arts & business council

MetLife Foundation National Arts Forums Series

Business Arts Council
San Francisco, California

Strategic Alliances
12/02/2003

Moderator: Marnie Burke De Guzman, Director of Audience Development, University of California, Berkeley Art Museum and Pacific Film Archive

Panelists:

• Bernard Boudreaux, Senior Manager, Community Relations Target Corporation—Mervyn's, Target and Marshall Field's Stores
• Chip Conley, Founder and CEO, JDV Hospitality
• Christi Delp, Account Manager, Goodby, Silverstein & Partners
• Carin O'Brien, Vice President & Manager Wells Fargo—Wells Team Employee Volunteer Program, Bay Area and So. California Border Banking Regions

Creative businesses are developing partnerships with arts groups that have a direct impact on their business and, of course, their nonprofit partners. At Artful Business Partnerships, business leaders provided examples of successful programs that can help nonprofits and businesses uncover ways their company and community can profit from these public-sector partnerships. Panelists talked about strategic business benefits they have received from partnering with the arts as well as skills and capabilities their employees have gained, or have had access to, through arts partnerships.

Moderator Marnie Burke de Guzman outlined the goals of the forum: To advocate both for those who are in business to think of ways that their company can beneficially partner with the arts and for arts administrators to think of more unique ways of proposing projects to corporations based on the business’ strategic needs.

"You have a rare opportunity to hear from some of the most innovative business leaders who are supporting the arts in very unusual and creative ways that help to sustain what Richard Florida, a well-known economist, called the creative class in San Francisco," Ms. Burke de Guzman said in her introduction and then added that the creative class made San Francisco an attractive place for people to live and work.

After introductions, Bernard Boudreaux, along with the other panelists, gave an overview of what their companies were doing to support the arts. "Our goal in funding the arts is to make the arts accessible to all—primarily families and youth," he said of the Target Corporation, which funds projects on both the local and national level.

With large donations, "we are looking for something that is very visible because again our community says, 'we understand that you give five percent of your profit; [but where does it go]'" Mr. Boudreaux said.

Christi Delp explained the pro-bono work Goodby, Silverstein & Partners does with arts organizations and nonprofits. She pointed out the major benefits as well as advantages to their work, citing the face-to-face contact their account teams had with their pro-bono clients as one of the best benefits to their partnerships. Account executives are given the opportunity to sit down with their clients and present innovative advertising concepts.

Chip Conley described his first boutique hotel, the Hotel Phoenix, as an oasis of art in San Francisco’s inner city. One of the objectives of his company is to make the Bay Area one of the more interesting places to visit. "We, over the years, have done all kinds of things to both strengthen the art community as well as make a connection with our guests to what is available in the community."

Carin O’Brien cited Wells Fargo’s impressive history of giving. In 2003, Wells Fargo gave $3.3 million to California Arts nonprofits. Last year, Wells Fargo gave $86 million in total corporate giving. Along with money, Wells Fargo has supplied many arts nonprofits with volunteers. For instance, 40 to 50 people volunteer yearly for the local Ethnic Dance Festival.

After an overview of their partnerships, panelists then outlined what made a successful partnership. Ms. O’Brien explained one of their most successful partnerships. Wells Fargo gave the Asian Art Museum a substantial corporate gift and in return the Asian Art Museum hosted a Wells Fargo Team Member Day where members received free admittance. Also, on the same day about 25 Wells Fargo volunteers worked at the museum to greet Wells Fargo employees as well as other museum guests. The volunteers also manned the Asia Alive exhibit and helped explained how it worked to various visitors. A month later the Wells Fargo Sales Department invited clients to join them at the museum to enhance their sales objectives and provide their clients and potential clients with an enjoyable night at the museum.

The partnership provided team members, who ran the gamut from entry to senior level employees, with management experience. For example, tellers could lead projects overseeing vice presidents, giving an entry-level person a chance to act as a supervisor.

Next, Mr. Boudreaux analyzed partnerships on a broad level before conveying specific examples. "Partnerships come in all shapes and sizes and they are all very different," he said. No matter the size of the partnership, Mr. Boudreaux said being upfront and clearly defining expectations was important. For example, if the Target Corporation donates $5,000 or $10,000 to make the arts accessible to school tutoring programs, their expectations are simple: X number of children have the opportunity to go to X arts organizations and that the Target Corporation will be recognized in X way, according to Mr. Boudreaux.

