Advertisement

USA

  • Sherburne LaughlinEmail author
Chapter
Part of the Palgrave Studies in Business, Arts and Humanities book series (PSBAH)

Abstract

This chapter provides an overview of the governance of nonprofit arts organizations in the USA, their current and changing context, and observations on their future. Changes in the political environment threaten small but vital government support for the arts. Fresh alterations in the US tax code may affect individual philanthropy; increasing racial and ethnic diversity is putting pressure on boards to diversify membership and on foundations to make their arts giving more equitable; boards are creating succession planning mechanisms to address aging boards; and trustee contributions are becoming increasingly important to the bottom line. These are but some of the changes that are forcing arts boards to reconsider their structure, member selection, composition and other important characteristics. Their ability to adapt will ensure that these boards will succeed in whatever environment comes their way.

Topics include the US context, including key features of the arts and cultural ecosystem; philanthropy in the USA and its impact on arts and culture; background on nonprofit and arts boards and their positive and negative aspects; and the roles and responsibilities of US boards, with a focus on fundraising as well as elements of board structure. The chapter concludes with observations on the “Five Principles” outlined in earlier chapters, which allows for some comparison with European models and reflections on the future of US arts boards. As described in the opening chapters of this book, this author has reviewed extant literature and studies and conducted interviews with the chief executive officers or board liaisons of six diverse arts organizations, the results of which are used as examples throughout this chapter.

