Showing posts with label business models. Show all posts
Showing posts with label business models. Show all posts

Monday, January 08, 2018

Instead of Selling Objects, Build Public Trust


You run a regional museum. It's been struggling financially for years. Now, you have a new vision--co-created with trustees and community leaders--for a path forward. You'll transform it into an interactive science-oriented institution. And you'll build your endowment, too. How will you pay for it? By selling off artworks that no longer serve your mission.

This is the plan that plunged the Berkshire Museum into hot water. It's sparked public uproar, legal battles, and nationwide press coverage. It's cracked the crumbling, outdated rules around deaccessioning--and unearthed more serious issues of public trust.

Here's what happened. In July, the Berkshire Museum released its $60,000,000 New Vision, along with a funding mechanism: selling 40 of its most valuable artworks. Berkshire Museum officials argue that art is not core to their institution going forward and that they are therefore deaccessioning material that is no longer relevant to their mission. But it's not that simple. The 40 artworks are valued at $50 million. They include two of the most famous paintings by Norman Rockwell. Rockwell donated those paintings himself to the Berkshire Museum to be enjoyed in his home community. The Berkshire Museum has been unwilling to sell or transfer the paintings to another regional institution, presumably assuming they will get the highest price at auction.

Cue public uproar and legal action to block the auction. Cultural organizations, community members, and museum leaders have spoken out against the sale. The controversy started in July of 2017. The Attorney General of Massachusetts has put a hold on the sale and will issue a ruling at the end of January. It's taken me six months to figure out how I feel about the whole thing.

THE ANTIQUATED, FRAGILE RULE ON DEACCESSIONING

At first blush, I'm sympathetic to the Berkshire Museum. I am not a fan of the rule that restricts deaccessioning of museum artifacts for purposes other than improving the collection. I think the rule needs to be overhauled, for three reasons.
  1. The rule is simplistic. It states that museums can only sell objects to purchase or care for other objects. No other assets in a museum are restricted in this way, and this restriction can lead to lopsided priorities and bizarre practices. I once consulted with a museum that had no museum--no building, no public programs, no exhibitions. It had a collection and an endowment (funded by deaccessioning) to grow and perpetuate that collection. Their objects were locked in a private prison, protected far from the public in whose trust they purported to be held.
  2. The rule is weak. This rule is poorly enforced with few consequences--which is the very reason an issue like the Berkshire Museum's arises. The rule against wanton deaccessioning is a kind of gentleman's agreement in the museum world. Professional organizations like AAM and AAMD are against it, but their forms of censure are few. Individual museums might risk bad press, finger-shaking, and loss of funding for taking these actions, but the consequences are highly variable and often short-lived. Trustees can hold their noses and roll the dice if they want to.
  3. The rule is outdated. The deaccessioning rule (last updated in 2000) perpetuates the hegemony of artifacts as the heart of museums. While some museums have, admirably, stuck with an object-rooted mission, many have shifted to other goals. It doesn't make sense to maintain a special class of protections for one category of assets when many museums no longer base their missions on the care and stewardship of those assets. This is essentially the argument that the Berkshire Museum is making--that they will no longer BE an art museum and therefore should not be required to protect art objects uniquely.
I think the deaccessioning rule has outlived its usefulness. But that doesn't mean I support the Berkshire Museum's choice. I don't.

THE REAL ISSUE AT STAKE

To me, the issue in the Berkshires is not about deaccessioning artwork. The issue is violation of public trust.

The Berkshire Museum isn't deaccessioning artifacts of questionable public value. They are selling off forty of their top artworks on the open market. By deaccessioning the most valuable art in their collection, the Berkshire Museum is transferring valued public assets into private hands. They are making an arrogant gamble, claiming that their planned new museum will have equal or greater public value than the artworks they are selling to fund it. Maybe it will. Maybe it won't. They are selling heritage to finance progress. It's not surprising that not everyone takes their claims on faith.

It's not entirely the Berkshire Museum's fault that they are in this position. The inflexible rule on deaccessioning forces them into an all-or-nothing choice. Right now, there is no "ethical" vehicle by which a museum might sell high-value artifacts for any purpose other than to buy and protect other artifacts. An institution like the Berkshire Museum risks professional censure whether they sell a painting on the open market or to another museum--assuming they plan to use the proceeds to fund their New Vision. Why wouldn't they make the rational choice to get as much money as possible for their sins?

Because their choice has consequences beyond their own self-interest. It exposes the fragility of the rule of deaccessioning, the thin line between "treasured public asset" and "hard cold cash." The rule is built on a sleight of hand, a conceit that says that museums WON'T acknowledge the market value of objects... until they will. As Diane Ragsdale put it, "When communities become markets, citizens become consumers, and culture becomes an exploitable product."

When museums start putting price tags on their objects, other institutions do too. When Detroit was going bankrupt in 2013, the city's emergency manager fought to sell off some of the prized artworks in the Detroit Institute of Art. In 2009, Brandeis University came close to looting and liquidating its Rose Art Museum, and today, a similar controversy is raging over the museum at La Salle University. At La Salle, as in the Berkshires, university leadership argues that the deaccessioning and closure of the museum is a necessary, painful corrective to dire financial conditions. These museums and their artworks were exposed as market assets to be cashed in as needed.

Museum professionals often decry these actions because they will disincentivize future donors from giving valuable artwork to museums (and therefore, the argument goes, to the public). But I think there's a much more insidious impact of these actions: it encourages the continued slide of museums away from the public trust and into the market economy.

And once that happens, all bets are off. Two years ago, the Detroit Institute of Art won the battle to keep their treasured artwork in the museum. But other battles have been--and could be--lost. It could even happen on a national scale. If a rapacious, short-sighted federal government is willing to strip protected land for natural resources, what's to stop them from looting the Smithsonian to fund their own version of progress?

CREATIVE ALTERNATIVES TO THE MARKET ECONOMY

There are creative alternatives to traditional museum deaccessioning policies that could solve this problem. Instead of fighting to protect an imperfect and antiquated rule, we could create new rules--rules that put the public trust, not objects, first.

Other nonprofit industries have done this. Accredited American zoos, for example, have a strict policy that governs how animals move from one institution to another. If your zoo no longer plans to exhibit giraffes, those giraffes don't suddenly become fungible assets on the open market. They become tradeable assets within a controlled market--with other accredited zoos, who will care for the giraffes as well as you once did.

Food banks have an auction-based model. There's a national online auction site where food banks can bid on large lots of donated food with fake money, called shares. The auction system helps individual food banks determine what they need most, rather than a national agency guessing--and sometimes, guessing wrong.

Both zoos and food banks have gotten creative about how to manage their assets AND serve the public trust. Instead of clinging to outdated deaccessioning policies, it's time for museums to get creative as well. If we don't, we risk betraying the public trust in a venal grab for more flexible assets.

Rather than converting assets from the public trust to the private market, I'd like to see more creative ways for nonprofits to INCREASE the number of assets in the public trust. I'd like to see dividends from large endowments shared among nonprofits in their respective communities. I'd like to see more land trusts sharing their space with other organizations. I'd like to see more museums sharing their artifacts. I'd like to see more marketplaces like those of zoos or food banks, so assets in the public trust can be shared wisely and efficiently.

We shouldn't have to choose between the Norman Rockwell paintings and a great Berkshire Museum. There should be a way to expand the pie of public assets instead of swapping the heritage we have for the future we will build.

What if the Berkshire Museum could sell a fraction of their prized artworks to other museums, for a fraction of their fundraising goal, so they could test out whether their "New Vision" actually served their community better? What if they got involved in a project like Culture Bank, to invest the artworks securely to fund some aspects of their planned transformation? What if they worked out a way to accrue less and get more -- more for their community, more for the public at large?

