6e UPDATE TWO: FALL 2022

Thank you for visiting the 6E Updates page. This second update includes new resources to supplement the material covered in the 6th edition of Management and the Arts. I hope you will find these additional resources of value.

Bill Byrnes

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ERRATUM (an error in printing or writing)

While every effort was made in the proofing process of this edition to fix typographical errors, sometimes things are missed. If the reader comes across any errors in the sixth edition, please notify me at mgtandthearts@gmail.com. Thank you.  

Apologies for the typo in the Acknowledgments on page xxvi – Joshua Stavros  

Chapter 9 – page 378

Under the Balance Sheet header, the abbreviations should be NA for Net Assets, not NE.

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UPDATES FOR CHAPTERS 2, 3, 6, 7, 9, 10, and 11

Chapter 2 – Arts Managers and the Practice of Management

These resources expand and update topics covered on page 40 (Dance) and pages 44 to 49 (Part2: Profile of the Arts manager). First listed is a project I was unaware of when writing the sixth edition – the Dance Data Project. Second are three recent research briefs by the NEA about artists and arts managers in the US. And last is a report detailing gender and artists in EU countries. These three reports will add to your knowledge and understanding of current issues affecting arts managers and artists.

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Artistic and Executive Leadership Report - JULY 2022

Dance DATA Project: DDP began as an independent project researching the lack of new female choreographic works. We also examine gender imbalance in artistic and administrative leadership in dance companies, venues, and organizations. Our research has focused on examining productions by companies generally rooted in or greatly influenced by the European classical form.

Dance Data Project®’s (DDP) fourth annual Artistic and Executive Leadership Report is the most comprehensive study to date. The 2022 report is divided into two sections.

• The first examines the gender distribution of leadership positions at the Largest 50, Next 50, and Additional 50 U.S. ballet companies and compares the number of men and women in the roles. Section I: Gender Distribution of Leadership is the most recent data available and reflects current leadership, recorded as of July 2022.

• The second section analyzes Artistic and Executive leadership compensation. It goes further by providing year-by-year comparisons and further insight into the highest compensated employees at the ballet companies with the largest operating budgets. Section II: Artistic and Executive Director Compensation is the most recent data available and reflects leadership in fiscal year 2020. In order for DDP to accurately report on more recent fiscal data, all ballet companies would have to self-report, as the fiscal data is not immediately available through IRS databases. (Dance DATA Project, p.2)

Link to report:

https://www.dancedataproject.com/wp-content/uploads/2022/07/Artistic-and-Executive-Leadership-Report.pdf  (44 pages) 

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NEA Research Briefs

Artists in the Workforce: Selected Demographic Characteristics Prior to COVID‐19

“The primary aim of this brief is to report differences in gender and race/ethnicity across artist

occupations and between artists and the U.S. workforce.” The following section, however, summarizes the general characteristics of artists nationwide. To a large extent, these characteristics remain unchanged from those provided in the NEA’s comprehensive report published in 2019, Artists and Other Cultural Workers: A Statistical Portrait.” (p. 2)

https://www.arts.gov/sites/default/files/Artists-in-the-Workforce-Selected-Demographic-Characteristics-Prior-to-COVID%E2%80%9019.pdf  (14 pages)

State Locations of Artists, by Race and Ethnicity: 2015-2019

“This research brief (and accompanying maps) highlight, by race and Hispanic origins, state‐level concentrations of artists in the following occupations: architects; fine artists, art directors, and animators; designers; actors; producers and directors; dancers and choreographers; musicians; entertainers; announcers; writers and authors; and photographers.” (p. 1)

https://www.arts.gov/sites/default/files/State-Locations-of-Artists-by-Race-and-Ethnicity-2015-20.pdf  (20 pages)

