The Art$ – Part III (Some Easy Fixes)

Art – it makes life more funner.

In my earlier posts on this subject, dear reader, I first endeavored to put a finer point on the more than thousand-fold revenue variation between the largest cultural organizations in NYC, and the median cultural organization. Holy stromboli you say? Yes! While the very largest nonprofit culturals have revenues of more than $300 million annually, more than half the groups in my most recent study had revenues of less than $250 thousand. What’s more, the top five very largest organizations received nearly half of all city funding (their share being a whopping $133 million).
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The Art$, Small Business, and Community Development

Just testifying for the arts, people.

Dear Reader, below you will find testimony that I presented recently before a joint hearing of the New York City Council on the impact of the arts on small businesses and community economic vitality.  You may very well be interested in two previous posts on this subject:  The Art$ (wherein I discuss the economic realities of very small versus very large nonprofit culturals in NYC), and The Art$ – Part II (wherein I dig deeper into how very large nonprofit culturals make their money compared to how small nonprofit culturals do). Continue reading

The Art$ – Part II

In my most recent post (The Art$), dear reader, we started a conversation about some of the differences between very large cultural organizations and, well, everybody else.  I pointed out that members of the Cultural Institutions Group (CIG) tend to be concentrated in the upper bracket.  I also said that, frankly, there should be further research conducted on how income streams and strategies vary based on whether or not an organization is a member of the CIG.  (For a powerful statement on funding inequity in the arts, check out this really great report written by Holly Sidford for the National Committee for Responsive Philanthropy.)

But while being a member of the CIG may make you privileged, it doesn’t make you evil.  I think that good policy comes out of an informed debate about our resources and our choices in using those resources.  We’ve got all this lovely data, so let’s use it to analyze the assumptions underlying the present system. Assumptions we can analyze, assess and alter – or not – based on our current, best understanding.

So, let’s look at another juicy issue.  In our last episode, our hero was pondering the following chart:  Continue reading

It’s a Bird! It’s a Plane! It’s… What the Hell Is That?

Also posted in my guest blog on Rooflines.

It’s a bird! It’s a plane! It’s… What the hell is that?

In my last blog post I spent a good chunk of time talking about the trend toward “complexification” in the nonprofit sector.  There are plenty of small, scrappy, neighborhood based nonprofits around (as a matter of fact, that number continues to grow), but we’ve also seen the emergence of nonprofits with $100 million plus in annual revenues, hundreds of staff, sophisticated operational structures, and highly complex financial instruments built to conduct their business.

I argued that we’re past due in borrowing some tools from our for-profit colleagues, including stronger staff development and retention regimens, the ability to access substantial capital for opportunistic growth, shaping board relationships that focus on organizational development and not just fiduciary oversight, and developing a nonprofit sector trade association to lobby on the collective needs and issues of our sector.

We’re clearly entering a new era that will continue to blur the lines between for-profit and nonprofit.  And let’s be honest:  it’s a little scary.  Why?  Because we’re all very worried that we might somehow become like, you know, them.

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The Complexification of the Nonprofit Sector

This post also available on Rooflines.  

“Substrate” by Jared Tarbell

Intuitively, just from being around the nonprofit sector for a stretch, it’s easy to tell that things have gotten more, well, complicated.  Organizations are bigger, operations more tentacled, financial tools more wonky, budgets bigger and bigger.  And don’t just take my word for it.  Thanks to the lovely folks at the Standford Social Innovation Review you can enjoy this whole, provocative article: “Why More Nonprofits Are Getting Bigger.”  

The problem is, I don’t think we’ve really done a good job of keeping up with our own complexification.   Continue reading

What’s Next in Arts and Economic Development

Reposted from my guest blog on Rooflines.

My latest rock musical: The Bowery Wars (Part II)

There’s something you should know about me:  I’m a professional amateur.  For the past 7 years I’ve been composing and performing music in original theater works with my wife’s company, Downtown Art.  We’ve just opened our latest piece, Bowery Wars (Part 2), a rock musical about the history of the Lower East Side 100 years ago, Tammany Hall politics, gang warfare, and Romeo & Juliet.  It rocks, and yes you should come see it.