The pressure will always be on to capitulate to the market economy, to embrace the market and live by its rules. But we can resist. Nonprofit organizations have unique opportunities to resist. If we want to embrace communities instead of markets, we have to fight for it. We have to fight for the public trust, generosity, and shared ownership. We have to be ingenious in coming up with alternative forms of economic value, accumulation, and transfer. No one is going to do it for us.

Wednesday, June 28, 2017

Are Cultural Organizations Built to Fail to Scale?

My new audial obsession is the podcast How I Built This, in which Guy Raz interviews entrepreneurs who built notable companies. The podcast offers incredible stories behind the making of businesses like Chuck E Cheese, Southwest Airlines, and Zuumba. I've also been reading more about social impact nonprofits that went big, like Goodwill, CASA, and YMCA.

One of the biggest questions on my mind as I listen is: why isn’t my industry scaling up the way these organizations do? I can think of many extraordinary innovators in the nonprofit cultural sector--people and organizations creating brilliant programs, site-based experiences, and products. Many of these projects seem replicable. But I can think of only a few who have scaled up and out in a meaningful way.

Why aren’t our collective best ideas growing and spreading all over the world? Why aren’t more cultural organizations franchising, scaling, and replicating like comparable businesses?

Here are a few of my hypotheses (and I’d love to hear yours in the comments). I am not suggesting that any of these factors are bad or immutable. I'm suggesting they may be reasons we aren't scaling.

Precarious business model. Even if an institution or a project is fabulous, it may not have a solid, replicable business model behind it. If the work is financially dicey on the scale of one building, it can be disastrous to scale up.

Too much emphasis on innovation. The more we tinker with and change our products, the less time we spend scaling those products. Arts institutions have beat the innovation drum for decades now. Change may be necessary... or it may distract us from opportunities to grow.

Too complex and diversified a business. Cultural organizations tend to have many programs, projects, audiences, and goals. Businesses that scale are simpler and more focused. If it would take a thousand-page manual to replicate your programs (which are always changing!), it's too hard to reproduce.

Friendly industry that encourages sharing and copying. There are no NDAs in the nonprofit culture sector. Professionals share program models, exhibitions, and design techniques across organizations, often for free. This intermixing means there's less distinctive value to scaling any one entity's offerings.

Too much emphasis on unique experience and local idiosyncrasy. Many cultural organizations put the singular, authentic experience first. Many of us are proud of how our cultural organizations reflect and respond to our local communities. This can lead to assumptions--not always true--that what works here can't be copied and won’t work somewhere else.

Skills mismatch. The skills needed to create an incredible program are different from those needed to spread that program around the world. Our industry cultivates and rewards creative dilettantes who make beautiful things. We often look with suspicion on MBAs and people who want to commodify our work.

Mission mismatch. What's the upside for cultural organizations to scale? Most don't see any benefit to spreading that program around the world. It might be nice if it happened, but it's not the goal. The goal is local engagement, authenticity, scholarship, prestige, or keeping the lights on and the art pumping. I suspect most of us would be loathe to cut programs or make hard tradeoffs in favor of scale. The argument for it isn't worth the pain.


What's missing on this list? What counter-examples have you seen?

Please share your questions or comments! If you are reading this via email, you can join the conversation here.

Tuesday, April 11, 2017

Introducing Abbott Square Part 6: Two Prioritization Techniques We Used to Negotiate a Great Lease

This is the sixth in a series of posts on the Santa Cruz Museum of Art & History (MAH)'s development of Abbott Square, a new creative community plaza in downtown Santa Cruz.

Imagine this situation: you’re about to negotiate a long-term partnership for a massive expansion project. Money is on the table. Values are on the table. Everything’s on the table. How do you decide what to prioritize?

18 months ago, I entered lease negotiations with real estate developer, John McEnery IV, who our board had selected to develop the food component of Abbott Square. John would run Abbott Square Market, a multi-vendor food and drink business, adjacent to the plaza, adjacent to the museum. John would manage the food, the MAH would manage the museum, and we would co-manage the plaza. That’s all we knew going into negotiations.

There were lots of big unresolved questions. How much money would we each bring to the table? How much would John pay for rent and how should we structure it? Who would manage construction? Who would steer the design? Who would pick the food vendors? Who would be responsible for what in the plaza? When would the market be open and under what conditions?

I was overwhelmed and under-confident. I needed a way to focus. I needed a way to get direction from our board and staff on what was inviolate and what was negotiable. I needed the board’s leadership without having all of them involved in every little deal point.

So we did two exercises—with board and staff, separately—to develop our priorities. I suspect these exercises might be useful in any complicated project. It is in that spirit that I share them with you.

MISSION/MONEY MATRIX

Nonprofit folk are familiar with this 2x2 grid, with mission fulfillment on one axis and financial sustainability on the other. Nonprofits use this grid to analyze program performance and to explore ways to shift UP towards higher mission fulfillment and/or RIGHT towards higher profitability.

In the case of the Abbott Square Market negotiation, we used this matrix to get a basic sense of our goals. We'd been leasing the site of the future Market as commercial office space for years: solidly profitable, with no mission impact. That (red) dot was our starting point.

We gave board and staff members this diagram and asked them: when the Abbott Square project is complete, where do you want this dot to go? Do you want us to make the same amount of money but increase the mission impact? Would you sacrifice some money for greater mission impact? Would you sacrifice some mission potential for more money?

They drew their dots, building consensus around the blue dot shown. The project had to increase mission impact. And it had to do as well--or better--than the office building financially.

So we structured the rent in a “base with kicker” format. The museum is guaranteed a monthly base rent that is stable and comparable to what we were receiving when the space was leased for offices. But if the Market does better than a certain threshold, we get more money - a kicker - above the base. That's the dotted line potential for the revenue to increase.

YOUR TOP THREE PRIORITIES

In the months leading up to the lease negotiation, trustees and staff voiced lots of different priorities for the project. Some focused on the need for Abbott Square to be as welcoming and inclusive as the MAH. Others cared about it being clean. Still others wanted local food vendors. And so on.

We couldn’t succeed in negotiations if everything was a top priority. There had to be some things we could trade to get other things that mattered more.

So I wrote up ten distinct priorities we’d heard throughout the process and invited board and staff members to each pick their top three.

We tabulated all the top priorities by votes to generate a ranked list. While trustees and staff had different top priorities, the cumulative priorities were clear. We were able to split the original ten priorities into five “must-haves” and five non-essential preferences. You can see them in this chart. The must-haves on the left, and the negotiable non-essentials on the right.

Unsurprisingly, the five must-haves were the ones that hewed closest to the MAH mission. But they were not the ones people talked about the most in the months leading up to this exercise. Once we had to prioritize, some sexy, much-discussed ideas—like celebrating local food—gave way to core MAH values—like celebrating cultural diversity.

Focusing on five priorities gave me focus and freedom. I could focus on what was important, and I had the freedom to pursue and protect those important elements in whatever way I felt best. In many ways, the five “non-essentials” were even more helpful than the must-haves, because I knew I could deal them away as needed.

In the end, we signed a contract that answered all the big questions about how to manage the project. Any contract would have done that. But the answers hewed to the priorities articulated through these two exercises. No matter how small the deal point, I knew I could use these big priorities as a guiding light. And board and staff knew that I was acting on their collective wisdom and our shared vision for success.

What techniques have you used to set priorities for a big, complicated negotiation?

If you are reading this via email and would like to share a response or question, you can join the conversation here.

Wednesday, August 17, 2016

Does the Most Powerful Work Live Onstage or Behind the Scenes?

Let's say your organization has a mission to increase X (art, healthy kids, clean water, community cohesiveness, etc.). Is it more effective to produce X yourself or empower others to produce X in their own contexts?

