Info You Can Use: Emergency Planning Tools For The Arts

Two entries today you lucky readers. My list of things to blog on is getting longer than I handle and still have the subjects remain relevant.

Technology in the Arts blog had a very cool tool for the arts featured this week- Arts Ready, an online tool to help arts organizations create a plan for any emergency, including “incapacitation of a key staff member, a financial crisis, and of course a natural disaster.”

The tool helps you create a readiness assessment which generates a to do list of changes to be made and sends you periodic reminders about deadlines or to re-evaluate the plan. It also offers the ability to store critical documents at a cloud computing site in case the physical documents get damaged. They also have a “battle buddy” tool used to develop relationships with area organizations.

“…so that you can build a relationship and eventually become Battle Buddies- pledging to lend a hand if the other needs help. If you do need to declare a crisis, you can choose how much information to share with whom, and you can track your progress towards gathering the needed resources online.”

It would be great if organizations developed partnerships and alliances constructive to their daily operations in the course of seeking allies to assist in the event of an emergency.

There is a cost to the service, but because this sort of thing is only really effective if a lot of organizations are involved, the developer, SouthArts, is seeking support from state arts agencies to help offer discounted memberships.

Intersection of Artist And Audience Engagement

Via Andrew Taylor’s Twitter feed last week, I became aware of an entry on Nina Simon’s Museum 2.0 blog about use of space to engage arts attendees in different ways. What was really interesting about the entry was the conflict of views held by Nina, the Executive Director of The Museum of Art & History in Santa Cruz and one of the artists being exhibited in the museum’s Creativity Lounge about whether the lounge activities were contributing or detracting from the exhibit.

I appreciate that the artist came to realize that the lounge was actually contributing to people’s enjoyment of her work, but what I really loved was that the theoretical conversation about the purpose and role of a museum and the experience visitors should be having was actually being played out in practice. It is easy to talk about audience engagement activities in the abstract and project the wonderful benefits that will ideally be realized. Reality challenges that when an artist feels that the grand experiment is leading to their work not being taken seriously.

Granted, artists’ vision being compromised is nothing new. Historically other artists, administrators, producers, donors and patrons have all contributed to undermining artistic expression. That’s no excuse not to think about the impact of our decisions as we take up the task of trying to engage our patrons.

One of the big debates now is over the place of social media in live performances. Do you allow people to update their Twitter and Facebook posts during a show or do you try to suppress it. If people are engaged and are telling their friends about how much they enjoy the experience, that is a plus. If the glow and activity is distracting performers and audience members that is a bad thing. If people are splitting their attention between the performance and texting, that can be a negative as well.

The fact that back in the day people spoke and moved about during Shakespeare’s plays and Mozart’s concerts is often cited as an argument against the current restrictive nature inherent to live performances.

What isn’t often mentioned is that Shakespeare’s actors didn’t spend 8 hours or more a day for 4-6 weeks rehearsing for the show. I suspect Mozart’s musicians didn’t all invest hours a day from the time they were 8 years old practicing for the chance to compete against others of the same experience for a single seat on an orchestra with whom they would spend additional hours.

High demands are placed on artists these days and they want to be taken seriously for what they are bringing. When they see something happening that seems to undermine that, it is understandable that they be a little skeptical and wary.

One thing I take away from Simon’s post is the need to execute some engagement programs in as careful and deliberate a manner as the design of a performance or piece of art. When the program experience intersects with the art experience, you can’t just say, lets try this and see how people like it in the same way you might try out different ad campaigns to see which approach might be most effective.

Simon’s Creativity Lounge could have fallen flat and been just awful had the environment not been carefully considered. It is clear from her posts and responses in the comments section that it was.

For me this post was very timely because I am immersed in discussions about renovations to our facility. Part of the plans include razing and moving the ticket office and adding a concessions area. We have the opportunity to change the environment in the front of the theatre to one that has a more welcoming vibe through changes in lighting, landscaping and seating design. The factors we need to consider are just starting to percolate to the front of my brain.

