Funding Mechanisms for Arts and Culture. A Survey of Models for Consideration as Part of the Dayton Regional Cultural Plan

Funding Mechanisms for Arts and Culture A Survey of Models for Consideration as Part of the Dayton Regional Cultural Plan Compiled by Jane Culbert & Marc Goldring WolfBrown August, 2014

TABLE OF CONTENTS Executive Summary... i Greater Charlotte Cultural Trust... 1 Cincinnati - ArtsWave... 4 Cleveland Cuyahoga Arts & Culture... 11 Denver Scientific and Cultural Facilities District... 15 Houston Arts Alliance... 21 Pittsburgh Cultural Trust and Allegheny Regional Asset District... 27 St. Louis Zoo Museum District... 33

EXECUTIVE SUMMARY As part of the background research for the Dayton Regional Cultural Plan, WolfBrown has compiled information from a variety of communities about funding for the arts. This information is being circulated in order to assess whether there are aspects of these models that can or should be adapted for the Dayton region as a way to create a sustainable funding stream in support of cultural activity. Most of the information presented here comes from larger communities that have a more extensive funding base and serve larger populations. While the situations are not exactly comparable, there may well be lessons that will be useful as Dayton and the region map the future with respect to funding for arts and culture. In addition, while the primary focus has been on public sector funding models, we have included several that are primarily private sector to ensure that a full picture of the available options are reviewed. Some of this information dates back several years; when possible, it has been updated. The following provides a brief overview of the programs included in this summary. Greater Charlotte Cultural Trust: The Cultural Trust is a partnership between a community foundation, a local arts council, and local cultural organizations to raise and manage endowments for cultural organizations in the region. Through this partnership, endowment funds are held at the Cultural Trust for the Arts and Science Council and cultural organizations in the Greater Charlotte region. With assets of over $135 million benefiting 25 organizations, the Cultural Trust is the largest supporting foundation of Foundation For The Carolinas, the community foundation in which it is held. ArtsWave, Cincinnati: ArtsWave (formerly the Fine Arts Fund) is a united arts fund that recently underwent an extensive redesign (including a restructured and re-branded agency) based on a research study examining the attitudes of members of the public toward shared responsibility for (and benefits from) the arts. The results suggested that the field would be better off if the economic-impact- and arts-education-focused arguments that have characterized arts advocacy efforts over the past few decades were discarded in favor of a focus on vibrant neighborhoods and connected, engaged communities instead. The new identity of the organization was derived from this research, and programs are being adapted to reflect these new priorities. i

Monies will be distributed in a different way to reflect these new priorities. Cuyahoga Arts & Culture, Cleveland: Cuyahoga Arts & Culture (CAC) is the result of many years of planning and research. Beginning in 1998, leaders from arts and cultural organizations, foundations, local governments, and other private entities cooperated to create an arts and culture plan for the region which called for public funding to strategically support the local arts and cultural sector. The result of this work was voter approval in November 2006 of Issue 18, a ten-year one-and-a-half-cent-per-cigarette tax, the revenues from which are dedicated to support of the county s arts and cultural assets. Cuyahoga Arts & Culture was established to oversee distribution of the resulting funds, and in FY 2011, more than 120 organizations received grants totaling nearly $15 million. Scientific and Cultural Facilities District, Denver: The Scientific and Cultural Facilities District (SCFD) was established in 1989 to distribute funds from a 1/10 of 1 percent sales and use tax to cultural facilities throughout the seven-county Denver, Colorado metropolitan area. The funds support over 300 cultural and scientific facilities at three different levels of funding based on legally established criteria. The distribution budget is approximately $40 million annually. Voters reaffirmed their support of the SCFD tax in 1994 and again in 2004 by voting to extend the SCFD tax with 65% voter approval. Voters will have another opportunity to extend the SCFD in November 2016 before the June 2018 sunset date. Houston Arts Alliance: The Houston Arts Alliance distributes over $3 million annually in grants to arts organizations and individual artists, using city revenue that comes from Hotel Occupancy Taxes. Grant programs fund organizations of all sizes and individual artists. Pittsburgh Cultural Trust and Allegheny Regional Asset District: Pittsburgh has two funding models of note that support the activities of the cultural sector in the city, one of which is focused on economic development and facility management and maintenance and the other that provides a dedicated funding stream for cultural organizations. Together these entities support Pittsburgh s thriving cultural sector. Pittsburgh Cultural Trust is a nonprofit arts organization that is a driving catalyst behind the ongoing development of the Downtown Pittsburgh Cultural District. This organization is multi-faceted, including a performing arts presenter, a theater/gallery owner/operator, a catalyst for Cultural District real estate development, and an ii

arts collaborator. Some of its funds are derived from real estate development. Allegheny Regional Asset District is a special purpose area-wide unit of local government that distributes half of the proceeds from a 1% sales and use tax to recreation, cultural, sports and civic facilities and programs. Since 1995, the District has awarded $1.2 billion in grants, including $61.2 million in capital grants for projects like accessibility, critical infrastructure, and equipment. Zoo Museum District, St. Louis: Founded in 1972, the Metropolitan Zoological Park and Museum District (ZMD) was created, funded by property taxes from both the City and the County of St. Louis. It funds major cultural institutions in Saint Louis. During its years of operation, the District s annual tax revenue has increased from $3.9 million dollars in 1972 to more than $72 million dollars in 2009. These funds now cover a significant percentage of each institution s operating costs, in exchange for which the participating institutions offer free or reduced admission to District residents every day. Over $1.3 billion has been raised through this District since its inception over forty years ago. iii