The more my organization has become focused on community engagement, the more we've balanced being experience producers with being experience co-creators/facilitators. We still produce exhibitions, events, and educational programs for an audience, but that audience is just one of our major constituencies. The partners we work with--to catalyze projects within and beyond our walls--are just as important as our visitors to fulfilling our mission. Relative to other museums, I think we spend less time producing an "onstage" experience and more time collaborating with community organizations behind the scenes to empower them to produce.

I feel great about this approach. It enables us to authentically and meaningfully involve diverse people in the museum, empowering them as creative agents, building community together, and leveraging their passion to reach more (and more diverse) people.

But this approach leads to a strategic puzzle as we consider our future as an institution. Our museum is growing, and I'm always weighing different ways to expand our impact. Should we focus more on empowering and connecting partners behind the scenes, becoming more of a resource to creative colleagues across our community? Or should we focus more on what's onstage for our growing audience of participants--empowering and connecting them?

In behind-the-scenes mode, we could devote more resources to supporting projects beyond our building, content area, and program formats. I see how we extend our impact and build community through dedicated partnerships, thoughtful bridge-building, and advocacy work.  If we can help other sympatico organizations achieve their goals--while advancing our goals and mission along the way--that's powerful. 

On the other hand, in onstage mode, we could present more highly visible opportunities for people to be empowered and connected through art and history. I see how we ignite excitement, curiosity, and community pride through powerful exhibitions, compelling stories, and dynamic festivals. We could do the work directly with more people, achieving impact with those participants and serving as a model for others interested in this kind of work. If we can make our mission more overt for more people, that's powerful too.

I've been trying to think of examples of superlative organizations of each type. I think of Springboard for the Arts, Alternate Roots, and A Blade of Grass as leaders from behind the scenes. They all merge clear, radical visions with innovative work to empower other organizations to manifest those visions. They are funded primarily by foundations (or are foundations themselves). They exist to improve for their fields or their communities, but not primarily through direct service. We need more empowerment in this world, and these institutions offer it.

Leading onstage institutions are more publicly-known and recognized. I'd put the Exploratorium, the American Visionary Art Museum, and the New World Symphony in this category. All of these organizations provide mind-blowing audience experiences and serve as inspiring models for their fields. By being onstage as visible, powerful beacons of a particular methodology, they both engage audiences and inspire other institutions to consider adopting some of their approaches. We need more magic in this world, and these institutions offer it.

And then, of course, there are many organizations that do both. Some are huge institutions, publicly known for onstage work but flexing serious behind-the-scenes muscles; for example, the San Diego Zoo and Monterey Bay Aquarium are both best-in-class for visitor experiences AND for conservation research and advocacy behind the scenes. Children's Museum of Pittsburgh is a terrific place to visit AND a leading force in diverse regional projects to support youth development. There are mid-sized and smaller organizations--like my museum and many, many others--balancing a public visitor experience with community service behind-the-scenes.

Do we have to choose one or the other? Not exclusively. But I think it's an important strategic question--one that could provide real focus and direction to our future growth. If we had to choose, would we focus on engaging visitors or empowering partners? Would we manage more sites directly, or would we support others in getting their sites off the ground? How can we make these decisions in service of our mission and our vision of a stronger, more connected community?

Where do you start in considering these questions?

Wednesday, July 01, 2015

Is Your Museum Selling Out? Try this Game about Revenue and Ethics

A few weeks ago, debates in England got me thinking about the relative ethics of sources of museum revenue. The London Science Museum and the Tate were both under fire for taking sponsorship money from BP (which, at least at the Science Museum, came with some content strings attached). At the same time, Michael Savage wrote a blog post called The stupid fetish of free admission, and the end of the British Museum. In it, he argues that the British Museum's value has been severely compromised by its willingness to lend its artifacts out to other institutions worldwide for a fee. He also wrote a post slamming the Met and other museums for galas that smack of elitism.

I was intrigued by the different ethical questions related to museum income. And so, I present here a simple, irreverent game in which you can play museum director and rank the relative ethics of various sources of museum revenue. If you can't see it below, click here to play.

Most museums earn money with most of these sources--and some may not feel like ethical concerns to you at all. There are wonderful aspects to each of these types of revenue sources. But there are ethical issues too, and it's worth talking about their relative impact.

Share the game with your colleagues... and add your additional thoughts in the comments under the respective revenue sources. Play on.

Wednesday, January 28, 2015

We Need Fewer Bottom Lines in Nonprofits

If you run a for-profit business, the bottom line is your financial profit. The goal is to make money. At the end of the day, you are measured by how much money you made or lost. That's the bottom line.

People in social enterprise talk frequently about the idea of businesses with a double bottom line: money and social impact. The financial return on investment is important. But so is the social outcome of your enterprise.

There are also companies that talk about a triple bottom line: financial, social, and environmental/ecological impact.

And a quadruple bottom line: financial, social, environmental, and future impact.

You can see where this is heading. Lines upon lines. More good things to strive for, less clarity in achieving them.

We are especially guilty of this in the nonprofit arts. Since most of our organizations don't have one very specific, measurable mission (i.e. "ending chronic homelessness"), we measure lots of things. The beautiful part of a broad mission is the opportunity to explore diverse facets of its fulfillment. The depressing part is the inability to see clearly and concretely whether and to what extent you are achieving your goals.

I've been thinking about all of this recently because I'm in the midst of negotiating a partnership with a for-profit real estate developer to enhance a public plaza adjacent to my museum. One of the things that is really apparent from these negotiations is how clear he is on his bottom line. He cares about the social impact of his projects, but at the end of the day, he uses financial profit to measure their success.

He's got clarity about what success looks like. In contrast, I've got a mirrored funhouse of measurements for success. How do we value attendance against diversity of attendees? Depth versus breadth of programming? Individual outcomes for participants versus collective outcomes for the community? If there's just one thing at the end of the day that we care most about, what is it?

This multiplicity of goals causes a few big problems:
  • We spend too much time debating what the desired impact is and not enough time on how to achieve it. If we are constantly debating what "good" or "quality" looks like, we're wasting time we could be using honing our work to better deliver on the social impact we've all agreed is important. I'd love to work for an organization that clearly knows that the impact it wants to have is X--so we can focus on doing X.
  • We gather too much scattershot data and don't invest in deep measurement on the things that matter most. We've been on a big evaluation push at my museum, and the hardest part is editing ourselves down to a few indicators that we feel consistently reflect impact. Not the things we're curious about for a particular program. Not the things we're interested in but don't relate to our impact statement. It's hard to cut back, but it is leading us to more productive conversations about the data. When we measure less, we attend to the individual indicators more.
  • When we enter into partnerships--especially with entities from different worlds--we can't clearly express our purpose and needs. I'm seeing this strongly in my negotiation with this developer. The project is forcing me to hone in on what is absolutely MOST important to our institution when it comes to developing shared goals in partnership. I can't hand him a fifty-page engagement handbook and expect him to glean which parts are essential. I need a small handful of specific targets so he can understand what success looks like for us as quickly and clearly as I understand what success looks like for him.
  • It can allow organizations to deceive themselves about what is most important. If your director, your board, or your boss is making decisions based on one piece of data, then that's the data that is most important to your bottom line. It doesn't matter if you're collecting tons of other data if he/she/they always decide based on money, or attendance, or learning goals, or patron complaints. If they are focusing on the wrong thing, it may be because no one in the organization has put a stake in the ground about what the "right" indicator is. They may just be choosing one that is easiest to quantify (money, attendance, press), or the one that they understand best.

All of this said, it is really, really hard to reduce the number of bottom lines in any organization. We're down to about seventeen indicators of success at our museum that roll up into five bottom lines. It's a heck of a lot less than we used to have. But it's still probably too many to do the best work we can do.

How many lines are you tap-dancing on? What have you done to reduce or clarify the impact that is most important at your organization at the end of the day?

If you are reading this via email and would like to share a comment, you can join the conversation here.

