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VENTURACOUNTY ANd THE ARTS: IMPACT & OPPORTUNITY FOR COMMUNITY COmmUNiTYOUNdAiON SEpTEmbER2008 Cover: Well by Dave Rivas of COnTEnTS Tabl e Introduction ........................................................................▯..................1 Participation in theArts ........................................................................▯8 TheArts and the Economy....................................................................10 TheArts in Education........................................................................▯...19 Conclusions........................................................................▯...................24 Designed by: Elena Trevino Design in ArtsLIVE VEnTURA COUnTy Arts initiative and the Ventura County Community Foundation’s Community Response Fund among others.the Designed to strengthen local arts organizations through training and attracting new charitable capital and to highlight the depth of the art produced and enjoyed in Ventura County, this initiative will include the following: • Creation of a Advisory Council consisting of community leaders, arts organization leaders and staff, board members, patrons and field experts. • A multiyear grants program to highlight the art produced in Ventura County, with an emphasis on art made by VCCF and grants to individual artists will be made by the Ventura CountyArts Council, al be partner in the initiative. • for nonprofit Management, with an emphasis on key disciplines of audience development, fund Center development, marketing, strategic planning and planned giving. • Countywide convenings around topics of interest to the wider community of stakeholders. • Evaluations and publications. • Development of a new scholarship fund for emerging artists from Ventura County, to be housed at the • Development of an online community around issues relating to the arts, at www.artsliveinVC.org. by grants from The James Irvine Foundation, the Smith Hobson Foundation and the Fairburn Fund forossible Community Research at the Ventura County Community Foundation. We appreciate their support of this work, as well as the contributions from the Center for Leadership and Values at California Lutheran University, and Drs. Charles Maxey and Jamshid Damooei. Oxnard. Donated in part by the CarnegieArt Museum Cornerstones, Juan J. Gonzales of the Law Offices of Francis &Associates, HowardA. & Estelle Bern, andAmy Cherot. 1 The Museum of Ventura County plans completion of this $12 million expansion in 2010. The striking new structure will add 25,000 square feet and triple the original gallery space. Included will be a new children’s education center, classrooms, expanded research library and collection storage, and an event pavilion. The project architect is Russel Tyner of Houston/Tyner Architects. The museum is presently holding exhibits and events in their temporary storefront location at 89 S. California Street in downtown Ventura. www.venturamuseum.org. Ventura County And The Arts: Impact & Opportunity For Community n t r o d c n – A r tLIVE InV En t ur co u n tsyu rV Ey This study is the first step in a multiphase initiative to strengthen the arts in Ventura County, funded in part by The James Irvine Foundation’s Communities Advancing the Arts initiative. The Ventura County Community Foundation undertakes this project out of the belief that the arts are a vital aspect of the quality of life in a community and a bridge to strengthening communities in the midst of significant and rapid change. With its mission Hangman’s Tree by Susan Petty to promote and enable philanthropy to improve our community for good for ever, we believe that investing in the arts and working together to strengthen the artists and arts organizations that are part of our community’s fabric is an important step. 2 This study is intended to provide a base of information about the state of the arts in Ventura County, including the scale and scope of the arts (in all their variety and diversity), their economic significance, the nature and needs of arts organizations and artists, and participation in the arts and in arts educat▯ion. Follow-on phases of this project will include community engagement, training and capacity building, and fund development – all intended to strengthen the vitality of our arts organizations and to deliver on their tremendous potential for a more engaged, more diverse and more successful arts community. As additional data is gathered in the project and as other activities and events are planned, information will be posted on theVentura County Community Foundation Website (at www.vccf.org, and www.artsliveinVC.org) and on the web site of