Is It Against The Law To Pay Me More?

You may have heard about Dan Palotta’s recent TED Talk about how judging charities on concepts like administrative overhead ratios is hobbling their ability to solve huge problems.

He makes some persuasive points, though some of the concerns I had with his proposals when they appeared on the Harvard Business Review blog three years ago still remain.

Gene Takagi picked up on the talk and addressed legal considerations which would prevent non-profits from operating in the manner Palotta suggests. (Just to be clear, Palotta never suggests charities cleave to non-profit status.)

Takagi notes that charity pay scales are limited by laws governing 501 c 3s and so can’t compete well on salary if supporters show tolerance for doing so to attract the best talent. Expenditures are limited in much the same manner,

“If a for-profit spends 90 cents to make $1, it may be a perfectly acceptable profit margin, but if a charity spends 90 cents to make $1, it would be widely viewed as a terrible waste. As a result, many charities fail to properly report their fundraising expenses, and the IRS has raised the possibility of utilizing the controversial commensurate test, which addresses whether a charity is using its resource in line with its charitable mission…But this can’t be judged strictly on percentages, and charities should be allowed to experiment so if an honest fundraising and mission awareness-raising campaign fails, the charity isn’t slaughtered for it. The problem, however, is not the law, but the misguided public ideology of which Dan spoke.”

Charities are also often limited and discouraged from pursuing new revenue ideas by federal and state laws as well as popular sentiment.

I think the biggest question that this whole discussion raises for me is whether social attitudes are such that a for-profit company raising money for social issues will be tolerated. Given that people will give money to projects via things like Kickstarter without much consideration about whether it is non-profit or not, is the idea that non-profits do things that companies won’t due to lack of profitability and governments can’t/won’t due to lack of political will and expertise, over?

Currently I think there is a capricious element to Kickstarter campaigns that make it an unsuitable model for garnering long term support. However the very existence of such mechanisms may be shifting mindsets to a place where worthiness and overhead ratios are not mutually exclusive.

Rent Out Space, Mingle Your Ideas

Had an intersection of ideas moment this morning. Yesterday, I was listening to the TED Radio Hour about where ideas come from. They excerpted Steven Johnson’s talk on the subject where he starts out talking about how coffee houses in the 1600s become a hot bed for innovation because they provided an environment where people of disparate backgrounds could come together and share ideas.

This morning I see a short piece on FastCompany about an Airbnb type service that will let you rent out your empty office space to people looking for short term work spaces.

It occurred to me that this might be a boon to arts organizations by helping them supplement their income by renting out unused space. But also it could act in the same way as the coffee houses by getting different people working together in close proximity whether it is non-profit arts people in a for profit business space or vice versa.

This is generally the intent behind the development of incubators and innovation hubs, (Steve Jobs’ vision for Pixar Studios) but this shared space service has the flexibility and immediacy of being able to go down to the coffee shop without baristas wondering if you are going to nurse the same cup of coffee all day.

Dancing On The Street Where You Live

Producer David Binder did a short TED Talk about arts festivals. He mentions a number of new festivals which are engaging directly with communities in site specific events.

However, it was the first one he mentioned, Minto: Live Sydney Festival 2011, that fired my imagination most. The people of Minto, accompanied by some cooperating artists, performed on their lawns, driveways and garages as the audience moved by. I am not sure if it was planned or spontaneous, but one story Binder relates almost sounds like some residents who weren’t part of the original tour got caught up in the spirit and began performing on their lawn.

I saw a lot of applicability to the current discussions about creative placemaking and community engagement.

But what I saw as the most compelling element of this practice is that it reinforces the value of the arts and play for kids right where they live. When asked about what got me started in the arts, I often refer back to a role in my 8th grade play.

But like a lot of people in the arts, the reality is, my siblings and I would perform for our family and friends at gatherings.

A festival like this would demand greater sophistication, but heck with arts in schools, performing at home would reinforce the value of the arts for the kids, the parents and the whole community literally right where they live. It would be interesting to see if residents of Minto felt the experience changed their perception and participation in arts activities.

Just as annual tours of historic homes emphasizes the value of their presence and engenders a sense of pride in the neighborhood, (though perhaps some resentment in the kids who have to help clean their home in preparation), a neighborhood arts festival could advance the cause of the arts, inspire pride and perhaps surprise people with the hidden talents of their neighbors.

I don’t really think this would or should be a substitute of arts in schools, though it might spur renewed community interest in offering instruction. Rather, I was thinking that at one time a home piano was once the center of family activity. Participation in a neighborhood arts festival might serve to fill that absence to a small degree.