Wednesday, January 14, 2015

Is There a Formula for Free Admission?

There are plenty of great arguments out there for WHY to make museums free. But HOW do you do it?

It's much easier for art and history museums than for those museums that rely on admissions for a majority of their income (science, children's). Nationally, admissions income generates only 1-4% of most art museums' annual revenue. Max Anderson, currently director of the Dallas Museum of Art, is a fervent champion for art museums being free. As Anderson put it, "At what point are you going to allow something like 2.5 percent of your revenue to get in the way of mission fulfillment, of serving the fullest potential audience?"

Indeed. I've been curious about free admission for a long time. It's one of the things I'd like to do at our museum in Santa Cruz but haven't made happen yet. The philosophical rationale is simple: if we are really a community institution, an institution for and with the public, we should be free.

The financial rationale is a bit more complex than replacing 1-4% of the budget. There's the potential loss of membership gifts from people who are motivated by receiving free daytime admission. There's the potential need for more floor staff and security (hopefully)! There's the expectation--hopefully backed by a plan--that new philanthropic gifts will outweigh the loss of "value"-motivated members.

We've started looking seriously into making the move to free admission at our museum, and as we've done the research on other institutions, a pattern has emerged. Museums that are successfully moving to free admission appear to use the following formula:
  1. Secure a philanthropic gift equivalent to 3-7 years of the lost revenue from daytime admissions.
  2. Aggressively market the philanthropic benefits of a free museum. Create a new value proposition for giving that is rooted in the idea that the museum is free and open to all. Recruit new members and donors who are invested in supporting public access. 
When we looked at museums that went free and then switched back to charging, we noticed that either one of these factors was missing or broke down. 

You need the multi-year gift to give you some runway. Even 2% of the budget is hard to replace if there isn't an obvious other source out there. Five-ish years appears to be long enough to build up the replacement philanthropic support for being a free institution.

You need the emphasis on philanthropy because donors are the only ones who are willing to pay for free admission (even in small increments, like Tacoma Children's Museum's Pay as You Will policy). You shouldn't expect gift shop or cafe sales to increase with free admission. When museums are free, people use them more frequently, for more casual reasons. They don't treat the visit as a destination multi-hour experience necessitating a meal and a souvenir.

Does this formula add up?
Any other ingredients you have seen work--or fail--in making a museum free?


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Wednesday, December 04, 2013

Guest Post: A Shared Ethics for Museum Internships

Is your museum running on interns? In this guest post, CUNY lecturer and former manager of the Guggenheim Internship program Michelle Millar Fisher makes a passionate argument for the end of unpaid internships. It is a strong, museum-focused complement to an excellent three-parter on Fractured Atlas about the ethics and future of unpaid arts internships. 

One of the most poignant signs I saw waved during the Occupy Movement was held by a young woman who politely advised The System to "F**k your free internships." Free intern labor wasn't ever right, but it has become glaringly unethical in the current post-Lehman-crash era. That protest placard highlighted the unpaid internship as a simultaneous symptom and result of badly broken political and social systems.

If you're reading this at work, you're probably reading it within ten feet of an unpaid intern. It's probably a path you had to navigate too. There's a sense of "it worked for me...." And it does - it did work for me. I got my first real job in a museum (at the Guggenheim) after a life-changing internship. My supervisor was amazing, caring, and supportive. I worked so hard in those three unpaid months that I made myself indispensable and jumped ship from my home country (Scotland) and came to New York. My whole career path has been positively changed by that one internship experience.

However, my experience was an exception to the rule that internships increasingly prove: free labor contributes to the growing inequities of the non-profit labor system. Issues of class and economic status haunt the museum internship. You have to be able to afford to work for free in order to take an internship that will help you onto the career ladder. There are certainly excellent programs that try to circumvent this stereotype, and there are stipends to be had in some museums, but they are far from the norm.

My experience was exceptional for one simple reason: my internship at the Guggenheim was the only unpaid internship I ever did. It was the only one I could afford to do. It was made possible by a small, unexpected windfall. If I hadn't had the windfall, it's highly unlikely that as a first-gen college attendee I would have been exposed to the other opportunities it afforded me. (I have somewhat of a "control" in this social experiment in that my talented sister has plied a similar path to me, but was unable to afford the opportunity of one unpaid internship at a museum. Even though she worked just as hard as I did, it took her five years longer to get her foot on the arts employment ladder than it did for me.)

I have done my very fair share of perpetuating the cycle of unpaid internships. As an Associate Manager of Education, I coordinated internships at the Guggenheim museum for four years before I headed back to academia. I expanded the program from around seventy-five interns per year to over one hundred and thirty in almost every department of the museum. I loved my job, and I think many of the interns had amazing experiences at the museum because we tried to take care of them, introduce them to arts networks through a rich weekly seminar program, and encouraged supervisors to be the best mentors they could. But now, as I counsel my university students, I feel it unethical to recommend the same path I took. I have taken a firm stand. I will not forward unpaid internship postings that come my way and actively respond to the senders, even when I know them well as colleagues: “This is not ethical!”

Is unpaid participation in the life and operations of a museum always a bad thing? No. Are the worst offenders larger museums who know they can get away with asking people to work for free? Yes. Is it unethical to ask college juniors and seniors, graduate students, and recently qualified degree holders to undertake multiple free internships? Absolutely. Making small changes and offering some kind of basic compensation for interns in the arts would benefit us all. If the lowest wage on the ladder is zero, entry-level wages don't have to be much higher, and this affects the whole pay scale for the majority of those who work in non-director positions.

Would some form of universal museum internship standard mitigate this? How about a national Museum Internship Ethics Charter that would make three core promises to any museum intern:
  1. a stipend 
  2. a clear written statement of expectations given at the beginning of their internship 
  3. a final face-to-face evaluation with the internship mentor at the end of the internship 
I'm constantly surprised at how many students I speak with, even those who are working for college credit where this is meant to be regulated, do not receive any of these three components. A shared ethics on the subject of internships means a shared ethics for human resources in museum more generally. This type of shared ethics can only be a positive thing for both individuals at all levels, and the institution - and thus its visitors. Happy employees (yes, even interns!) mean greater productivity, creativity, and accountability.

 The students I teach in undergrad classrooms in New York are about a decade younger than me. They're the Internship Generation. The more I am faced with their predicament when they ask me about how to balance work experience that won't pay them with study and (especially at the city college where I teach) the jobs that are paying their tuition, or to write them letters of recommendation for unpaid labor, the more uncomfortable I have become.

How could we all better address this issue? Could museum managers agree to hire interns who need the work experience rather than those with a resume already the length of the Nile? Could they agree to put aside a small part of their yearly budget to compensate interns in some way? Could university instructors (especially those with tenure and a voice) steer their interns in the direction of paid opportunities, and campaign within their own departments to end the cycle of internships for credit? Could we all agree to a universal standard under the auspices of a body like the AAM? Are there already internship models out there that do this that we could learn from and offer as examples?

I'm truly interested in any discussion and feedback on this topic, and taking sustained action. I want to do better for my students, and to participate in the rethinking of a broken model I have helped to perpetuate.

What's your vision for the future of internships? Share your thoughts with Michelle and the Museum 2.0 community in the comments.

Wednesday, November 13, 2013

Psychology, Pricing, and Pay As You Will at the Children's Museum of Tacoma

my son, chucking money into the donation boxIn 2010, the Children's Museum of Tacoma was getting ready to move to a new, bigger facility. Over the years, they had noticed that 50% of their visitors were coming for free or at reduced cost--whether on free days or with special passes. When they moved to the new facility, they decided they wanted to radically expand access to the museum, AND increase revenue.

What did they do? They went to a "pay as you will" model. Now, they encourage visitors to become mini-philanthropists, enabling inclusion for all. Charging admission is a means test, and they want everyone to be able to pass.