GREATER CHARLOTTE CULTURAL TRUST CHARLOTTE, NC OVERVIEW The Greater Charlotte Cultural Trust is dedicated to building a vibrant cultural community by inspiring planned gifts to the permanent endowments of Charlotte-Mecklenburg s most important arts, science, history, and heritage organizations. With assets of over $135 million 1 benefiting 25 organizations, the Cultural Trust is the largest supporting foundation of Foundation For The Carolinas. HISTORY The Arts & Science Council (ASC) was founded in 1958 to run a consolidated United Arts Fund (UAF) drive and serve as a clearing house for cultural events in Charlotte. This year, with the generous support of individual and corporate donors, ASC raised over $8.3 million through its Annual Fund Drive. Coupled with public support from the City of Charlotte, Mecklenburg County, North Carolina Arts Council, a state agency, and various Mecklenburg Towns, ASC has granted over $14 million to support artists, arts and cultural education, neighborhood cultural projects and over 30 arts, science, history and heritage organizations. To ensure the long-term financial health of Cultural Partners (those organizations that receive operating support funding), the Arts and Science Council Board of Directors voted in the spring of 1993 to launch a major cultural endowment campaign to raise$20-$30 million. In Fiscal Year 1995, with the assistance of its Cultural Partners, ASC raised $26.16 million for The Endowment for the Arts & Sciences. In addition, $11 million was raised to benefit specific Cultural Partners (donors had the option of donated designated endowment funds for management by ASC or directly to the organizations themselves). In December 2002, ASC established the Foundation for the Arts & Sciences (now known as the Greater Charlotte Cultural Trust in 2006) as a supporting organization at the Foundation For The Carolinas to advance planned giving opportunities for arts, science, and history. The endowment funds that previously had been held by ASC were transferred to the Foundation for investment and management. Through this partnership, the expertise of the staff of the Greater Charlotte Cultural trust with respect to long-term giving opportunities is put to work for the benefit of the Arts and Science Council as well as other cultural organizations in the region. The resulting endowments are held and managed by the Foundation. More recently, The Cultural Facilities Campaign, which was launched in 2006 and completed in 2010, raised $83 million in private support for the benefit of seven cultural organizations in Charlotte. Gifts to the Cultural Facilities Fund are invested and managed by The Greater Charlotte Cultural Trust for the benefit of the participating cultural organizations. The Campaign for Cultural Facilities supported the first phase of cultural projects in the Cultural Facilities Master Plan, a 25-year vision for cultural facility development across Charlotte-Mecklenburg led by the Arts & Science Council (ASC). The bulk of the $83 million from the campaign went into 1 Assets as of December 2011 Page 1

endowments supporting four new cultural facilities in Charlotte. The arrangement ties in with the agreement by Charlotte and Mecklenburg County to use tax money to pay for building a downtown cultural complex. While arts endowments typically support overall operations, for these funds, the income from these new endowments will go toward maintenance and operation of the buildings - expenses such as utility bills, janitorial services and security. PROGRAM The goal of this unique partnership between the Arts and Science Council and The Foundation For The Carolinas is to ensure a vibrant cultural community by providing a platform for growth and to ensure the financial stability of arts, science, history, and heritage organizations in Charlotte- Mecklenburg. The Greater Charlotte Cultural Trust is dedicated to building endowments for Charlotte s most important cultural organizations through planned giving. The Cultural Trust s Executive Director (supported by a Donor Relations Coordinator) works with development directors of participating organizations and donors to increase understanding of the benefits of long term giving and to encourage investment in the giving vehicles provided by The Trust. In addition, participating organizations benefit from lower administrative fees, lower investment fees, and access to investment vehicles otherwise not available. The partnership has grown over the years from one of initial distrust and fear of competition to one of trust and collaboration. The original fears that organizations donors would be stolen have been resolved, and the Trust and organizations work together to build relationships with donors and encourage planned giving. STRUCTURE The Cultural Trust is a supporting foundation of Foundation of The Carolinas and the Arts and Science Council (ASC) and operates independently from ASC and from any of the other cultural organizations it serves. The Executive Director of the Cultural Trust is an employee of The Foundation For The Carolinas. The Cultural Trust has a 15-member board of directors, seven of whom are appointed by the ASC board (including two ex officio members the President of ASC and the Board Chair of ASC), seven of whom are selected by the cultural groups (six of the seven are selected by the organizations with the six largest endowments), and one of whom is from The Foundation For The Carolinas. The Cultural Trust sets a recommended spendable rate (based on the Uniform Prudent Management of Funds Act) and enforces that spending rate for participating organizations. However, some organizations have quasi-endowments, which means that the funds are portable (can be taken out of the stewardship of The Cultural Trust) and the organizations can set their own spending rates. A true endowment, however, can only spend at the rates set by The Cultural Trust, and the funds are held permanently by The Cultural Trust. Quasi-endowment funds are not invested in some of the longer-term assets (private equity), and donors do not have the reassurance of guaranteed oversight by The Cultural Trust. Any cultural organization in the Charlotte region may participate in this program. The official minimum size for an endowment is $10,000. However, The Cultural Trust has several endowments that are just beginning to be built that are smaller than that. The largest endowment is that of ASC, with $35 million. Page 2