[youtube http://www.youtube.com/watch?v=4rttG3xyHcw&w=560&h=315]

If Everyone Is Gathered In The Middle of The Road, You’re A Freak On The Sidewalk

I was catching up on some of the TED Talks I had marked on the old Google reader today when I came across a fun, short talk dissecting what makes a TED talk work vs. what elements people don’t respond as positively. The speaker, Sebastian Wernicke, even created a web site with a TED talk generator utilizing the best (and worst) words according to his statistical analysis.

It’s all tongue-in-cheek, but it also sort of falls into the category of “its funny, because its true” which in some respects isn’t so funny. A similar analysis is used to determine television and radio programming. The algorithms Pandora.com uses to suggest songs you may like based on songs you already like isn’t much different from the analysis many corporate owned radio stations use to determine whether to add a song to their play list. Even in a niche area like Hawaiian music, corporate has to evaluate and approve what gets played locally. I know because I tried.

I know it is not news that people gravitate toward the middle of the road stuff that challenges and excites just enough to keep people engaged but goes no further. Anyone who finds a new format to present this in gets copied. It strikes me that this may be part of the problem the arts face. The definition of the middle of the road has become concentrated around such a narrow point by analysis and replication that areas of the arts which used to be considered more mainstream suddenly find themselves of fringe interest.

I’ll grant that the arts suffer from a certain lack of nimbleness and we are seeing the result of that. I wonder though if the view of the arts as an interest of a fringe population is what has helped to lead to calls for defunding time and time again or for Rocco Landesman’s claim that there are too many arts organizations. There aren’t calls to evaluate organizational effectiveness and allocation of resources. The assumption seems to be that the nation is ill-served by the arts as a whole. Borders bookstores announced they were closing down stores last week. Starbucks did a similar thing a year or so ago and closed many of its stores. People may have said there were too many Starbucks around, but no has said we needed to have fewer coffee shops or book stores. The respective companies evaluated which areas were under performing and made a decision.

I will concede that governments aren’t currently in the business of evaluating arts organizations and so don’t have the data the head office a private sector company would have so they can create the criteria for cutting funding. I am certain most of us would be a little nervous about what sort of criteria might be set. Our return on investment in some areas is likely stronger in some areas than in others and it would be easy for someone who wanted to defund us to focus on our deficiencies. Or worse yet, compare us to the big impressive organization over yonder.

What I have noticed though is that no one who wants to reduce or remove funding has really made it an issue of quality. No one has even decided to call the arts on all the things arts leaders claim their disciplines provide at budget hearings. Which makes me think it isn’t a matter of the arts doing valuable work, it is matter of the arts no longer really being a mainstream concern. There are certainly other factors and it isn’t really a revelation that the arts aren’t as mainstream as they once were. It is a little depressing to recognize that no one is out there saying if we want their money, we need to do a better job at providing a benefit. Andrew Taylor noted this in an entry last week.

In terms of what the answer might be. It could lay in the direction of the random acts of culture program I wrote about the Knight Foundation sponsoring. I followed a trackback to that entry from The Waltzing Porcupine blog and discovered a link to an entry on the Asking Audiences blog that reinforced the idea that flash performances may be part of a strategy for arts organizations to become more nimble and find increased relevancy in audience’s lives. (emphasis from the original)

“What struck me most forcefully, watching videos of Random Acts of dance, poetry, classical music, and opera from around the country, was that the bystanders (well, they start as bystanders but soon become an audience) are obviously experiencing a range of real, pleasurable human emotions. That’s something you can’t usually see on the faces of arts audiences sitting in concert halls and auditoriums.

Why is that? Not just because they’re not expecting an arts attack and are thrown off balance, although clearly that’s part of the fun. I think it has to do with the fact that, in these Random Acts, the performers and the audience are in every sense on the same level. The performers are dressed like you and me. They’re in our midst, not on a stage. We’re together in this crazy business (opera, life).

[…]

But the Random Acts program is more ambitious and, from the looks of it, more dramatically subversive. It almost makes you think the arts have been in hiding all these years, playing it safe in their own cultural caves instead of venturing out to where life is really going on. Hence the feeling of celebration surrounding these performances: the arts are coming out of the closet, redefining themselves as things regular people do, in regular places — no longer “hallowed” experiences set apart from daily life.

[…]

But there is a subtle chipping-away effect. You can see the bystanders’ identities being challenged by their own reactions to the performance: “I’m not a dance (or classical music, or poetry, or opera) person. But wait a second. This is fun!”…