The Children's Museum of Tacoma is two years into their "pay as you will" model, and it looks like a success. Attendance jumped from 40,000 at their old facility to about 120,000 at the new facility. Membership has doubled (now including new perks that extend beyond free admission). Attendance by low-income families is up. And while the average amount paid by each non-member visitor is down (dropping from $6 to about $3), the attendance increase means a net revenue gain. The museum launched this new strategy with a major grant from a funder (Key Bank) that provided five years of admissions offset--enough risk capital to give the museum time to grow into the new approach. The transformation of admission fees and its impact is documented beautifully in this blog post by Jeanne Vergeront. Check it out for a lot more details and numbers.

I called the museum because I was curious to learn more about the mechanics of communicating this approach to visitors. "By donation only" can offer a wonderful sense of welcome, or it can be misleading. (Consider the ongoing lawsuits at the Metropolitan Museum on this very issue.) I wondered whether "pay as you will" might come with its own confusion and stress for families without much exposure to museums--the exact people the museum is trying to make welcome. The "pay as you will" messaging is very different, for example, from Mixed Blood Theater's "Radical Hospitality" approach, which emphasizes completely free theater experiences.

"No cost" is much more clearcut than "pay as you will." Might "pay as you will" become another museum mystery, another source of threshold fear for visitors who don't have a yardstick by which to reasonably guess what they SHOULD pay to visit?

I spoke with Chad Russell, the Administrative Coordinator at the Children's Museum of Tacoma, about their experience. He told me, "We often get asked if there is a suggested donation, what should we pay. We don’t want to put any pressure on for a suggested donation – we want you to pay what you think.”

Chad also told me:
  • They have donation bins throughout the museum, so if people don't want to give much when they first walk in, they can pay somewhere else. Some people will donate more on their way out (but are not prompted to do so).
  • They train their frontline staff to engage with people about WHY it is pay as you will, explaining that your donation makes it possible for other kids who couldn’t afford it, so they can come play for free. Some kids apparently come in with their piggy banks, proud that they can pay to attend the museum--because whatever they have to offer is valued as exactly enough.
  • When people are stressed about how much to pay, he says, "before we went to this model, the cost was about $5 at the door." This might help more literal-minded people feel comfortable with an ambiguous system.

To me, this seems like an improvement on the norm... especially in a children's museum, which has a high number of repeat visitors (who can become familiar with the system over time). I can imagine families deciding on a value and paying it fairly consistently with little stress. I can imagine the cute rituals of kids, excited to contribute personally, proud to be part of making the museum available to all. But I can also imagine visitors being confused and stressed out--which is even worse in front of your kids. 

Does "pay as you will" fundamentally change the relationship between the institution and community members with regard to the cost and perceived value of the experiences inside? There's still a transaction--or at least a conversation--at the gate. Is that a good thing, because it invites/requires people to grapple with the cost of providing these experiences? Or is it just a different wrapper on same old means test

Wednesday, October 23, 2013

What Should Happen to Underperforming Nonprofit Organizations?

"I want death panels. I want to kill organizations that aren't showing their value."
--Devon Smith 

Now that's the kind of sentence that makes you put down your fork.

Last month, I had the good fortune to join a few brilliant people for a "Dinner-vention" about the future of the arts in America. In the course of the conversation, Devon Smith, a social media consultant from Threespot, started talking the problem of arts organizations that are no longer relevant or useful to their communities. [Watch the two-minute conversation between Devon and Clayton Lord starting at 14:25 in the video below.]


Devon didn't mince words. "Some organizations are going to die," she stated. "I want to incentivize them to die quicker." She argued that we need a way to correct for the fact that nonprofits don't operate in a traditional capitalist marketplace, and therefore aren't subject to the market forces that might otherwise cause them to fold when they are no longer useful. Hence, death panels.

For a long time, I agreed with this argument. Like a lot of people, I am incredibly frustrated by organizations floating on endowments that allow them to sail on regardless of impact or community relevance. I'm pissed off that well-capitalized organizations that engage a narrowing constituency can raise millions while young organizations struggle to be viable even as they produce powerful work for growing communities. I agree with Devon that more mergers and accountability would be a great thing. I wish organizations would focus more on creating amazing work than on sustaining operations.

But here I sit, the director of a museum that almost closed, squirreling away money for an operating reserve. I am part of the problem. And proud of it.

As I've watched arts organizations struggle over the past few years, I haven't thought, "gee, it's great that the market is causing these places to shut down." I haven't thought, "wow, the market is really resetting our field in a productive way." Instead, I've thought, "this is wasteful and depressing."

Consider two high-profile arts closures in 2013: that of Shakespeare Santa Cruz and the 3rd Ward. Neither of these organizations closed because of a collective decision that they had outlived their usefulness. They closed for capricious financial reasons, and they left disappointed artists and participants in their wake. Could each have offered MORE community value? Absolutely. But when market forces hit arts organizations, it doesn't necessarily mean a more useful outcome than when arts organizations are insulated from those same forces with cash reserves, endowments, and other potential hindrances to change.

And let's not delude ourselves into thinking that the market does a better job at this than nonprofits. When the dotcom crash started killing off companies in the early 2000s, my DC housemates scavenged strange gifts from vacated offices. We decorated our group house with purloined office chairs and giant motivational posters--the detritus of an industry that was massively hemorrhaging. Yes, the market corrected for the dotcom bubble. But it did so in a way that was wasteful and chaotic.

What's the alternative to this waste? We have the opportunity in nonprofits to create a MORE efficient marketplace than capitalism offers. Instead of talking about "creative destruction," I think we should focus on creative reinvention. I firmly believe that there is more value to be created, faster and more efficiently, by reinventing and transforming existing organizations than by killing them and starting again. 

Consider the museum I run. In 2011, we were on very shaky financial ground. Our cash balance was zero, but that wasn't the only asset we had. We had a gorgeous building in the middle of downtown Santa Cruz. We had an army of long-time donors, members, volunteers, and participants who invested a lot in the organization and cared about its longterm future. We had a dedicated staff that wanted to make this museum as good as it could be. We had a vision for the museum as a thriving, central gathering place in the community.

As we transformed our programming in pursuit of that vision, we were able to tap these existing assets to quickly and dramatically increase our value to the community. We were able to do that faster than we ever could have if we had started anew.

You could argue that if the museum had closed, the resources that had gone into it--money, effort, goodwill--would have been redistributed in the marketplace. But we know that's not exactly what would happen. There would be a lot of leakage. There would be a lot of waste. It would take much more energy to recapture those assets than to redirect them.

And so I issue a challenge to people who are frustrated with arts organizations and their limited relevance to your community: reinvent them. Recombine them. Reenergize them. Instead of starting your own organization, find a way to add value to one that already exists. House your program in an underutilized library. Pitch your project to a struggling symphony. Sure, some of those organizations are not going to change, or not enough, to be worth your participation. But some will.

Forget killing. Forget life support. Let's revitalize our communities, and the organizations that engage them, with the courage and creativity they deserve.

Wednesday, October 16, 2013

Who Counts? Grappling with Attendance as a Proxy for Impact

When you count attendance to your museum, do you include:
  • people who eat in the cafe?
  • people who rent the facility for private events?
  • people who engage with your content online?
  • participants in offsite outreach programs? 
  • volunteers? 
This summer, the St. Louis Post-Dispatch published the kind of "how sausage is made" story that rarely gets written about the arts. It's about museum attendance and how the five big, free museums in St. Louis count it. There's quite a range. Summertime concerts at the history museum? Those count. Outdoor movies at the art museum? Nope. At the St. Louis Science Center, the focus of the article, there was a particularly creative perspective on attendance, including numbers for offsite board meetings, parades where staff made a showing, and attendance at a school next door. The only form of engagement lacking in the article is online participation--which for many museums, could yield the highest numbers of all.

