NYFA Quarterly - Ask Artemisia
Ask Artemesia on Venture Philanthropy and Funding Credits
Melissa Potter, Program Officer, NYFA Source
This issue’s installment of Ask Artemisia answers questions concerning venture philanthropy and funding credits.
What is venture philanthropy? Do any of these funders make grants in the arts?
Venture philanthropy shares many characteristics with the “venture capital” model of the for-profit sector. With a final goal of sustainability and organizational capacity building, venture philanthropy combines active relationships between funders and grantees with carefully considered investments in initiatives that have measurable potential.
Although ten years ago the funding community was abuzz with venture philanthropy’s potential for the arts sector, questions have been raised more recently about the real, long-term impact of this funding strategy. A common theory on why it may have been less successful than anticipated in the arts sector is that artists and arts organizations often have difficulty producing measurable goals and benchmarks for their programs. How does one determine whether a public sculpture, for instance, has had a serious impact on a local community? In the eyes of a funder, more measurable results may lie in education, social service, and job training programs that provide long-term public cost savings or significant social outcomes.
Case Study: Echoing Green
An example of an organization employing the venture philanthropy model is Echoing Green. Echoing Green offers two-year grants to help what it calls “social entrepreneurs” create organizations that directly address social problems and challenges. The grant provides the equivalent of a modest full-time salary ($30,000 per year), and grantees are expected to make a similar time commitment to their project. In addition, Echoing Green offers technical assistance, such as a conference for grant recipients, along with business and financial guidance from its staff. During its granting history, Echoing Green has awarded numerous arts and culture projects. Examples of these programs include Freestyle Union, an organization promoting hip-hop “freestyle” artists in Washington, DC, and New Urban Arts, an organization that allows students to create arts programs addressing social issues they experience.
On its website, Echoing Green lists “traits” it looks for in grantees. In keeping with most venture philanthropy, accountability for outcome is important, as is a convincing sustainability plan for the funded organization. Another vital concern is the ability of the project to create social change. Many of the grantees work in economically-challenged and minority communities.
For further information on Echoing Green, visit its website at: www.echoinggreen.org. To read about Echoing Green Fellows and their projects, click “Visionaries” in the top bar navigation.
Case Study: Creative Capital
A specifically arts-related model is the Creative Capital Foundation. Started in 1999, the organization “acts as a catalyst for the development of adventurous and imaginative ideas by supporting artists who pursue innovation in form and/or content in the performing and visual arts, film and video, and in emerging fields.” The relationship between funder and grantee is described by the foundation as a partnership that fosters ongoing support for each funded project.
Creative Capital supports projects at initial levels of $10,000 each, with additional financial support of up to a total of $50,000 [current as of 2011]. Aside from grantmaking, the foundation also evaluates the technical and business development needs of grantees and offers this assistance through special programming. Its Artist Services Program provides fundraising, marketing and public relations, and strategic planning assistance through one-on-one meetings with grantees. The Strategic Planning Project offers an optional strategic planning workshop and a workbook with which artists can develop long-range plans through timelines, goal-setting, and financial strategies. Creative Capital also hopes to train 16 grantees who will take this program on the road and share it with artists across the US.
In addition, Creative Capital organizes retreats for grantees, provides a web presence for each awarded project, and publicizes projects through email and newsletter updates. A valuable resource that any artist can access on Creative Capital’s website is the Artist Toolbox with information and links on Career and Life Management, Fellowships and Grants, Residencies, Legal/Financial, and more.
With so much significant support from one foundation for individuals, artists will of course want to know more about Creative Capital’s funding criteria. Creative Capital states that it “supports work with the potential for significant artistic and cultural impact.” To find out more about Creative Capital and its application procedure, visit its website at www.creative-capital.org.
I recently received support from a nonprofit organization, and now they are asking me to credit the organization whenever possible—on posters for my film screening, on-screen credits, etc. Why are they asking me to do this, and is it important to do so?
Crediting a funder’s grant or in-kind assistance is mutually beneficial to both the funder and the artist. Artist materials bearing a credit to the funder (such as at the bottom of a theater program or in a film’s final credits) are an important benefit to the organization as a fundraising tool. Artists spend so much time fundraising for their projects they sometimes forget that many organizations themselves have to fundraise for the programs that award artists in the first place. Giving credit to the funders that make a work possible increases an organization’s chances for additional funding, as well as increases its visibility in the field. For instance, the recent film My Architect by Nathaniel Kahn is a NYFA Fiscal Sponsorship project, and as such was asked to credit NYFA. This year, the film was nominated for an Academy Award for Best Documentary. The popularity of this film means that many more people—from artists, to funders, to the general public—become more familiar with NYFA and its programs.
By crediting funders, artists’ projects also get a “seal of approval” of sorts. It allows artists to feature support for the project prominently, which may have an impact on funding from other sources in the future just as it does for the organization that provided the grant. While not a guarantee, many artists find that once a project receives an initial grant it becomes much easier to fundraise for in the future. Funders like to see that they are not the sole supporter of a project; the more support a project receives, the greater the probability of its long-term success. No grant source is too small; and particularly in a competitive funding environment, all funds have a significant degree of importance.
Funder credits are also a great research tool for artists. Artists can investigate funding for their work by reading the “thanks” sections of programs and websites or staying an extra five minutes to watch a film’s credits. Having a clearer sense of what specific funders support allows artists to make more informed choices about appropriate grant sources to pursue and to ultimately create stronger proposals.
It’s important to understand that by crediting a funder artists are not forfeiting copyright or giving a funder carte blanche permission to use the work for any purpose. When an artist receives a grant, many funders will ask if they may use images of the artist’s work in their final reports and applications, and in most cases will ask the artist to sign a contract that allows them the use of images and materials for stated purposes. It’s another excellent way to create visibility for a work or project, as other funders receive these materials in addition to artists who apply for their programs.
Even if an artist has not signed a contract agreeing to provide funder credit on all support materials, it’s still a good idea. Artists should speak with funders and ask if they may credit them. The funder will appreciate the gesture, and it may help both artists and organizations with their ongoing fundraising.
Thanks to NYFA Source Live Assistance users for providing questions and feedback.
The information contained in the above article, unless otherwise noted, is current as of its publication date.
Please be advised that this information may be out of date.
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