Berkshire Museum. Philanthropy Outlook. Austin Opera. Board Diversity.
It is proving more difficult to select three or four topics for the Management and the Arts monthly update because there are so many great arts-related stories available. I thought pondering the impact of the new tax law on arts philanthropy could stimulate a discussion about scenario planning, among other things. Sexual harassment at the Austin Opera and a new report on board diversity also seem like timely topics to explore. But first, let’s revisit the Berkshire Museum.
Berkshire Museum Update
The Berkshire Museum was finally able to reach a court-approved agreement with the Massachusetts attorney general early in February that will allow it to sell all 40 works of art it had originally planned but with a revenue limit $55 million. Neither the American Alliance of Museums or the Association of Art Museum Directors were happy about this outcome and they still see the museum’s action as “a violation of the public trust.” Here’s a link to the news story details: news.artnet.com.
Philanthropy Outlook
The Lilly Family School for Philanthropy issued its charitable giving outlook for 2018 and 2019 this month. Questions are continuing to pile up about the impact on charitable giving resulting from the changes in the Federal tax law. The goal of achieving a simplification of the tax codes seems to have been unrealized. I assume arts fundraisers are preparing for scenarios in which gift revenue may decline in 2018 and beyond. However, that is just an assumption on my part.
Chapter 11 covers the topic of “Why Do People Give to the Arts?” and notes the complexity of donor motivations and behavior. The bonds that tie donors to arts organizations vary widely. If you examine all the various giving programs most arts organization list on their websites, you will see an effort to respond to these varied donor interests.
I am not aware of research that breaks down donations to the arts by tax brackets but if one exists, I would love to read it. One assumption widely discussed is that charitable giving will decline as a result of the new Standard Deduction levels (see page 7 in the “Giving Outlook for 2018-& 2019”). Others have posited that tax benefits are not primarily why people give and therefore the new tax law will have a negligible effect on donations to charities. We will have to wait to see what the impact of the tax law will be in a year or two.
Austin Opera’s Maestro
I imagine the topic of the #MeToo Movement has come up for discussion in your arts management classes or at work this year. The story in the Austin-American Statesman about the firing Austin Opera’s music director Richard Buckley is one of the more detailed accounts of an organization in which it appears a culture of accommodation was finally stopped after years of the egregious behavior by one person. There are several discussion topics embedded in this article which can be connected to the leadership and human resources chapters. For example, the idea that the maestro was considered “untouchable” is always troubling to read. Fears of retribution or loss of employment is a common theme in these reports of sexual harassment. It was also hard to read how many people in the opera company seemed to be aware of the offensive behavior, and yet did nothing to stop it. Buckley seems unaware that his behavior, and how he communicated with women, were a cause for concern. As I read the article, it seems the hiring of a new CEO at the opera, and the momentum for change create around the #MeToo movement, helped the organization confront a long-standing problem.
Board Diversity Study
A new 58-page report about boards of directors was published this month by the Lilly Family School of Philanthropy, Johnson-Grossnickle Associates, and BoardSource entitled The Impact of Diversity. The news story below from a Grantmakers for the Arts blog post provides a quick overview of the report. The report is downloadable and free at the UIPUI website. There are seven organizations examined in the case study section of the report including Sacramento’s Crocker Art Museum.
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Tax Policy Changes, Strength of U.S. Economy Lead to Mixed Outlook for Charitable Giving
Tuesday, February 13, 2018
Philanthropy Outlook 2018 & 2019 report presents potential scenarios, what to watch
With the passage of the Tax Cuts and Jobs Act and recent trends in stock market performance over time, Americans can expect major changes in the landscape of charitable giving in the coming years, The Philanthropy Outlook 2018 & 2019 indicates.
The new report is researched and written by the Indiana University Lilly Family School of Philanthropy and presented by Marts & Lundy, a leading fundraising and philanthropy consulting firm. It shows that the strength of the U.S. economy and recent changes to federal tax policy will be the key forces to watch as the 2018 philanthropy picture unfolds.
“We anticipate that 2018 will be an unusual year for philanthropy, with several competing forces simultaneously shaping the giving environment,” said Amir Pasic, Ph.D., the Eugene R. Tempel Dean of the school. “To gain insights into the dynamic factors that will influence charitable giving in 2018 and 2019, donors and nonprofits must consider both the economic climate and the complex ways in which donors may respond to recent tax policy changes.”
LINK to Outlook Reports: http://philanthropyoutlook.com/
Lilly Family School of Philanthropy: https://philanthropy.iupui.edu/
Women describe 14 years of Austin Opera maestro’s lewd talk, touches
By Andrea Ball – American-Statesman Staff, Feb. 15, 2018
In the weeks since Austin Opera’s conductor was fired amid allegations of harassment, seven women have come forward to describe a culture of permissiveness that they say allowed Richard Buckley to touch women inappropriately and engage in lewd talk because he was a star.
The women told the American-Statesman that Buckley — who served as the opera’s conductor and artistic director for 14 years — regularly touched women’s buttocks, commented on their bodies in a sexual manner, made crass jokes and gave employees unwanted massages. Opera executives and board members knew about Buckley’s behavior but failed to intervene because of the celebrated maestro’s talent, the women said.
Buckley’s sudden departure was announced Feb. 1. In a short statement, the opera said that Buckley had engaged in “inappropriate behavior in violation of the company’s policy on harassment.” Officials said they would not provide more details out of respect for those affected by the behavior.
Buckley said he never intended to offend anyone.
LINK to Austin-American Statesman for the full text: http://www.mystatesman.com/news/women-describe-years-austin-opera-maestro-lewd-talk-touches/XG2V4fzC1YVgvMQP0emMrK/?mc_cid=9b44a0b9f7&mc_eid=1a1932085a
How is Board Diversity Related to Organizational Action?: A Study Tackles that Question
Carmen Graciela Díaz on February 22, 2018, Grantmakers in the Arts, GLA Blog
Much has been discussed of board diversity, but little is known about how increased the diversity on nonprofit boards affects their impact. A new report aims to understand what correlations exist and potential outcomes for leadership development and organizational growth by evaluating board member engagement, fundraising engagement, and advocacy engagement.
The study produced by BoardSource, the Lilly Family School of Philanthropy at Indiana University and Johnson, Grossnickle, and Associates begins this task by posing two fundamental questions: “Which organizational attributes correlate with board diversity?” and “How is board diversity related to organizational action?”
In terms of organizational action, the study found gender and age diversity seem to play a role in board member engagement. “For example, boards with higher percentages of women tend to be more engaged in oversight and governance and have higher commitment and involvement, as do boards with higher percentages of members age 39 or younger,” asserts the report’s findings.
“However, as some of the case studies revealed, through focused effort it is possible to drive progress in terms of diversity and board engagement. As we also saw, the simple pursuit of diversity and board impact could result in other areas of growth and progress that deliver rewards in the short- and long-term,” states the report.
Link to the research study: https://scholarworks.iupui.edu/handle/1805/15239