ARTS AND SCIENCE COUNCIL - USE OF ENDOWMENT FUNDS The Arts and Science Council endowment includes approximately 15 different endowment accounts, the largest of which is unrestricted. The revenue generated by this unrestricted endowment is incorporated with other unrestricted funds raised by ASC to support its programs. The priorities for use of these unrestricted funds are established by the community through the many community cultural plans conducted by ASC (including those for six surrounding towns) as well as the recent cultural facilities plan. The single largest investment is in operating grants to cultural organizations, followed by investment in cultural education. In addition to the unrestricted endowment, ASC has a number of restricted endowments, revenue from which supports a variety of programs including arts education, science education, theater, and other designated areas. REFERENCES http://wwwfftc.org/parg.aspx?pid=835 http://www.artsandscience.org/images/stories/aboutasc/history/asc_history_updated_07-29- 13.pdf Page 3

ARTSWAVE (FORMERLY FINE ARTS FUND) CINCINNATI, OHIO OVERVIEW ArtsWave (formerly the Fine Arts Fund) is an organization dedicated to creating community through the arts. The work of the organization includes funding (serving as Cincinnati s united arts fund), technical assistance, event sponsor and coordinator, advocacy, information sharing, and arts education coordinator. ArtsWave supports the anchor arts organizations that play a critical role in the region, while also broadening the scope of organizations they support, with the goal of building a community in which even more people benefit from and participate in arts and culture. In addition, ArtsWave believes it is just as important to have people participate in the arts as it is to fund the arts. ArtsWave works to ensure that people across the region have opportunities to engage with the arts and each other, both to reconnect with organizations they already know and to try new art forms they may not. In January 2010, the Fine Arts Fund announced the results of a research study examining the attitudes of members of the public toward shared responsibility for (and benefits from) the arts. The results suggested that the field would be better off if the economic-impact- and artseducation-focused arguments that have characterized arts advocacy efforts over the past couple of decades were discarded in favor of a focus on vibrant neighborhoods and connected, engaged communities instead. Fine Arts Fund subsequently took the additional step of wholly transforming its name (to ArtsWave), branding identity, and grantmaking priorities to bring them in line with these findings. HISTORY ArtsWave began as the Cincinnati Institute of Fine Arts, founded in 1927 by Mr. & Mrs. Charles P. and Anna Sinton Taft. The Tafts believed that Cincinnati could truly distinguish itself through a deep investment in its cultural assets, and the original Institute s mission was to further the musical and artistic education and culture for the people of Cincinnati. Included was a $1 million endowment for the arts, contingent on raising $2.5 million in matching funds from the community. The people of Cincinnati responded and the endowment was created. In 1949, in response to the financial difficulties of some local arts organizations and the continued erosion of endowment funds, the Cincinnati Institute of Fine Arts established the Fine Arts Fund as an annual, community-wide campaign in support of four local arts organizations: Cincinnati Art Museum Cincinnati Opera Cincinnati Symphony Orchestra Taft Museum This initial campaign surpassed its fundraising goals, helping to establish the Fund s core mission: that of ensuring the financial health of its four constituent organizations. Page 4

