ArtReach proposes leasing art from museum inventories to corporations to generate revenue for museums. It interviewed 30 art and cultural professionals from 12 museums and 25 companies and organizations. The program would loan art under $10k to corporate offices that meet environmental standards, with insurance and installation support provided. Museums would share an average of $36k annually in profit. This could help support more faculty grants or prevent staff layoffs at museums struggling with budget cuts. The goal is to bring art to more community spaces with social impact.

1. ArtReachCarey Cheng, Lauren Kramer, Jasmine Kwong, Noorjit Sidhu
Source: Art Rental Collection, Allen Memorial Art Museum, Oberlin College

2. “People who spend more time with art have more profound relationships
with it.”
-- Annie Morse, Art Institute of Chicago

3. ArtReach leases art museum
inventories to corporations

4. $850M
Source: Chicago-area Museums Economic Impact, http://www.aam-us.org/advocacy/resources/economic-impact-statement/samples.

5. 78% have financial concerns
Source: Museum Associations, “Cuts Survey 2015,” December 2015, http://www.museumsassociation.org/download?id=1155642.

6. 97%
Source: Interviews with museums.

7. Revenue
Outreach
Education
Staffing

8. Source: http://www.corporateartbrief.com
Signaling Success
Sophisticated Culture
Corporate Citizenship
Dynamic Workplace
Creativity, Innovation

9. Signaling Success
Sophisticated Culture
Corporate Citizenship
Dynamic Workplace
Creativity, Innovation
Professional Services
Blue Chip Companies
Technology Firms

11. 30 Art &
Cultural
Professionals
(12 Museums)
Chicago
New York
San Francisco
Miami
25
Companies &
Organizations

13. High
Reach
Low
Reach
High
Quality
Low
Quality
ArtReach
Museum
Rental
Program
University
Rental
Program
Art in
Embassies
Galleries
Corp. Art
Consultants

16. Insurance & Liability
$50

17. 10/12
Months
$52k AVERAGE LOAN SIZE & DURATION
3%
SERVICE FEE OF VALUATION
$10k $36k
30%
% SHARED PROFIT WITH MUSEUM
AVG YEARLY $ EACH MUSEUM GETS

18. $1500
Labor Costs per Loan
Source: Art Rental Staff, Allen Memorial Art Museum, Oberlin College
$1067 $12k
INSTALLATION + SHIPPING

20. Carey Cheng
Team Lead
MBA
Non-profit project
management
Fundraising
Lauren Kramer
Corporate Strategy
MBA
Human Resources
Arts Foundation
Fine artist
Jasmine
Kwong
-Psychology
Lab Manager,
University of
Chicago (9
years)
-Special Event
Chair, Museum
Jasmine Kwong
Museum Relations
MBA
Special Event Chair,
Museum Council, MoCP
Photographer
Art Collector
Noorjit Sidhu
Legal & Contracts
JD
Startup Partnerships
strategy
Venture financing

23. $150K
$50K from SNVC: 25K working capital +
25K two pilots: Art Exhibits, Receptions, Curator Talks
$100K from VC: Conversation with Chicago Ventures

24. ArtReach
Bringing the museum to the people
“This is a 21st century idea
for a 21st century revenue
line that will save
museums.”
-- Museum of Contemporary Art
Joanne Carson, American, b. 1953. Heaven, 1981. Oil, wood, and mixed media. 84 x 103 x 27 in. (213.4 x 261.6 x 68.6 cm)

25. Appendix

26. 1. Bill Lynerd, Smart Museum
2. Sara Hindmarch, Smart Museum
3. Tony Hirschel, Smart Museum (formerly)
4. Karen Irvine, Museum of Contemporary
Photography
5. Canice Prendergast, Booth art collection
6. Gil Stein, Oriental Institute
7. Kiersten Neumann, Oriental Institute
8. Mark Alvey, Field Museum
9. Brett Balogh, SAIC
10. George Martin, Art Institute of Chicago
30 interviews with art & cultural professionals (12 museums)
11. Andy Simnick, Art Institute of Chicago
12. Annie Morse, Art Institute of Chicago
13. Emma Waterman, Art Institute of Chicago
14. Mattias Herold, Museum of Modern Art (formerly)
15. Ariel Greene, Metropolitan Museum of Art
16. Maria Puron, San Francisco Museum of Modern Art
17. Margaret Neeley, Museum of Contemporary Art,
Chicago
18. Elena Grotto, Museum of Contemporary Art, Chicago
19. Tricia Van Eck, Museum of Contemporary Art
(formerly)
20. Lucille Stigler, Allen Memorial Art Museum

27. 30 interviews with art & cultural professionals (12 museums)
21. Michael Reynolds, Allen Memorial Art Museum
22. Justin Glasson, Asian Art Museum of San Francisco
23. Stephanie Reed, Art Basel
24. Stuart Flack, Chicago Humanities Festival (formerly)
25. Alina Cohen, arts and culture writer
26. Julie Rodrigues Widholm, DePaul Art Museum
27. Adam Fields, Shiparta
28. Shirley Reiff Howarth, International Directory of Corporate Art Collections
29. Megan Lapham, Healthcare Art Consulting LLC & Quality Art House LLC (former)
30. Bill Michel, Logan Center for the Arts

