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Robert Hunter @ the Arts Consultants of Canada Seminar (Oct. 25/2010)

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Robert Hunter's presentation will outline the findings from a recent review of the Department's programs, explore observed trends and discuss how programs at the Department have evolved to ensure ...

Robert Hunter's presentation will outline the findings from a recent review of the Department's programs, explore observed trends and discuss how programs at the Department have evolved to ensure their continued relevance.

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    Robert Hunter @ the Arts Consultants of Canada Seminar (Oct. 25/2010) Robert Hunter @ the Arts Consultants of Canada Seminar (Oct. 25/2010) Presentation Transcript

    • Canadian Heritage Perspectives on Trends in the Arts Presentation by: Robert Hunter, Director Arts Policy Branch, Department of Canadian Heritage Arts Consultants Canada/Consultants canadiens en arts October 29, 2010
      • SETTING THE STAGE
    • Royal Commission on National Development in the Arts, Letters & Sciences (Massey-Lévesque) Massey-Lévesque Commission Report Canada Council for the Arts First Secretary of State – responsible for the development of arts in Canada NAC officially opens First national forum on cultural policy & Department of Communications Act Cultural Statistics Program and Capital Assistance Program administered by the Secretary of State’s Arts & Culture Branch
      • Canada Council Art Bank – investing in visual artists
      • Local Initiatives Program
      Canada Council Touring Office & Explorations Program Federal government’s arts & culture programs transferred from the Secretary of State to the Department of Communications Canadian Arts Council, (Canadian Conference of the Arts) Broadcasting Act National Arts Centre Act
      • National Museums of Canada Act
      • Canadian Film Development Corporation Act
      Council for Business & the Arts in Canada Federal Cultural Policy Review Committee (Applebaum-Hébert) Federal White Paper on the Copyright Act Arts representatives at the National Economic Conference Status of the Artist Act Cultural Initiatives Program, Department of Communications Major increase in federal funding for the arts 1950 2001 1960 1980 1955 1975 1985 1965 1970 1990 1995
      • SUPPORTING
      • THE ARTS
      The Department of Canadian Heritage, along with Canada’s major national cultural institutions, plays a vital role in the cultural, civic and economic life of Canadians. We work together to promote culture, the arts, heritage, official languages, citizenship and participation, Aboriginal, youth, and sport initiatives.
      • The Government of Canada, like other national governments, focuses its investments on professional not-for-profit artistic activity, mainly through:
    • The Arts Policy Branch and the Canada Council are two primary federal funding bodies that support the arts sector in complementary but distinct ways
    • CULTURE MATTERS
      • 3,923 Performing Arts Companies in Canada
        • 2,915 for-profit
        • 1,008 not-for-profit
      • 86% of Canadians attend at least one type of arts or cultural event per year
      • Canadians spend twice as much on live performing arts as on live sporting events
      • In 2003, artists and arts organizations contributed $2.51 billion to Canadian GDP
      • There are 141,000 artists in Canada
      • Canadians volunteered 74,000,000 hours for arts and cultural organizations
    • THE DESIGN
    • The Arts Policy Branch Key Roles and Responsibilities
      • 6 programs with annual budgets ranging from $390,000 to $33.8 million with a total budget of $122.7 M
      • Guide policy research on the arts
      • Legislative issues related to arts
      • Designate National Arts Service Organizations
      • Work with the National Arts Centre and the Canada Council for the Arts to realize their legislated mandates
    • Three pillars for a competitive arts sector
      • Creation
      • Training + Excellence
      • Primarily the responsibility of the Canada Council,
      • which unlike the Arts Policy Branch regularly
      • assesses artistic merit – is the art good art?
      • The Arts Policy Branch also supports
      • excellence and diversity through one of
      • its programs, the Canada Arts Training Fund .
      • Our goal is that Canada’s most promising
      • artists receive excellent training for national
      • and international careers in the arts.