Even if you consider some of these counting strategies to be egregious, the basic question is still relevant: who counts? When I reflected on our museum, I realized we have some inconsistencies in how we calculate attendance. For us, annual attendance includes programmatic activities onsite and off (about 10% of our programming is conducted at community sites). That means daytime visitors, event participants, school tours, and outreach program participants. It does not include facility rentals, meetings, fundraising events, nor people who might see us at a community event but not directly engage.

What's missing from this picture? I think you could reasonably argue that we should be counting:
  • researchers who come in to access information in the archives
  • people who rent the museum for a private event that includes a curator/artist tour of exhibitions
  • kids in museum summer camps
  • people who visit the historic cemetery that we manage
  • people who talk with us online about historic photos we share or blog posts about the collection
And then there are the weird inconsistencies. Why do we count participants in an art activity for families at a community center but not members of the Rotary Club to whom I give a presentation about the museum? Why do we count visitors who tour the galleries chatting with their friends but not visitors who tour the galleries chatting with a staff member (i.e. as part of a meeting)? 

This doesn't even get to the potential parsing of people's intentions. If someone comes to an exhibition opening for the free food, do they count? If a kid gets dragged to a museum with their parents, do they count? If someone has an epiphany about art outside the museum, do they count?

Probe too deeply and the question gets absurd. The more important question is not WHO counts but WHAT counts. Internal to an individual museum, relative attendance--changes over time or program--can yield useful information. But if you try to make meaning out of attendance comparisons across institutions, you start juggling apples and oranges. While many institutions separate attendance by program area, I don't know of any that separate attendance into "impressions," "light engagement," "deep engagement," etc. - categories that might actually have meaning. 

What is meaningful in the context of achieving our mission? That's the number we should be capturing.

The Relationship Between Attendance and Impact

How can we measure impact? That's a huge question. Let's look at it in the narrow context of the relationship between attendance and impact.

What is the information value of attendance? Attendance does a good job representing how popular an institution is, how used it is, and how those two things vary over different times of day, days of the week, times of year, and types of programs.  

But does attendance demonstrate mission fulfillment? Unless your mission is "to engage X number of people," probably not. For some institutions, like the MCA Denver, attendance is seen as a very poor measure of impact. But for almost all museums (even MCA Denver), attendance is correlated with impact in some way. 

For attendance to be correlated with impact, you have to find a way to articulate a theory of change that connects attendance to your mission (inspiration, learning, civic participation, etc.). And then, you have to be able to calculate a conversion factor that relates the number of people who attend to the number for whom the mission is fulfilled.  

Imagine managing a shoe store. Your mission is to sell shoes. Attendance is the total number of people who walk in the door. Of those people, 10% actually buy shoes. That means 10% is your conversion factor; if you want to sell 5 pairs of shoes, you need fifty people to walk through the door.

Now let's say your mission isn't just to sell shoes, but to build relationships with customers who will love your shoes and buy more of them in the future. Maybe the conversion factor from first sale to repeated sales is 20%. Now you have fifty people who walk through the door, five who buy shoes, and one who will be a longtime customer.

Now let's turn back to museums. The St. Louis Science Center's mission is to "ignite and sustain lifelong science and technology learning." What's the conversion factor from a single visit to that mission? 

I'd start by splitting the "igniting" from the "sustaining." You could argue that any single visit or interaction with the Science Center--at the facility, out in the community, online--could have the spark of ignition. But sustaining lifelong learning requires a different level of commitment. That count could include people who are visitors/members for 10+ years. Or volunteers who participate on a weekly basis. Or students who visit at some point and go on to careers in science and technology. 

It's not easy, but the museum could define the indicators that it considers representative of sustained learning. It could count those incidences. With some effort, you could calculate conversion factors from igniting to sustaining for each major program area. And if you knew the conversion factor for general attendance from igniting to sustaining, you could actually generate an estimate of how many of the kids zooming around the facility are likely to sustain a lifelong interest in science.

Looking at it in this way would also allow institutions to expand beyond reductive "all about attendance" approaches to demonstrating impact. You could argue that some of the most important work of "igniting and sustaining lifelong science and technology learning" has nothing to do with attendance to the science center. It might involve producing ad campaigns linking science to community issues, or advocating for job training programs in technology, or designing curriculum for community colleges. And again, if you could designate indicators for the kinds of learning impacts possible through these efforts and the conversion factors from igniting to sustaining, you could count and present them. 

So perhaps the St. Louis Science Center's annual report could look like this:
"Our mission is to ignite and sustain lifelong science and technology learning. We know that not every spark leads to a blaze, so we focus on igniting as many sparks as possible and making strategic investments in programs that are likely to sustain learning for the long term. 
We ignited science and technology learning this year through ongoing exhibits, educational programs, outreach in the community, and online interactions, which reached 3 million people. These sparks grew into sustained lifelong learning for at least 400 people, who got involved in local technology hobbyist projects, who pursued careers in science and technology, and helped us facilitate learning experiences as volunteers at the museum. 
We also focused this year on working with the countywide adult education agency to start an intergenerational science program at three senior centers throughout St. Louis. While this program only involves 40 people per site, all of them are participating in the kind of deep science engagement that is proven to lead to lifelong science and technology learning."
Too unwieldy or unorthodox for funders? Maybe in the beginning. But in an age of nonprofit accountability and increasingly sophisticated evaluation strategies, I think this kind of approach could be useful. What do you think? 

Wednesday, June 26, 2013

One Small Step for Detroit, One Giant Leap for Museum Ethics (Maybe)

Over the past three years, the Detroit Institute of Art (DIA) has served as the museum poster child for the debate on the public value of the arts. Last year, the DIA was saved from financial crisis by voters in its three neighboring counties who elected to take on an additional property tax to support the museum. And now, in the past month, Michigan's Attorney General and State Senate have blocked the emergency manager of Detroit from seizing the DIA's collection to pay off the city's debt.

Like last year's tax, this newest development is an important step for the DIA, but it has even greater impact on the field overall. From a non-museum person's perspective, it's a little mysterious.

What's Happening in Detroit

Detroit is in serious trouble financially. The city's emergency manager, Kevyn Orr, is pursuing many options to avoid bankruptcy. One option he put on the table in May is to sell off the DIA's multi-billion dollar collection of art. The DIA and its collection are owned by the city, which makes it a city asset.

Museum supporters and art lovers were up in arms about this proposal, arguing that these "cultural gems" are held in the public trust and should not be shed to pay off creditors. But this argument for the public value of the art is tough to uphold in a time of severe challenges. Detroit's city leaders are looking at a host of tough choices, and it's hard not to be sympathetic to the idea that a bunch of artwork matters less than emergency services, schools, parks, and any number of other city programs and assets that might be slashed to avoid bankruptcy.

For museum wonks, there's a more specific ethical reason that the DIA's collection should not be treated in this way: we don't see museum collections as assets on the balance sheet the same way Kevyn Orr does.

The American museum profession has an ethical standard that says "in no event shall they [funds raised by deaccessioning collections objects] be used for anything other than acquisition or direct care of collections."

In other words, in the museum world, if you sell artwork, you must put the proceeds into a restricted fund to either purchase or preserve other artwork in the collection.

Of course, Kevyn Orr doesn't see it that way--he sees the DIA's artwork as assets, and that's not unreasonable. This DOES come up when museums go bankrupt, at which point collections can be seen as assets by creditors. However, in this case, it is not the DIA that is going bankrupt but the city. If the city (or state) forces the DIA to violate museum ethics to satisfy city debts, it will have grave consequences for the museum and for the museum world.

Think of Artwork like Organs

Here's a weird but apt analogy: organ donation. For large organs like the heart and lungs, there is a national body that governs all organ donation and distribution in the US. All organs are given voluntarily without compensation (usually by dying people), and then the national body manages a list with complicated algorithms to determine who receives which organ.