28. 1. Samara Mejia, MATHLab Ventures
2. Megan Patel, IDEO
3. Tej Dhillon, IDEO
4. Tracey Pavlishin, A.T. Kearney
5. Amy Wolcott, Sprout Social
6. Kate Timmerman, Arete
7. Kristen Barrett, Chicago Innovation Exchange
8. Chris McGowan, CJM Ventures
9. Amy Hermalik, Kirkland & Ellis
10. Beth Kregor, Sidley Austin / IJ Clinic
11. Kathleen Swan, Quarles & Brady
12. Kiran Pandey, UChicago Medicine
24 interviews with companies / organizations
13. Leigh Ollman, Akerman
14. Andrew Smulian, Akerman
15. Joanne Ollman, Proskauer
16. Thad Adams, Allen Morris Company
17. Mallori Morris, Allen Morris Company
18. Mark Tunney, Union League Club
19. Josh Levine, US Trust
20. Heather Asaadi, Booth
21. Alice DuBose, Philanthropy Rx
22. Scott Watson, Quarles & Brady
23. Evan Trent, Heidrick & Struggles
24. Peter Christman, Chicago Ventures

32. o Prints (woodcuts, etching, engravings, screen print, and other forms of intaglio);
o Drawings;
o Photographs (B & W);
o Collages;
o Posters;
o Manuscripts;
o Small scale sculptures.
Types of Artwork Conducive to Rental:
• Valuation: < $10k;
• Avoid confliction with museum’s curatorial & exhibition needs;
• Duplicates preferred;
• Appropriate art medium:
Source: Art Rental Collection, Allen Memorial Art Museum, Oberlin College

33. Location:
• Reception area, conference room, hallway, open-office space;
• Avoid: lounge, security monitoring blind space;
• Installation must not be in the proximity of heating elements, air conditioning
systems or air intake vents;
• Where environment control at all times is possible:
Environmental Requirement:
o 70 degrees Fahrenheit +/- 2 degrees;
o Relative humidity 50% +/- 5%;
o Visible lights 150 Lux maximum;
o Ultraviolet light: above 400 nanometers; no direct sunlight or unfiltered fluorescent
light; the measured value must be under 15 microwatt per lumen.
SPECIFICATIONS TO CORPORATE CLIENTS:

34. • Microenvironment: double frame, coroplast back board, sealing
• Plexiglass: ultraviolet
• Durable framing
• Environment monitoring: temperature, humidity, lighting
• Safety monitoring: guard, secured mounting
• Instruction to staff and maintenance personnel: viewing practice,
emergency response
• Retired art professionals will report on environment parameters and
inspect the artwork periodically throughout the lending period.
CONSERVATION DETAILS:

35. • Office decoration;
• Corporate Social Responsibility/PR – pay ArtReach and Museum overhead
separately for tax purposes;
• These two generally undisclosed. Conservative estimate of mid-sized law firms in
Chicago for the two combined ~$33m;
• HR/Employee engagement.
BUDGET SOURCES:

36. • Arta: Kayak for Art Shipping
o From MCA to UChicago (9 miles): $220 for first piece, each additional
piece costs $30.
• Insurance company: AXA, Huntington T. Block, Chubb
PARTNERS:

37. Concrete Benefits to Museums:
• We can help Smart support 17 more faculty grants per year.*
• We will be contributing more to Smart than the Pritzker Family Foundation, the Sotherby’s,
and Bank of America.
• Oriental Institute, for example, had to lay off one staff every year in the last few years. Our
shared profit, $72k annually, will make a significant impact.
*http://smartmuseum.uchicago.edu/research/uchicago-faculty/grants-for-faculty-initiatives/

38. Long-term Aspiration
• Bring art to spaces that have even clearer, bigger social impact, e.g. community
centers, hospitals, schools.

42. Tax Deduction
CHARITABLE DEDUCTION
There have been various proposals from both Republicans and Democrats, including President Obama, to decrease the value of the
tax deduction for charitable gifts. The proposals take many forms but nearly all would result in less being given to charity. This would
hurt all types of charity, but the arts would be especially affected, because they rely more heavily on gifts than, for example, colleges
and hospitals, which have more earned income.
IRA CHARITABLE ROLLOVER
This provision allows people aged 70.5 to roll up to $100,000 from an IRA account directly to charity. The gift counts towards the
taxpayer’s required annual withdrawal, but is not taxed. Unfortunately, the provision has never been made permanent but instead has
been allowed to lapse repeatedly.
UNRELATED BUSINESS INCOME TAX (UBIT)
Museums and other nonprofits must pay tax on income derived from business activities that are regularly carried on but are not
mission-related. A set of arcane rules govern exactly how a corporate sponsor may be acknowledged without crossing the line into
advertising, which would be taxable. A recent proposal, for example, would count the naming of a special event after a single sponsor
as advertising, even if the sponsor’s product wasn’t mentioned.
(https://aamd.org/sites/default/files/key-issue/Tax%20Issue%20Summaries%2010-2015.pdf)