      • Funding for arts training organizations
      • Annual budget: $24.1 million
      • 36 training programs in disciplines such as
      • theatre, music, and circus arts
      • Diverse range of training programs, from
      • Korean dance to Inuit sculpture to classical
      • European opera
      • Funding ranges from $25,000 a year for
      • an Afro-Caribbean dance program to
      • $3.3 million a year for the National
      • Theatre School
      • Access
      • Places + People
      • The Arts Policy Branch helps connect people
      • and the arts – helps Canadians access the arts
      • – through two of its programs:
      • Canada Arts Presentation Fund:
      • Funding for festivals and series presenters
      • Our goal is that Canadians have more
      • opportunities to access a wider variety of
      • the arts
      • Annual budget: $33.4 million
      • Over 600 clients presenting festivals and
      • artistic series in disciplines such as theatre,
      • music, film, dance, and literature
      • Over 220 communities reached across
      • Canada, from Toronto and Vancouver to
      • Minnedosa, Manitoba and Dawson City, Yukon
      • Funding ranges from $5,000 for smaller
      • festivals to $1 million for the Montreal
      • International Jazz Festival
      • Canada Cultural Spaces Fund:
      • Funding for infrastructure: renovating existing
      • arts buildings, constructing new ones, buying
      • specialized equipment like sound systems or
      • lighting boards, and conducting feasibility
      • studies for proposed projects
      • Our goals are that Canadians have greater
      • access to the arts (and to heritage) and that
      • artistic creativity has space within which to flourish
      • Annual budget: $30 million
      • 728 projects in over 250 communities since 2001
      • Support for theatres, concert halls, art galleries,
      • museums, heritage parks, arts centres, etc.
      • Funding ranges from $2,000 to $3,000 for smaller
      • purchases up to $2-3 million for major building
      • projects.
      Sustainability Partnerships + Business Models + Skills Development + Awards The Arts Policy Branch helps sustain the arts in Canada through two approaches: Legislation Status of the Artist Act , 1992 The importance of artists in Canadian society self-employed artists’ right to collective bargaining Income Tax Act In partnership with the Canada Revenue Agency designate national arts service organizations Program Our main program for sustaining the arts sector is the Canada Cultural Investment Fund… THIS PROGRAM WILL BE DISCUSSED IN GREATER DETAIL, BUT FIRST…..
    • WHY SUSTAINABILITY?
      • Arts organizations require management capacity, outreach capability, financial stability and community roots to support their chosen artistic vision.
      • This can be challenging – because the Arts have the highest personnel costs of all the Cultural Industries , despite the relatively low earnings of artists.
        • Percent of expenditures on personnel (salaries, benefits, contract workers, freelance payments):
      Source: Statistics Canada, various cultural industries surveys. Not-for-profit Performing Arts Heritage Book Publishing Film & Video Post-production Periodical Publishing Sound Record-ing Movie Theatres 57% 53% 38% 33% 28% 14% 14%
      • Doing business in the arts
      • The Arts Industries are characterized by a mix of tangible and intangible products, and these products are generally unique, i.e. not mass-produced or mass-distributed .
      • The commercial model of doing business, where the goal is to make a profit, works best when the cultural product in question can be mass-produced and mass-distributed ( Written Media, Film and Video, Sound Recording, Broadcasting ) . This model is however generally less successful, though not impossible, when the cultural product is unique, cannot be mass-produced, and requires the consumer to come to the product ( Heritage, Arts Industries , notably the Performing Arts ).
      Performing Arts & Festivals Focus on Production Consumer comes to the product (the recital, play, or opera) Revenues in part from ticket sales
      • Visual Arts & Media Arts
      • Focus on Creation
      • Specialized outlets (galleries, artist-run centres)
      • Revenues from sales to customers
    • The Performing Arts in Canada – Revenue Trends
      • In 2010, Canada was home to 1,008 professional, not-for-profit performing arts companies. They operate using three types of revenues: earned, public and private. From 1991 to 2006, the following was observed:
        • Earned revenue has historically hovered around 50% of total revenue
        • Over the15 years observed, the overall proportion of funding from all level of governments has decreased from 34% to 26%
        • Private funding has increased from 16% to 23%
      Source: Statistics Canada Performing Arts Surveys.
    • Good news – an indicator of financial health
      • Between 1991 and 2007, the financial health of Canadian arts organizations generally improved:
        • Average deficits got smaller
        • More Canadian arts organizations accumulated surpluses
        • Fewer arts organizations posted accumulated deficits
      1991 1992 1993 1994 1995 1996 1997/1998 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 Major Investments in Arts Source: Business for the Arts, Performing Arts Surveys.