Imagine if Detroit's largest hospital had an organ donation program, and Kevyn Orr required that the hospital violate medical ethics by selling any large organs received to the highest bidder. This could be a significant income stream for the city and help settle debts. At the same time, it would likely lead to that hospital and its surgeons facing grave consequences in the medical world... just like the DIA will face if the city forces it to violate museum ethics.

I know organs and artwork are different, but the situation is functionally the same: a professional field with a particular code of ethics whose rules may or may not be recognized by government bodies. That's why it is so significant that the Michigan Senate voted to take on the American Alliance of Museum's code of ethics regarding collections - it functionally means that the state is acknowledging and abiding by the professional standard in the museum field.

Complications and Ethical Dilemmas

But let's not start cheering just yet. There is an ironic sidenote to this "victory" for museum ethics. At the same time as this controversy is playing out in the public arena via Detroit, museum professionals are in the midst of debate about whether the ethics of deaccessioning still apply. A recent article in Museum magazine (published by the American Alliance of Museums) talks about the ugly realities of how a collection may be sold if a museum goes bankrupt. The Center for the Future of Museums, which is also run by the American Alliance of Museums, has been hosting a virtual "ethics smackdown" on its blog about the ethics of deaccessioning over the past several weeks. Only a small percentage of museums are formally signed onto the AAM code of ethics. While deaccessioning may be a museum sacred cow, it is not broadly considered our field's most important challenge.

I feel conflicted about this whole question. On the one hand, it drives me nuts that the ethical rules around deaccessioning force museums to protect objects in a way we do not comparably protect other core aspects of our work. There is no requirement that if you cut an educational program that you have to use the funds saved from that to fund other educational experiences. I've worked with museums that have hefty collections and restricted acquisition funds but are closed to the public because all of their dollars and assets are wrapped up in objects and none in public service or access. I can also see the argument that it actually makes museums MORE relevant if our assets are considered fair game in a situation like Detroit's--just as important and just as endangered as other core services.

On the other hand, I feel strongly that as arts are generally misunderstood and marginalized in the public eye (and funding sphere), it's important for us to do whatever we can to help people understand WHY artwork is like organs, and why these objects remaining in the public trust matters. In an offline conversation about Detroit, Margy Waller, who is brilliant at framing the public value of art, put it this way:
The arts are already pretty much ALWAYS seen as a low priority among things of public value. In fact, they're (I want to say we're) often seen as a private matter -- and not a public good at all. 
The arguments about sale of DIA art strike me as forming inside that frame. And if it happens, I worry that it would reinforce what is already the dominant way of view of the arts --- and set back our case-making: that the arts create places where people want to live, work, invest, and visit -- all things Detroit desperately needs right now.

Wednesday, January 23, 2013

Conviction? Check. Money? Check. So What's Keeping the Arts Sector from Embracing Active, Diverse Audience Engagement?

A couple weeks ago, I had a conversation with a funder that shocked me. If you asked me a month ago what the biggest barrier was to American arts organizations adopting practices that support active engagement in the arts by diverse participants, I would have said two: money and legitimacy. There are more than enough people in the field who are enthused about active participation, and recent reports like the National Committee for Responsive Philanthropy's Fusing Arts, Culture, and Social Change have sparked field-wide conversations about how philanthropy might more equitably support institutions that serve marginalized communities. We have the arguments and the energy. So what's missing? The funding and validity that a major foundation can provide. I've always assumed that slow-moving, big, traditional, white- and upper-class-serving arts organizations are buoyed in their practices by funders who tacitly approve of their activities with their donations. Move the money, and the field will move.

Turns out it's not that simple.

I was talking with Ted Russell, a senior program officer from the James Irvine Foundation, one of the biggest arts funders in California. I asked how their new Exploring Engagement Fund (of which my museum was an early grant recipient) was going. He paused. He said they've been somewhat disappointed by the applications they've received and surprised by the mixed response in the field to their new approach to arts grant-making. Some have raised the question of whether the Irvine Foundation is "too far ahead of the field" with a grantmaking strategy that focuses on active arts engagement for all Californians. 

In the fall of 2011, the Irvine Foundation released a high-profile new arts strategy that focuses on the "who, how, and where" of arts engagement, with a focus on reaching nontraditional audiences through active participation in nontraditional venues. This was coupled by a shift in their funding, with all foundation arts funding moving into the Exploring Engagement Fund that requires grantees to address at least two of the "who, how, where" goals in each project.  

I was thrilled when this happened for two reasons. First, and close to home, it meant the possibility that the Irvine Foundation might become a funder of the work we do at the Santa Cruz Museum of Art & History around active arts participation and social bridging. But secondly, and more importantly, it meant validation for active participation in the arts. It meant dollars for marginalized communities. It meant opportunities for experimental practice. It meant one of the "big guys" was moving in what I see as the right direction towards making arts institutions more relevant to our diverse communities. It felt like a lucky break for the things I care most about.

But Ted made me realize it's not that easy. It is just as hard to be an activist funder as it is to be an activist organization. For the Exploring Engagement Fund to be successful, the Irvine Foundation needs really good applicants who WANT to do the kind of experimental, forward-thinking work that Arts Program Director Josephine Ramirez describes in her vision for the program. I assumed, given the energy around active participation and diversifying audiences that exists in the field, that there were lots of prospective grantees like my organization just waiting for this kind of opportunity to open up. It seems that the Irvine Foundation assumed similarly, and that the results have thus far not lived up to their (or my) hopes.

Why not? 

I don't think the problem is the Irvine Foundation's approach, or even their communication around it. The "who, how, where" strategy is clear and well-reasoned. In a lot of ways, the Irvine Foundation's challenge is comparable to that which any organization that changes its strategy faces. Who exactly is the market for this new approach to arts funding? Just as an institution that changes its focus has to either attract a new audience or engage its traditional audience in a change process, the Irvine Foundation has to execute this new strategy in partnership with its grantees.

To be successful, I see three tasks ahead for the Irvine Foundation:
  1. Help traditional arts institutions understand and connect with the new strategy. Ted told me that the Irvine Foundation staff have learned that they have to work on how they communicate about the new strategy and support capacity-building for organizations to be able to be successful in the new paradigm. Longtime grantees have relied on Irvine for years for one kind of support and now see themselves being thrust into a different set of expectations. Even organizations that care about community engagement could be stymied by the creative challenge to hit two of the three "who, how, where"s with a single two-year project. It's not surprising that they push back against the changes. Part of me wonders whether it's worthwhile to invest more money in trying to convince traditional arts institutions to embrace active engagement--but then I realize that that's the work I've been trying to do for a long time. I think a strong way to do this is by reaching out to program staff directly. I know there are people within traditional arts institutions who will be empowered by Irvine's new strategy--people who feel frustrated that their passion for serving low-income families is met with lip service, or people who are pigeonholed into an education zone because of their enthusiasm for active art-making. I'm hopeful that those individuals and departments will go to their development directors, who are spinning their brains around trying to repackage their organizations in the "who, how, where" paradigm, and offer a way forward for funding AND increased priority on Irvine's vision for the arts in California.
  2. Actively recruit new grantees who may now be eligible or appropriate for funding. I have no doubt that there are many incredible artists and organizations that could do wonderful things with funding from the Irvine Foundation. But those individuals and institutions may not be on Irvine's map... and Irvine may not be on theirs. The kinds of organizations that focus on active art-making and social practice are different from those that focus on arts consumption. Organizations that work in nontraditional venues may not label themselves as arts institutions. Organizations that engage marginalized communities and have long been shunned by major funders might not attend to the strategy shifts of those foundations. Just as working with "nontraditional" audiences often requires more intensive forms of engagement, working with nontraditional grantees will require the same.
  3. Have courage. I believe in a few years we will point to Irvine as a catalyst for significant change in the arts sector in California and around the country. But being on the leading edge is scary. It requires confidence that the grantees and the projects ARE out there. It requires turning a deaf ear to complaints from institutions that aren't willing to engage audiences in what Irvine feels are the most effective ways. I have no illusions that the Irvine Foundation (or any foundation) will continue to put forward an approach that works personally for me or my institution. But I sincerely hope that every foundation will continue to be thoughtful and courageous in constructing grantmaking strategies that they feel will do serious good in the community. 
When funders change their ways, it matters. It ruffles the landscape. It lays the groundwork for real change. And sometimes that might mean "being ahead of the field" with a big old carrot that gets some stuck organizations moving forward. 

