News

Arts and business news from around the country.

RSS

Corporate Funding Came Back After the Recession, But Did it Leave the Arts Behind?

Posted by Michael Stroik
0 Comments

While a new report shows that the global recession shifted funding away from the arts, is there a silver lining in how companies have changed their view of investing in communities?  CECP, in association with The Conference Board, recently released Giving in Numbers: 2013 Edition, an annual analysis of corporate giving trends among the world’s largest businesses. Despite a slow economic recovery, the majority of companies gave more in 2012 than in 2007, before the recession, yet the majority of funders decreased their funding of the arts. Companies decreased arts funding annually in each year from 2007 to 2012. The steepest declines occurred in 2008 and 2009, at the height of the global recession.

 

The news is not all bad for arts organizations. While the majority of arts funders have decreased funding, many continue their support today. In fact, behind only education and health and social services organizations, more companies supported the arts than any other program area in 2012, albeit at lower financial levels (Giving in Numbers, page 20). Revenues and profits have increased for large businesses since 2009, and giving budgets are expected to grow in coming years.

 

The shift away from the arts is likely related to many factors and trends occurring across the corporate philanthropy field. Companies aim to drive measurable societal impact with each grant, and many focus efforts on single program areas with the hope of moving the needle on specific societal problems. So why haven’t arts agencies reaped the benefits of an increased focus on individual program areas? Based on our research, there are a variety of reasons. Most notably: 

 

  1. The Recession: During the recession it was no surprise that the fastest growing program area was community and economic development. The world’s largest businesses aimed to support community efforts to rejuvenate local economies. The hope was that economic growth, no matter how small, could spur consumer confidence and pay dividends for companies in the long-run. Many companies prioritized these programs over arts initiatives in the last half decade.
     
  2. Education Issues in America: CECP’s research sample is global but 92% of companies are based in the United States and focus the majority of funds domestically. In 2012, education support topped the list of program areas supported by large businesses for the first time since CECP first published Giving in Numbers in 2006.  American students are falling behind global peers in math and science achievement, and companies are concerned about the future of the American employee base. In addition, the racial achievement gap in student test scores (click here for more information) spotlights the social justice factors that are at stake when dealing with education programs.
     
  3. Non-Cash Giving: In-kind contributions, consisting primarily of product donations and pro bono service, accounted for more than 95% of aggregate giving growth from 2007 to 2012. Arts agencies often have fewer opportunities to work with bulk product donations; only 4% of corporate contributions to arts agencies came in the form of non-cash gifts in 2012. See Figure 11 (page 20) for more details.
     

So what can we learn from these trends to help secure future arts funding? As the field of corporate community engagement expands, arts agencies should focus on their societal impact on communities, including the educational benefits of arts programming for disadvantaged children, when approaching large businesses for funding partnerships. Arts agencies should also emphasize the strong benefits their programs have for corporate employees that engage with them. Whether this includes volunteer offerings or arts performances at corporate offices, make sure corporate giving officers understand how your work will benefit their workforce in a variety of ways.


If you work for an arts agency, have you received less funding from large corporations since 2007? How do you plan to align with corporate funders in the future?  We would love your feedback on our findings -- info@cecp.co.

 

(This post, originally published in The Line is one in a weekly series highlighting The pARTnership Movement, Americans for the Arts’ campaign to reach business leaders with the message that partnering with the arts can build their competitive advantage. Visit our website to find out how both businesses and local arts agencies can get involved!) - See more at: http://blog.artsusa.org/2013/09/26/art-and-business-connect-at-a-pop-up-think-tank-from-the-partnership-movement/#more-21829

(This post is one in a weekly series highlighting The pARTnership Movement, Americans for the Arts’ campaign to reach business leaders with the message that partnering with the arts can build their competitive advantage.)