References

  1. Americans for the Arts. (2017). Source of Revenue for Nonprofit Organizations. Washington, DC: Americans for the Arts. https://www.americansforthearts.org/by-program/reports-and-data/legislation-policy/naappd/arts-facts-arts-organization-revenue-2017. Accessed 2 Dec 2017.Google Scholar
  2. Balser, D., & McCulsky, J. (2005). Managing Stakeholder Relationships and Nonprofit Organization Effectiveness. Nonprofit Management and Leadership, 15(3), 295–315.CrossRefGoogle Scholar
  3. Benzing, C., Leach, E., & McGee, C. (2011). Sarbanes Oxley and the New Form 990: Are Arts and Culture Nonprofits Ready? Nonprofit and Voluntary Sector Quarterly, 40(6), 1132–1147.CrossRefGoogle Scholar
  4. Blackwood, A., Dietz, N., & Pollak, T. (2014). The State of Nonprofit Governance. Washington, DC: Urban Institute.Google Scholar
  5. BoardSource. (2010). Handbook of Nonprofit Governance. San Francisco: Jossey-Bass.Google Scholar
  6. BoardSource. (2017). 2017 National Index of Nonprofit Board Practices. Leading with Intent. BoardSource. https://leadingwithintent.org/. Accessed 3 Oct 2017.
  7. Bowden, J. (2017, December 21). GOP Tax Bill Could Reduce Charitable Fiving by up to $24 billion. The Washington Post. http://thehill.com/policy/finance/361381-analysis-gop-tax-bill-could-reduce-charitable-giving-by-up-to-24-billion. Accessed 20 Sept 2017.
  8. Bradshaw, P., Murray, V., & Wolpin, J. (1992). Do Nonprofit Boards Make a Difference? An Exploration of the Relationships Among Board Structure, Process, and Effectiveness. Nonprofit and Voluntary Sector Quarterly, 21(3), 227–249.CrossRefGoogle Scholar
  9. Callen, J. L., Klein, A., & Tinkelman, D. (2003). Board Composition, Committees, and Organizational Efficiency: The Case of Nonprofits. Nonprofit and Voluntary Sector Quarterly, 32(4), 493–520.CrossRefGoogle Scholar
  10. Campbell, A. (2016, December 27). Why Are Americans Less Charitable than They Used to Be? The Atlantic. https://www.theatlantic.com/business/archive/2016/12/americans-donate-less-tocharity/511397/. Accessed 15 May 2018.
  11. Chait, R., & Ryan, W. (2004). Governance as Leadership: Reframing the Work of Nonprofit Boards. Washington, DC: BoardSource.Google Scholar
  12. Cray, D., Englis, L., & Freeman, S. (2007). Managing the Arts: Leadership and Decision Making Under Dual Rationalities. The Journal of Arts Management, Law and Society, 36(4), 295–313.CrossRefGoogle Scholar
  13. DiMaggio, P. (2000). Social Structure, Institutions, and Cultural Goods: The Case of the United States. In G. Bradford, M. Gary, & G. Wallach (Eds.), The Politics of Culture: Policy Perspectives for Individuals, Institutions and Communities, The Center for Arts and Culture. New York: The New Press.Google Scholar
  14. Dimaggio, P., & Ostrower, F. (1992). Race, Ethnicity and Participation in the Arts (Report Monograph). Washington, DC: Seven Locks Press.Google Scholar
  15. Doeser, J. (2016). Racial, Ethnic and Gender Diversity in the Orchestra Field. New York: League of American Orchestras. https://americanorchestras.org/knowledge-research-innovation/diversity-studies.html. Accessed 23 Dec 2017.Google Scholar
  16. Fritz, J. (2016). Can Nonprofit Board Members Receive Compensation? Last modified October 25. https://www.thebalance.com/can-nonprofits-pay-board-members-or-appoint-paid-staff-2502271. Accessed 4 Sept 2017.
  17. Gazley, B., & Kissman, K. (2015). Transformational Governance: How Boards Achieve Extraordinary Change. Hoboken: John Wiley & Sons, Inc.CrossRefGoogle Scholar
  18. Greve, F. (2009, May 19). America’s Poor Are Its Most Charitable. Mcclatchy DC. http://www.mcclatchydc.com/news/politics-government/article24538864.html. Accessed 7 Dec 2017.
  19. Helicon Collaborative. (2017). Not Just Money: Where Is the Money Going? New York: Helicon Collaborative. https://medium.com/helicon-collaborative/not-just-money-part-1-abd18e277703. Accessed 21 Nov 2017.Google Scholar
  20. Howe, F. (2000). The Board Member’s First Duty: Accountability. Nonprofit World, 18(6). https://www.snpo.org/samples/V180613.pdf. Accessed 21 Nov 2017.
  21. Indiana University Lilly Family School of Philanthropy. (2017). Giving USA 2017: The Annual Report on Philanthropy for the Year 2016. Chicago: Giving USA Foundation. https://givingusa.org/tag/giving-usa-2017. Accessed 23 Mar 2018.Google Scholar