the Center for Leadership and Values at California Lutheran University: http://www.cal- lutheran.edu/CLV/center/index.php. A rE n o n p r Itf Ar t so r gAnIzAtIo n sAt r Isk ? thE IrV InE fo u nA dtIo n p Er s Ec tI V E Since its inception in 1937, The James Irvine Foundation has pursued what it terms a “sustained commitment to the arts and cultural organiza- tions” across California. Surveying the broad landscape of the arts in the state today, the Foundation has found reasons for both celebration and concern. In a September 2006 working paper, they reported that, while California is a wellspring of artistic and cultural innovation and creativity, its arts organizations, and particularly its non-profit arts organizations, now face real challenges to their future viability. If California’s non-profit arts sector is truly “at risk,” the implications are serious.As Irvine’s research consultants reported, for the past 40 years California’s nonprofit cultural organizations have been understood by foundations and government leaders as the primary delivery mechan- ism for the cultural experience. However, these organizations now face “major, permanent structural changes brought on by technological advances, globalization and shifting consumer behavior.”As a result, the nonprofit sector may have reached or be approaching a “breaking point,” where it must adapt or become increasingly irrelevant. If such change is indeed occurring, what factors are driving it? We must consider these: R. E. by John nava, 2005, electronic jacquard • Demographic changes that may shift interest in and support away from more traditional art forms and organizations. • Structural changes in the economy which result in less public funding for arts and cultural initiatives, and declining real wages among many of the employed who are arts “consumers.” • Technological changes that are profoundly changing the music and other entertainment sectors putting nonprofit arts and cultural organizations increasingly into direct competition with commercial enterprises. • The continuing struggle to provide arts education in the public schools in sufficient scale and quality to develop longer-term interest in, appreciation for, and participation in the arts. If these threats are real, how well prepared are nonprofit arts organizations’members, managers, volunteers and staff to adapt, to find new, more appropriate “business models,” to rejuvenate their organizations and keep them viable? What do they see as their own needs for professional development and more effective management? Out of these concerns, The Irvine Foundation has launched a broad effort to examine these issues and questions across California. Through their support, we have been able to undertake a study of the arts in Ventura County. This report presents our initial findings, from which we anticipate la▯unching a broader discussion in Ventura County among all the stakeholders for whom the arts are a vital part of community. 3 SCALE OF THEARTS In THE & VEnTURA COUnTy S cope What constitutes the arts? To study the arts in Ventura County, we needed first to define the term. This is, of course, no easy task. The Stanford Encyclopedia of Philosophy begins its attempt with this qualification: “The definition of art is controversial…” Rather than becoming mired in this, our approach was to define “the arts” broadly, including at least all of the elements depicted in the figure below, and likely many others as well. We view this not as definitive, but as a place to start. Arts sc oE An scA L Eo f tAr t s Performing Arts Music every part of the county. They embrace a wide variety of artistic forms, engage is a rich variety Danceer of activities, involve many staff members, board members and volunteers in arts related activities, Opera and entertain and educate countless residents and visitors each year. Collectively the county’s arts Film organizations constitute a vital and vibrant cultural and community resourc▯e. Fine Arts It is not a simple matter to find out even how many arts organizations there are. In our efforts Textilecture We are confident there are many, many more and we are continuing the work of cataloguingizations. Comics them. On the basis of the 137 arts organizations that participated in our project survey, we Electronic Median begin to construct a portrait of the scope and scale of arts in the county.