chapter 2: introducing a culture of P in art orgs

Question 1

Traditional roles in art orgs

Answer 1

traditionally, fundraising was isolated as the development director’s job. Other roles (e.g., musicians, actors, curators) were not involved in fundraising efforts.

Question 2

• Shift to Shared Fundraising Responsibility

Answer 2

now, every employee plays a role in fundraising. Fundraising is now seen as everyone’s responsibility. This approach promotes a culture of philanthropy, essential for organizational sustainability.

Question 3

Philanthropy vs. Fundraising:

Answer 3

• Fundraising: Short-term, transactional, technique-focused (e.g., soliciting donations).
• Philanthropy: Long-term, values-driven, focused on building relationships and improving the social infrastructure of communities.
• Development: Continuous relationship-building process aligned with the institution’s mission, aiming to sustain long-term support for the organization.
  o Culture of Philanthropy: Emphasizes helping, giving, and relationship-building, with money as a means to support a cause.
  o Culture of Fundraising: Focuses on raising money through specific techniques and often isolates fundraising responsibility to one department, leading to staff burnout.

Question 4

culture of philanthropy

Answer 4

focuses on engaging everyone within the organization, not just the development team, to cultivate relationships that support the institution’s mission.  A culture of philanthropy involves everyone recognizing the importance of building reciprocal relationships to raise resources.
 Key Insight: Organizations should focus on relationships with donors as contributors to the common good, beyond financial contributions.

Question 5

Organizational Culture

Answer 5

 Defined as the personality of the institution, based on unwritten rules, behaviors, and relationships.
 Influenced by external factors such as social justice movements, the digital revolution, and the COVID-19 pandemic.

Question 6

 Benefits of a Philanthropic Culture:

Answer 6

• Shared fundraising responsibility leads to less turnover and more sustainable success.
• Promotes trust, cooperation, and engagement across all organizational levels, leading to better fundraising results.

Question 7

How to Build a Culture of Philanthropy in Arts Organizations. Key Elements:

Answer 7

• effective communication
• metrics and evaluation
• structural changes
• recalibrating the communication style
• gratitude and transparency

Question 8

effective communication

Answer 8

 All staff and board members must understand and be able to articulate the org’s mission to donors and stakeholders.
 Regular discussions about the mission foster a common understanding and help engage internal and external audiences.

Question 9

metrics and evaluation

Answer 9

 Broaden the definition of success beyond financial goals to include engagement, participation, and donor relationships.
 Evaluating engagement through metrics like event attendance and social interactions with donors helps assess progress towards building a philanthropic culture.

Question 10

structural changes

Answer 10

 Moving from hierarchical structures to more collaborative, ecosystemic models allows better alignment of fundraising with other organizational activities (e.g., marketing, programs).
 Leadership roles, such as a Chief Advancement Officer, coordinate efforts across departments to ensure holistic stakeholder engagement.

Question 11

o Gratitude and Transparency:

Answer 11

 Publicly acknowledging and celebrating donors fosters a culture of appreciation and motivates others to give.
 Transparency about how donations are used builds trust and deepens donor relationships.

Question 12

recalibrating the communication style

Answer 12

 Orgs should create personal and engaging communication strategies, making donors feel part of the community.
 Social media and digital platforms are crucial in expanding reach and deepening donor relationships.

Question 13

Case study: Boston Symphony Orchestra (BSO):
 Every internal group, including musicians, participates in fundraising efforts.
 A strong culture of philanthropy fosters board involvement, internal cohesion, and sustainable financial support.

Answer 13

Case study: Boston Symphony Orchestra (BSO):
 Every internal group, including musicians, participates in fundraising efforts.
 A strong culture of philanthropy fosters board involvement, internal cohesion, and sustainable financial support.

Question 14

The Role of the Board in Building a Culture of Philanthropy

Answer 14

• Leadership’s Role:
  o Board members and CEOs are responsible for setting the tone for philanthropy in the organization.
  o Leadership should share their philanthropic stories and integrate fundraising into board meetings.
• Fostering Relationships:
  o Encourage interactions between board members, artists, and staff to create a mutual understanding of their roles in supporting philanthropy.
  o This collaboration strengthens internal bonds and helps align organizational activities with fundraising goals.
• Avoiding Role Confusion:
  o Boards should avoid overstepping into management roles.
  o Clear communication and mutual respect between boards and executive teams are essential to prevent governance issues.
• Board Composition:
  o Boards should reflect the diversity and needs of the communities they serve.
  o Involving private sector members and ensuring alignment with the institution’s mission is key to long-term success.
  Case Studies:
• Teatro alla Scala (Milan):
  o Example of successful private-public collaboration.
  o Development department focuses on donor engagement, creating experiences that allow donors to feel deeply connected to the institution.

