Info You Can Use: We Are More Than Just Our Overhead Ratio

Well, the timing could be a little better.

Part of the big news today is that GuideStar, Charity Navigator, and BBB Wise Giving Alliance joined together to sign an open letter to all donors asking them not to use overhead as a primary criteria for giving.

The letter does a pretty good job in a short space of discussing how inaccurate the ratio is and the consequences for non-profits when they feel they have to hobble themselves to maintain a low number.

The letter specific cites Stanford Social Innovation Review‘s article, The Non-Profit Starvation Cycle which does a good job explaining the problem in detail.

The reason why I said the timing could be better is because it comes on the heels of a weekend where CNN has been majorly featuring a story about charities that have been fleecing donors with the causes only getting 4% in some cases.

Now make no mistake, I am not defending a 96% overhead by any means. There are a lot of scams out there and it appears pretty clear that the organizations featured in the story set out to deceive right from the moment they generated names that sound very close to nationally recognized charities.

My concern is that to people unfamiliar with charities, the timing of the letter’s release makes it almost appear to be an apologist for the high overhead ratios these dishonest groups had. Especially since a picture of the website of the one of the groups CNN damns contains a claim that Charity Navigator gave them a 3 star rating.

The proximity of these two announcements aside, the public recognition that charities should not be judged on overhead alone is a real advance in the effort to get non-profits evaluated on less superficial criteria. It will likely still happen for some time to come, but it is an encouraging sign.

Stuff To Ponder: New Standard Discount Category

I had some additional thoughts regarding the article by Alex Tabbarok I cited yesterday that I didn’t include for fear it would get lost in the entry.

Noting out how oriented toward higher education our society is, Tabbarok observes,

“College students even get discounts at the movie theater; when was the last time you saw a discount for an electrical apprentice?”

It occurred to me that extending a discount to trade apprentices might provide a continuous but subtle message that the arts are for everyone, not just the educated elite.

Obviously, this needs to be supported by programming and an attendance experience that isn’t intimidating. But I wondered if the passive act of providing a discount to laborers might succeed where active claims of the arts being for everyone have come up short.

You may not get many actual apprentices attending, but the act of publicizing the discount may contribute to a shifting perception of your organization.

The Apprenticeship Option

Recently Marginal Revolution blogger and economist Alex Tabbarok linked to an article he wrote a year ago suggesting that the United States would be well served by adding a focus on putting students into technical apprenticeships to the current push to get kids into college.

He starts out by applauding the now familiar push by governors in many states to provide incentives to students pursuing STEM fields over Liberal Arts. “We should focus higher-education dollars on the fields most likely to benefit everyone, not just the students who earn the degrees.”

I particularly oriented in on the part of the article where he notes,

“In 2009 the United States graduated 89,140 students in the visual and performing arts, more than in computer science, math, and chemical engineering combined and more than double the number of visual-and-performing-arts graduates in 1985.”

Wow, that is pretty great, huh? But he goes on,

There is nothing wrong with the arts, psychology, and journalism, but graduates in these fields have lower wages and are less likely to find work in their fields than graduates in science and math. Moreover, more than half of all humanities graduates end up in jobs that don’t require college degrees, and those graduates don’t get a big income boost from having gone to college.

Most important, graduates in the arts, psychology, and journalism are less likely to create the kinds of innovations that drive economic growth.

I initially felt a little indignant at the idea that graduates in the arts aren’t spurring innovation. But then I started wondering if the arts sector needs to take a little responsibility for this. It seems this might be a result of a lack of training and good public relations.

There is an on going conservation about training arts students to take a more entrepreneurial approach to their work so there is already an acknowledgment that this is an area to be improved. Perhaps part of that training should emphasize not undervaluing your work so that people don’t undervalue the work that artists do.

In terms of public relations, I think there is a lack of circulation of stories about successful creatives like those I recently cited about the winners of MIT’s Entrepreneurship Competition (one with a BA in East Asian Studies and Chinese Lit., the other with a BA in Aerospace Engineering) and the Rotman School of Management’s design competition.

The main thrust of Tabbarok’s argument isn’t so much to diminish the liberal arts degree as to advocate for apprenticeships. He notes that some people are simply not suited for college but vocational education programs have a stigma of being the dumping ground for high risk kids. He points to the model of Germany (among other European countries) where students normally opt for technical training and apprenticeships that provide real world work experience while the students are in high school.

What appealed to me about this was the idea that if there is room in the day for a high school student to receive vocational training, then you have to allow that there is time in the day for arts classes.

But I am not suggesting that some kids be allowed to paint while the other kids go learn to weld. I think high school vocational training should seek to provide opportunities for students to train and apprentice at local arts organizations as well. Who says you can’t take some of your welding classes in a scene shop or art studio or that you have to do your apprenticeship in a shipyard?