  22. Interview with International Art Fair, November 15, 2017.Google Scholar
  23. Interview with Major Encyclopedic Museum, November 30, 2017.Google Scholar
  24. Interview with Major Performing Arts Presenter, November 8, 2017.Google Scholar
  25. Interview with Major Science Museum, November 13, 2017.Google Scholar
  26. Interview with Mid-Sized Theater, November 9, 2017.Google Scholar
  27. Interview with Small Performing Arts Organization, November 14, 2017.Google Scholar
  28. Joyaux, S. (2008). Philanthropy’s Moral Dilemma. Excerpted from Keep Your Donors: The Guide to Better Communications and Stronger Relationships by Tom Ahern and Simone Joyaux. Hoboken: John Wiley & Sons, Inc.Google Scholar
  29. Kern, P., Wasshausen, D. B., & Zemanek, S. L. (2014). The Arts and Cultural Production Satellite Account (ACPSA). Paper presented at the 22nd International Input-Output Conference, Lisbon, Portugal, July 14–18, 2014.Google Scholar
  30. L3C and the Arts. (n.d.). www.l3candthearts.com. Accessed 26 Nov 2017.
  31. Larcker, D., Doniatiello, N., & Meehan, W. (2015). 2015 Survey on Board of Directors of Nonprofit Organizations. Stanford: Stanford Graduate School of Business.Google Scholar
  32. Lloyd, R. (1998, May 3). In Round House’s Corner: The Director with Actor’s Instincts. The Washington Post.Google Scholar
  33. Long, H. (2016). U.S. Inequality Keeps Getting Uglier. CNN Money. http://money.cnn.com/2016/12/22/news/economy/us-inequality-worse/index.html. Accessed 5 Sept 2017.
  34. Markusen, A., Wassall, G., DeNatale, D., & Randy, C. (2006, November 17). Defining the Cultural Economy: Industry and Occupational Approaches. Presented at North American Regional Science Council Meetings, Toronto, Canada.Google Scholar
  35. Masaoka, J. (n.d.). Should Board Members Be Required to Give? Blue Avocado. http://www.blueavocado.org/content/should-board-members-be-required-give. Accessed 21 Nov 2017.
  36. McGlone, P. (2018a, February 12). Trump’s Budget Eliminates NEA, Public TV and Other Cultural Agencies. Again. The Washington Post.Google Scholar
  37. McGlone, P. (2018b, March 23). Trump Wanted to Cut Arts Funding. Instead, the Spending Bill He Signed Gives It a Boost. The Washington Post.Google Scholar
  38. Mislinski, J. (2017, November 19). U.S. Household Incomes: A 50-Year Perspective. Advisor Perspectives. https://www.advisorperspectives.com/dshort/updates/2017/09/19/u-s-householdincomes-a-50-year-perspective. Accessed 7 Sep 2017.
  39. Museum Board Leadership 2017: A National Study. (2017). Washington, DC: BoardSource. http://www.aam-us.org/resources/ethics-standards-and-best-practices/leading-with-intent-strengthening-museum-governance. Accessed 5 Mar 2018.
  40. National Center for Arts Research. (2012). NCAR Inaugural Report. Dallas: National Center for Arts Research. www.smu.edu/~/media/Site/Meadows/NCAR/NCAR%20Inaugural%20Report. Accessed 4 Feb 2018.
  41. National Center for Arts Research. (2014). To What Extent Do Unrestricted Contributions from Each of These Sources Cover Expenses? Dallas: National Center for Arts Research. http://mcs.smu.edu/artsresearch2014/reports/contributed-revenue/what-extent-do-unrestricted-contributions-each-these-sources-cover#. Accessed 4 May 2018.Google Scholar
  42. National Endowment for the Arts. (2013). U.S. Bureau of Economic Analysis and National Endowment for the Arts Release Preliminary Report on Impact of Arts and Culture on U.S. Economy. Washington, DC: United States Bureau of Economic Analysis. https://www.arts.gov/news/2013/us-bureau-economic-analysis-and-national-endowment-arts-release-preliminary-report-impact. Accessed 8 May 2018.Google Scholar
  43. National Endowment for the Arts. (2013–2015). Annual Basic Arts Survey (2013–15). Washington, DC: National Endowment for the Arts. https://www.arts.gov/artistic-fields/research-analysis/arts-data-profiles/arts-data-profile-10. Accessed 5 Mar 2018.
  44. Nonprofit Finance Fund. (2015). 2015 State of the Nonprofit Sector Survey. New York: Nonprofit Finance Fund. www.nff.org/sites/default/files/nff/docs/2015-survey-methodology.pdf. Accessed 9 Jan 2018.Google Scholar
  45. Nonprofit Research Collaborative. (2015). Board Giving and Engagement. http://npresearch.org/board-giving-and-engagement. Accessed 4 Feb 2018.