Due largely to an increased commitment of support from the corporate community, in 1978 the Fund was able to expand its support of Cincinnati s artistic community in two ways. Firstly, four additional organizations were invited to join the Fund: Cincinnati Ballet Contemporary Arts Center Playhouse in the Park May Festival Secondly, the Fund established a Projects Pool to provide special one-time grants to other, smaller arts organizations in the region. In 1995, the Fund again increased its support of Cincinnati s emerging and established smaller arts organizations. The Arts Services Office was established to assist in fostering relationships within the Cincinnati arts community through programs and resources for boards and volunteers. The Arts Services Office also operates several nationally-recognized programs, including a volunteer pool to match volunteers with arts clients, and training and tools for board members. For 83 years, the Fine Arts Fund provided vital support for the greater Cincinnati arts community. During this period, the Fund evolved several times in response to changing economic and cultural conditions. Currently, the organization is in the process of transforming its structure, goals, strategies, and name to meet a new mission: to be a leader and regional catalyst that works to advance the vitality and vibrancy of Greater Cincinnati by mobilizing the creative energy of the entire community. The Fine Arts Fund now known as ArtsWave will work toward these larger goals. The Arts Ripple Effect: The most recent changes for the Fund were based on an extensive research project that resulted in a 2010 report entitled The Arts Ripple Effect: A Research-Based Strategy to Build Shared Responsibility for the Arts. (http://www.theartswave.org/about/research-reports) This report investigated the best way to communicate with the public in order to achieve a shared sense of responsibility for arts and culture in the community. One key organizing idea was outlined: A thriving arts sector creates ripple effects of benefits throughout our community, including: A vibrant, thriving economy: neighborhoods are more lively, communities are revitalized, tourists and residents are attracted to the area, etc. A more connected population: diverse groups share common experiences, hear new perspectives, understand each other better, etc. PROGRAMS To support a thriving cultural community, ArtsWave offers expert advice and services, connecting organizations to resources and volunteers, providing funding, and acting as a hub so that they can efficiently share everything from ideas to printing orders. Funding: As a united arts fund, ArtsWave raises over $10 million each year to grant to community arts organizations through a variety of programs. Note that all of the funding Page 5

programs of ArtsWave are being redesigned to reflect the new priorities of the agency. The programs described below will be revised when the planning process is complete. o Annual Funding: Annual operating support is provided for 18 community-based member arts organizations. In addition, Operating Support Grants are available to provide unrestricted support to qualified smaller arts organizations throughout the Cincinnati area. o Project Grants: Support for special, one-time events that complement or expand upon the regular cultural programming of the applying organization. Any arts organization not currently receiving an ArtsWave Operating Support Grant is eligible to apply. o Multicultural Arts: Grants for building capacity of smaller organizations that demonstrate a commitment to reaching diverse audiences. o Interest-free Loans: Interest free loans up to $10,000 are available to small and mid-sized arts organizations for demonstrated short-term, cash flow needs. Events: ArtsWave provides information about cultural organizations and event through the Greater Cincinnati area through their website (Fun Places to Go). In addition, they organize their own events to bring people together and create vibrant communities. These programs have been designed to reflect the priorities identified in The Arts Ripple Effect. ArtsWave events include: o Participatory events: ArtsWave organizations annual community participatory arts events. In September 2010, Paint the Street brought 1500 people from all over greater Cincinnati -- and beyond -- together for an event that transformed a half-mile of center-city street pavement into a vibrant and colorful visual art installation. In December 2010, there was a community carol sing. In 2009, people participated in a mass dance entitled Splash Dance and the first community carol sing called Surprise Singing! o Family Events: Get Smart About Arts and other activities organized by ArtsWave offer opportunities for families and young people to experience the arts in their own communities. Teen-oriented activities are provided through an annual event called Studio. Teens are also given an opportunity to volunteer for any of the many community arts events offered by ArtsWave. o Arts Sampler: This series of 6 weekends spread throughout the 12-week annual community campaign celebrates the creative things music, dance, theater, museums, and festivals happening in large and small ways throughout the region. These weekends are great opportunities for families, friends, and neighbors to connect with one another and experience the arts through free events. o ArtsWave Presents: This program brings musicians, dancers, actors, and artists from Cincinnati's art organizations into neighborhoods for performances. A vital arts scene creates thriving neighborhoods where people like to live and visit. This series offers families, friends, and neighbors a chance to come out and come together for some of our communities' amazing arts events. o ispyart: ArtsWave offers an opportunity for participants to upload photographs of art that they see in their daily lives. While most participants are from the Greater Cincinnati area, there are photographs contributed from across the county. o Friends for the Arts is an ArtsWave program that encourages young professional to become involved in the arts through social and networking events (such as a Surprise Party ), volunteering, and other special events. Page 6