Apprenticeship programs like this could strengthen ties between schools and arts organizations and reinforce the idea that vocational skills don’t have to be applied in purely practical ways.

On the other side of the coin, I have a vague recollection of reading an article that suggested many visual artists today don’t have a good understanding of the materials they use because they haven’t had a lengthy exposure working/playing with them. Even if my recollection isn’t correct, the opportunity to work with materials still exists.

The reality is, four years of college isn’t the entire key to becoming an artist either.

You Wanna Be Where Everybody Knows Your Name

As I have stated before, I grew up in a rural setting in upstate NY and just before I started blogging, I worked at a rural arts and music center. But now that I am paying much closer attention to the lives of arts organizations and the communities they try to serve, moving to work in a rural environment has given much greater insight into the impetus behind Scott Walters’ efforts on behalf of rural arts organizations that lead to the creation of the Center for Rural Arts Development and Leadership Education (CRADLE).

There may not be the financial support or audience attendance in numbers that larger cities and communities enjoy, but the impact of arts programs and opportunities can be much more immediate and apparent. This is not to say there isn’t just as profound an impact in other places, just that the feedback loop is that much smaller. Because everyone knows everyone, even if a person doesn’t make a comment about their experience to you, you are likely to hear about it from someone else.

Case in point, I met an administrator at the university early one Friday, later that day he got his haircut. That night his hairdresser, whom I had never met before, said he made positive remarks about me.

What has been interesting to me is to have confirmation of many of the benefits we in the arts claim we bring to the community.

People from the local hospital told me my arts center is important to the health of their organization because they generally don’t have problems attracting doctors to the area, but after a year or two pressure from their families often sees them moving away due to lack of activities. The better a job I do, the better it is for them.

The community board which helps us fund the bulk of our presenting was invited to have a fund raiser at a local wine store. The board had a band playing and the store owner had wine and beer tasting. The community board made quite a respectable amount of money that night so they were happy.

The owner of the shop said the arts people attracted the type of clientele he was looking for. They came, they chatted, they browsed, they bought. He was happy. I think everyone hopes there will be another opportunity to do that again.

Yeah, you can say this only reinforces the stereotype of arts people as effete wine drinkers, but you can grab a six pack of Bud in the supermarket. This business owner is focused on attracting people who drink wine and craft brewed beer and smoke cigars and the arts board helped to deliver them.

On the other hand, there were many people to just stopped in to grab a six pack and bottles who picked up performance season information and bought raffle tickets so the store potentially delivered new audiences to the theatre.

The last incident falls into the “big impact/change of life” category. This past weekend the local arts council had its first ever community arts awards event in my theatre. It was actually pretty well put together for a first attempt. Each award was interspersed with performances by youth performers.

I was surprised to learn that not only does this small town have an organization that teaches kids to do aerial acrobatics, but that the school is under the umbrella of the local museum. I am going to have to check it out. It may give Nina Simon and her Museum 2.0 a run for her money.

Probably the most conspicuous example of the arts impacting lives was the honoree who had been teaching piano for 60 years and so had a legion of people, from music teachers to kids attending top music conservatories, speaking her praises.

Among the other honorees were the Irish owners of the local pub who declared “what good is a pub without stories and music to fill it?” and the owners of a plumbing supply house who between them have sat on the boards of just about every arts organization in town.

There was a visual artist who had moved from Seattle and was instrumental in the founding of the local visual arts center. Known to be something of a recluse, the awards organizers went to his studio and made a really nice video of him talking about his art and his process. I wondered if the reception the film received from the audience emboldened him a little because he spoke a fair bit when he went on stage to accept the award.

Granted, there is a big fish in a small pond element to all of this. In terms of reaching numbers, a performer doing a show in Tampa impacts the lives of more people in one night than one of those honorees might in a year. Many times that is what foundations and granting organization are looking for.

But as I sat there Saturday night, I couldn’t help but think that what was happening in this town was what many arts organizations dreamed of. The results of an interaction with the arts, both positive and negative, and the bonds it creates between people are so easy to observe.

Person A and Person B may leave an event and separately speak about their experience with Persons C and D, respectively. No only is there a high chance that C and D will meet and speak about the experience related to them second hand, there is a good chance C will meet B, another person who actually attended, and get their view on the experience. All four then share a common bond around the experience.

Unless all four travel in the same circles, what is the chance that this interaction will happen often in a city of 300,000? Here it happens many times every day.

Obviously, there is a downside to this lack of anonymity. I was both amused and a little uneasy about having the an opinion of me by someone I just met come back to me via their hair stylist at a wine tasting that same afternoon. I am certainly going to have to step carefully at times.

But it also strikes me that for those willing to listen, it can be very easy to collect a fairly accurate view of the community without the need to resort to a lot of guess work.

Speaking of drinking wine and beer, this entry title brought to you by Cheers, of course