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Full text of "Basic management : the new arts project"

Basic 
Management 

the new arts project 



The dream 

Bright spectrum hues 

Bursting to brilliant rainbows ot you 

Bring forth the dream, the reality 

Bind its wings to the roots of earth 

And make it real 

P. J. Gibson 



FROM THE DESK OF SARAH 0. FAISON 
The enclosed primers, 



1 




3 
4 



BASIC MANAGEMENT 
The New Arts Project 

BUILDING AN INSTITUTION 

The Neighborhood Arts Center 

IDEAS INTO PRACTICE 

DEALING WITH SPACE 



were conceived and executed as basic 
technical assistance tools for those 
Project Directors presently operating 
or intending to operate Neighborhood 
Arts Programs. These publications were 
produced by Media Associates, Inc. for 
the Expansion Arts Program of the 
National Endowment for the Arts. 

Address comments or inquiries to: 



m 



1029 Vermont Ave., N.W. 

Suite #900 

Washington, D. C. 20005 



assSCtes (202) 638-5027 



INC. 



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Basic 



Management 



the new arts project 




MEDIA ASSOCIATES INC. 
WASHINGTON, D.C. 

THE EXPANSION ARTS PROGRAM FOR THE NATIONAL ENDOWMENT FOR THE ARTS 



*3 S 




Contents 



Introduction 

CHAPTER 1 
CHAPTER 2 



CHAPTER 3 



CHAPTER 4 



HISTORY: THE NEIGHBORHOOD ARTS CENTER 

MANAGEMENT: ADMINISTRATING YOUR 
ART PROJECT 

General Management Considerations 
In Running Your Organization 

Fiscal Management 

Income Chart 

Expense Chart 

Three Month Cash Flow Chart 
Financial Records And Reporting 
Program Records And Reporting 
Public Relations 
Fundraising 

The Law And Your Organization 
Insurance 

PROGRAMMING: WHERE RHETORIC MEETS 
REALITY 

Program Quality: A Must 

Setting Realistic Goals And Planning Ahead 

Don't Program In A Vacuum 

Things To Remember 

CASE STUDIES: COMMUNITY PROGRAM 
OPERATIONS PRO AND CON 

Case Study One: A Good Single 

Discipline Art Program 

Case Study Two: A Poor Single 
Discipline Art Project 

CONCLUSION 



7 
9 
10 
10 
8 
11 
11 
12 
13 
15 

19 
20 
20 
21 
21 

22 
23 



24 
24 



Introduction 



This publication intends to provide some helpful guidelines for 
those interested in the development, management and programming of 
neighborhood arts programs. Those responsible for the production of 
this manual feel that neighborhood art programs are an important part 
of the nation's arts picture. For this reason, these sponsors seek to iden- 
tify ways to aid such groups in their survival. This manual is one of four 
publications which are designed to assist neighborhood arts groups. 

Over the years, certain problem areas in the operation of neigh- 
borhood projects have become obvious. These projects have been strug- 
gling to survive in a world that is becoming increasingly complex. 
Historically, the operators of these projects have been primarily, and 
understandably, concerned with artistic products and delivery. In many 
cases, however, other issues— e.g., resource development, management, 
reportage— have been ignored or have received low priority. Internal 
problems involving the personalities of the project leadership need im- 
provement. The disposition of temperament and ego on the part of the 
leader have proven to be a standard pitfall of such programs. The lead- 
ership of these organizations must rise above this to be of true service to 
the community-at-large. 

This manual emphasizes the need to understand the planning, 
development and operation of a successful neighborhood arts program. 
This publication includes four chapters which provide information on 
history, management, programming and some case studies of neighbor- 
hood program operations. 

The manual provides the reader with a handy reference guide in 
planning, managing and programming for a neighborhood arts project. 
Its contents, if used effectively, will serve as a tool for the overall im- 
provement of your project. 




neighborhood 



center 



The forerunner of these centers was 
the home studio, which began to appear 
throughout the United States in the early 
part of this century. These studios taught 
primarily classical music and ballet. They 
were designed on the conservatory concept 
and emphasized traditional and classical 
European art. These studios had as their 
primary clients the children of parents be- 
longing to the upper and middle classes. 
This was due largely to the fact that tuition 
and receipts from annual recitals were the 
major sources of revenue. 



A single-discipline art project is the 
basic unit of neighborhood arts program- 
ming in which there is primarily one well- 
developed program in operation. Such proj- 
ects are either theatre groups, dance 
groups, music workshops, visual arts co-op 
galleries and the like. These programs have 
grown out of the needs of neighborhoods 
throughout the United States to provide 
meaningful and creative outlets for local 
people, and they serve to aid in the devel- 
opment of talent by promoting the 
developing artist. These centers are neigh- 
borhood-based and usually reflect the 
unique character of the communities they 
serve. 