    • Impact of the recession on the arts sector
      • According to Summer 2009 survey data from the Performing Arts Alliance, several detrimental effects were felt by Canadian arts organizations during the recession:
        • A majority of arts organizations reported diminished revenue in 2008-2009 from a variety of sources: year-end fundraising, corporate contributions, foundation support, and ticket sales.
        • Many organizations are forecasting a year-end deficit and have had to adjust their operations.
      • From Departmental monitoring and analysis, several trends emerged during the recession:
        • Subscription sales declined;
        • Endowment investments provided organizations with little or no return;
        • Corporate sponsors reduced or withdrew contributions; and
        • Some arts organizations avoided risky or unproven programming in favour of ‘sure hits’.
      • Despite these challenges, there is no evidence of closures of professional Canadian arts organizations due to the recession.
      • Arts organizations could be facing a situation where their endowments and donations continue to be reduced in the short-term. Nevertheless, endowment investments have begun a cautious recovery towards the beginning of 2010.
      • All cultural industries have been affected at different points of the value chain, to varying degrees of severity.
        • Some arts organizations reduced the number of performances or the number of different productions, planned to tour less, or opted for safe programming.
      • A MODEL FOR SUSTAINABILITY
    • Financial & Organizational Health Artistic Vision Opportunity for sustainability… requires a balance between:
    • Canadian Arts & Heritage Sustainability Program (2001-2009)
      • Objective: Strengthen organizational effectiveness, build operational and financial capacity of organizations in the arts and heritage sectors, and celebrating and supporting Canadian communities’ achievements in the arts and culture.
      • The program pursued the fulfilment of its mandate mainly through the following components:
      • Stabilization Projects – Award contributions to private, sector-led, multi-year stabilization projects, whose role is to provide technical assistance, deficit reduction assistance and working capital to arts and heritage organizations.
      • Capacity Building – Support individual arts and heritage organizations to produce strategic or business plans, develop revenue generation strategies, improve management tools and conduct market studies.
      • Cultural Capitals of Canada – Communities that have made arts, heritage and culture integral elements of community life are designated Cultural Capitals of Canada.
      • Endowment Incentives – Match funding from private donors to arts organizations’ endowment funds to a maximum ratio of 1:1.
    • IMPACT
    • Stabilization Projects Component
      • Engaging community support – a shared investment
        • Comprehensive, multi-year stabilization projects in 10 geographic areas supported to increase working capital and shore up business skills of eligible arts and heritage organizations.
        • Over 200 participating organizations.
        • Community leaders contributed time and expertise as trustees on boards of directors as well as invaluable insight from private sector.
        • Interviews have demonstrated that stabilization create synergies between general manager, the artistic director and the Board, thereby enabling the arts or heritage organization to move its vision forward.
      • Success Story
      • The Creative Trust
      • Project Goal: To support and strengthen Toronto’s mid-size, creation-based performing arts companies by assisting them in developing their planning and financial skills, achieving organizational and financial balance, and acquiring and maintaining a fund of working capital.
      • Duration: 2002-2008
      • Results after year 1:
        • 7 companies receiving matching deficit reduction grants or their first working capital awards .
        • Total revenues of all 11 participating companies increased by 6.3%, from
        • $14.9 million to $15.9 million.
        • Of the 6 companies that entered the program with accumulated deficits, total revenues increased by 15%. These same companies reduced their combined deficits by 47%.
        • All companies combined increased their private sector funding by 14.8% to $3.9 million.
      • Source: “The Canadian Arts and Heritage Stabilization Experience”, WME Consulting Associates, May 2006.
    • Cultural Capitals of Canada
      • Building sustainability at the local level
        • Since 2002-2003, there has been a total of 141 eligible applications from communities
        • of all sizes, and 37 designations have been awarded for a total of $26.2 million in
        • approved contributions.
        • In recipient communities, many activities undertaken in the year of designation have
        • been sustained even after federal support is no longer present.
        • Municipalities increase involvement in cultural policy development and further
        • integrate culture in municipal planning.