▯ Avant-Garde Music arts span all sectors of the economy, involving nonprofit organizations, businesses, and Fine Arts arts organizations are nonprofit organizations.respondent sample, almost two-thirds of the Drawing Photography Filmmaking Printmaking Computer Art Video Art Fine Arts Fiction Old Literature Essays 4 SCALE OF THEARTS In VEnTURA COUnTy 4 Dancers by JanetAmiri • To fill Ventura County with music, entertainment and the enjoyment of life. • To foster economic revitalization and cross-cultural understanding. • To preserve and promote: art education, the religion, Hungarian culture, Chinese calligraphy and brush painting, Scotland, our city, a capella barbershop harmony, west coast swing dance, classical guitar, decorative painting and Heifetz’s love of teaching. • To educate about the arts, music, stone carving, dance, the art of writing, painting, drawing skills, culture, the cinematic and theatrical traditions. • To serve children, the community, seniors, infants, students 5-20, young people, artists, women, youth who are mentally and physically challenged. • To provide instruction, digital remastering, photographic studio time, a place for visitors to contemplate their roots, guitar lessons and repairs, socializing experiences for seniors, unstructured sketching time with live models, free art programs for children, a spiritual journey, the publication of choral music, fully licensed film clips for youth character education. • Arts light the candle of imagination! 6 6 PARTICIPATIOn In THE Arts Many believe that participation in the arts is central to creating the “social capital” that fosters the quality of community life. Beginning in 1982, there have been periodic national surveysofartsparticipationtomonitor trends and to help identify ways in Life by Schaf which participation can be increased over time. one-third of adults had attended at least one jazz, classical music, ope▯ra, musical, play or ballet performance during the prior 12 months. Counting all forms of and types of participation in▯ the arts examined, 76 percent of adults, or 157 million people, made the arts a part of their lives over the same one-year period. The complete study investigates different forms of participation, including viewing or listening to performing arts on television or radio, reading literature, visiting historical sites, performing and creating art, owning art and taking arts classes. Forms of Participation in the Arts - U.S.Population-2002 Watched Attended Performed PerformingArts 51.8% 31.7% 12.6% VisualArts 26.3% 41.8% 38.9% Literature 18.2% 46.7% 7.0% AnyArtsActivity 56.0% 65.1% 43.9% Source:National Endowment for theArts,2004 A Rand study notes that the research literature on participation in the ▯arts generally falls into two categories: empiri- cal studies describing the patterns of participation behavior, and theoretical studies seeking to explain that behavior. nationally, rates of participation vary with the form of participation (watching versus attending versus performing), and by the type of art (more adults attend musical plays, for example, than non-musical plays, opera or ballet. 8 8 THE ECOnOMy & Arts In 2007,Americans for theArts released the results of the third in a series of studies intended to document the nonprofit arts and culture industry’s impact on the nation’s economy. That report, TheArts 1 Mean Business, concluded the following: Gale Lajoye in Snowflake performance, Performances to Grow On Spending by California • America’s nonprofit arts and culture industry generates NonprofitArts $166.2 billion in economic activity every year - $63.1 Organizations,2004 Study billion in spending by organizations and an additional $103.1 billion in event-related spending by audiences. Expenditures • Nationally, this economic activity supports 5.7 million (in $ millions) jobs and generates $29.6 billion in government revenue. • Arts organization spending grew 24% between 2000 and Payroll $1,046 2005 and audience spending grew 28%. Services $344 In California, nonprofit arts and cultural organizations are an Goods $164 important part of the state’s economy. Estimated at 10,000 Non-Personnel strong, California’s nonprofit arts organizations attract an Operating $295 audience of 71.2 million and bring $5.4 billion to the state’s Travel $28 economy, including 66,300 full-time and 952100 part-time jobs, Artistic Property $46 and generate nearly $300 million in state and local taxes. The 2004 study cited here reported total spending by California non- Capital Expenditure $183 profits arts organizations as $2.2 billion, a 300% increase over a Grantmaking $96 decade earlier. Total $2,202 Where does this money come from? About half is generated by Source:CaliforniaArts Council the organizations themselves through ticket sales, fees, services, tuition, and investment income. The other half is provided through financial contributions from individuals, corporations, government and foundations. It is also estimated that attendance at arts events generates another $588 million in off-site spending. Th ArTM eABu s ,s MeAn sf oArT, As hgoD. c., 2007. 