The teachers who operated these 
studios were often retired classical per- 
formers; some, in fact, were quite famous. 
These studios provided opportunities for 
many young artists to enter the ranks of 
professionals. However, because of their 
economic restrictions, few poor or minori- 
ty people were able to participate in these 
programs. 

In the late 1920's and 1930's vari- 
ous ethnic populations, such as Blacks, 
particularly those in urban areas, became 
aware of the need to further develop cul- 
tural opportunities for their own; so, they 
began to establish music and dance studios. 
The Harlem Renaissance was the high point 
of this movement. During this time, Black 
artists throughout the world flocked to 
Harlem, New York, to participate in the 
growth and development of Black music, 
art and literature. 



2 



These Black studios modified and 
added a Black American content and per- 
spective to their programs. However, for 
the most part, they still emphasized tradi- 
tional and classical European art forms. 
Like their white, upper and middle-class 
counterparts, the studios were generally 
supported by private contributions and 
tuitions. In addition, churches also gave 
considerable financial support to these 
programs. 

New developments in community 
arts programs began to develop during the 
late 1950'sand 1960's. Here art was ini- 
tiated as a vehicle for social development 
and treatment. Art programs were being 
utilized as teaching tools for preschoolers, 
as therapy for drug addicts and prisoners 
and as recreation for senior citizens. Many 
of these programs were sponsored by civic 
groups such as the YMCA and the Boy's 
Clubs of America. It was during this period 
that federal and local governments began to 
show interest in these programs as a poten- 
tial method of social rehabilitation and 
development. Single-discipline centers, one 
form of the neighborhood arts programs, 
also began to grow in importance. Its focus 
changed from that of a conservatory for 
classical dance, music and drama to a work- 
shop for human growth through the arts 
and creative expression. These centers not 
only brought art into the lives of the poor 
and "disadvantaged," but had become a 
social tool as well. Their end was no longer 
to produce artists, but to provide a better 
quality of life for isolated neighborhoods. 




These programs have 

grown out of the needs of 
neighborhoods to provide 
meaningful and creative 
outlets for local people. 




The neighborhood arts studios took 
on a still more diversified role in the 
1960's. During the War-on-Poverty era, 
poor and minority people became involved, 
out of repressed needs, with questions of 
cultural heritage and ethnic identity. They 
began to explore drama, dance, music and 
related art forms peculiar to their own his- 
tory. These students were experimenting 
with guerilla theatre, drama, store-front 
and sidewalk performances. Puerto Rican 
Americans established new arts studios in 
many of the major cities in the United 
States, especially New York, Boston, 
Chicago and Newark. These studios high- 
lighted the unique culture and tradition of 
the Puerto Rican community. In San Fran- 
cisco, Los Angeles, Houston and other 
western and southwestern cities, Chicano 
and Indian Americans were expanding pro- 
grams in crafts, visual arts and other artistic 
disciplines. While American craftsmen in 
Iowa, Texas, Pennsylvania, Vermont and 
Maine were reviving and expanding crafts- 
man colonies, teaching skills represented a 



3 



way of life. More professional artists began 
to make personal commitments to these 
community-sponsored programs. Big 
businesses and major foundations began to 
trickle less modest contributions into com- 
munity programs. 




At the same time, the federal 
government began to recognize the value of 
these arts programs in terms of quality of 
life for all Americans. Monies were now 
being appropriated by both local and fed- 
eral governments. It was during this era, in 
1964, that the National Council on the 
Arts was founded. The purpose of the 
Council was to provide recommendations 
on matters related to the cultural develop- 
ment of the nation. 

In 1965 a further commitment was 
made to the arts by the establishment of 
the National Foundation on the Arts and 
the Humanities, an independent govern- 
ment agency in the Executive Branch of 
the federal government. This agency was 
divided into two sections: 1 ) the National 
Endowment for the Arts and 2) the Nation- 
al Endowment for the Humanities. An even 
stronger commitment to the arts was made 
in 1971 with the establishment of a pro- 
gram division, called the Expansion Arts 
Program, concerned with assisting arts pro- 
grams at the neighborhood level. Many of 
the programs assisted by the Expansion 
Arts Program had been established in vari- 
ous communities throughout the United 
States, but historically had not received 
equitable or sufficient support from other 
sources. With the advent of the Expansion 



Arts Program, community arts groups were 
beginning to find moderate support, allow- 
ing community artists to develop the kinds 
of programs they had always wanted and 
needed. As these groups were able to 
develop, recognition of their importance 
grew in the eyes of individual donors, 
businesses, federal and local governments, 
thereby expanding the funding bases for 
some groups. 

