Do People Support Tax Status Or Results?

Whew! Memorial Day is past which means we are officially in summer. Finally some time to relax a little and gather our strength for the next season. (Unless you run a summer festival in which case you’re just getting busy.)

This may also be the time for a little introspection to examine how you are operating and presenting yourself to your community.

Something I have often mentioned is that by and large most people aren’t aware of a cultural organization’s non-profit status. However, I didn’t have any hard data to show exactly what those numbers were.

Back in January, Colleen Dilenschneider at Know Your Own Bone addressed this issue with some hard data and a helpful summary video. (Should I be worried that every time I visit the site there seem to be more bones in the picture? Could she be related to Alferd Packer?)

In a survey of 98,000 people barely 40% of non-attendees knew a particular organization was non-profit. Of attendees, not even 50% knew the organization was non-profit. The highest percentages in both cases were in relation to history museums. Other museums, zoos, orchestras and botanic gardens had lower recognition rates.

Regardless of the reason for the misperceptions, more than half of visitors to ALL cultural organizations do not believe that they play any role in keeping these organizations healthy or alive after walking in the door. Beyond paying admission (to what they consider a business) or paying their taxes (to an organization with free admission because their taxes fund a government-operated entity), the majority of visitors risk believing that there is no further need for their support.

In the accompany video, Dilenschneider notes that with corporate social responsibility becoming a new norm, the differences between tax statuses becomes even more blurred. The defining factor is effective execution of mission to make a difference vs. tax status.

In her post Dilenschneider argues for focusing on difference making vs. a “come visit us” appeal. (my emphasis in green)

..There are countless articles on the importance of for-profit companies “doing good.” It is a key tactic for gaining more customers. And that’s interesting because there are still some cultural organizations that do this weird, outdated thing where they try to overlook their social advantage and exclusively promulgate “visit us today!” messages (and even offer discounts that devalue their brand and cause even more sector confusion for cultural organizations). It’s like some of them are trying to be like Disney World…

Being good at your mission is good business. Data demonstrate that organizations highlighting their missions outperform organizations marketing primarily as attractions. Perhaps, in all of our “But we are a nonprofit” excuse making, we missed the true differentiator that has provided us that tax status in the first place: Our bottom line of making a difference.

Our key differentiator is not our tax status, but that our dedication to making a difference is embedded in the very structure of how we operate. There’s a thought that we need to run “more like for-profit companies” (and in some ways we do, but the blanket directive is an ignorant miss). But look around. For-profit companies are actually trying to be more like us in the sense that they want audiences to know that they stand for something that makes the world a better place.

As the summer unfolds, think about how you can make little changes in your regular messaging that includes how you are making a difference. Difference-making can’t dominate the message because that can obscure the details of how people can participate in your activities. If difference-making is effective at attracting more participation, it is going to be more constructive for the organization than focusing on discounting to attract audiences.

About Joe Patti

I have been writing Butts in the Seats (BitS) on topics of arts and cultural administration since 2004 (yikes!). Given the ever evolving concerns facing the sector, I have yet to exhaust the available subject matter. In addition to BitS, I am a founding contributor to the ArtsHacker (artshacker.com) website where I focus on topics related to boards, law, governance, policy and practice.

I am also an evangelist for the effort to Build Public Will For Arts and Culture being helmed by Arts Midwest and the Metropolitan Group. (http://www.creatingconnection.org/about/)

My most recent role was as Executive Director of the Grand Opera House in Macon, GA.

Among the things I am most proud are having produced an opera in the Hawaiian language and a dance drama about Hawaii's snow goddess Poli'ahu while working as a Theater Manager in Hawaii. Though there are many more highlights than there is space here to list.

CONNECT WITH JOE


Leave a Comment