Arts Education: In 2009, ArtsWave, in collaboration with several arts partners throughout the region, created the Cincinnati Public Schools Arts Integration Program and piloted it in the 3rd grade classrooms at four elementary schools. The program infuses the arts into a set curriculum, providing a new environment where children are excited about learning. The program is being expanded to fourth grade at the participating schools, and new schools have joined the program. Volunteer Assistance o Help with Grant Writing: Applicants may submit draft grant applications for review by the Unbiased Grant Reading Oversite review team (U-GRO) who volunteer their time specifically to assist in grant writing. o Arts Connection: Primarily an e-mail listserve, Arts Connection links volunteers with a limited amount of time to organizations seeking very short, non-committal volunteer opportunities. o Business Volunteers for the Arts: ArtsWave coordinates volunteers from the community to assist organizations with projects that are six to eight months long. o BOARDway Bound Board Bank: This program matches trained leaders with arts and cultural organizations. Candidates have graduated from a board leadership program sponsored by ArtsWave (such as BOARDway Bound or Business on Board), or a like leadership program offered elsewhere in the community. o Training: ArtsWave offers workshops in the capacity building arena on a variety of topics including marketing accounting, development, grant writing, and personal skill development (time management, project management, etc.) Other Programs/Resources o BOARDway Bound: ArtsWave developed BOARDway Bound as a website dedicated to developing effective arts and culture board members. On this website, organizations can register to view video presentations designed to strengthen arts boards and access potential board members. o The Arts Services Office (ASO) developed the Virtual Arts Incubator Project (a website) as a way to offer start-up nonprofit organizations advice and access to helpful links, materials, forms, and services. On this website, individuals can learn how to establish a business, build a board of directors, raise money, attract grants, proclaim an organization's purpose to the world, and make sure money comes in as quickly as it goes out. o Ohio Cultural Data Project: Ohio CDP is a powerful online management tool designed to strengthen arts and cultural organizations. Arts and cultural organizations enter financial, programmatic, and operational data into a standardized online form and can then use the CDP to produce a variety of reports designed to help increase management capacity, identify strengths and challenges, and inform decision-making. They can also generate reports to be included as part of the application processes to participating grant-makers (including ArtsWave). Information/Social Networking: ArtsWave maintains an active online presence through its website, My.Arts.Blog, ArtsWave Live, and a variety of social networking avenues (Facebook, Twitter, LinkedIn, Youtube, Vimeo, and others. This active social networking is part of the agency s ongoing efforts to build connections within and between communities. Page 7

FUNDING DISTRIBUTION MECHANISM ArtsWave is currently in the process of redesigning its funding programs to reflect the ripple effect impacts of the arts as identified in the research effort completed in 2010. Because ArtsWave feels that the ability to demonstrate these impacts in the region is important to building community financial support, a Measuring the Impact team (including ArtsWave staff, representatives of cultural organizations, and community leaders) was set up to define ways to measure the contribution of arts organizations toward these impacts. The work of the team will be shared with other cultural and community organizations for discussion and response. Once finalized, these measurements will form a primary basis upon which ArtsWave will allocate funding going forward. Revised grant guidelines will be developed and tested with a few organizations before being formally adopted. Accordingly, the descriptions of programs below may not reflect programs that ArtsWave offers beginning in 2012. Each year, ArtsWave provides over $10 million in grants to over 90 organizations based in the Cincinnati area. Current grants programs include the following: Annual Funding: Annual operating support is provided for 18 community-based member arts organizations. The organizations came into the fund at different times and the funding base was set at their entry point based on their budget. As each group was added, it was done with incremental new funding so none of the current members were disadvantaged by the expansion. The underlying philosophy of the annual funding was to provide predictable, sustainable operating support. As years went by and the budgets of the organizations increased (or contracted), the funding ratios got out of balance in relation to budget size, activities, etc. but the program remained true to the consistent funding model (i.e. no dramatic changes in any allocation so as not to disrupt other organization s funding) until recently. ArtsWave has now recognized that funding based almost entirely on legacy is not what current funders want to see (which is the reason for the new focus on grantmaking based on measurable current impact mentioned above). This will undoubtedly be balanced against the need for some sustainable funding in order not to have chaos amongst grantees, but it will ultimately be a much more flexible and responsive system going forward. Operating Support Grants are also available to provide unrestricted support to qualified smaller arts organizations. Eligibility requirements include, but are not limited to, a history of project support from ArtsWave; three or more years of incorporated operation as an arts organization; proof of 501(c)(3) tax exempt status; at least one paid staff person; and proof of fiscal responsibility. The operating support request may not exceed 10% of an organization's operating expenses for the last fiscal year with a cap of $17,000. Organizations may reapply on an annual basis. Project Grants: Support for special, one-time events that complement or expand upon the regular cultural programming of the applying organization. Any arts organization not currently receiving an ArtsWave Operating Support Grant is eligible to apply. Applicants must have or be working toward their 501(c)(3) status. Grants may not exceed 50% of project expenses and there is a maximum grant of $10,000. Multicultural Arts: Grants for building capacity of smaller organizations that demonstrate a commitment to reaching diverse audiences. Page 8