10 2ThArT:A oMpeTiTADvAnTAg cAl i AiiAl i AArTco u ,2004.1-2. 10 Over the past decade the number of nonprofit arts organizations inVentura County registered with the IRS has grown from 213 to 312. In the same period (1996 to 2008), the number filing 990’s increased from 84 to 158. This represents about 10% of all nonprofits filing with the IRS from▯ the county and about 5.8% of nonprofit revenues.As the chart above indicates, the total revenues of these arts organizations have increased dramatically over this period, from $10.6 million in 1996 to over $74 million in returns sampled in early 2008. The assets of these organizations grew also, though at a some- what slower rate. To include private sector businesses and employment, we can refer to the tabulations created for the 23rd and 24th Congressional Districts byAmericans for theArts. While neither district is exclusively Ventura County, together they present a picture of the extent of arts-related business in this region. The data includes categories falling under the broader concept of “creative industries,” so that the readers can get a general sense of activity levels using a narrower or broader definition of “theArts” as they choose. Another federal data source identifies businesses with no employees that filed IRS income tax returns. Generally, these are self-employed individuals. For Ventura County, within the larger category ofArts, Entertainment and Recreation, we find about 2300 individuals self-employed as performance artists, independent artists and writers who collectively generated about $58,000,000 in 2006 (the Zorganic Form I - Activity at transitimost recent year available), or about $25,000 apiece. point-defined space by Bill McEwen G ROWTH IN V ENTURA C OUNTY A RTS O RGANIZATIONS ' IRS 990 F ILINGS $150,000,000 $100,000,000 $50,000,000 $0 1996 2000 2004 2008 � Total Revenue from 990's � Assets from 990's 2008Arts-Related Businesses and Employment in California Congressional Districts 23 and 24 Businesses Employees 23rd 24th 23rd 24th PerformingArts 339 1439 375 1293 VisualArts/Photography 757 2056 650 1713 Arts Schools and Services 68 160 82 234 Museums and Collections 58 495 37 168 Design and Publishing 617 2371 547 1670 Film,Radio andTV 296 1574 338 4204 Totals 2135 8095 2029 9282 Source:From Dunn and Bradstreet compiled byAmericans for theArts. 12 12 h o w Ar t o r gAnIzAtIo n fu n dthE Ir opErAtIo n s How do Ventura County arts organizations finance their activities? We asked our survey respondents to indicate whether they employ one or more ways of generating the financial resources to finance annual operatio▯ns. Each of these sources proved to be important. Three-quarters of the organizations raise money through sales, over 60% have support from one or more types of external organizations, and almost 60% engage in annual fund raising activities for operations and/or endowment. If we look only at the nonprofit organizations in the respondent sample, we see roughly the same incidence o▯f sales and fees as in the overall sample, but as one would expect, higher utilization of annual fundraising activities. Funding Methods in Nonprofit Arts Organizations Funding Method Number Percent Ticket Sales,Registration Fees,Etc 63 74.1 Raise Funds for Endowment 26 30.6 Raise Funds for Current Operations 48 56.5 Receive Funds from Charitable Organizations 37 43.5 Receive Funds from Government 32 37.6 Ventura Music Festival Orchestra. Board member Virginia norris “guest conducting.” 14 14 As a first approximation, we conducted two economic impact analyses, the first using the flow of revenue to nonprofit arts organizations in the county referred to earlier in this section and the second, based on the business establishment and employment statistics reported earlier in this section. An economic impact analysis traces spending within an economy brought about by an economic activity. It measures the cumulative effects of the spending that a specific activity generates. The overall economic effects include: • Direct effects - Considering that revenue in an industry is indicative of the value of the output for that industry, direct effects show how expenditures stemming from an industry can create jobs and add to the production capacity of a region. • Indirect effects - The economic activity generated among the region’s businesses to meet the industry demand. • Induced effects - The effects of expenditures made in the county by employees of the industry. We used IMPLAn (ImpactAnalyses for Planning), a regional Teal Rowe in her glass studio input-output analysis, to identify and measure the economic