News

Arts and business news from around the country.

RSS

Impact Investing in the Arts – Bringing Arts and Business Together for Economic and social Impact

Posted by Mariama Holman
0 Comments
Impact Investing in the Arts – Bringing Arts and Business Together for Economic and social Impact

The impact investing community is starting to realize that the arts and business are one – both seeking to utilize finite resources to create returns beyond profit.

 

Artists are entrepreneurs who need to access the right kind of capital for starting B Corporations and other social purpose businesses.” – Laura Callanan, Upstart Co-Lab, CEO and Founder.

 

Monday, June 5th Upstart Co-Lab led a panel on Creative Places and Business: Catalyzing Growth in Communities at Deutsche Bank that highlighted a movement that first began gaining momentum in the early 2000s’ – impact investing in the arts. Upstart works with partners such as the Calvert Foundation to adapt existing impact investing products for the creative economy, helping investors and arts organizations manage risk while measuring and achieving returns.

 

As indicated at the start of the session by Callanan’s analysis of the JP Morgan and GIIN report, Impact Investments: An Emerging Asset Class, arts and culture is not currently tracked as a segment of impact investments. Why does this matter? As stated in Callanan’s Forbes interview, “there are currently no tools, funds or manager strategies enabling impact investors to align their capital with the creative market.”

 

What a shame, as key segments currently tracked by JP Morgan and GIIN, such as education and health investing, heavily intersect the work of artists, which by nature impact the same issues.

 

Don’t believe us?

 

Take a glimpse at the tremendous body of research on the impact of the arts in education, for instance.

 

Research conducted in 2008 reveals that participation in the arts reduce high-school dropout rates, especially with students from low-socioeconomic households. Students with high involvement in the arts from these households had a 4% drop-out rate as supposed to the 22% norm for low arts involvement students from the same background.

 

Arts organizations are situated in a prime spot in society for changing community outcomes but are not recognized or leveraged by impact investors as a critical resource.

 

According to Laura Callanan, it has traditionally been very difficult for creative economy practitioners, such as those creating artistic or cultural products, to qualify for financing.

 

But imagine a world where capital was connected with arts organizations that dually functioned as social entrepreneurship firms, B Corps and employee-owned co-ops?

 

This very well could be the future of social impact investing.

 

Upstart Co-Lab is not alone in pioneering the way forward. There is a rising tide of organizations working to facilitate the interaction between investors and arts organizations that create a social and financial return, both in the USA and abroad. Examples include the California based Center for Cultural Innovation (CCI) and the Arts Impact Fund in the UK.

 

Funded projects include initiatives such as RedmondDESIGNS, which matches 18-24 year olds with an interest in the arts with job opportunities working in arts and design related businesses.

 

We could be finally witnessing the genesis of a trend that whittles away the wrongly perceived line dividing artists from economic contributors.  

Related

Arts and Business Leadership with Deborah Jordy

Posted by Jessica Gaines
0 Comments

 

 

For their Thought Leader” segment, Denver Business Journal sat down with Deborah Jordy, video above.

 

Why Jordy?

 

Jordy has spent decades nurturing Denver’s cultural assets as Executive Director of the Colorado Business Committee for the Arts (CBCA) and recently became Executive Director of Scientific and Cultural Facilities District (SFCD). SCFD is a special regional tax district of the State of Colorado that provides funding for art, music, theater, dance, zoology, botany, natural history, or cultural history organizations in the Denver Metropolitan Area.

 

Thanks to SCFD’s annual tiered funding of arts nonprofits — including Denver Botanic Gardens, the Denver Zoo and Denver Art Museum — the arts now generate $1.85 billion annually in economic activity, support 10,205 jobs and spur $520 million in tourism, according to data from the CBCA, responsible for advancing Colorado’s creative economy by connecting business and the arts.

 

SCFD board chairman Dan Hopkins explains, “Voters overwhelmingly renewed SCFD for another 12 years and Jordy’s leadership will assure their trust in the District is well placed. As we look to further expand access and inclusiveness, Deborah has the relationships and knowledge to make these goals the new reality.” (To learn more about the voting of the ballot measure that has extended the 0.1 sales tax to fund arts and culture institutions, go here.)

 

In addition to Jordy’s leadership in Colorado, her national level arts and business leadership has spanned to Americans for the Arts where she has chaired the Private Sector Council and is currently on the Board of Directors.

 

Video: Kathleen Lavine/Denver Business Journal

Related

Already a partner?

Already a partner?

Learn easy ways to take your partnership to a new level.

Use our ads locally

Use our ads locally

View The pARTnership Movement ad campaign and find ways to use the ads.

pARTnership videos

pARTnership videos

Watch and share our videos from The pARTnership Movement.

Partnership ideas

Partnership ideas

Inspire employees with tickets to the ballet or a concert.

Are you an arts group?

Are you an arts group?

Get listed in our searchable directory.

Recruit talent

Recruit talent

Employees want to live and work in a vibrant community.