      “ You can do an awful lot with $2 million of federal money. You're not going to build stadiums with that kind of money but you can build relationships, said John Mahon, executive director of the Edmonton Arts Council, adding one of the lasting legacies from this city’s 2007 award is the commitment to connect newcomers to Edmonton's artists and art institutions .” Winnipeg Free Press 28 August 2009
    • Endowment Incentives Component
      • How it works:
        • Encourages arts organizations to strengthen their organizational and governance resources
        • Helps arts organizations build and diversify their financial resources
      • The resulting ripple effect gives arts organizations the opportunity to focus on their human and physical resources
      + “ The Canadian Arts and Heritage Sustainability Program is enabling us to build on the generosity of our donors to Increase our endowment to a level which is now substantially impacting the Citadel Theatre’s operating budget and helping us to remain a strong, vital organization. We greatly appreciate the opportunity to participate in the Program...” Penny Ritco Executive Director, The Citadel Theatre Edmonton, Alberta Cultural Affairs Sector 2007-2008 Annual Report
    • A Powerful Partnership Since 2001-2002, $149 million have been donated by Canadians to arts organizations’ endowment funds* From 2004-2005**, individuals alone have contributed $55.7 million (34% of total donations) * Based on eligible applicants ** The program started capturing the information in 2004-2005.
    • In 2009-2010, 66 applications received funding totalling $14.9 million from the program, matching $0.71 for every dollar donated by the private sector. Despite the global economic recession, the private sector donated close to $21 million to arts applicant organizations’ endowment funds, only 1% less from the previous year. Nearly half (46% or $9.6 million) was donated by individuals while corporations and non-government foundations donated 23% each ($4.9 million and $4.7 million respectively) – the remainder came from other sources. This significant financial commitment is a clear indication that Canadians and arts organizations continue to believe in the value of endowments. Endowment Incentives – coming together even in difficult times
    • Capacity Building Component
      • Strengthening Business Skills
        • From 2002-2003, close to 1,300 individual capacity building projects supported improved governance, financial self-sufficiency, marketing and fundraising activities.
        • Over 70% of these projects were for governance and fundraising.
        • A survey showed that once organizations addressed core areas such as governance or management practices, they felt better equipped to improve other areas such as financial self-sufficiency and audience development. For “one-off” projects, after working on just one competency, 90% of organizations felt ready to work on another.
      • The 2009-2010 fiscal year marked the final year of Capacity Building individual project support, with a reduced grants and contributions budget. In 2009-2010, the following was observed:
        • 93 requests for projects were submitted of which 66 were supported.
        • 35 projects for arts organizations and 31 for heritage organizations approved to improve management practices.
        • Over 41% of supported projects were related to improved governance, 29% to audience and membership development, 15% to management practices and 15% to financial self-sufficiency.
        • The federal investment in the capacity building of arts and heritage organizations totalled $1,688,286. This represents 42% of the total project costs.
        • For every $1 invested by CAHSP, $1.40 was invested by the recipient organizations and partners within their community to undertake organizational capacity building projects.
    • PEAK Capacity Building Projects – Decrease in Demand
    • Moving Forward – Building on Past Accomplishments
      • The Summative Evaluation of the Canadian Arts and Heritage Sustainability Program concluded that:
        • The program has successfully stimulated a cross-Canada focus on issues of sustainability and leveraged funds from other levels of government and the private sector.
        • There is a continuing need for such a program to strengthen the effectiveness, management and financing of arts and heritage organizations, and help them face new challenges.
        • The vast majority of organizations that were interested and eligible to participate and benefit from the Stabilization Projects component have already done so, as no new projects have appeared in the last four years. There is a general consensus that Stabilization Projects have completed their objectives and are naturally winding down.
        • The Department should build on the accomplishments of the program and develop a strategy to foster an environment for sustainable arts and heritage organizations collectively .
      Source: “Evaluation of Canadian Arts and Heritage Sustainability Program (CAHSP)”, Office of the Chief Audit and Evaluation Executive, Evaluation Services Directorate, February 2009.