But I’m not just here to flog my latest masterpiece.  We professional amateurs are artists who fly under the radar.  We don’t make our livelihood from our art.  We do other things to put bread and butter together.  I happen to be a highly compensated community development consultant, but many of my peers are dog walkers, administrative assistants, massage therapists, and restaurant workers.  (By the way, in another shameless plug, you should check out my brother Dan’s blog on the lives of restaurant workers and artists in Chicago).  I also serve on the Naturally Occurring Cultural Districts Working Group, and I’m currently doing some research for the Municipal Art Society on revenue trends for the nonprofit cultural sector.  In my previous work I ran an “Arts and Economic Development” giving strategy from the Deutsche Bank Americas Foundation along with my colleagues Gary, Alessandra and Sam (hi guys!).

All in all, you might say I have a rather engaged perspective on the question of where arts and economic development intersect, and where they don’t.  There are four major trends right now in NYC. Continue reading

Building a Healthy Nonprofit Ecosystem

Hurricane flooded I-10/I-610 interchange, New Orleans, LA

Reposted from my guest blog on Rooflines:  In the halcyon days of my youth, way back in 2006, I went to New Orleans.  I traveled there at the behest of the corporation that I worked for at the time, as we had made a $2 million disaster recovery commitment to the city, and we were trying to figure out how to spend it.

Now, there’s two things you need to know about spending $2 million: (1) that’s a lot of money, and (2) it’s really not very much money at all.  When you get right down to it, in dealing with a post-crisis situation of the scale of Hurricanes Katrina and Rita in the troubled city of New Orleans, spending that kind of money in a way that was both responsible and impactful was a damned hard thing to do.

So there I am, the well-meaning Yankee, fresh off the plane in my shiny city slicker best, traipsing through the Lower 9th Ward.  I was there several months after the floods had receded, but it was still a silent, mud-stained, wracked and ruined wasteland.  I remember picking up a dirty and detached doll’s head (Woody, from Toy Story – a memento I’ve kept with me always.  He’s staring at me as I write this now), and thinking, well, I’ve got to start somewhere.

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Why Leadership Pay$

Reposted from my guest blog on Rooflines.
In previous blog posts (Why Evaluation Stinks), I’ve discussed how the fragmented nature of the nonprofit sector makes it very difficult to impose top-down, comprehensive evaluative frameworks.  The primary problem is that even if you have two nonprofit organizations, each working with similar clients and conducting similar programs, the mix of supports from philanthropy, contracts and earned revenues will be such that the way they achieve their results will be unique.  The nonprofit sector, operating as it does on the margins of the market economy, is forced to pull together resources higgledy-piggledy, and this mix varies so substantially for each nonprofit (and indeed for each year of its operations), that you really can’t draw comparisons easily between two otherwise similar service activities.In short, our twinkling field of a thousand lights are all very different.There is, however, an upside to this.  Each organization cuts its own path to achieving its mission, providing us with a diversity of models and strategies.  Some succeed by focusing on a specific, artisanal niche where they excel, while others grow through horizontal or vertical expansion.  But there’s one thing that all successful organizations have in common:  they exhibit strong leadership.  And when I say leadership, what I mean is that the manager or managers of the organization are considered trustworthy, intelligent, passionate and capable.  They may also be considered tyrannical, obtuse, plodding, or distraught, but in their own way they get the job done and they get it done well.

As you well know, measuring leadership is a damned hard thing to do.  There are no leadership widgets produced as such.  Or are there? Continue reading

Why Evaluation Stinks

If only it were this simple

(This blog is co-published with Community Resource Exchange, and is part one of a two-part series)

Ask anybody, and I mean anybody, about evaluating the effectiveness of nonprofit service providers and you will be greeted by winces, whinges, shrugs, groans, gnashing of teeth, sighs, and the burying of faces in flattened palms.  And by anybody I don’t just mean any nonprofit service provider – I mean as well our beloved philanthropic leaders and public sector partners.  After all, we’re talking about an industry that in 2009 paid 9% of all wages, contributed 5.4% of GDP, reported revenues of $1.4 trillion, and held some $2.56 trillion in assets.  Why can’t we find a way to tell how effective this industry is with our money (both public and private dollars)?  How hard can it be? Continue reading