Fund Making Long Term Investment In Performing Arts Orgs

For a few years now people have been calling for foundations and other funders to provide more long term capital investment in non-profit organizations. The Social Velocity blog has an interview with Rebecca Thomas, Vice President of Strategy and Innovation at the Nonprofit Finance Fund. (NFF) (h/t National Endowment for the Arts) The NonProfit Finance Fund is in the fourth year of a decade long effort to provide $1 million of what they term change capital in each of 10 performing arts organizations they selected.

One thing Thomas talks about is how many non-profits are mis-captialized in that they have sufficient capital, but that most of it is in the form of restricted funds. She touches upon this in a separate publication, Case for Change Capital in the Arts and Financial Reporting Done Right, which I have briefly looked at and hope to blog on in the near future.

The thing that caught my eye was her discussion of how capital and revenue are reported on non-profit financial reports.

One of the things we learned early on in this work is that changing the financial reporting—to separate capital flows from recurring revenue—would not be an easy sell, for understandable reasons. Executive directors are reluctant to take a chance presenting new formats to donors who don’t understand the technique, and many board members aren’t inclined to re-learn nonprofit accounting principles. Moreover, NFF’s suggested methodology is not required by the Financial Accounting Standards Board, and auditors don’t always feel comfortable suggesting novel formats, even when they provide heightened clarity.

[…] suffice it to say that when capital and revenue are conflated, an organization’s reports do not present a realistic view of operating performance. Unintentionally misleading information can lead to poor planning and decision making by nonprofit leaders, boards and funders.

Longer term, it will take aggressive education and advocacy efforts to convince nonprofit executives, board members and funders of the value of producing transparent financial reports and audits that reveal business model economics separate from capital infusions. Nonprofits will need to be convinced that they won’t be penalized for producing statements that may, at times, show temporary weakness in operating results during a change or growth period.

Since NFF is in it for the long haul to help the 10 organizations in their pilot program institute substantial change, my guess is that they are trying to develop a way to effectively educate and communicate the validity of this different approach in financial reporting to boards and funders.

The first thing that came to mind when Thomas talks about mis-capitalization is how the Philadelphia Orchestra declared bankruptcy while possessing a substantial, but apparently restricted endowment. I couldn’t help but wonder if implementing the type of reporting discussed here would have made the real financial situation clearer earlier on.

I also wonder if they may not be the perfect candidate for using this reporting going forward. Even with the bankruptcy, they probably have the wherewithal to alter their accounting method where most arts organizations wouldn’t. Given their prominence, they could serve as an exemplar to non-profits, their boards and funders as to why these reporting methods should be adopted and properly understood.

One thing to note if you are hoping NFF’s pilot program becomes a trend, according to Thomas not all organizations are good candidates for change capital. They have to already possess strong management and self-evaluative processes which include data informed decision making.

Stand By Your Non-Profit Until The Bitter End

Interesting piece on the Chronicle of Philanthropy about the responsibilities of non-profit boards to attend to the dissolution of their organizations.

Janet Kleinfelter, a deputy attorney general in Tennessee, talks about a case where a non-profit abandoned their organization after they realized it could no longer continue. They passed a resolution essentially saying the bank could do whatever it wanted to dispose of the assets and then resigned.

Kleinfelter writes that boards are required to give proper notice to state and federal regulators about the impending closure of their organization and submit the documentation in support of that action.

It is actually better for board members to stay involved with the organization than disassociate themselves. (My emphasis)

“Legally the board is required to dissolve the nonprofit, but when it fails to do so, that responsibility falls to the regulators and the courts.

This process will probably involve subpoenas to members of the former board, which may require board members to retain personal legal counsel at their own expense. What’s more, by resigning, board members may no longer have the benefit of directors’ and officer’ liability insurance. Former board members may even be personally liable for actions done in the name of the nonprofit while it is unmanaged.