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.

Relevance. Responsiveness. Relationships. Any community foundation working in arts and culture wants more of each. The San Diego Foundation grows these assets through its Arts & Culture Working Group.

It’s an approach adopted in 2003 to connect community members to community foundation initiatives. Through this collaboration with volunteers, The San Diego Foundation can better address community and donor needs, be a more effective grantmaker, connect to new donors, and establish a stronger voice for local arts and culture.

Plugged-in players

The Working Group consists of community leaders with demonstrated expertise in a number of areas including higher education, business, arts administration, arts management consulting, finance and philanthropy. Members are approved by the Board of Governors’ Executive Committee and serve for three consecutive three-year terms, making service on the Working Group a significant long-term commitment. The Working Group makes grant recommendations to the Board. In addition, its members recommend policy, conduct grantee site visits, attend programs and events of local arts and culture organizations and guide fundraising strategies—although they have no “give or get” fundraising quotas. Sub-committees with additional members from the community share the workload and insure that decision-making is transparent and open.

Felicia Shaw, Director of Arts & Culture at The Foundation, reports that the Working Group strategy is effective because of each member’s commitment to a singular purpose—improving quality of life in the San Diego region. “By stripping away all other agendas, Working Group members come to the table with a shared belief that arts and culture is as critical to our quality of life as clean air, safe streets and open green spaces. Their leadership helps everyone at the Foundation address critical community needs—with arts and culture at the top of our list of priorities.”

A unique arts landscape

The Working Group formed its identity through a strategic planning process that began with a situation assessment: San Diego is a large county, geographically spread out, and with the distinction of being the largest border crossing to Mexico. The arts and culture community is broad and diverse, made up of approximately 300 groups, from established institutions such as The Old Globe Theatre and San Diego Opera to small grassroots community groups like the Playwrights Project and Eveoke Dance Theatre.  And this region shows up on much larger maps drawn in the arts and culture world:

• Balboa Park is the largest collection of museums in the country outside of the Smithsonian in Washington, D.C.
• San Diego theatre sends more plays to Broadway than other city outside of London and Chicago.
• San Diego is the only city on the West Coast to support eight major professional stages for three resident theaters.

A 2000 study by Americans for the Arts charted arts and culture as a $326M industry in the region. Cultural tourism is a major ingredient in this mix—people come to San Diego for the sun, surf and the world famous San Diego Zoo, as well as for a number of arts offerings.

Both the city and county government provide financial support for the arts, although with no county-wide arts council serving San Diego, The Foundation comes closest to providing leadership in arts for the entire region.

A compelling vision

With findings derived from an extensive external assessment and evaluation of the Foundation’s assets and opportunities related to arts and culture, the Working Group developed a sweeping vision: To galvanize the San Diego community around enhanced arts and culture and to ensure that the San Diego region has all the resources to become a nationally-competitive arts and culture center.

This assessment process yielded a number of strategies resulting in the launch of a new initiative, Art Works for San Diego. Grounded in the belief that arts and culture are powerful tools for community revitalization and civic engagement, this multi-faceted initiative includes the following components:

• Grantmaking – Funding a 12-month planning process (Phase I) and multiple-year implementation process (Phase II) for a limited number of nonprofit organizations and their arts and culture-focused projects
• Art Works! Academy – Ongoing training program for grantees and other select participants in principles of project planning, focusing on arts-based community development and civic engagement
• Advocacy – Strategic effort to educate community members about the value of arts and culture to San Diego’s quality of life, resulting in increased funding to nonprofit arts and culture organizations and to the Foundation’s Fund for the Common Good. Current focus is on arts education
• Donor Engagement and Education – Connect donors more deeply with arts and culture community through “high touch” activities, such as donor caravans, behind-the-scenes events and intimate donor dinners with artists as hosts
• Endow the Arts –“Drive to 25″ – Major fundraising campaign that seeks to establish a permanent fund for arts and culture at The San Diego Foundation to be used to sustain the initiatives of the Arts and Culture Working Group, including: grantmaking, outreach and capacity building activities. Currently, in quiet stage of campaign to test the feasibility of a $25 million fundraising goal by 2011

The San Diego Arts & Culture Working Group is supported by Communities Advancing the Arts, a major funding initiative of The James Irvine Foundation.