impact of the project. We report two aspects of that analysis here: the total economic impact of these arts organizations on the county’s economy based on the revenue data indicated in the nCCS’s 2008 reporting and the change in impact between 1996 and 2008 reports. Fluid Green by Teal Rowe Data FromVentura CountyArts,Humanities and Cultural Organizations IRS Filing,1996 to 2008 1996 2000 2004 2008 # of Registered Organizations 231 256 301 312 # Organizations filing 990’s 84 93 122 158 Total Revenue from 990’s $10,648,496 $19,156,630 $41,260,566 $74,262,157 Assets from 990’s $25,519,344 $23,760,150 $46,445,080 $76,319,449 Source:From Dunn and Bradstreet compiled byAmericans for theArts. iMplAn is A c oMp uTe rs o fT WAr epAc kAg eThATc o n eu r e sf o resTiMATingl o To uTp uT MoDe l sAnD As s o cAiTeD . h eAc ro yM is f iMpAcTAnAly s e sAplAn n igiMplAn W As o r i g iAnl lyDevelopDu.s. fo r sse rv i cien c o o p eArTi ofeDe rAeMe r g e y AnAg - Me nA g e n c yAnD u.s. epArTMenT o fThinTe r irsBu r eAu lAnD M AnAg eMe nT To AssisT in lAnD AnD r eeAnAg eMe nT p lAngsi n 1993, Th e iMplAn sysTeM hAs BeenDevelopDeu nDe re x c l u sTs By ThMei n n e Mp lAng ro upn . (TillWATe, Mi n n e )Wh i c hlicenseAsnD DisTriBuTes Th e s o fT WAr eTo scsu r rnlyThereAr eh u nDr eDs o flicensDeu s e u niTeDsTATes i nui n gu n i v ,g ov e ne nT Ag e nsAnD p r iAvTe c oMsAn i e 16 cenTer f oleA De r spnDivAl u e sis A licensDeu iMplAn f s o fT W.r e 16 As the table shows, arts-related businesses support nearly 20,000 jobs in the region. The direct contribution of these businesses to the regional output amounts to more than $1.2 billion. The overall impact on the regional output is nearly $2.1 billion (by including the indirect and induced impacts). These businesses together pay more than $192 million in the form of various taxes to different branches of the government, out of which more than $52 million is paid as indirect business taxes. Taken together, the arts related nonprofits and businesses contribute about the same amount to the regional economy as Ventura County’s agricultural production, construction or wholesale trade industries. These are first estimates.As this project goes forward, we will be able to construct a fuller accounting of the economic impact of art and art-related organizations across the entire spectrum: for profit, nonprofit, and government-sponsored/funded. Ventura County Ballet Company, A Midsummer Night’s Dream Economic Impacts of 2008Arts-Related Business in California Congressional Districts 23 and 24 Direct Indirect Induced TOTAL Output Impact $1,240,925,843 $529,803,232 $314,674,277 $2,085,403,362 Indirect Business Taxes Impact $14,078,165 $17,497,103 $20,869,340 $52,444,608 Employment Impact 11311 5240 3143 19,695 As Employee Proprietary Household Indirect Tax Impact Compensation Income Expenses Enterprises Business Tax TOTAl $21,000,461 $4,268,911 $96,071,117 $18,657,840 $52,444,608 $192,442,937 Henry IV, Kingsmen Shakespeare Company, 2008 18 4sA Mp l i n gMeTh oDs M Ay c r eAlp in TheseT Wo filesBuT We Do n oT BelievecTi o nTo Be ATA s icT levlfAi n Ventura County Ballet Company, A Midsummer Night’s Dream 18 A growing body of research suggest that arts education is valuable not only in and of itself, but because it stimulates and aids other aspects of learning and educational development.A 2005 publication titled Critical Evidence reviewed over 60 such studies and reported evidence that arts education is associated with higher standardized test scores (e.g. SAT), and improvements in six other areas related to learning: • Reading and language skills • Mathematical skills • Thinking skills • Social skills • Motivation to learn • Positive School Environment This same study also expresses the concern that while, “we celebrate the arts for the value they Wolf and Sheep Kissing by Elisse Pogofsky-Harris add to learning and to life, study of the arts is quietly disappearing from our schools.”7 Advocates of arts education report with some optimism that the provisions of the federal no Child Left Behind (nCLB) provides the arts in the schools with “equal billing” with reading, math, science and other “core disciplines.” Forty-nine states have some content and/or performance standards for one or more art forms; 43 states require schools or districts to provide arts instruction. California’s Education Codes 521210 (grades 1-6) and 51220 (grades 7-12) stipul▯ate that “visual and performing arts, including dance, music, theater, and visual arts, with emphasis upon development of aesthetic appreciation and the skills of creative expres- sion” shall be in the adopted courses of study. 