Americans for the Arts

James Undercofler

Why, why are arts organizations being advised to research models other than the 501(c)(3)? It’s vitally important to analyze the reasons behind this “movement” in the arts and culture sector.

The changing nature of philanthropy surely plays a central role. Reduced contributed revenue from government, foundations, and corporate entities has placed increased pressure on individual giving AND earned revenue. These latter two elements tend to work in opposition to each other, in that increased pressure on individual giving generally leads to more, less-informed board members who require attention, while the need to increased earned revenue requires a fleet-footed executive team. 

Helena Fruscio

To have the creative industry be invited to the top economic development tables is almost unheard of in any community. Let’s face it; classic business development and support organizations can have a hard time wrapping their heads around the value of this dynamic industry. Often, its value is hindered because it is hard to fully quantify the impacts of these businesses and individuals. The quantification is often pieced together from many sources and the numbers never really seem to capture the true dynamism and impact.

The early leadership of Berkshire Creative had the amazing foresight to be inclusive in our definition of the creative economy. The Berkshire Creative Economy Report fully clarifies the different segments of the creative economy and their relationships, which have significant overlap with one another. 

Helena Fruscio

In The Arts & New Philanthropy, James Underclofer’s states that “philanthropy/investor sites such as Kickstarter are revolutionizing giving.”

Delegation of an individual’s dollars is less tethered to incorporation status, and more to the donor/investor/client’s “personal motivations” - as Underclofer noted in his students.

So how do both for-profit and nonprofits adjust to this new climate?

They must change the way they communicate their message and engage potential donor/investor/clients.

So what is that change that equals success in this shifting environment? 

Scott Provancher

With the increasing media coverage about successful social enterprises like TOMS shoes and the sobering news of the near demise of major arts institutions like the Philadelphia Orchestra, there has been a lot of hand wringing in the nonprofit arts world about the need to change our traditional business models.

The blogs and conference forums love this topic and many have touted the B Corporation, Low Profit Limited Liability Companies, and numerous other hybrid business models as the path to the promise land. But before we all abandon our organization’s current model or tax-exempt status, let’s make sure we really understand what we are trying to accomplish through this change.

I must preface my comments with the fact that I am a huge proponent of continual innovation and organizational reinvention. In fact, at the Arts & Science Council (ASC) we are undergoing a significant shift in how we generate resources to achieve our mission. However, this business model reinvention is being guided by a cautious process that focuses on our mission and a clear understanding of our desired outcomes. 

While the official Private Sector Blog Salon concluded on Friday (5/20), the conversations and debates were so lively that we will continue to add more posts throughout the week here on ARTSblog.

Some of our dedicated bloggers from last week were willing to respond and add to the conversation beyond the week, so who are we to stop them?

In addition to our regular content, you'll see new blogs discussing new business models, fundraising, and other subjects from the Salon posted almost everyday.

Feel free to continue the dialogue in the comment section of the new posts or go back and read the old ones.