Funding Research

Booms and Busts

From the depths of our economic trough it is hard to look ahead, clear-eyed, and to see where U.S. foundations are headed. But consider, for a moment, where we have been. We have experienced an era in which: :

• New scientific and technological advances captured the popular imagination.
• These innovations promised a huge jump in economic productivity.
• There was talk about a new economy replacing an old economy.
• Many business corporations were consolidated and reorganized.

Arts Funding IV examines recent changes in arts grantmaking by one segment of private institutional donors — private and community foundations. While the larger, more fragmented arena of government and private support lies outside this investigation, it is nonetheless useful to place foundation support within this larger context. The following overview outlines the basic framework of private and public arts funding in the U.S. and discusses funding in relation to the overall financing of nonprofit arts groups.

Economic language and ideas have increasingly found their way into discussions of artistic value and cultural benefit. For better or for worse, the discipline of economics has been the lingua franca of public policy discourse for at least the past fifty years. Sometimes the terms resonate harshly on our ears. How do people in the world of arts and culture answer those who speak this language, who try to value cultural activity in terms of economic multipliers, cost-benefit analysis, quantitative outcome measures and, a current favorite, contingent valuation methodology?

The magnitude and distribution of foundation arts and culture grants in 2003 are the most significant findings of this report. Key findings of the report, based on arts grants of $10,000 or more reported to the Foundation Center by 1,010 of the larger U.S. foundations, are highlighted here.

This report also includes a brief examiniation of the growth of foundation giving from 1992 to 2005 and a summary of government funding for the arts from 1992 to 2005 by Kelly Barsdate of NASAA.

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Federal Support for Historic Preservation Fund on Downward Trajectory
In his fiscal year 2004 budget, President Bush proposed $67 million for the Historic Preservation Fund. The Fund is authorized at $150 million, but historically the Congress and Administration have provided in appropriations just one third of the authorized amount.

I am pleased to report on a new initiative to be launched in November 2003. I first got wind of this proposal at an event in Canada House in London where the organizers were sounding out representatives of the arts-on-television community as to their interest and enthusiasm for an annual gathering to be held in different places around the world. This is an initiative of the Banff Television Foundation based in Alberta, Canada and enjoys the support of IMZ (The International Music Zentrum, in Vienna), U.S. Independents (a Washington, D.C.

2003, 8 pages, single issue $20, subscription $50. National Center for Family Philanthropy, 1818 N Street N.W. Suite 300, Washington, DC 20036, 202-293-3424

The latest article in the National Center for Family Philanthropy's Passages series is a glass half-empty/glass half-full look at how family foundations are coping with the current economic downturn.

2002, 60 pages. American Assembly, 475 Riverside Drive, Suite 456, New York, NY 10115, 212-870-3500, amassembly@columbia.edu

Art, Technology, & Intellectual Property provides an excellent summary of intellectual property questions faced by the arts community, both nonprofit and for-profit.

November 2002, 72 pages. Human Interaction Research Institute, 5435 Balboa Boulevard, Suite 115, Encino, CA 91316, 818-386-9137, HIRILA@aol.com

Partnership as an Art Form: What Works and What Doesn't in Nonprofit Arts Partnerships should be required reading for funders who are encouraging their grantees to work more closely together in these difficult economic times.

2003, 79 pages. Department of Art Education, Ohio State University, 128 North Oval Mall, Room 258, Columbus, OH 43210, 614-292-5649

This final report on Transforming Education Through the Arts Challenge (TETAC) is more than a compilation of the results of a five-year initiative to link comprehensive approaches to arts education with national and local school reform efforts.