Question 15

2.3.2 The Role of Development Staff in Building a Culture of Philanthropy
Transition in Development Roles:

Answer 15

 Arts institutions shifting towards a culture of philanthropy require development staff to move from focusing solely on soliciting gifts to adopting a strategic and relational approach to fundraising.
 Development staff act as facilitators, advocates, and stewards in donor-centered organizations, playing a broader role than just fundraising.

Question 16

Key Skills for Development Staff:

Answer 16

 Artform Knowledge:
* knowledge not only about the institution’s mission but also in the art form and field they represent.
* Understanding donors’ interests in the broader arts field (e.g., opera, theater) helps in building strong connections with them.

 Relationship-Building Skills:
* Developing long-term relationships with donors is crucial.
* Skills such as emotional intelligence (self-awareness, empathy, discipline) help fundraisers understand and connect with donors, fostering trust and long-term support.

 Leadership Skills:
* Development leaders should be able to communicate a vision, initiate change, and build internal and external partnerships.
* They need to align fundraising strategies with the organization’s goals, focusing on what they can influence, like stakeholder behaviors.

 Management Skills:
* Strong managers can effectively implement plans, inspire donors, and lead their teams.
* Administrative competencies like managing processes, data analysis, and AI integration are becoming more important in today’s competitive environment.

 Analytical Skills:
* Analyzing both internal and external resources is essential to understand the institution’s capacity for fundraising and to identify obstacles.

 Planning Skills:
* Balancing planning time is crucial.
* Too little planning can lead to missed opportunities, while too much planning can cause delays or paralysis.

 Implementation Skills:
* Fundraisers must execute plans efficiently, adjusting benchmarks if necessary based on changes in the external environment.

Question 17

Development Staff as Culture Builders:

Answer 17

 Effective development directors cultivate a shared awareness of the importance of philanthropy across the institution.
 By promoting the skills and roles that bring fulfillment and meaning to fundraising professionals, development staff can make philanthropy a strategic asset for organizational growth.

Question 18

Case Study: Developing a Culture of Philanthropy at Tanglewood Music Festival

Answer 18

 Initial Challenges: Fundraising at Tanglewood was historically transactional, with donors given perks (based on their contribution levels. While successful at raising money, this model did not engage donors deeply enough to secure significant investments for capital improvements or new projects.
 Strategic Shift: Tanglewood convened a large committee of donors, board members, artists, and local leaders to envision the future of the festival. A master plan emerged, focused on creating the Tanglewood Learning Institute (for adult cultural education) and addressing the site’s deferred maintenance issues.
 Campaign Success: With widespread buy-in, the campaign raised $72 million to transform Tanglewood. The shift to a culture of philanthropy was fundamental to the success of the campaign, demonstrating the power of strategic relationship-building over transactional fundraising.

Question 19

Challenges in Developing a Culture of Philanthropy in Arts Organizations

Answer 19

• Increasing Competitiveness in Fundraising:
  o There has been a proliferation of not-for-profits competing for philanthropic support, along with competition from sectors like sports, healthcare, and education.
  o Finding ways to connect cultural institutions with other sectors (e.g., education, healthcare) can help attract new donors.
• Audience Demand for Authenticity:
  o Contemporary audiences, especially younger generations, seek authentic and relevant cultural experiences.
  o Arts institutions must focus on authenticity and accountability to secure philanthropic support.
• Rising Reliance on Contributed Income:
  o The COVID-19 pandemic has accelerated the trend of decreasing earned income and public funding, making arts organizations more dependent on philanthropy.
  o Wealth concentration among a small group of donors can lead to outsized influence over artistic decisions.
• Impact of Social Justice Movements:
  o Movements like #MeToo and social justice campaigns have shifted expectations for cultural institutions to address equity, diversity, and inclusion (EDI) in all areas, including fundraising.

Question 20

2.4.1 EDI’s Impact on a Culture of Philanthropy in Arts Organizations

Answer 20

• Historically Low Focus on EDI in Fundraising
• Board and Staff Engagement with EDI: Boards must set an example for the institution by addressing EDI in key areas of oversight (strategy, governance, talent). Staff need training on EDI, and larger institutions are increasingly hiring Chief Diversity Officers to oversee EDI efforts across departments.
• Inclusive Programming: Programming must reflect the community’s demographics, not just European traditions. By presenting diverse artists and programs, institutions can attract more diverse audiences and donors.
• Challenges in Donor Diversity: Most institutions still lack diversity among their donors and staff. Development departments are under pressure to meet fundraising goals, making it difficult to focus on EDI without structural changes in how success is evaluated.
• Incorporating EDI into Fundraising: institutions must revise evaluation criteria for development staff to include EDI considerations. Leadership and existing donors can influence the institution by promoting and supporting EDI initiatives in all areas, including fundraising.