o Multicultural Arts Capacity Building Grant: This one-time grant focuses on bolstering an organization s fundamental efforts (e.g. marketing, development, website-building, or space acquisition) so it is an effective organization. There is no application deadline and awards are determined on a case-by-case basis. Eligible organizations must be established and emerging culturally diverse organizations that have non-profit status or are non-profit in nature. Applicants should have, or be working toward, 501(c)3 status. Maximum grant is $10,000. o Multicultural Arts Accelerator Program: This program is designed to build capacity and sustainability for small multicultural arts organization throughout the region. Organizations that are invited to participate have a funding history with ArtsWave and provide art experiences that bring the community together through offerings that reflect all the various cultures of the region. The Accelerator provides restricted operating funds, technical support, professional development workshops, and roundtables. As the organizations progress through the program, quarterly evaluations are recorded to indicate progress and expedited growth. o Multicultural Arts Internship: This new program will match students from various backgrounds with host arts organizations throughout the region for a summer internship. Working Capital Bridge Loan Fund: Interest free loans up to $10,000 are available to small and mid-sized arts organizations for demonstrated short-term, cash flow needs. For example, a loan may provide financial assistance in the interim until an approved government contract, grant, or other guaranteed funding is received. Or a loan may provide financial assistance in the interim until benefit proceeds or box office returns are received (for organizations with at least two years experience presenting a similar benefit or performance. Applicant organizations must have had 501(c)3 status for three years, have at least one full-time paid staff person, and must have an annual operating budget of less than $2 million. Funds for this program were provided by an individual donor and augmented by funding from a consortium of Cincinnati funders. ArtsWave s Executive Committee determines the distribution to the different grant pools. Grants are reviewed by volunteer committees that represent the donor community. ArtsWave does not have peer review panels of subject experts. Instead, the committees include a balance of skill sets (finance/marketing/etc) and some of the committee members serve on some of the arts boards. However, ArtsWave has not had any problems with actual or perceived conflicts of interest. The board chairs of the largest member organizations are voting members of ArtsWave s board (which ultimately approves the recommendations of the various grant making panels), but since they do not make up a majority of the voting members, this has never been a problem. ArtsWave has conflict of interest policies related to business relationships/self-dealing issues, etc. but have not formalized policies around grant making decisions. SOURCES OF FUNDING In FY 2009-2010, 73% of Arts Wave s funding came through the annual Community Campaign. Of that funding, 64% came from individuals, 28% from corporations, and 8% from foundations and other. The balance of support to ArtsWave comes from endowment earnings (13%) and gifts, grants and bequests (13%). ArtsWave currently receives no government support, although some funded members receive Ohio Arts Council funding. Page 9

ADVOCACY The programs of ArtsWave itself are being revamped and redesigned to serve as ongoing advocacy regarding the benefits the arts bring to the region. Funding programs are being redesigned to include measures that will be used to report on changes in impact over time. RESOURCES http://www.theartswave.org/ http://www.theartswave.org/about/history http://www.theartswave.org/about/report-to-the-community Page 10

CUYAHOGA ARTS & CULTURE CLEVELAND, OH OVERVIEW Cuyahoga Arts & Culture (CAC) is the result of many years of planning and research. Beginning in 1998, leaders from arts and cultural organizations, foundations, local governments, and other private entities cooperated to create an arts and culture plan for the region which called for public funding to strategically support the local arts and cultural sector. The result of this work was voter approval in November 2006 of Issue 18, a ten-year, one-and-a-half-cent-per-cigarette tax, revenues from which are dedicated to support arts and cultural assets throughout the county. Cuyahoga Arts & Culture was established to oversee distribution of the resulting funds, and in FY 2013, nearly 200 nonprofit organizations received grants totaling nearly $17 million. HISTORY Northeast Ohio s arts and cultural community rivals that of other major cities nationwide. Indeed, it is internationally recognized. This rich tradition spans over 200 years, with cultural organizations and artists as key assets in the region s history and development. Few metropolitan areas can boast the depth and breadth of cultural assets this region offers the world. By the mid-1990 s, however, a number of cultural institutions were suffering from ongoing financial crises. In response to the threat to Cleveland s cultural assets, The Cleveland Foundation Civic Study Commission on the Performing Arts explored the depth of the problem and identified solutions. The Commission made a number of recommendations to assure the continued vitality of the region s cultural assets for generations to come. A key recommendation called for a process to create a community-wide arts and culture plan for Greater Cleveland. Community Partnership for Arts and Culture (CPAC), an independent nonprofit, was launched to work with the region s people to create an arts and culture blueprint for success. In 30 months of quantitative and qualitative research, CPAC sponsored nine major studies and 42 regional public forums, producing a solid plan based on data and broad public participation. The group actively solicited community input from thousands of residents in public meetings, forums, advisory groups and surveys. Northeast Ohio's Arts & Culture Plan was released in May of 2000 and CPAC was charged with its specified implementation, management, and evaluation. One of the recommendations of the plan was the establishment of a public sector stream of funding to support the cultural assets throughout Cuyahoga County. CPAC played a major role in developing, and eventually securing voter approval, for such a funding stream. Issue 18, which won in 2006 by 56% to 44%, followed an unsuccessful effort in 2004 which lost by 47% to 53% (Issue 31). The earlier initiative wrapped arts support together with some unrelated economic development projects, and sought to secure funding through an increase in the county-wide property tax. The strategy assumed that the economic development projects would boost support for the measure but in fact, they did just the opposite. While advocates found it relatively simple to explain the arts argument with special emphasis on arts education and kids voters had difficulty understanding the economic development projects. For Issue 18, economic development projects were dropped, the cause became more focused, and the initiative won Page 11