In summary, single-discipline arts 
programs, like other neighborhood-based 
arts programs, have increased over the years 
due to the interest of individuals, busi- 
nesses and government. Because of the 
concern of these people, arts training in the 
United States has spread from the halls of 
the rich into the streets and communities 
throughout the United States. 




4 




Management: 

administrating 

your 

art 

project 



5 



Poor management may curtail the 
future of your organization. Too often, the 
leadership of an organization is concerned 
solely with the creative product; con- 
sequently, they ignore the necessity of main- 
taining accurate methods of recordkeeping, 
filing, budgeting, tax compliance and other 
operational procedures. It is essential that 
careful management of your program be 
undertaken, or you may find the existence 
of your group in danger. Proper manage- 
ment of your group by responsible indi- 
viduals with experience in management 
may heighten the success of your 
organization. 

Some key elements in starting and 
successfully managing your project are 
described in this chapter. 



GENERAL 
MANAGEMENT 
CONSIDERATIONS 
IN RUNNING 
YOUR I 

ORGANIZATION 

This section is directed to the 
general management concerns of a neigh- 
borhood arts project director. It highlights 
some of the key considerations a manager 
must deal with in order to be successful. 

Operational Policies and Procedures 

It is important that as a manager 
you develop rules and regulations governing 
the conduct of your staff, program par- 
ticipants, visitors and others, to ensure the 
smooth and efficient operation of your 
program. It may be necessary to post these 
rules and regulations in places where they 
may be easily viewed or to duplicate pro- 
cedural manuals. 

In addition to policies and pro- 
cedures governing conduct, it is also neces- 
sary to develop informational management 
guidelines which relate to: days and hours 



of program operation, staff pay days, fringe 
benefits, the maximum number of program 
participants, hiring policies and purchasing 
procedures, to name but a few important 
issues. Your Board of Directors may have 
to approve many of the aforementioned 
policies and procedures, depending on your 
individual constitution and bylaws. 



Adequate Space for Your Program 

Be sure that you have sufficient 
space to operate your program. Without 
adequate space, it becomes difficult to plan 
and develop. 

When purchasing a building or rent- 
ing space, take into consideration room for 
future program expansion if this is feasible. 
Try to find a location that is easily 
accessible to parking spaces, public trans- 
portation and participants' homes. 

A more thorough exploration on 
the subject of space and community arts 
organizations may be found in Dealing 
With Space, volume 4 in this series. 



Purchase or Lease of Equipment and Supplies 

The following are key factors to 
consider when purchasing or leasing sup- 
plies and equipment: 

1. Know exactly which supplies 
and equipment you will need to operate 
your program. 

2. Research the most inexpensive 
sources of the needed supplies and equip- 
ment. 

3. When your budget does not 
permit the purchase of new equipment, 
used equipment should be taken into con- 
sideration. 



Scrounging: Hustling Things Up 

One of the most important abilities 
of a community organization manager is 
the ability to scrounge: that is, a communi- 
ty manager must know the ways and means 
of getting supplies, equipment, services and 



6 



other vital necessities for the agency at 
little or no cost to the agency. This can be 
accomplished through friends, local con- 
tacts, referrals, salesmen and a host of 
other innovative ways. In short, an effec- 
tive community organization manager must 
have the ability to hustle resources needed 
by the program, but not affordable within 
its budget. 



FISCAL 
MANAGEMENT 

Fiscal management is at the heart 
of your organization's operations. It is at 
this level that you have to maintain 
accountability for resources. This demands 
planning, efficient recordkeeping, fiscal 
responsibility and scheduled reporting. 

Most centers are handicapped by 
poor management and inadequate funding. 
Management of resources is the key. If you 
do not handle this aspect of your opera- 
tions properly, then you will be faced with 
the inability to raise money; this, in turn, 
will increase difficulties in accomplishing 
priorities and program objectives. 

Many financial problems may arise. 
Sound financial management will assist you 
in dealing with some of the following 
items. 

1 . Operating expenses keep going 
up. During the past few years the nation 
has experienced economic crises which 
have been reflected in high interest rates, 
tight money, severe unemployment and 
higher consumer prices. Consequently, 
operating expenses, the cost of capital 
equipment and building-maintenance costs 
have increased. In their planning and ex- 
pansion phases, organizations must take 
this reality into consideration, for they 
should not underestimate their funding 
requests or earned-income objectives. 