Related
Comments
blog comments powered by Disqus

More News

New David Rockefeller BCA pARTnership Award
Jan 08, 2018 0 Comments
Americans for the Arts announced today that the David Rockefeller Fund will invest in a four-year presenting sponsorship of the new David Rockefeller BCA pARTnership Award. Given annually, the award will honor a company and arts...
Go to full post
Nation's United Arts Funds Raise $85.5 million for the Arts in 2016
Jan 02, 2018 0 Comments
Throughout the summer of 2017, the Americans for the Arts Private Sector Initiatives department solicited responses to the FY2016 United Arts Fund Campaign Survey. Surveys were distributed to a total of 45 united arts funds by...
Go to full post
Nominate the Best Businesses Partnering with the Arts
Dec 11, 2017 0 Comments
CALL FOR NOMINATIONS: 2018 BCA 10 AWARDS Every year, Americans for the Arts through its Business Committee for the Arts, honors the 10 best businesses partnering with the arts in America. Submissions close January 19. ...
Go to full post
Award-Winning Examples of Companies Supporting the Arts
Nov 21, 2017 0 Comments
The arts are an economic driver. According to the Arts & Economic Prosperity study, released by Americans for the Arts, the nonprofit arts and culture industry generated $166.3 billion of economic activity during 2015, which...
Go to full post
BCA 10 Spotlight: AC Entertainment in Knoxville, Tennessee
Nov 14, 2017 0 Comments
Known as one of the foremost concert promoters and festival producers in the United States, AC Entertainment celebrates the arts by bringing first-class live entertainment experiences to music lovers from around the world. Founded...
Go to full post
BCA 10 Spotlight: Scholastic Inc., New York City
Nov 09, 2017 0 Comments
“Creative, innovative thinking, the hallmark of artists and writers, is fundamental to building economic strength, and new and better ways of seeing the world. The Scholastic Art & Writing Awards validates the creativity of students...
Go to full post
BCA 10 Spotlight: Duke Energy in Charlotte, North Carolina
Nov 07, 2017 0 Comments
“Duke Energy is committed to supporting the vitality of the communities we serve. That includes introducing our young people to the arts at an early age—study after study shows that children benefit immensely from exposure to...
Go to full post
BCA 10 Spotlight: Hallmark Cards in Kansas City, Missouri
Nov 02, 2017 0 Comments
At Hallmark Cards, art is an essential component of the company’s DNA. From its founding in the early 20th century, Hallmark has fostered creative environments both inside and outside the workplace, and has been particularly...
Go to full post
BCA 10 Spotlight: Bacardi in Coral Gables, Florida
Oct 31, 2017 0 Comments
“Supporting the arts within the cities and towns where we live and work is our way of giving back at Bacardi. This sense of corporate responsibility has been at our foundation since the Bacardi company was created more than 151...
Go to full post
BCA 10 Spotlight: Microsoft in Redmond, Washington
Oct 26, 2017 0 Comments
“Microsoft is honored to support arts and culture organizations across the U.S. and around the world, which provide so much richness to all of our communities.” -Lori Harnick, General Manager, Citizenship and Public Affairs...
Go to full post
BCA 10 Spotlight: Yum! Brands in Louisville, Kentucky
Oct 24, 2017 0 Comments
“At Yum! Brands, we believe in the power of the arts to educate, inspire and empower all students, especially those who are classified as ‘at-risk’.  Working with our local Fund for Arts organization we created the Yum! Family...
Go to full post
BCA 10 Spotlight: Turner Broadcasting System in Atlanta, Georgia
Oct 20, 2017 0 Comments
“Turner Voices, our company’s signature corporate philanthropy program, marries our deep ties to our Atlanta hometown with our commitment to next-generation storytellers and their power to impact our community in profoundly positive...
Go to full post
It’s a Celebration! The 2017 BCA 10 Gala: Best Businesses That Partner with the Arts
Oct 19, 2017 0 Comments
On October 11th, business and arts leaders gathered at the iconic Central Park Boathouse in New York City to honor the best businesses partnering with the arts in America at the annual BCA 10 Awards. Now in its 13th year, this...
Go to full post
BCA 10 Spotlight: AutoZone, Inc. in Memphis, Tennessee
Oct 18, 2017 0 Comments
"Even as AutoZone has evolved over the last 36 years, we’ve maintained a steadfast commitment to our hometown of Memphis, Tennessee. Leadership and active participation in our region’s arts and culture are essential to community...
Go to full post

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.