handily. The lack of success of Issue 31 had much to do with the fact that it was based on an increase in the property tax, a very unpopular move. Issue 18, on the other hand, was based on a tobacco excise tax the first such initiative of its kind. This required securing state approval for a local option for this new dedicated tax. Before going this route, advocates researched all of their options besides property tax. They considered real estate transfer fees, tax on dry cleaning, and tax on alcohol. They knew that they wanted to raise at least $15 million/year (preferably $20 million) and to do so in a way that would affect the smallest number of voters. Tobacco proved the winning combination - every penny of tax on a pack of cigarettes brought in $900,000 and 2/3 of the local population did not smoke. It was simply a matter of arithmetic to figure out the level that the tax should be to achieve the desired level of $20 million annually. While the tobacco industry spent money to characterize smokers as victims ( smokers are an oppressed minority and should not have to pay ), it was difficult for them to mount an effective opposition. Even so, the group had to address an editorial in the Wall Street Journal that treated the tax on smokers as a state constitutional issue. Group cohesion was essential. The fact that the arts community stayed united led to greater success in fundraising for the campaign ($1.4 million was spent on advertising network TV, cable, a web site, and some print ads). In addition, participating arts organization provided scores of volunteers. The advertising messages based on careful polling were effective (one of the direct mail pieces won a national award for political advertising). Most importantly, they overcame the elitist taint of the arts. (A typical example was an ad with an African America fireman taking his son to the art museum.) This effective messaging, targeted by sub-region, was aided by careful focus group research. The themes based around opportunities for seniors and for children had the most success in communities where the initial case had the highest negatives. Other themes were: economic benefits, family, education, and contributions to community/social value. Since issuing its first grant awards in 2008, CAC has invested nearly $65 million to over 150 organizations in Cuyahoga County. Recent efforts to simplify the project support grant application process are intended to bring in more applicants and expand funding more broadly across the 59 municipalities that make up the county. CAC is governed by a five-member Board of Trustees appointed by the Cuyahoga County Executive. Members serve in a voluntary capacity for rotating three-year terms and are charged with developing CAC s arts funding policy and approving grant expenditures. GRANTS PROGRAMS Cuyahoga Arts & Culture s grant programs are the primary means by which it supports arts and culture in Cuyahoga County. Funding for CAC's grant programs is generated by and solely based on the revenues from the county-wide cigarette excise tax. CAC's grants are available to 501(c)3 nonprofit organizations located in Cuyahoga County and incorporated in the State of Ohio. Grantee programming must be open to the general public and conducted primarily in Cuyahoga Page 12

County. Organizations may apply for either General Operating Support or Project Support, but may not apply for both. General Operating Support: The General Operating Support (GOS) grant program is designed to provide largely unrestricted core support for established, fiscally sound arts or cultural organizations that consistently offer high quality services to a broad audience. The GOS grants are awarded for two-year cycles, through a highly competitive application process. Organizations must meet eligibility requirements outlined in the GOS Guidelines and, if eligible, compete in a public Grant Application Panel Review. If qualified, GOS grantee organizations are approved for funding for the grant period. Project Support: The CAC Project Support (PS) grant program's primary purpose is to support projects that demonstrate both a strong community benefit and a commitment to artistic quality. Grants are awarded each year, and organizations may only apply for one project per funding cycle. Unlike GOS, grantee organizations do not need to have a core mission of arts and culture, however the PS grant must be directly concerned with the arts or cultural heritage. o Project Support I: Provides awards up to $50,000 for nonprofit organizations and $35,000 for governmental entities. Applicants must have had a permanent base in Cuyahoga County for at least two years, must have a certified audit and/or Form 990/Form 990EZ, must complete the Ohio Cultural Data Project, and must match grant funds $1 to $1 with cash. o Project Support II: Provides awards up to $5,000 for nonprofit organizations. Applicants must have had a permanent base in Cuyahoga County for at least one year, must file a Form 990N, Form 990/Form 990EZ, or audit/review, and may have 25% of 1:1 match from inkind. In addition, CAC allocates funding for a limited number of Special Initiative grants. The largest of these is coordinated through the Community Partnership for Arts and Culture (CPAC) for an innovative individual-artist fellowship program that fulfills its commitment to invest in individual local artists. Recipients of CPAC s Creative Workforce Fellowship (CWF) are selected through a competitive application process adjudicated by a panel of arts professionals from outside of Cuyahoga County. The CWF program awards 20 fellowships per year. Fellows receive an annual stipend of $20,000 and access to resources to help nurture them as creative professionals. Support for individual artists was a commitment made in the Issue 18 campaign; however CAC s governing code does not permit it to make grant awards to individuals. In partnership with CPAC, CAC is able to fund the CWF, while ensuring it does not overstep its legal authority. GRANTS REVIEW PROCESS All eligible applications are evaluated by a panel of arts and cultural professionals from outside the region in a transparent review process. Panelists are selected and appointed by the CAC Board of Trustees for each grant cycle. Panelists are chosen to represent a cross-section of professionals qualified to provide expert knowledge of specific arts or cultural disciplines, as well as for their management experience, professional knowledge of the sector, and prior panel experience. The CAC staff and trustees take every effort to ensure that the panel is diverse in all respects. All panelists receive an honorarium for their service. CAC staff notifies all applicants of the panel review meeting dates, times, and locations, and posts all details on the CAC website in advance. As Page 13