2007-2008 Enrollments in Classes -Ventura Public Schools Subject Number of Classes As % of # of English Enrollment As % of Enrollment Classes in English English 2967 100% 80522 100% Mathematics 2251 76% 62535 78% Art 381 12% 12283 15% Dance 22 1% 721 1% Drama 119 4% 3681 5% Music 278 9% 9286 12% AllArts 800 27% 25971 32% Source:California Department of Education 7 20 sAnDrAs. rupper, r iTi ev iDe : oW Th A rTB enefTsTuDe nAc h i e v, ATi o nAsseMBly osTATeArTsA g e n,2006. 20 ORGAnIzATIOnSAnD MAnAGEMEnT Arts In the introduction to this report, we reviewed the challenges and issues that nonprofit arts organizations face on the basis of research sponsored by The James Irvine Foundation. The nonprofit arts sector is changing and increasingly competitive, the report added, but its managers are not being prepared to respond strategically and effectively. Among the skills needed to do so, the advocacy, marketing and branding, and capital formation and fundraising.d One goal of theArtsLIVE in Ventura County initiative is to increase the level of training and professional development for arts organizations through the through the Ventura County Community Foundation, we asked ourVenturaveloped County arts organization survey respondents to identify the areas in which they felt they needed assistance. Danza Azteca Cuauhtemoc, Veronica Valadez 22 22 In t h Is InItIAL Lo o kAt o u rAr t s - rELA tEd o r g AnIzAtIo n swE fIn d : • nonprofit, business and public sectors, employing thousandshe of people, engaging over 7,000 volunteers, providing thousands of events and reaching hundreds of thousands of audience members and participants each year. • The county’s IRS-reporting nonprofit arts sector alone contributes over $120 million annually to the economy and produces revenues equal to about three-quarters of those in the nonprofit education and ▯ higher education sectors. • In the 23rd and 24th U. S. Congressional Districts, the totality of the arts generates 20,000 jobs and $2 billion in direct and indirect economics effects – metrics that are on a par with Ventura County’s agricultural production, construction or wholesale trade industries. • Arts organizations are enduring, but also emerging; preservers of culture, but also innovators and agents of change; accomplished, but also aware collaboration and overall effectiveness.r fundraising, marketing, networking, Icon by Gordon Punt In t h E foLLow -o n p h AsEs o f t h E A r t LIVE p r oEjc , wE wAn tto m o r E f uL y u n d Er s tn d An d d o c uE mn t: • The full numbers, identities and contributions of arts organizations of all kinds that serve Ventura County communities, visitors and residents. • How arts organizations are impacted by changing creative, communications and marketing technologies – how they are adapting to these changes and what opportunities exist to be more effective users of these technologies. • What sustainability means, and how community and public-private collaboration can bring that closer for local arts organizations. • What the “new arts” are, and are becoming - how they serve both the young and senior populations, and how they can strengthen communities. fInA Ly L, t h r o u gthhE o n -g oIn g o u tErA c h o f t hE A r t LIVE InItIAtIVE , wE ExpEct to : • Strengthen the capacities of arts organizations through education, communication and training, and the raising of new charitable capital. • Raise the visibility of the arts and stimulate artistic creativity through grants, scholarships and convenings, with an emphasis on youth, seniors and traditionally under-represented populations, and on the role of living artists. • broadly defined, at www.artsliveinVC.org.gue” and web-based networking system within the arts community, 24 We express our sincere appreciation to the 137 arts- related organizations that have so far participated in our survey and we are hopeful that others will do so as they become aware of the on-goingArtsLIVE project. Organizations wishing to participate should contact the California Lutheran University Center for Leadership and Values at www.callutheran.edu/CLV. Instructions for participating in the survey will be posted on this website. Charles Maxey, Ph. D. Jamshid Damooei, Ph. D. California Lutheran University Center for Leadership and Values www.callutheran.edu/CLV Medusae the Jellies installation by Gerri Johnson McMillin 25 V e n t u Cao u n t y C o m m u n iFtoyu n d at i o n 1317 Del norte Road, Suite 150 Camarillo, CA 93010-8504 805-988-0196 fax 805-988-3397 www.vccf.org Ventura County Ballet Company, The Nutcracker Suite. Dancer, Taylor Montgomery and the Fairburn Fund for Community Research at the Ventura County Community Foundation.on Foundation
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