Arts Managers by Race, Ethnicity, and Gender: 2015‐2019

“Within the U.S. Bureau of Labor Statistics’ taxonomy for workers, there is no occupational code for “arts managers.” Instead, analysts can glean data pertaining to the occupational code of “management” across different sectors. This brief, accordingly, looks at managers within arts‐related industries that populate various sectors. Each of the following sections, organized by sector, starts with a list of the industries that were examined for national counts and demographic characteristics of arts managers.”(p. 2)

https://www.arts.gov/sites/default/files/Arts-Managers-by-Race-Ethnicity-and-Gender-2015%E2%80%902019.pdf  (9 pages)

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Gender gaps in the Cultural and Creative Sectors (EU)

Edited by European Expert Network on Culture and Audiovisual (EENCA)

“The Work Plan for Culture 2019-2022 selects gender equality as one of the five sectoral priorities for EU action. The purpose of this study is to provide background information and context on the specific challenges faced by women in the cultural and creative sectors for the OMC Working Group. The aim of this study is, therefore, to conduct a literature review and prepare a study identifying the situation of women artists and professionals in the cultural and creative sectors (CCSs) and to map the existing international recommendations aiming to achieve gender equality in these sectors.”

https://eenca.com/index.cfm/publications/gender-gaps-in-the-cultural-and-creative-sectors/ (110 pages)

Chapter 3 – Adaptive Arts Organizations

This report from LaPlaca Cohen expands on Demographic Environment starting on page 85 and focuses on the arts. It provides interesting insights into the 55 and over demographic.

UNTAPPED OPPORTUNITY: OLDER AMERICANS & THE ARTS

A special report on aging and older adults, in partnership with E.A. Michelson Philanthropy

‘Culture Track is a national online survey of audience behaviors, attitudes, motivations, and barriers to cultural participation, which has been conducted by LaPlaca Cohen since 2001. Untapped Opportunity: Older Americans & the Arts aims to shed light on older generations’ distinct preferences and behaviors to provide relevant insights for cultural engagement. Our findings are focused on the U.S. population aged 55 and over, who were surveyed as part of our Culture + Community in a Time of Transformation national survey, fielded from April 5 to April 30, 2021.” © LaPlaca Cohen, Culture Track.

Click on Reports below. Once on the Reports webpage, scroll down to the 33-page report.

Chapter 6 – Staffing, Boards, and Volunteers

This short article provides some insights about labor disputes and expands on the content that starts on page 214, Unions and the Arts. The union representing the dancers is the American Guild of Musical Artists (AGMA). AGMA was helping the dancers to negotiate a contract that would increase from 35 weeks to 43 weeks with the Alvin Ailey American Dance Theater. AGMA announced on Facebook that a tentative agreement had been reached on July 19, 2022.

Dance Commentary: Contract Dispute Between Union Artists and Alvin Ailey American Dance Theater — ‘Buked and Scorned?

By Debra Cash, The Arts Fuse, June 30, 2022

Alvin Ailey American Dance Theater is arguably the most important touring dance institution in this country. I’m willing to bet that more audience members have been transformed into dance lovers by experiencing Revelations or Ailey’s Blues Suite than any other dance except The Nutcracker.”

Yet with a contract set to expire this week, a bargaining unit of the Ailey company — 32 dancers plus two stage managers — has been at the negotiating table under the auspices of the American Guild of Musical Artists (AGMA) with no resolution in sight, according to a press release and petition sent out by AGMA yesterday apparently designed to ratchet up the pressure on Ailey management.

Link to the full article - https://artsfuse.org/258848/dance-commentary-contract-dispute-between-union-artists-and-alvin-ailey-american-dance-theater-buked-and-scorned/#comment-700337

Chapter 7 - Leading in the Arts

Additional Resource for Chapter 7

Behavioral Scientist

This website is a valuable resource for arts leaders and managers. Explore the rich content in the Topics, Fields, and Formats tabs. For example, under the “Fields” tab, there are multiple postings to dive into on behavioral economics, marketing, and organizational behavior,

Here’s a quick overview from the website About page:

“Behavioral Scientist is a non-profit digital magazine that offers readers original, thought-provoking reports from the front lines of behavioral science. Born out of the labs and offices of leading researchers, practitioners, and journalists, our mission is to help our readers make sense of today’s world through a deeper understanding of human behavior.”

