Arts in Crisis: A Kennedy Center Initiative

Arts for LA, the California Community Foundation, and Center for Cultural Innovation presented Arts in Crisis: A Kennedy Center Initiative on Thursday, October 8, 2009 at the California African American Museum. The program featured Michael M. Kaiser, President of the Kennedy Center and renowned authority on managing non-profit arts organizations, interviewed by Tim Dang, Artistic Director of East West Players. Below are my notes.

Michael Kaiser has a mantra for the key to a successful arts organization: “good art, well-marketed.”

He presented one of the art industry’s greatest inherent problems: unlike other industries, worker productivity in the arts does not improve over time. (To illustrate this point, consider that Hamlet still takes as many actors today as it did in Shakespeare’s time.) Earned income potential is also limited – we can only sell as many seats as the venue holds. So the gap between the cost of creating art and the earned income potential has no possibility of decreasing, and in fact it increases year after year as the costs of personnel, rent, and equipment rise.

For many years, arts organizations have increased ticket prices to solve this problem. But that has just led to the arts becoming so expensive that they’ve lost audience members. That’s why fundraising is a better way to close the cost-income gap.

But what’s the key to raising money for the arts? Michael Kaiser has a strong opinion on this—one that I agree with: the key to fundraising is offering exciting programming and marketing it well.

So, why are programming and marketing essential to fundraising? Why can’t we just write really, really impressive grant applications and expect them to be successful?

Because ultimately people contribute to any cause because of passion. Great programs, marketed well, make people passionate.

That’s why Kaiser sees cutting programs during bad economic times as dangerous. The less you have to offer, the less interest people will have in your organization, and that will lead to less contributed income.

The good news is that marketing doesn’t have to be expensive. Tools like Facebook are “not just for kids anymore,” and Internet marketing is now more effective than traditional paid newspaper advertising, for example.

An enthusiastic board is also essential, because if your board members truly stand behind your organization, they’ll be excited about spreading the word. So find out whether your board members have negative feelings towards any aspect of your organization. Who can blame a person for not wanting to ask their friends for support if they don’t think the last few productions were very strong, or if they have to worry about whether their personal friends will be thanked in a timely manner for a contribution? Deal with these important issues; make your board members confident.

Part of offering exciting and excellent programs is deciding what exactly your organization intends to achieve. It is worth noting arts education programs at this time: if your organization includes education as part of its mission, but cuts these programs during a recession, you are sending the message that these programs are not very important to you after all. Spend time thinking about your mission and make sure your programs truly serve all aspects of your mission.

At a later time, I will post notes on the rest of Mr. Kaiser’s discussion, including his insights on how arts organizations of color can improve their fundraising during the current economy, plus innovative ways to motivate your stakeholders to stand behind your programs.