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  Press Release

FOR IMMEDIATE RELEASE                                                          June 2002

CONTACT:
Loren Renz, Vice President for Research
The Foundation Center (212) 807-3601
e-mail: lr@foundationcenter.org
Web: www.foundationcenter.org


Foundation Center Releases Update on
Arts Funding Trends

New Report Finds Strong Growth in
Foundation Giving through 2000 ALL AREAS BENEFIT—ESPECIALLY LESS FUNDED ARTS FIELDS

Continuing a decade-long tradition of examining foundation support for arts and culture, the Foundation Center has just released a special Arts Funding Update. The brief report provides an overview of the growth and distribution of foundation funding for the arts, culture, media, and humanities from 1996 to 2000, a period of record increases in foundation giving overall. It also explores how the arts fared relative to other foundation priorities (such as education and health) and examines changes in giving by arts field, type of support, and funder and recipient locations.

“Foundations have traditionally provided vital resources to the U.S. arts community, from capital projects to commissioning new works,” noted Loren Renz, vice president for research at the Foundation Center. “This report documents the dramatic growth in their arts giving in the late 1990s.”

Arts Funding Update was created by the Foundation Center’s research staff to recognize “Funding for the Arts Month,” a Foundation Center-wide event spanning the month of June that will feature a wide range of special programs, new resources, and Web site content focused on funding for the arts.

Arts Funding Update Estimates Overall Foundation Support

The new report includes estimates of overall foundation giving for the arts from 1996 to 2000. Among key findings:

  • Overall Growth of Arts Funding. Giving for arts and culture by all U.S. foundations climbed to an estimated $3.7 billion in 2000, up more than twofold from $1.8 billion in 1996. Adjusted for inflation, arts and culture giving grew an unprecedented 83.0 percent during this period, or 16.3 percent a year. Growth in estimated arts giving by all U.S. foundations slightly outpaced increases in giving across all fields between 1996 and 2000.
  • Key Factors Influencing Gains  in Arts Funding. Spurring the increase in arts funding was a doubling and, in some cases, tripling of investments by several leading arts funders—such as the Ford, Andrew W. Mellon, John S. and James L. Knight, and David and Lucile Packard foundations; an infusion of grants by major new donors—notably the Doris Duke Charitable Foundation; and consistently high levels of support by small- to medium-sized funders.
  • Foundation Giving as a Share of All Private Arts Support. Strong growth in giving for the arts helped raise foundations’ share of all private arts giving from less than 30 percent in 1995 to approximately 35 percent in 1998 (the latest year for which comparable IRS data on sources of income were available).

Grants Analysis Maps Trends in Foundation Arts Giving

Arts Funding Update also examines trends in foundation arts grantmaking between 1996 and 2000 based on grants of $10,000 or more awarded by a sample of over 1,000 of the nation’s largest foundations. Among key findings:

  • Growth in Arts Giving Among Sampled Foundations. For the more than 1,000 sampled foundations, grant dollars for the arts grew slightly slower between 1996 and 2000 than overall giving (99.9 percent vs. 106.3 percent), while the number of arts grants grew faster (60.1 percent vs. 53.0 percent). In 2000, these larger foundations awarded 17,835 arts grants totaling nearly $1.8 billion, up from 11,137 grants totaling roughly $900 million four years earlier. 
  • Share of Foundation Giving for the Arts. Among all foundations in the sample, support for the arts as a share of overall funding has eroded slightly—from an average of 13 to 15 percent of grant dollars in the 1980s, to an average of 12 to 13 since the mid-1990s. Still, among smaller foundations in the sample, arts giving as a share of overall giving remains above 15 percent.
  • Changes in Arts Giving by Field or Discipline. Nearly every area of the arts experienced exceptional growth in funding between 1996 and 2000. Yet the fastest growing areas included fields that traditionally receive a much smaller share of support—notably the Visual Arts and Architecture, the Humanities, and Multidisciplinary Arts. Despite this faster growth, the Performing Arts and Museum Activities continued to account for the largest shares of support. In 2000, they together received more than three-fifths of foundations’ arts and culture grant dollars and grants. 
  • Arts Giving by Types of Support. More than seven-tenths of 2000 arts grant dollars funded specific projects (38.2 percent) and capital support (32.4 percent), while one-fifth (21.9 percent) provided operating support. Compared to foundation giving across fields, arts grant dollars provided a significantly higher share of support for capital projects and operating support.
  • Arts Giving by Region. Foundations in the Northeast provided nearly two-fifths of all foundation arts dollars and grants in 2000, while Midwestern foundations ranked second with approximately one-fourth of arts dollars and grants.

The complete Arts Funding Update report can be accessed at no charge from the “Researching Philanthropy” area of the Foundation Center’s Web site: www.foundationcenter.org/research/trends_analysis.

“Funding for Arts Month” Programs and Resources  

During June, 2002, the Foundation Center will offer a wide range of arts-related programs, publications, and Web-based content and services through its Web site and five libraries/learning centers. The key goal of "Funding for Arts Month" is to offer representatives of nonprofit organizations and individuals in the arts opportunities to learn directly from grantmakers in the arts, other successful grantseekers, and technical assistance providers. The Center will also introduce “ArtsTalk” at its Web site—a new arts funding message board that will serve as a discussion forum for individual artists and people representing arts organizations to share fundraising strategies and tips. Visit www.foundationcenter.org/focus/arts for schedules of events, listings of publications, and information on other "Funding for Arts Month” resources.

About the Foundation Center

The Foundation Center’s mission is to support and improve institutional philanthropy by promoting public understanding of the field and helping grantseekers succeed. To achieve our mission, we collect, organize, and communicate information on U.S. philanthropy; conduct and facilitate research on trends in the field; provide education and training on the grantseeking process; and ensure public access to information and services through our World Wide Web site, print and electronic publications, five library/learning centers, and a national network of cooperating collections. Founded in 1956, the Center is the nation’s leading authority on institutional philanthropy and is dedicated to serving grantseekers, grantmakers, researchers, policymakers, the media, and the general public.

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