Arts funding was in crisis well before
2020. But the events of this year have proven we can't wait any longer to
reimagine our models for a more sustainable future.
In the years leading up to 2020, overall
charitable giving had been increasing, but support for the arts was not. With
$30 trillion expected to be transferred over the next 30 years in the United
States alone, we are in the midst of the largest intergenerational transfer of
wealth in human history. But the generation inheriting this wealth has entirely
different views about philanthropy than its predecessors.
The rising generation of donors is
skeptical about the power of the arts to create a better world. Research shows
that many of these funders prioritize advancing social, racial, environmental
justice and equity; they seek specific, measurable impact; and they embrace
technology to solve the pressing issues of our day.
What was previously a crisis is now
existential. More than one third of Americans plan to decrease their
philanthropic giving in 2021, or not give at all, according to a recent study. Of the causes Americans of all
generations do plan
to support, arts and culture does not even make the top seven.
When looking at these trends?and
acknowledging that the arts sector has done a pretty awful job of explaining
its relevance?I hope we can all agree that urgent action is needed. Reimagining
is required if we expect to sustain a thriving arts sector that expands
economic opportunity, heals communities, strengthens democracy, and inspires
creative solutions to global challenges.
That's why I, along with a consortium of innovators from
the communications and arts sectors, established the Arts
Funders Forum (AFF) in 2018: to develop new models of
cultural philanthropy that will appeal to the values and priorities of new
generations.
Our research, conferences, and virtual talks series have helped
identify what these donors care about?and how the arts sector can best make its
case to them. Ahead of our next conference today, I'd like to propose three
recommendations for how the sector must change in order to rebuild from the
current crises and create new, sustainable models that will ensure a robust
cultural sector for generations to come.
Art funders and cultural leaders tell us
that the arts do a subpar job of expressing the sector's value to society. Art
and culture is considered a "nice to have" not a "must have." We need to better
link the arts to solving global challenges, explaining how artist entrepreneurs
have always helped drive societies forward, and are worthy of robust financial
support. Here's how.
Artists should see themselves as
entrepreneurs essential to global progress, and funders must see themselves as
impact investors and social venture capitalists. Period.
Organizations should think of themselves as
conduits to the cause. Institutions
must express how their work is making specific change in the world, and how
what happens within the institution with regards to equity and diversity says
as much about it as its professed aims. Recognizing that an institution is
responsible to its largest group of stakeholders?its community?is essential in
the new funding landscape.
t's imperative to make the arts more
accessible to broad audiences. The
art world is intimidating on many levels; there are too many mental barriers
and institutional signifiers of who belongs and who does not. Frequently,
value in the arts is derived by a lack of transparency. The
institutional/non-profit sector should not be riding the coattails of the
market; in fact, perhaps it should be the other way around. We need to open up,
drop the attitude, and create trust to grow the base of stakeholders.
Meet Silicon Valley where they are. The elephant in the room is who is not in the room:
Silicon Valley, and its huge pool of wealth, is not engaged with cultural
philanthropy because they do not see the impact it has on the world. Tech and
creative entrepreneurs share many of the same attributes and goals: changing
the world by breaking molds and tackling the most pressing challenges through
innovation. We need to engage differently, along these lines, and articulate
these similarities to create sustained engagement with the tech sector.
Our research uncovered that three out of
four art funders believe that "collaboration and partnerships" and "new funding
vehicles" will have the most significant impact on increasing funding for the
arts. As we watch current models and organizations suffer perhaps irreversible
damage, this is the moment to diversify our funding streams with input from all
sides of the sector. This requires some new thinking.
The nonprofit model is not the only
one. Alternative funding models, such as
hybrids, for-profit models, social enterprise, and impact investing need to be
further developed to align with how the next generation wants to invest, and
how artists actually work. As artists act as creative entrepreneurs,
municipalities and private investors who support entrepreneurship should also
support artists and institutions.
Redefine the role of philanthropy. Funders should think beyond financial support and
consider donations of expert time, real estate, and intellectual
capital. Hands-on participation within arts communities can help build
greater understanding of what resources are needed for long-term financial
sustainability.
Art funders need to become more comfortable
with risk. Investors have always embraced
risk, from Wall Street to Silicon Valley. Opportunities emerge when social
investors take more risks. By supporting emerging artists and disruptive
cultural entities, funders can help drive innovation, see a return, and
reinvent the arts.
The emerging class of donors views cultural
philanthropy through the lens of social justice, according to our
survey. As these donors move to other areas of philanthropy, the arts must
reflect on its purpose, and better tell the story of how it has historically
been the sector of critical thinking and innovation, a commentary on our
humanity, and driver of political and social progress.
Millennials and Gen Z audiences engage with
organizations that speak to their core values, so institutions need to clearly
define and communicate their social impact. Young philanthropists want opportunities to
uplift communities and amplify solutions to global challenges. They
want to drive more attention and funding to organizations that
model?programmatically and organizationally?social justice, equity, and
diversity.
The current paradigm shift forces us to
leave behind antiquated ideas. This
is a time of reckoning. Institutions and individuals are being asked to
recognize and address structural inequities. Shifts in philanthropy
are necessary to democratize funding so communities can have a vote in cultural
engagement.
Reform the system from within. We can't talk about changing philanthropy until we
talk about democratizing pathways to wealth creation. The wealthy and powerful
control our systems because they can give the most within the existing
capitalist structure. In order to change our systems, we need to reform who has power.
This is the consequential moment in the
trajectory of cultural philanthropy. It has never been more urgent to develop
new funding models and tell better stories about the role of art in solving the
world's biggest problems. Investing in artists and cultural entities is investing in the
advancement of education, health, social, racial, and environmental justice.
It's time to rock this boat. The rising
generations of donors were already yearning to redefine our systems and asking
for new models. Artists and creatives can make the change we need in the world,
but not without innovative investment structures that recognize and fund them
as changemakers.
And here's the silver lining: next-gen creatives and donors want this change. Now is the time to make it?together.
Melissa Cowley Wolf (2020)