Chapter 9 – Control: Operations, Budgeting, and Finance

Ratio Analysis Tool

Page 380 in Chapter 9 and Fig.9.14 (p. 382) briefly covers the use of ratio analysis to help assess the fiscal health of an organization. Propel Nonprofits has a free financial ratios worksheet with 14 ratios that you can explore if you are interested. The Excel file has two tabs: Balance Sheets Ratios and Income and Expense Ratios. You may also want to link to the CPA Journal’s Using Ratio Analysis to Manage Not-for-Profit Organizations page for more detailed information about several ratios.

Here’s the link: https://www.propelnonprofits.org/resources/ratio-calculation-worksheet/

Chapter 10 – Marketing and the Arts

This study by SMU DataArts provides additional insights into why cultural organizations have not been as successful as they hoped at developing more diverse audiences. Starting on page 409 (Audience Development), I noted two studies more than 15 years apart that suggested programming strategies that arts organizations could pursue to achieve greater diversity. This 2021 report offers further insights into how arts organizations can develop audiences that more closely align with their communities.

The Intersection of Funding, Marketing, and Audience Diversity, Equity, and Inclusion

By Zannie Voss, Glenn Voss, and Young Woong Park, April 2021, SMU DataArts

“This research examines if and how donor priorities and an organization’s location, subscriber base, and marketing actions affect the extent to which audiences represent the diversity of the organization’s community. It is part of a series of recent publications intended to help arts and cultural organizations contend with the current crisis of systemic racism. It expands on a question raised in our white paper In It for the Long Haul, co-authored with Jill Robinson: “When we re-open, whom will we gather?” Audience diversity, equity, and inclusion (DEI) are anchored in the notion of community orientation, which surfaced as an essential cornerstone for attaining sustainability in the two-part series of reports on The Alchemy of High-Performing Arts Organizations, co-published with The Wallace Foundation.”

Here’s the link to the report:

https://culturaldata.org/media/2388/dataarts_intersectionfmadei_final.pdf

Chapter 11 - Fundraising and Development

Here are some updates to the Giving Trends in the United States, starting on page 452. Chapter 11 included data from 2020, a challenging year for arts organizations navigating the pandemic (see Figures 11.2 and 11.3 starting on p. 453).

Giving USA 2022

Giving in 2020 to the arts, culture, and humanities declined 8.6% when adjusted for inflation, but in 2021 the total funding increased by 21.8% when adjusted for inflation. In addition, the percentage of total contributions in this category increased to 5% ($23.50 billion) and reached an all-time high for giving to this sector.

Two other points of comparison noted on page 453 changed in 2021. The “total giving as a percentage of Gross Domestic Product” dropped back down to 2.1% (it was 2.3% in 2020), and “individual giving as a percentage of disposable personal income” (DPI) slipped down to 1.8% (it was 1.9% in 2020) (Giving USA 2022, pp. 49. 52).

The Giving USA 2022 Full Report now includes a section on “Giving by and to Donor-Advised Funds” or DAFs. They note that “Donor-advised funds (DAFs) have continued to grow significantly, both in size and in the number of funds established, as an increasingly popular financial vehicle for donors wishing to take advantage of immediate tax deductions and strategically distribute their charitable giving over time” (Giving USA 2022, p. 141). This most current report also indicated an increase in giving to organizations and increased grant-making by DAFs in 2021.

If you are interested in a more critical perspective on DAFs, go to the Inequality.org website and view the graphic on the growth of DAFs since 1990. Also, read How Do We Fix Abuses of Donor-Advised Funds? to get a better sense of some of the concerns of many progressives about DAFs. To learn more about DAFs, there is a brief overview on the Investopedia website. And here’s a link to a short video (3:39) that gives an overview of how a donor can use a DAF.  

Donor Advised Funds Explained. What Is A Donor Advised Fund? Nov. 2020.

And here’s the link to Giving USA’s 2022 Funding Infographic. It is free, but you must create an account to download the file, and access to more detailed reports requires a payment.

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