  46. Ostrower, F. (2005). Diversity on Cultural Boards: Implications for Organizational Value and Impact (Working Paper). Austin: University of Texas at Austin.Google Scholar
  47. Paquette, D. (2018, March 23). The Humane Society’s Sexual Harassment Scandal Just Won’t End. The Washington Post. https://www.washingtonpost.com/business/economy/the-humane-societys-sexual-harassment-scandal-just-wont-end/2018/03/23/52b8e996-1647-11e8-8b08-027a6ccb38eb_story.html?utm_term=.28667c42e975. Accessed 8 May 2018.
  48. Pogrebin, R. (2017, July 19). With Cultural Plan, DeBlasio Proposes Linking Money to Diversity. New York Times. https://www.nytimes.com/2017/07/19/arts/design/new-york-cultural-plan-museums.html. Accessed 2 Jan 2018.
  49. Preston, J. B., & Brown, W. A. (2004). Commitment and Performance of Nonprofit Board Members. Nonprofit Management and Leadership, 15(2), 221–238.CrossRefGoogle Scholar
  50. Rentschler, R. (2014). Arts Governance: People, Passion and Performance. New York: Routledge.CrossRefGoogle Scholar
  51. Roberts, S. (2008, August 14). Minorities in U.S. Set to Become Majority by 2042. New York Times.Google Scholar
  52. Ryan, C., & Bauman, K. (2016). Educational Attainment in the United States: 2015 Population Characteristics. Washington, DC: United States Census Bureau. https://www.census.gov/content/dam/Census/library/publications/2016/.../p20-578.pdf. Accessed 5 Sept 2017.Google Scholar
  53. Semeuls, A. (2017, March 28). The Problem with Philanthropy. The Atlantic. https://www.theatlantic.com/business/archive/2017/03/the-problem-with-philanthropy/520989/. Accessed 8 May 2018.
  54. Shapiro, T. R. (2011, November 14). United Way Leader’s Fraud Scandal Marred Charitable Legacy. The Washington Post. https://www.washingtonpost.com/local/obituaries/united-way-leaders-fraud-scandal-marred-charitable-legacy/2011/11/14/gIQALnwbMN_story.html?utm_term=.6d53f4d0c8d2. Accessed 8 May 2018.
  55. Siciliano, J. I. (1996). The Relationship of Board Member Diversity to Organizational Performance. Journal of Business Ethics, 15(12), 1313–1320.CrossRefGoogle Scholar
  56. Stein, J., & Palletta, D. (2017, December 17). GOP Tax Bill Passes Senate as House Prepares to Send It to Trump. The Washington Post. https://www.washingtonpost.com/business/economy/gop-tax-bill-headed-for-quick-passage-in-house-senate-on-tuesday/2017/12/19/61f83dac-e4cf-11e7-9ec2-518810e7d44d_story.html?utm_term=.0e350490056f. Accessed 2 Jan 2018.
  57. Stubbs, R. (2017). Government Funding for the Arts. GIA Reader, 37(1, Winter). https://www.giarts.org/article/government-funding-arts-2016. Accessed 5 Mar 2018.
  58. Thomson, D. (2011, May 4). 51% of Americans Pay No Federal Income Taxes. The Atlantic. https://www.theatlantic.com/business/archive/2011/05/51-of-americans-pay-no-federal-income-taxes/238329. Accessed 2 Jan 2018.
  59. United States Bureau of Economic Analysis. (2018). Arts and Culture Grow for Fourth Straight Year. Washington, DC: United States Bureau of Economic Analysis. https://www.bea.gov/newsreleases/general/acpsa/2018/acpsa0318.htm. Accessed 8 May 2018.Google Scholar
  60. United States Census Bureau. (2016a). Educational Attainment in the United States. Washington, DC: United States Census Bureau. https://www.census.gov/data/tables/2017/demo/education-attainment/cps-detailed-tables.html. Accessed 2 Apr 2018.Google Scholar
  61. United States Census Bureau. (2016b). Poverty in the United States: Percentage of People in Poverty by State. Washington, DC: United States Census Bureau. https://www.census.gov/library/visualizations/2017/comm/poverty-map.html. Accessed 7 Sept 2017.Google Scholar
  62. United States Census Bureau. (2017). U.S. World and Population Clock. Washington, DC: United States Census Bureau. https://www.census.gov/popclock. Accessed 7 Sept 2017.Google Scholar
  63. Voss, Z., Rogers, J., Baskin, L., & Rose, I. B. (2013). In Whom We Trust V: Theatre Governing Boards in 2013. New York: Theater Communications Group.Google Scholar
  64. Woronkowicz, J., Nichels, B., & Iyengar, S. (2012). How the U.S. Funds the Arts. Washington, DC: National Endowment for the Arts. https://www.arts.gov/publications/how-united-states-funds-arts. Accessed 8 Sept 2017.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.Arts ManagementAmerican UniversityWashington, DCUSA

Personalised recommendations