Informant38

NEA Explore: Keynote Address by Michael M. Kaiser
National Council on the Arts 144th Meeting
Keynote Address by Michael M. Kaiser
President, John F. Kennedy Center for the Performing Arts
Having spent the better part of my career working with troubled arts organizations, I have observed that the actions taken by most boards and staffs to address financial challenges tend to make matters worse rather than better and initiate a vicious cycle that is powerful and difficult to escape.
Most arts organizations that face fiscal shortfalls react to these crises by cutting back on expenditures. This makes sense. But the costs they most commonly cut are two discretionary expenditures - artistic initiatives and marketing. These cuts tend to create the least short-term disruption and do not require firing anyone.
Yet it is these two very activities that encourage income flow to the arts. Donors and ticket buyers are attracted to exciting artistic ventures and the marketing that explains these new initiatives.
Organizations that cut back on these two areas typically see revenue shrink further. This leads to more cutbacks and worse fiscal results.