Cultural organizations in the face diminished government and foundation subsidy of annual operations. As a recent foundation center research study makes clear, the need to stabilize balance sheets has never been greater, yet arts managers have a hard time building capital and reducing accummulated deficits at the same time that they must raise annual operating funds.

Late in 1992, an unprecedented collaborative venture among eleven major cultural organizations in California's Silicon Valley was launched after three years of planning. The Silicon Valley Arts Fund is designed to create a $20 million shared investment fund that will pay off all accummulated deficits, establish an interest-free working cash reserve, and create permanent endowments for each organization. Conceived by the Community Foundation and a consortium of private foundations, the fund has also attracted significant government support.

The author explores the origins of the Silicon Valley Arts Funds and the regional factors that influenced its creation at a time of significantly diminished local economic activity. 

CONTENTS
Introduction.
Background.
Silicon Valley Arts Fund: The concept.
Silicon Valley Arts Fund: The campaign.