Love, Largesse, or Large Return on Investment? Issues Concerning Corporate Support of the Not-for-Profit Arts Organizaiton in the United States
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Authors
Carpenter, Kimberly S.
Issue Date
1991
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
If one believes that the arts have intrinsic value, educational
value, and social value, then one should also, it would seem, believe
that the arts deserve to be financially supported by public resources.
Primarily, this would mean that the government should support the arts.
And it does. But the arts receive plenty of other support as well.
Donations from individuals, foundations, bequests, and corporations all
work to support the government subsidies. The arts are, of course, not
the only organizations requesting funding, and many argue that
education, health, and other social services should cane first. This is
a difficult stance to argue against, and it is rare that anyone tries to
justify paying an arts administrator over. supporting the poor {although
sometimes they are one and the same! ) The basic rationale is that arts
support should not in any way displace social support, but that since
the arts are an important social resource they should get sane slice of
the monetary pie. The breakdown of contributed funds and the donors and
recipients of these funds are discussed in Chapter 1.
Corporate profits are derived from the public. Therefore, one could
argue, corporations should be free to make contributions to the arts,
since public art museums and public sculpture have positive
externalities, and the existence of orchestras, theater companies, and
public broadcasting services enrich the lives of many. Some argue that
corporations do not have the right to donate funds: not to the arts, not
to education, not to anyone. These issues are discussed in Chapter 2.
Largely because corporations are self-interested and have an
obligation to their shareholders to maximize profits, true philanthropy
is slowly being replaced by charitable investment. This is particularly
true of the art world, because the arts organizations have so much to
offer to corporate donors. T!he history of charitable investment and
philanthropy are examined in Chapter 3.
The specific benefits that arts organizations and corporations
receive from one another are discussed in Chapter 4. Particularly, it
is very noticeable that corporations have taken a real interest in
sponsorship of "blockbuster" exhibitions at major museums as a way of
bettering their images and gaining advertising and association with the
arts. And while the primary benefit that arts organizations usually
receive from corporations is cash, there are many other possibilities
which can be of just as much assistance. These include in-kind
donations and "loaned executives. "
However, the marriage of art and industry is not always a happy
one. Some artists complain of "insidious censorship" by corporations
with conservative tastes. Artist Hans Haacke is leading the charge
against corporate support of the arts, and he seems to stop at nothing
to make his point. His emotional and disturbing, yet insightful and
ironic, work regarding Mobil Oil is described in Chapter 5. Other
problems with corporate support of the arts are not based on ethical or
artistic grounds. These are business problems. In other words, the
problems that businesses encounter such as recessions and unpredictable
profits, now are becoming a part of non-profit life as well. As arts
organizations are now subject to fluctuations in the business cycle,
they must adapt to sometimes radical changes in contribution revenue.
There are many ways that corporations organize philanthropic
donations. Most often, it is the Chief Executive Officer that initiates
and carries out most donations. The CBO certainly has more influence
over philanthropic decisions than any of the other factors. But as
contributions become more professionalized, many factors begin to affect
donations. Some of these are the size of the firm, what other firms are
doing in the way of contributions, number of requests (there are usually
many, far too many to fund), and, of course, profits. These methods and
philosophies are examined in detail in Chapter 6.
Many factors affect the need for corporate support. One inverse
relationship is solid: when government support decreases, demand for
corporate support increases. Arts organizations feel they have no where
else to turn, and many believe that corporations are a virtually
untapped resource. Tax laws also affect donations to the arts.
Currently, a lack of government support in Michigan is forcing arts
organizations to look to corporations for support. In Chapter 7,
government issues are examined to state the case for the need for
corporate support if the arts are to continue in an organized and
efficient system.
It would seem that Japanese philanthropy philosophies are
tangential to the topic of corporate arts support in the United States.
However, in fact the reality is quite to the contrary. Japanese firms
which are located within the United States are realizing that hostility
and tension can be mitigated by a degree of community involvement within
the United States. And the Japanese are three times more likely to
support the arts as opposed to other charitable organizations when they
make donations. This is largely because the arts organizations have
tangible and intangible benefits to give Japanese corporations. In
Chapter 8, Japanese philanthropic philosophy and policy, attitudes of
executives toward the arts in Japan and the u.s., and Japanese
contributions are examined.
It appears that the link between corporate support and the arts is
here to stay. Resources are finite however, and it may only be a matter
of time before corporations are not willing to give any more. But it is
far more likely that arts organizations will become more commercial,
more attuned to marketing needs of corporate donors, and that corporate
executives ·will continue to recognize the potential benefits to be
gained from the art world well into the future.
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vi, 129 p.
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