Joanne Scheff Arts Management The Private Sectors Support for the Arts: The U. S. Experience Joanne...
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Transcript of Joanne Scheff Arts Management The Private Sectors Support for the Arts: The U. S. Experience Joanne...
Joanne Scheff Arts Management
The Private Sector’s Support for the Arts: The U. S.
Experience
Joanne Scheff
Seminario Internacional: “Inversion Cultural: Los Nuevos
Escenarios”
March 2001 Caracas
Joanne Scheff Arts Management
History of Support for the Arts in the U. S.
Non-profit enterprise developed after the Civil War through efforts of and investment by emerging upper classes.» Museums and symphonies were
administered by their founders and supported by wealthy individuals.
» Provided source of honor and prestige.» Protected art from government intervention
and from the whims of the masses.
Joanne Scheff Arts Management
History of Support for the Arts in the U. S.
1930s and 1940s: art became more popularized: » taught in universities» played on radios
1950s: Ford Foundation under W. MacNeil Lowry provided millions of dollars of capital financing to support infrastructure of arts organizations.
Joanne Scheff Arts Management
History of Support for the Arts in the U. S.
Other foundations followed Ford model. 1965: National Endowment for the Arts
created: cultural emphasis by the government given official life.
Followed by creation of state and local arts agencies.
Contributions from corporations and foundations:» 1955: $15 million 1990: $500 million
Joanne Scheff Arts Management
History of Support for the Arts in the U. S.
1960s - mid-1980s: promotion boom in the arts:» Increased accessibility of arts to greater
numbers of people » Expanding attendance levels » Growth of new and larger performing arts
organizations
Joanne Scheff Arts Management
Growth in the Arts
19651995
Orchestras 58 1,000
Opera 27 110
Dance 37 250
Theaters 12 400
Joanne Scheff Arts Management
Income Sources for Arts Organizations
50% earned (ticket sales, etc.) for performing arts; less for museums
50% contributed» Individuals: 70% - 75%» Foundations: 10% - 15%» Corporations: 10% - 15%» Government: 3% - 5%
(Federal, state, and local)
Joanne Scheff Arts Management
Philanthropy from Individuals
Major source of charitable contributions: 83% of giving overall
In 1996: totaled $150.7 billion overall from 75% of Americans
Another 14% said they would have given but were not asked!
$10.9 billion for arts, culture, and humanities
Joanne Scheff Arts Management
Philanthropy from Individuals, cont’d
On average, people give between 1 and 2 percent of their income to charities.
50% of arts contributors report annual incomes of $50,000 or more.
Cultural donors are older (50% over age 50) than donors to other charitable organizations (23% over age 50).
Cultural donors are more likely to be married and less likely to have children at home.
Joanne Scheff Arts Management
Motives for Giving
“Altruism” masks the complex motives that underlie giving behavior.
“What people want most is simply to be sought.”
“Every individual needs to feel that he is a worthwhile member of a worthwhile group.”
Harold Seymour
Joanne Scheff Arts Management
Motives for Giving, cont’d
Builds self-esteem and self-image Builds social status or prestige: public
recognition for good deeds Pride in association with an organization, its
programs and personnel Belief in value of the arts and in responsibility
to support them Some people give because they are asked by
someone they like and respect.
Joanne Scheff Arts Management
Motives for Giving, cont’d
Required to give at work -- pressured by superiors
Family tradition of being philanthropic Financial planning considerations: tax
deductions Primary inducement for giving: belief in
an organization’s goals and offerings.
Joanne Scheff Arts Management
Major Gifts vs. Small Gifts
80% of gifts come from 20% of givers. Problematic to rely on a few major donors: loss can be destabilizing. Necessary to expend effort to obtain many small gifts.
Small gifts ($1 to $1,000) tend to be made regularly -- usually annually.
Major gifts are often a one-time stretch gift (for endowment drive or capital campaign).
Moderate gifts given annually by major givers.
Joanne Scheff Arts Management
Major Gifts vs. Small Gifts
Small gift givers are customers of the organization.
Small gifts focus on the organization’s annual and shorter-term needs.
Major gift givers are stakeholders in the organization.
Major gifts focus on donor’s agenda.
Joanne Scheff Arts Management
Types of Gifts
Annual Fund Capital Fund Endowment Drive Special Events Planned Giving
Joanne Scheff Arts Management
Corporate Support for the Arts
1965 - 1985: grew to $698 million per year. Driven by benevolent self-interest; derived from philanthropy budgets.