With larger corporate gifts, the expectations involve more people and become more complex. Mr. Boudreaux explained how such relationships meant the Target Corporation would take an involved role. Their marketing, publicity, and advertising departments would come in and "play."

While this partnership has worked for some organizations, Mr. Boudreaux admits it does not work for all nonprofits. "We need to make sure up front that this is what we do," he said. "If it does not fit within your brand, then maybe this isn’t the best partnership or maybe we need a different partnership. Just as in any relationship or partnership you have to stop, regroup, and do a course correction." To avoid complications and major course corrections, Target Corporation partnerships usually "walk before they run."

The whole concept of relationship building is very important, according to Ms. Burke de Guzman. In the nonprofit culture, we need to think internally about our needs and the needs of our partners, she said in response to Mr. Boudreaux.

Ms. Delp gave an example of a different kind of relationship because they are a service organization. "We want to give them something more than updating a website," she said. Nonetheless, they also need clear objectives outlined. Pro-bono work at Goodby, Silverstein & Partners allows them to present their clients with ads that they are not accustomed to. "With museums, they are used to a piece of art and dates," Ms. Delp said. "I am not saying [we give them] leaps and bounds beyond what they are used to but we surprise them every time they come in."

Mr. Conley used their work with local film festivals as a good model of a partnership. They provide facilities for film festival events as well as discount room rates and in return JDV employees receive tickets for events as well as JDV Hospitality receiving a link on the film festival’s website. Mr. Conley showcased another benefit received in an Artful Business Partnership: Access. "The more we are integrating our arts community, the better we are able to access talent," Mr. Conley said

Employers and employees have found other benefits to partnering with the arts. Studies have shown that companies who offer volunteer programs have good employee retention, a positive brand image, and increased brand awareness, according to Ms. O’Brien. "Employees that can volunteer get the message that Wells Fargo cares about the community where we do business and we want to give back." She then cited examples of employee-driven volunteer projects with the March of Dimes and Juvenile Diabetes Association.

Panelists discussed the future of their giving in light of the current and projected economic climate. "Our arts budget is quite large," Mr. Boudreaux said. "I say that in knowing full well that we spend quite a bit of money to make sure the arts are funded for several reasons. We know that the arts are one of the best ways of crossing and mixing cultures and enhancing the diversity that we have in all of our communities. It is important to us because our team members want to be represented, our guests want to be represented, and we want to bring everyone together. We want everyone to have a place at the table. That is important to us. It is also important to us that the arts are alive in major communities because they bring more people in—more people bring more business. If we have a healthy community, we will have a healthy business."

Mr. Conley agreed. The hospitality industry has suffered in the last couple of years in San Francisco. Mr. Conley talked about the largest drop in U.S. history, 43 percent, in hotel occupancy. Even in the present climate, Mr. Conley said that his company will not make the mistake a lot of growing companies make and that is to lose their spirit and vision.

In terms of the present, the four panelist and the companies they represent vary on whom they support. Wells Fargo supports both majors and smaller organizations because "corporate giving and volunteerism makes sense and we can do well by doing good." Goodby, Silverstein & Partners also supports both. The Target Corporation funds "select majors and select minors." JDV Hospitality funds the minors, not the majors, and looks for organizations with a growing audience.

Mr. Boudreaux said to the mostly Bay Area audience, "If you send us a proposal, I guarantee we will turn it down because quite honestly our office is looking at what is going on in Dallas, Houston, and Denver—Los Angeles, Los Angeles, Los Angeles, San Francisco and maybe Seattle. We have 100 stores in LA County so that gives you a sense of why Los Angeles is important to us."

Mr. Boudreaux suggests making yourself and your organization known to local Target Corporation stores, which account for the vast amount of the Target Corporation’s funding decisions. Mr. Boudreaux adds, "If you do get a grant, please do not send me a thank you note, that happens far to often. No offense, but we don’t know you." Mr. Boudreaux pointed out that the thank you note should go to the local manager of the store that made the decision to give an organization a grant. "I look at that note and say, 'why aren’t you thanking that store manager who funded your program.' "

Developing a relationship with a store manager who donates to your program is important, according to Mr. Boudreaux. Although store managers come and go, if you send him a photograph of your program and a thank you note from a child, he will post it on their store bulletin board to show the store guests that their store supports the community. "That old store manager will leave and when the new one comes in he will say, 'oh look, we fund [such and such program].' That is how things continue. It is amazing how many nonprofits don’t think of something that simple."

Questions asked by the audience:

• How involved is your CEO in the giving process?
• What is the most innovative proposal you have received from a nonprofit?