One way of improving your cash- 
flow position is by controlling operating 
expenses through a proper building main- 
tenance program and the efficient use of 
material resources. You should introduce 



regulations for controlling the costs of 
heating, electricity, telephone services and 
office supplies. All equipment should be 
properly serviced and maintained. Only 
authorized persons should be allowed to 
use specialized equipment— e.g., dimmer 
boards, electric typewriters, Xerox 
machines. Young students who are not 
trained should not use the equipment. 
Therefore, it is important to employ a con- 
scientious custodian who is well paid and 
who will take excellent care of the equip- 
ment, as well as the facilities. 

2. Accountability demands ac- 
curate recordkeeping and scheduled report- 
ing. One can never overemphasize the im- 
portance of maintaining up-to-date records 
of the organization's activities. There are 
final, program, personnel and inventory 
records, all of which must be kept separate- 
ly, but in one central location. They should 
be securely maintained in case of fire or 
burglary with easy accessibility for working 
purposes. 

Financial records must be accurate, 
since they help to make efficient payroll 
schedules, tax liabilities and outstanding 
liabilities in notes payable and accounts 
payable. The proper handling of all payroll 
accounts and tax deductible items must be 
emphasized. The temptation to use Social 
Security monies for operating-expense 
items has had a disastrous effect on many 
groups. Don't dip into the till, for you 
might not be able to make the tax pay- 
ments when they become due. 

Accurate financial records will also 
allow the organization's administration to 
analyze its status at any given time and to 
plan effectively. One aspect of the planning 
process is the preparation of a cash flow 
statement which will help you: 

1) to forecast your future needs 
for a given period of time. It will minimize 
second guessing. 

2) to become more accurate in 
your projections by comparing expected to 
actual outcome. This allows for a closer 
look at increased costs of operations as a 
result of inflationary pressures. If costs of 
supplies, heat, telephone bills, etc., keep 
going up, then you can project systemat- 
ically for those increases. 



7 



3) to realize the true value of your 
resources. On a cash flow chart, you can 
see where your money is going and your 
ability to meet expenses. 

4) to sharpen your ability to make 
managerial decisions. 

(See sample income, expense statements 
and three-month cash-flow chart for ex- 
amples of useful accounting procedures.) 
With tools such as these you should be able 
to tell, at almost any given time, exactly 
where your organization stands financially. 
Funding sources respect institutions whose 
financial recordkeeping and reporting have 
been efficient. 

3. Good accounting eliminates 
headaches. It is important to have an ap- 
propriate recordkeeping system that will 
support all income and expenditures. Every 
organization needs a good bookkeeper or a 
staff member with accounting skills who 
will prepare weekly balance sheets for the 
Executive Director's use. In large centers, it 
is advantageous for the Executive Director 
to be familiar with accounting principles, as 
well as to have managerial skills and fund- 
raising abilities. Furthermore, it is also use- 
ful to have an accountant on the Board of 
Directors or Board of Advisors. Although it 
may be desirable for the latter to be a certi- 
fied accountant, this is not absolute, for 
there are many competent people trained 

in accounting who work in corporations, 
universities or government institutions. 
These professionals can serve the needs of 
the organization by assisting in the prepara- 
tion and auditing of fiscal records. 

4. Good relations with your bank. 
It is important to establish an ongoing, 
responsible relationship with your bank. 
Under certain conditions, your banker can 
be your best friend, but only if you have 
allowed time for the bank to develop con- 
fidence in your organization and its opera- 
tions. Nonprofit organizations sometimes 
must turn to their banks for short-term 
loans— for example, when payments on a 
grant are delayed. You must recognize that 
a nonprofit group, by definition, presents a 
risk for a bank, because of the possibility of 
lack of return. The only way to overcome 



this potential difficulty is by demonstrating 
the organization's responsibility. 



FINANCIAL 

RECORDS 

AND REPORTING 

It is important to have an appropri- 
ate and planned system of records which 
will keep track of your income and ex- 
penses. It is crucial to know to whom you 
owe money and how much, as well as who 
owes you. I mportant also is the need to 
keep track of your inventory. This will 
make it possible to know the whereabouts 
and condition of equipment purchased. 

Good financial recordkeeping be- 
comes even more important when it comes 
to payroll records, tax reports and pay- 
ments. Without accurate records it may 
become difficult and, in some cases, impos- 
sible to give an accurate accounting of 
taxes owed. 

Accurate financial records also 
allow you the opportunity to analyze the 
status of your organization and to make 
forecasts. This is impressive for persons 
interested in your financial status, be they 
Board members, community persons, 
funders or others. In short, keeping accu- 
rate records allows one the ability to 
develop financial reports to be used for a 
variety of managerial purposes. 