a unit of government, all CAC panel review sessions are open to the public, and grant applicants or any other interested individuals are welcome to observe the deliberations, or listen to them streamed live over the internet. CAC staff does not take part in the discussion or scoring of applications, nor do they provide opinions on the applications. In advance of the review process, CAC staff may provide panelists with objective information regarding an applicant s grant history with CAC. CAC staff will also manage all administrative and logistical actions necessary to conduct a successful public meeting; provide panelists all documentation necessary to evaluate applications effectively; inform the panel in matters of CAC policy and procedures; provide all available objective information regarding an applicant to the panel; and collect and tabulate scores. CAC staff makes the grant applications and support materials available to panelists approximately four weeks prior to the Panel Review in order to allow panelists sufficient time for preparation and review of applications. During the public review, the panel provides a qualitative assessment of the strengths and weaknesses of each application to determine how well the applicant meets the funding criteria. ADVOCACY Ongoing efforts are made to keep the public informed about the impact of the funds distributed through this funding mechanism. CAC seeks out opportunities to engage the residents of Cuyahoga County to ensure they understand how public dollars are being used to strengthen the region s important arts and culture sector. As a funder, this can be a challenge because CAC has little opportunity for direct contact with the public. Instead it relies largely on its grant recipients to share with their clientele and supporters how CAC funds are benefitting them and the larger community. CAC also makes use of traditional media outreach and social media to inform the public. In May, CAC released its most recent Report to the Community, which uses data supplied by grant recipients through the Ohio Cultural Data Project to demonstrate the impact of its grant funding throughout Cuyahoga County. In addition to becoming he largest public funder of arts and culture in Ohio, CAC has become one of the largest local funders in the nation. In the few short years since CAC funding became available, grantee organizations have expand their cultural offerings by nearly 25 percent, while increasing attendance by more than 5 percent at both free and paid events, despite the challenging economy. At the same time, visits by school children to CAC-funded organizations increased more than 1 million from nearly 928,000, while availability of off-site after school programming increased by more than 100 percent. Arts learning opportunities and workshops for adults and arts professionals also increased by more than 30 percent. CAC continues to work with its grant recipients and with other local organizations to expand general awareness of its grant programs and funding availability, as well as seeking opportunities to garner national and international attention for its successful funding model. RESOURCES http://www.cacgrants.org/ http://www.cacgrants.org/mission-and-history.php http://www.cacgrants.org/assets/ce/documents/reports/cac_2013_report_to_the_communit y.pdf Page 14

SCIENTIFIC AND CULTURAL FACILITIES DISTRICT DENVER, CO OVERVIEW Since 1989, Scientific and Cultural Facilities District (SCFD) has distributed funds from a 1/10 of 1% sales and use tax to cultural facilities throughout the seven-county Denver, Colorado metropolitan area (including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties). The funds support cultural facilities whose primary purpose is to enlighten and entertain the public through the production, presentation, exhibition, advancement and preservation of art, music, theatre, dance, zoology, botany, natural history and cultural history. The distribution budget is approximately $40 million annually. Over 300 cultural institutions receive support and funding at levels established by statute. Voters reaffirmed their support of the SCFD tax in 1994 and again in 2004 by voting to extend the SCFD tax with 65% voter approval. Voters will have another opportunity to extend the SCFD in November 2016 before the June 2018 sunset date. HISTORY On November 8, 1988, during the worst regional recession in decades, citizens in metropolitan Denver, Colorado, voted three-to-one to increase their sales tax to support the region s scientific and cultural facilities. That day marked the beginning of a new division of local government in Colorado the Scientific and Cultural Facilities District (SCFD). The 1988 vote was an extraordinary event for three reasons. First, it was counter-intuitive that citizens would vote for a tax increase in such bad economic times. Second, it was a vote to provide public support for arts and cultural organizations at a time when many pundits doubted the public s willingness to support culture with tax dollars. Third, the vote established a regional basis for supporting cultural organizations, many of which were located in the core city. The region that was created comprised Denver and the five surrounding suburban counties. In 1982, the City of Denver s major cultural institutions, namely the Denver Art Museum, the Denver Zoo, the Denver Botanic Gardens, and the Denver Museum of Nature and Science (referred to as the Big Four ), lost the state funding they had enjoyed for half a century. The institutions were forced to seek new sources of funding. They set up foundations and raised fees, but neither of these strategies, nor others that they employed, were able to mitigate the loss of state funds. In fact, the strategies of new and increased fees had driven attendance down, furthering financial losses and curtailing planned exhibits and programming. Trustees of several major Denver cultural organizations explored the possibility of a regional funding model, looking at St. Louis recently enacted version. A regional funding base would provide a more equitable basis of financial support than reliance on the City and County of Denver alone. Surveys of attendance and membership rosters supported this plan by indicating that the majority of visitors to the four cultural institutions were residents of suburban counties outside of Denver. Page 15