Wednesday, August 29, 2012

The Public Argument About Arts Support as Seen through the Lens of the Detroit Institute of Arts


Earlier this month, the Detroit Institute of Arts was "saved" by a voter-approved property tax (called a "millage") in its three surrounding counties. The millage will provide about $23M per year for ten years to support operations, during which time the DIA hopes to raise $400M to enhance its endowment and replace the operating income from the millage. Residents in the three counties that pay the millage will receive special benefits: free admission to the museum and expanded educational programming.

I'm not going to comment on the reasons for the millage or its merits from an arts management perspective--please check out Diane Ragsdale's excellent post for a round-up of commentary and some hard-hitting opinions about the big picture. I'm focusing on the community response to the prospect of the millage and the way the public debate reflects broader conversations about the public value of the arts.

Analyzing Public Comments in the Detroit Free Press Online

The pre-vote public commentary in the Detroit Free Press about the millage is like any online newspaper commentary: polarizing, extreme, and highly varied in tone and reasonableness. But the arguments trotted out represent how far we have to go in articulating the public value of arts institutions (and helping our supporters speak the same language). It's like a giant, free, no-holds-barred focus group that represents a true range of arts users and non-users.

Reading through the 300+ comments online reminded me eerily of the extraordinary 2010 ArtsWave report on the public value of art (full report here, my synopsis here). The report, which focused on Cincinnati, found that the common arguments for public support for the arts don't hold up for most people. In the executive summary, the authors identified several common assumptions that "work against the objective of positioning the arts as a public good." Here are three of those assumptions and their substantiation in the Detroit Free Press:
  • The arts are a private matter: Arts are about individual tastes, experiences and enrichment, and individual expression by artists. 
    • This perspective was rampant in Michigan. As one Detroit Free Press commenter wrote: "You are not getting it. Your cultural outlet is art galleries and symphonies. Mine is tractor pulls, MMA and the occasional anvil shoot. But why is yours more deserving of my tax dollars?"  
  • The arts are a good to be purchased: Therefore, most assume that the arts should succeed or fail, as any product does in the marketplace, based on what people want to purchase. 
    • Several Detroit comments were in this vein. Commenters asked reasonable questions about why the museum couldn't balance the books, but more importantly, they kept coming back to the argument that if the museum was successful, it would be financially viable. One commenter told a DIA supporter: "[if you support them] just send the DIA a $20 check. Why force everyone else to do it? If all the people that plan to vote yes just bought a membership to the DIA, there would be no need for the property tax. Vote with your money instead."
  • The arts are a low priority: Even when people value art, it is rarely high on their list of priorities.  
    • Detroit, like a lot of cities, is struggling financially on many levels. Many comments on the DIA fell in this category, e.g. "I would rather my $20 goes to my local schools, police, or fire if they are going to raise my tax." Many of the comments also suggested that it was unfair for people throughout the counties to support an institution in the middle of the city.

Community Case Statements for the Public Value of Art

So what do we do with these assumptions? The ArtsWave report suggests that we need to make effective, specific case statements for public support of the arts. Several commenters in the Detroit Free Press in support of the millage tried their best. Their arguments ranged in success, mirroring the discussion in the ArtsWave report about the utility and shortcomings of common case statements (see page 15 of the report). Here are just two arguments that were notable for the difference in the responses they sparked:
  • Unsuccessful argument: Great cities should have great arts institutions. As one commenter said: "it's so embarrassing to come back home and find that people in this area don't care for the gems we still have, just no sense of pride here."
    • Rebuttal: That's elitist. Lots of negative and ambivalent reaction to this case statement. This kind of comment was common: "Your elitist tone is what turns people off from wanting to pay higher taxes. The whole 'we know how to spend your money better than you' attitude is condescending and false."
  • Successful argument: Great museums improve quality of life and the value of the region. "it’s just not about a museum, it’s a local AND regional “quality of life” issue. Whether it’s visitors from the suburbs or from out of town, or possible families contemplating relocation, or the city residents themselves…people look at the Entire Big Picture….Education, Culture (Symphony, Opera, Museum), Sporting venues, Shopping, Crime & Safety, etc."
    • Rebuttal: none. Interestingly, these kinds of comments on the website did not spawn heavy critique or vitriol. This was also the argument put forth in news articles by politicians--that cultural amenities, schools, and neighborhoods are all important when courting businesses or prospective homeowners.
This second argument is one part of the case statement that ArtsWave recommended for the city of Cincinnati. Their recommended case statement is:
A thriving arts sector creates “ripple effects” of benefits throughout our community. 
They elaborate that:
The following two ripple effects are especially helpful and compelling to enumerate:
  • A vibrant, thriving economy: Neighborhoods are more lively, communities are revitalized, tourists and residents are attracted to the area, etc. Note that this goes well beyond the usual dollars-and-cents argument. 
  • A more connected population: Diverse groups share common experiences, hear new perspectives, understand each other better, etc.
Looking at news articles and public discussion, it seems that the DIA's supporters won the day with the first of these arguments. I hunted through the Detroit Free Press discussion with the second ripple effect in mind, but I couldn't find evidence of it in the comments. I found some comments about the fact that the DIA provides programs for schoolchildren and poor families, but that falls into the "services" case statement that often yields unfavorable comparison to "core" civic services (schools, police, social services). I found only one comment about the diversity of visitors to the DIA, but that was presented in rebuttal to someone saying it is an elitist organization. There were no case statements for the DIA that emphasized how the museum brings us all together, connects counties, or creates bridges.

Opportunities for the Future (and for Other Struggling Arts Institutions)

This issue and the discussion surrounding it highlighted to me the value of the ArtsWave report as a proactive tool for advocacy. No one wants to wait for a life-or-death situation to start testing out case statements. If I were running the DIA, I would have used the ArtsWave report to map out talking points during the millage debate. And as the director of an organization rebounding from financial crisis, I'm thinking a lot about what messages support our future and how to encourage not just staff but our members and friends to think about the museums in those terms. Every time a visitor talks about enjoying the museum, I smile. But when they use phrases like "making the community a better place" or "part of something bigger," I'm thrilled.

And what to do when the advocacy is successful, as in the case of Detroit? I'm surprised by the little the DIA has said publicly about the millage effort and its outcome. I understand that the museum was restricted in public statements during the campaign, but afterwards, I expected a much more aggressive reframing. In thanking people for supporting the millage, the DIA focuses on granting benefits (primarily free admission) and makes almost no commentary about what these taxpayers have done and are doing for the future of the DIA and the vitality of the Detroit metro area. I can understand why regular citizens (or irregular, depending on what you think of people who comment on newspaper sites) might not focus on social case statements for the DIA. But the institution should jump on that. There's a missed opportunity to reframe what the millage means and the role of community support in museum funding when saying thank you.

It's probably a useful exercise for any institution to ask: what are the messages about our value that resonate most--not just with our own supporters, but with the people in our community who don't know anything about us? If people were debating the future of our institution in the paper, what would they say? How can we equip our supporters with the strongest case statements so they can be champions and not pariahs? And how do we engrain those arguments into our operations so they are self-evident?