A bigger table means room for more people. Sacramento Region Community Foundation is expanding the table—virtually—with a blog aimed at encouraging conversation about local arts. It’s at advancesacarts.blogspot.com, and it supports multiple gatherings that are taking place around a single question: What’s the best way to bring new, long-term resources to arts organizations in Sacramento?

The first of these sessions drew more than 35 of the region’s most influential and passionate supporters of the arts. The second involved leaders from more than 20 local arts organizations. Highlights of both sessions are reported on the blog, which invites additional input from community members.

Information, ideas and insights generated will fuel the work of an Arts Advisory Committee this summer; in turn leading to a new round of grantmaking in the fall. “We wanted to capture knowledge in real time,” said Priscilla Enriquez, the Community Foundation’s Chief Giving Officer, and creator of the blog.

And the blog will play an ongoing role—helping the foundation and community track progress and keep an open line of communication.

Check out this site and register for automatic updates at advancesacarts.blogspot.com.

This project was launched through Communities Advancing the Arts, a major funding initiative of The James Irvine Foundation.

What should community foundations consider before entering the arts arena? Plenty. That’s the word from more than 30 program, donor services, and communications pros representing ten community foundations—each with multi-year involvement in Irvine’s Communities Advancing the Arts initiative. They represent a wealth of successes, lessons learned, and continued passion for the work. And they shared their responses to this question at a 2007 initiative convening.

So if your community foundation is new to the world of arts, you can take note of these tips from your been-there-doing-that colleagues.

• Build an internal partnership across community foundation program, donor services, and communications people—start here and keep it together every step of the way
• Bring a learning mindset to the process, and plan to adapt as you go
• Gain up-front buy-in from your arts council as well as arts nonprofits, not to mention your community foundation board and staff; help all understand that this is a long-haul commitment, including a commitment of resources
• Inform your planning with state and national research (some great sources are located in the “Links” to the left on this page)
• Assess the arts environment, including its strengths, needs and capacities; uncover the “connective tissue” in your arts sector by knowing, studying and understanding the actors
• Conduct research and assess data; be sure to examine the intersecting needs of community, arts nonprofits, and artists
• Recognize critical local issues, which may include arts access and cultural participation, policy and public funding, arts education, nonprofit sustainability, and nurturing the next generation of artists
• Communicate a vision for the arts community; create this vision with key stakeholders
• Establish and convey clear goals and expectations
• Employ all available assets: your staff and board, your role as convener, your credibility, your relationships, etc.
• Leverage existing resources (e.g., a local nonprofit advancement center) as well as channels and events that provide access to new relationships
• Support self discovery of the need for capacity building by nonprofits; invest in this capacity through technical assistance
• Pick your consultants carefully: the right researchers, facilitators, and planners make a huge difference
• Connect your case to a prosperity model; this is about communities advancing through arts
• Combine the interests of donors, “pillar” arts organizations, grassroots arts organizations and the community foundation
• Engage donors: many types, in many ways, at many points; time the optimal moment for initial involvement, which may be in the planning and research phase
• Lead through advocacy; including getting in the “ask” business (e.g., get your CEO out front asking the community to support arts)
• Demonstrate tangible progress—create and conduct programs that illustrate you are for real, and don’t run away from community conversations about the value and/or definition of art

Start by taking stock

Of course the first step is to assess your organization’s own capacity and readiness to contribute to a vital arts sector as part of a vibrant community.

To sum it up, the voice of experience says go forward with your eyes open, and enjoy the journey. It’s a rewarding one for artists, art agencies, arts donors, and all community members—including the community foundation!

This above content was generated through participants in Communities Advancing the Arts, a major funding initiative of The James Irvine Foundation.