chapter 1: why this book

Question 1

Org operate in increasingly complex environments due to internal and external pressures. Challenges include

Answer 1

• Attracting new audiences while maintaining artistic innovation.
• Increased competition for public and private funding.
• Wealth being concentrated among a few, making fundraising more competitive.
• Decreasing public funding for the arts.
• Balancing artists’ creativity with audiences’ more conservative tastes.

Question 2

Civil economy

Answer 2

Should they focus only on providing entertainment, or should they drive social and cultural change => rethinking of their mission and civic responsibility.
Civil economy: shift from traditional “political economy” toward a model that emphasizes social capital, trust, and community development. Emphasizes nurturing relationships, moral sentiments like sympathy and benevolence, and integrating economic actions with civic responsibility.
Institutions should serve to build social capital, promote trust among communities, and drive social development rather than simply striving for economic growth.
Cultural philanthropy is a key component of this economy. It is distinct from mere fundraising, which focuses primarily on financial sustainability. Cultural philanthropy aims to build relationships and civic value, supporting the development of younger generations of artists and ensuring cultural access for all.

Question 3

Historical Roots of Cultural Philanthropy

Answer 3

13th and 14th centuries in Italy: where cities thrived as centers of cultural and social life. Various models of philanthropy:
 Private Collectors: Forzetta, a moneylender in 14th-century Italy, used his wealth to collect and preserve antiquities. While personal collecting may seem self-interested, it also played a philanthropic role by preserving cultural heritage.
 Patronage: Cangrande della Scala of Verona supported Dante Alighieri, illustrating reciprocal patronage, where a patron’s support for artists was both personal and social.
 Capitalist Philanthropy: Enrico Scrovegni, a wealthy Paduan, built the famous Scrovegni Chapel to restore his family’s reputation. This early form of capitalist philanthropy mirrors modern-day foundations established by wealthy individuals.
 Crowdfunding: The construction of Milan’s Duomo in the 14th century exemplifies an early form of crowdfunding, where community members contributed labor and donations to build the cathedral.

Question 4

fundraising in the modern context

Answer 4

Must go beyond transactional exchanges, focus focus on building long-term relationships between institutions, their supporters, and the community. By fostering a culture of philanthropy and community involvement, orgs can secure their futures while maintaining their civic and cultural roles. The ability to build social capital and engage communities is critical to surviving potential future crises.

Question 5

1.2. The relevance of fundraising for art organizations

Answer 5

Fundraising plays a critical role in orgs because, unlike for-profit businesses, they can’t cover their costs only through earned income.

Question 6

Dual internal system

Answer 6

Service delivery is separate from income generation, leading to a dual internal system: requires orgs to rely on external sources like fundraising to cover costs, as those who pay (donors) are not necessarily the users of the services (audiences).Dual Internal System - Arts organizations rely on two systems:
1. Service production (providing artistic experiences).
2. Resource development (fundraising to cover costs since earned income is insufficient).

Question 7

key challenges of F

Answer 7

• Balancing mission-driven goals with commercial revenue opportunities.
• Government funding cuts force reliance on private donations, especially in Europe.
• Fundraisers are crucial to securing financial resources that align with the organization’s cultural mission.

Question 8

importance of F

Answer 8

• Vital for maintaining focus on social and cultural missions.
• Fundraisers help bridge the gap between earned income and the financial needs of the organization.
• Fundraising supports long-term sustainability and resilience, especially during crises (e.g., post-COVID-19).

Question 9

Fundraisers key skills needed

Answer 9

o Business education provides fundraising professionals with skills in financial management, program analysis, and a global perspective on change.
o Emotional intelligence and trust-building are essential
o Fundraisers are motivated by public service motivation (PSM), driven by a desire to support a higher purpose, social justice, or compassion.
* On-the-job training is critical for building skills and donor relationships: fundraisers with over 10 years of experience tend to stay longer in positions

Question 10

common entry points for fundraisers

Answer 10

 Accidental entry: Stumbling into fundraising through mission-driven interests or volunteering.
 Life changes: Switching careers after redundancy or shifting interests.
 Higher purpose: Leaving for-profit for more meaningful work in not-for-profits.