      • ADAPTING THE MODEL
    • Canada Cultural Investment Fund
      • The Canada Cultural Investment Fund builds on the success of the earlier program by continuing to help improve the sustainability of the environment in which arts and heritage organizations operate.
      • The program objectives are to:
          • Help arts and heritage organizations build and diversify their revenue streams;
          • Strengthen their organizational capacity, business skills and competitiveness;
          • Assist them in being better rooted and recognized in their communities.
      • This will be accomplished through the following main components:
          • Cultural Capitals of Canada
          • Strategic Initiatives (new)
          • Endowment Incentives
    • Capacity Building for individual organizations Organization A A D C PCH B Organization A Organization A proposes project X Various partners involved so that organization A undertakes project X Organization A benefits from developing a business competency thanks to project X
    • Strategic Initiatives = broader impacts Various funding partners involved so that project X is undertaken A Organizations (a min. of 3) get together to propose project X Project X is completed and shared with many organizations B C Project X A D C PCH B
    • Moving to Strategic Initiatives
      • Community involvement
      • Provincial & municipal
      • governments; private/business
      • sectors; community arts
      • organizations; citizens
      Cultural Capitals of Canada Stabilization Projects Capacity Building
      • Business community
      • commitment
      • Private sector – business
      • leaders
      • Individual Projects
      • Arts & Heritage
      • organizations
      Endowment Incentives
      • Matching grants
      • Individuals; corporations;
      • foundations; beneficiary
      • organizations
      Cultural Capitals of Canada Strategic Initiatives
      • Collective initiatives with
      • broad impacts
      • Private sector; public sector;
      • not-for-profit sector; academia
      • Multiple partners to undertake
      • initiatives to strengthen
      • effectiveness, management and
      • financing of arts & heritage
      • organizations, and advance
      • cultural development at the
      • local level.
      Networking Initiatives
      • Local cultural involvement
      • Provincial & municipal
      • organizations; elected officials;
      • municipal professionals
      Endowment Incentives
      • Community involvement
      • Provincial & municipal
      • governments; private/business
      • sectors; community arts
      • organizations; citizens
      • Matching grants
      • Individuals; corporations;
      • foundations; beneficiary
      • organizations
      • WHY?
      • BECAUSE THE WORLD
      • IS CHANGING FAST
    • Renewal of major arts funding Renewal of major federal arts funding – a new approach 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Start of the global economic crisis Canada on the way to economic recovery The new millennium – Choices are abundant, audiences are diversifying, the marketplace offers more platforms to reach out to the world, collaborate and further develop relationships. Canada’s Economic Action Plan Major new federal funding for the arts
    • 96% of Canadians aged 12 to 17 use the internet 87% of Canadian Internet users connect to Social networking sites 13 million Canadians use Facebook
    • Strategic Initiatives Requests - What we have noticed already 2010-2011 45% of eligible projects are to streamline processes and use technology to improve efficiency 2011-2012 25% of eligible projects are to streamline processes and use technology to improve efficiency
    • THE WEEKEND CULTURE OPENED ITS DOORS TO ALL
    • Culture Days 2010
      • In September 2010, thanks to Culture Days, Canadians across Canada were invited to take part in arts and culture activities in their communities.
      • Over 1,100 organizations and/or partners worked together to open their doors to Canada. Hundreds of thousands of Canadians across Canada celebrated arts and culture in their communities during this first annual edition.
      • More than 700 Canadian cities and towns opened their doors and offered 4,500 free Culture Days hands-on classes, excursions, tours, demonstrations, seminars, panels and behind-the-scenes experiences, for free.
      • For the first time, the Department had to means to participate in this innovative, collaborative success. Through Strategic Initiatives, funding was provided to assist the development of a Learning Network, a marketing, communications and public relations campaign, a digital strategy and research on the impact of the initiative.
    • Culture Days – Connections A Mari usque ad Mare
      • ‘ Thinking’ arts enterprises
      • deserve
      • ‘ thinking’ arts funders
      • The Arts Policy Branch’s key challenge:
      • How do we continue to respond to the ongoing challenges of the sector?
      • Source: Lynn duFort and Kathleen Speakman, “Sustainability & The ‘Thinking’ Organization,”
      • VAST/APASF Presentation, 4 Nov. 2003