arts & business council

MetLife Foundation National Arts Forums Series

Arts & Business Council Inc.
New York, New York

Does 1 + 1 = 3?: Mergers and Collaborations in the Nonprofit Arts
02/24/2004

Moderator: Harvey Seifter, President, Seifter Associates, and Executive and Artistic Director, Flushing Town Hall

Panelists:

• Nicolette B. Clarke, Executive Director, New York State Council on the Arts
• Gabriel Goldstein, Associate Director for Exhibitions and Programs, Yeshiva University Museum in New York
• Alanna Heiss, Founder, Director and Artistic Director, P.S. 1
• Robert Lynch, President and CEO, Americans for the Arts

As nonprofit arts organizations struggle to cope with an uncertain economy, some look to the business sector for effective strategies that would enable them to compete for limited resources and greater recognition. One such approach, currently utilized more frequently in the corporate world than in the arts community, is to join forces with other organizations, either through outright merger or through some sort of collaborative mechanism. A distinguished panel of experienced arts managers examined the following key issues:

1. Why aren’t there more mergers in the arts community?
2. Are arts organizations missing opportunities that would strengthen them?
3. What are the key ingredients for successful mergers and collaborations?
4. What are the major barriers to such joint ventures?

The three nonprofit arts organizations represented on the panel reflected different models. P.S. 1, a relatively small exhibition facility located in the borough of Queens, formed an affiliation with the far larger and wealthier Manhattan-based Museum of Modern Art (MOMA). The former, known for its innovative exhibition programs but lacking a permanent collection, is one of the largest and oldest arts organizations in the United States solely devoted to contemporary art. It is also renowned for its direct involvement with individual artists. The main goal of this partnership is to promote the enjoyment and understanding of contemporary art to a wide and growing public. The advantage of the merger for P.S. 1 is to gain access to MOMA’s extraordinary collection, while MOMA’s contemporary initiatives will be enhanced as a consequence of P.S. 1’s innovative programming. MOMA is working with P.S. 1 to ensure the latter’s long-term financial stability by helping it generate additional revenues. Collaborative programs of exhibitions, educational activities, and other projects enable to two institutions to draw on their respective strengths and resources. During its recent expansion when MOMA was closed, its exhibitions program took place at P.S. 1.

Americans for the Arts was born out of a merger between two national arts service groups, American Council for the Arts and the National Assembly of Local Arts Agencies, the latter a membership organization consisting of local public arts agencies throughout the nation. Although there was some overlap in the respective missions of these two organizations—both were quite involved in advocacy activities—they reflected different cultures. Eliminating redundancies in services both provided was a significant goal of the merger. Before the merger could take place, resolving differences, particularly regarding questions of leadership, had to occur. As Mr. Lynch noted, the process was slow and required enormous patience from both parties. He cited the crucial role played by the board chairmen of both organizations.

The Yeshiva Museum in New York is one of five major institutions of Jewish scholarship, history, and art that joined together a few years ago to form the Center for Jewish History in a new facility in Manhattan. The others are the American Jewish Historical Society, the American Sephardi Federation, the YIVO Institute for Jewish Research, and the Leo Baeck Institute. Maintaining their own separate missions and preserving their autonomy, the five agreed to form a unique partnership that would create a central repository—the largest such collection outside of Israel—for the cultural and historical legacy of the Jewish people. Pointing out that this collaborative effort creating a new entity, the Center for Jewish History, remains in transition, Mr. Goldstein noted the important role played by the staffs of the different institutions in this cooperative venture.

Ms. Clarke pointed out that one serious barrier to mergers is the unwillingness of organizations to surrender autonomy. Ego is a real issue, she noted. The need for strong leadership and effective means of communication among all the parties contemplating collaborative actions was strongly emphasized by Mr. Lynch. The need to preserve one’s vision as organizations contemplate such actions was stressed by Ms. Heiss, who also cited real estate and the desire to own one’s building as a motivating factor in inspiring mergers. The panel and members of the audience noted various examples of unsuccessful efforts to join together. Two poetry service organizations failed to resolve the issue of the new name of the merged organizations and the choice of a new executive director. The well-publicized failed merger of Carnegie Hall and the New York Philharmonic was also discussed. More positive examples of collaborative efforts involve the successful efforts by the Alliance of Resident Theatres/New York to provide office space for small theaters in Brooklyn, as well as space for a variety of nonprofit arts groups in an office building on Eighth Avenue in Manhattan. Costs are reduced as the resident organizations share conference rooms, copying machines, and other facilities and services. It was pointed out that funding organizations are very supportive of collaborative efforts to reduce overhead costs.

The panel noted other forms of collaborative efforts that do not involve outright mergers. Joint productions of plays produced in New York City, or even throughout New York State, were cited, as the cost of sets, costumes, etc. are shared by each of the producing entities.

Another question considered by the panel was the matter of an organization’s permanence. What happens when a founder, whose vision led to the creation of the organization, dies or retires? It was noted that the Jose Limon Dance Company, years after Limon’s death, continues to exist, mounting dance pieces by other choreographers. Other modern dance companies will face the same dilemma when their founders leave the scene. Should organizations that have lost the vision that inspired their creation continue to exist?

The panel agreed that no single model for collaborative efforts will work for all organizations. Any group considering such a course should weigh such factors as preserving one’s vision, the implications of ceding some autonomy, the likelihood of reducing costs, and the need for agreement on leadership. Of primary importance, all acknowledged, is the necessity for all parties to the merger or joint venture to communicate clearly with one another and be patient throughout what can be long and often tedious negotiations.