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
Comments
blog comments powered by Disqus

More News

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
The Best Businesses Partnering with the Arts are Featured in Forbes
Oct 11, 2017 0 Comments
This year's BCA 10 honorees are using the arts to meet business goals in moving ways. We are proud to recognize them with an ad in the 100th Anniversay Issue of Forbes, "100 Greatest Business Minds" (page 169, September 28)...
Go to full post
Hear from the Business Leaders of the 2017 BCA 10: Best Businesses Partnering with the Arts
Oct 02, 2017 0 Comments
Now that you have read about this year’s BCA 10 honorees, let’s take the time to meet the leaders. These business executives, representing a range of industries from hotels to healthcare to retail, are inspiring. Support them...
Go to full post
2012 BCA 10 Winning Tampa Bay Times Spreads Joy of Literature with Times Festival of Reading
Sep 28, 2017 0 Comments
Every fall, the Tampa Bay Times marketing department produces a celebration of the literary arts known as the Times Festival of Reading. This one day event draws thousands of book lovers, as well as famous authors from across...
Go to full post
2011 BCA Winning Law Firm, Baker Botts L.L.P., Says the Arts Are Essential
Sep 26, 2017 0 Comments
A major supporter of the arts since the 19th century, Baker Botts, an international law firm, strives to be a good corporate citizen, helping arts organizations thrive and providing opportunities for its employees and clients...
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.