativity and build social bonds. During this period of unsettling change, the arts can provide us with pleasure and comfort, while also challenging us to see the world in new ways.

Two recent examples come to mind of the arts’ power to build community and create a sense of common experience. First was the inauguration ceremony of President Obama. Where did we turn to put this historic moment in perspective, to build a common sense of pride and hope for the nation’s future? We turned to the arts, of course, in the form of poetry, classical music and song, including performances by San Francisco’s own Boys Chorus and Girls Chorus.

Locally, the power and appeal of the arts was in evidence on a recent Sunday when dozens of museums and other cultural institutions opened their doors for free. Thousands of kids explored Asian culture at the Asian Art Museum, walked through a rainforest at the California Academy of Sciences, and explored world class art collections at the de Young Museum and SFMOMA. On this one day, people could experience the rich diversity of San Francisco’s arts organizations, regardless of economic circumstance. But, for the rest of the year, maintaining our rich cultural landscape is anything but free.

So, as your resources permit, attend a performance, buy a membership, and consider a contribution of any size. But also talk to your friends and neighbors about the transformative power of the arts and encourage them to support and advocate for the arts. The arts institutions that have created our cultural riches have done so much to help the Bay Area thrive. It’s time for us to return the favor.

James E. Canales is president and chief executive officer of the James Irvine Foundation, a private foundation dedicated to expanding opportunity for the people of California. The Irvine Foundation is one of the largest private funders of the arts in California, with annual arts grant-making of approximately $20 million.

This article appeared on page A – 13 of the San Francisco Chronicle

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/03/EDQP15LUJN.DTL

A middle-schooler streams YouTube videos. A family shares its heritage through a holiday skit. A baby boomer starts a garage band. Today, many forms of cultural engagement take place off the radar of traditional nonprofit arts organizations.

How can community foundations help arts organizations better support the broad range of cultural engagement in diverse and changing communities? In particular, how can this support be provided more effectively and equitably? These questions are at the center of Cultural Engagement in California’s Inland Regions, research that explores patterns of cultural engagement in two rapidly growing, ethnically diverse areas: the San Joaquin Valley and the Inland Empire.

Study highlights

The study, conducted by WolfBrown, prompts new discussion of ways community foundations, donors, and nonprofits can support arts and culture. Key findings are:

• A broad, inclusive definition is important to understanding total cultural engagement—old definitions leave too much out
• Personal participation levels are high—many people are engaged in activities such as photography, painting or drawing, singing or playing an instrument, and social dancing
• Much cultural engagement occurs in non-arts spaces—for example, the home, places of worship and parks are among the prominent places in the cultural life of communities
• Heritage-based and social forms of cultural engagement attract racially diverse participants—many cultural activities are deeply embedded in religious, political and social contexts that vary by community
• The emergence of “curatorial” arts activities is changing the landscape of cultural engagement—many youth and a growing number of adults are selecting, organizing and editing the art in their lives
• Significant interest in arts learning activities goes unmet—for example, a significant number of respondents indicate they would like to take dance or music lessons, or learn more about photography
• Role models are key players in the cultural ecosystem—respondents who could identify a person who inspired or supported their creative expressions were much more likely to engage in participatory cultural activities and attend arts programs
• Certain types of programming may increase broad-based cultural vitality in communities and across cultural groups—examples include helping adults and children chronicle their lives and tell their stories; and helping identify and stimulate use of community venues, such as public schools, parks and outdoor settings, retail establishments and churches as programmable arts spaces

This executive briefing suggests additional program approaches for increasing cultural vitality, and contains questions for consideration by service providers and funders who are looking to broaden the intersection of arts and community.

This research was commissioned by The James Irvine Foundation.

Invest in what works. So goes the saying—as well as The James Irvine Foundation’s interest in advancing community arts. Irvine announced nearly $3.2 million in new grants to a group of California community foundations. It’s the second phase of Communities Advancing the Arts, an initiative that placed $4.75 million in 13 community foundations between 2004 and 2007. Irvine’s initial $4.75 million investment generated a solid return. It helped participating community foundations mobilize $59 million in assets for the arts over three years (a 48 percent increase in assets dedicated to the arts), as well as create 181 new funds dedicated to the arts at participating community foundations.

The timing couldn’t be better

Public funding for the arts has reached new lows in recent years. The California Arts Council, which traditionally funded local arts programs throughout the state, has seen its budget slashed from $31 million in 2000 to just $5 million in 2007. Private donations have also dipped over the past 15 years, leaving many arts organizations struggling for survival. Communities Advancing the Arts is intended to foster grantmaking and spur individual donations to arts organizations in targeted communities.

Phase two participants are:

California Community Foundation
East Bay Community Foundation
Community Foundation for Monterey County
Orange County Community Foundation
Sacramento Region Community Foundation
The San Diego Foundation
The San Francisco Foundation
Community Foundation Sonoma County
Ventura County Community Foundation

Full press release

A new study helps answer the old question: What do arts bring to communities? It documents the economic impact of the nonprofit arts and culture industry, and covers 156 communities and regions representing all 50 states and the District of Columbia. The study was conducted by Americans for the Arts. It includes diverse communities, both rural and urban, ranging from four thousand to three million people.

The attached study focuses solely on nonprofit arts and culture organizations and their audiences and excludes spending by individual artists and the for-profit arts and entertainment sector. The two largest U.S. cities, New York and Los Angeles, each with more than $1 billion in organizational expenditures, were excluded from this study to avoid inflating the national estimates.

Arts are big business…with big benefits

America’s nonprofit arts and culture industry generates $166.2 billion in economic activity every year—$63.1 billion in spending by organizations and an additional $103.1 billion in event-related spending by audiences. The national impact of this activity is significant, supporting 5.7 million jobs and generating $29.6 billion in government revenue.

The impact of spending by nonprofit arts and culture organizations is far reaching; they pay their employees, purchase supplies, and acquire assets within the local community. Additionally, unlike most industries, nonprofit arts and culture leverage significant event-related spending by their audience. Whether serving the local community or out-of-town visitors, a vibrant arts and culture industry helps local businesses thrive.

Everybody wants to know more and do less, right? The James Irvine Foundation and 30 arts grantmakers are launching the California Cultural Data Project. It’s a statewide collaboration standardizing the information funders collect from grant seekers. The idea is to simplify grant applications, improve grant tracking and get the most from analysis of arts programs and unmet needs. The goal is to build the sector’s collective knowledge and impact. Many community foundations are participating. Additional info at Irvine website. Read more.