Alarmed by the fragile condition of Seattle's fifteen largest arts organizations, Mayor Charles Royer appointed this Task Force, representing the various public and private donor communities, to develop long-term strategies for maintaining a healthy, diversified and high quality cultural life in the greater Seattle area.

The first approach of the nineteen members of the Task Force was to examine each of the organizations. We assessed their programs, plans and financial conditions, and determined the significance of their artistic, cultural and economic impact on the region. As long-term strategies for stabilization would present a significant challenge to donors, boards and audiences, it is important to determine whether or not these organizations merit such an effort, and that such an effort indeed benefits the community. Our second approach was to meet with donors from both the private and public sectors to determine their willingness and ability to assume a share of the responsibility to support these organizations in a stabilization effort. Our findings are summarized as follows:

1. These organizations are of regional importance, serving the Puget Sound basin of 2.3 million population.
   
   
2. Significant economic benefit accrues to the Seattle area from the arts, both directly and indirectly.
   
   
3. The artistic quality of these organizations is excellent, and is reflected in the continued growth in ticket purchases and the high degree of national recognition that a number of them enjoy.
   
   
4. Earned income, overall, is excellent and in most cases exceeds national averages for like organizations.
   
   
5. The approximate Net Current Liability (NCL) position of fourteen organizations is estimated to be $4 million as of 6/30/86.
   
   
6. Thirteen organizations lack necessary working capital reserves.
   
   
7. The acquisition of new facilities can be life-threatening to an unprepared and undercapitalized organization.
   
   
8. The boards of these organizations are concerned about their financial positions but for the most part their focus has been on short-term survival and not long-term stabilization.
   
   
9. Donors generally would be receptive to increased giving if they could be assured their funds would be prudently managed and promoted long-term stability and artistic development.
   
   
10. Donors are not always rewarding and encouraging good management practices in their current approach to funding, which may promote proliferation of deficits.
    
    
11. Some donors need to better understand the dynamics and economics of arts organizations.
    
    
12. The arts are highly valued by the greater Seattle area, and individuals generally recognize that an increase in financial support, from all sectors, is necessary.
    
    
13. The region does have the capability and desire to support the arts if arts organizations are prudently managed and are able to articulate sound financial plans.

During the course of our deliberations it became apparent that a fundamental change must take place, among donors and arts organizations alike, if any degree of long-term stability is to be realized. Once the current dilemma is corrected, we must maintain prudent fiscal and funding policies to prevent its recurrence. If we are unable to achieve this discipline, we stand to lose the diverse and high quality cultural life that we enjoy in this region. The City of Seattle, they are of regional significance. In reality they serve not just a city of 500,000 people but a county of 1.3 million, a SMSA (King and Snohomish counties) of 1.7 million, and the Puget Sound Basin of 2.3 million population. In the past year l million persons attended performances or exhibits presented by these groups, and fifty percent of their season ticket holders came from King County, outside of Seattle.

These organizations employ over one thousand people and provide $34.1 million per year in indirect local economic activity. New money attracted to the community ranges from $9.2 million to $9.8 million a year, and results from audiences attracted to these arts organizations, including indirect effects .

CONTENTS
Introduction and summary of findings.
Arts Organizations: Artistic quality, Management quality, Financial position.
Chart: Net current position.
Chart: Financial Equilibrium profile.
Capital campaigns.
Donors:
     Corporate sector.
     Foundations.
     Government.
     Individuals.
Conclusions and recommendations.

Attachments:
     A. Membership of Mayor's task force on the arts.
     B. Criteria and list of fourteen arts organizations.
     C. Corporate council on the arts.
     D. Proposed arts fund committee.
     E. Summary of projected future funding needed.
     F. Report of the government sub-committee.

Alarmed by the fragile condition of Seattle's fifteen largest arts organizations, Mayor Charles Royer appointed this Task Force, representing the various public and private donor communities, to develop long-term strategies for maintaining a healthy, diversified and high quality cultural life in the greater Seattle area.