Late 1980s - early 1990s: dropped to $518 million. (Recession, reduced tax benefits under Reagan).
By 1994: up to $875 million.(Economic upturn, tax benefits reinstated, growth of sponsorship from marketing budgets).
Joanne Scheff Arts Management
Corporate Support for the Arts
47% of U.S. companies support the arts. 73% of contributions come from small
and mid-sized companies ($1 million to $50 million in revenues).
Median contribution of $2,000 93% of gifts allocated to arts projects at
local level
Joanne Scheff Arts Management
Types of Corporate Support for the Arts
Corporate Philanthropy Sponsorships Collaborations
Joanne Scheff Arts Management
Why Corporations Give
74%: to demonstrate good corporate citizenship
66%: to enhance the quality of life in their community
46%: to enhance their image and reputation
22%: to strengthen employee relations
Joanne Scheff Arts Management
Why Corporations Give
21%: to increase business networking opportunities
19%: to increase sales 18%: to reach important constituencies 17%: to promote products and services 13%: to enhance employee creativity 9%: to increase media coverage
Joanne Scheff Arts Management
Corporate Philanthropy
Most corporate philanthropy is given for health and human services, education, civic and community affairs.
Corporations donate 0.8% of pre-tax profits. Tax deduction of up to 10% of adjusted net
income allowed by U.S. government. Corporate foundations can donate up to 5%
of gross income without tax liability.
Joanne Scheff Arts Management
Nature of Corporate Support of the Arts
Philanthropy for the arts is declining:» 12% in 1992» 9.5% in 1995
Primarily program and project support as opposed to general operating support.
Avoid supporting controversial or unpopular programs that do not provide desired type of visibility.
Require extensive public relations benefits.
Joanne Scheff Arts Management
Approaching Businesses for Donations
Accountability is key. Donors do not reward good intentions; they reward good results.
Want to support programs of value; not help an organization limp along to survive.
82% of decisions about philanthropy made by the chairman or owner.
Decisions increasingly made by employee committees.
Understand funders’ guidelines and interests.
Joanne Scheff Arts Management
Types of Support
Cash Goods Expertise Services Space
Joanne Scheff Arts Management
Corporate Sponsorships
Cash or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property.
Undertaken with expectation of commercial return.
Goal is promotion; altruism is implied.
Joanne Scheff Arts Management
Advantages of Sponsorship
Heightens visibility and enhances profile by linking up with arts organization’s image, appeal, and customer base.
Provides lifestyle association. Responds to consumer demands that
companies give back to their communities. Helps companies communicate or enhance
their commitment to a particular market segment.
Joanne Scheff Arts Management
Advantages of Sponsorship
Provides benefits other media do not:» Live audiences» Loyal members » Client entertainment opportunities» Category exclusivity» More visibility than TV ads» Matches lifestyle, rather than intruding » Access to databases and volunteers
Joanne Scheff Arts Management
Advantages of Sponsorship
Merchandising opportunities and sales incentives.
Call attention to, shape, or reinforce public’s perception of a product’s benefits.
Add human element to corporate image» Helps attract and retain quality personnel» Promotes goodwill among customers,
clients, and employees
Joanne Scheff Arts Management
Growth of Sponsorship: 1994 - 1997
Museum sponsorships increased 41% (to $65 million in 1997).
Sports sponsorships increased 35%. Corporate media spending increased
21%.
Joanne Scheff Arts Management
Sponsorship/Media Growth
Sponsorship has outpaced the growth of advertising and sales promotion every year since 1985.
In 1996, growth of expenditures for:» Advertising: 7.6%» Sales promotion: 4.6%» Sponsorships: 15%
Joanne Scheff Arts Management
Collaborations
Strategic in nature as opposed to sponsorships which are tactical.
More durable commitment - not event oriented.
Common mission. Authority determined by new
collaborative structure. Resources and reputation pooled.
Joanne Scheff Arts Management
Collaborations
Comprehensive planning Well-defined communication channels Risk greater than in more informal and
short-term relationship.
Joanne Scheff Arts Management
Uses for Collaborations
Expand customer base (both the businesses and the arts organizations)
Improve internal functioning by developing new and better management skills.
Cut costs.
Joanne Scheff Arts Management
Examples of Collaborations
Share expertise:EDS and Detroit Symphony
Combine office expenses and management: American Symphony Orchestra and Concordia Orchestra
Tie-in Promotions: San Jose Arts Card
Joanne Scheff Arts Management
Gráficos