Last point: It is important to have 
at some point the advice and assistance of a 
qualified accountant in the planning pro- 
cess of your organization. This individual 
will help ensure that your records and 
financial reports are in order. An account- 
ing system which addresses the unique 
needs of your group will prove to be ad- 
vantageous. An accountant's consultation 
should be sought when you institute major 
changes in your structure. The accountant 
should again be consulted for interim or 
annual reporting. Do not try to presume 
that you know it all! 



8 



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9 



1973 



PERSONNEL 




Administrative 


50,000 


Program 


65,000 


Consultants 


35,000 


Fringe Benefits (11%) 


16,500 


PHYSICAL FACILITIES 




O f f ice & Supplies 


24,500 


Equipment 


1 1 ,300 


Renovations 


1 2,200 


Miscellaneous 




a) Insurance 


1,200 


b) Contingency Fund 


2,100 




$218,000 



1974 



60,000 
95,000 
30,000 
20,350 



32,650 

8,000 

1 8,000 

1,500 
3,000 

$268,500 



1975 



60,000 

101,750 

28,250 

20,900 



38,500 
6,500 
9,000 

2,000 
2,800 

$259,700 



NOTE: In 1974 there was a small deficit which was offset by the surplus of 1973. The cost of renovations had increased 
sharply due to program expansion. 



SAMPLE THREE MONTH 
CASH FLOW CHART 







January 




February 






Expected 


Actual 


Expected 


Actual 


Income 












Cash on hand at 












beginning of month 


1,500 




1,500 


18,500 


16,000 


Grants 


30,000 




28,000 


1 5,000 


1 2,000 


Contributions 


8,000 




10,500 


1 2,000 


8,500 


Fund raising 


3,500 




1,700 


2,000 


1,800 


Total Cash Income 


43,000 




41,700 


47,500 


37,500 


Monthly Expenses 


24,500 




25,700 


32,800 


28,000 


Cash on hand at 












the end of the month 


18,500 




1 6,000 


14,700 


9,500 



March 
Expected 



14,700 
10,000 
10,000 
1,200 
35,900 
23,400 

1 2,500 



Actual 



9,500 

10,000 

5,000 

1,500 

26,000 
27,500 

1,500 



10 



PROGRAM 

RECORDS 

AND REPORTING 

Program records are information 
gathered about the quantitative and quali- 
tative nature of your program. These 
records include vital statistics, such as the 
number of participants on a weekly, 
monthly and yearly basis. These records 
should include age, sex and other meaning- 
ful statistics on program participants, the 
Board, staff and volunteers. The purpose of 
program records is to document the activi- 
ties of your program. In some cases, these 
types of records are vital for the funding 
life of your program. You can be running 
the best neighborhood arts project in the 
world; but if you can't prove it, you have a 
serious credibility problem! 

Important also is inclusion in your 
program records of all newspaper clippings, 
letters of support, program awards re- 
ceived, tape recordings, pictures, profiles of 
outstanding program participants and other 
documentation which will highlight the 
value of your program. 



Program records are wital 
for the funding life of 
your program. 



To secure the safety of your rec- 
ords, burglar and fireproof storage of your 
records and file cabinets should be con- 
sidered. You cannot overprotect the vital 
information of your organization— your 
records. 



PUBLIC 
RELATIONS 

It is important to let people know 
who you are and what you are doing. An 
essential tool in any public relations effort 
is good records of program activities. Be 
sure to use free publicity spots given to 
nonprofit community organizations by 
local radio stations, television stations and 
newspapers. These free community services 
can help you to gain community accep- 
tance and support for your program. 




1 1 



Another effective public relations 
medium is the circulation of a newsletter to 
various community people, businesses and 
sponsors, as well as the general public. This 
newsletter should include information on 
the program— how to join, schedule of 
classes, hours of operation and other infor- 
mation for interested persons— and articles 
highlighting the nature and scope of the 
program. 

It is essential to remember that the 
key purpose of publicity and public rela- 
tions is to build goodwill and support for 
your program. Letting the public know 
who, where and what you are is the key to 
successful publicity and public relations. 
Other factors which might be included are 
appeals for donations, editorials and re- 
quests for volunteers. 



Advertising and Promotion 

Well-organized methods of adver- 
tisement must be implemented to ensure 
public support of your planned events. 
Here the effectiveness of good records and 
public relations pay off. Promotion litera- 
ture which explains the event(s), program 
specifics, artists, dates, place, time and 
costs should be prepared. This literature 
may be forwarded to radio and television 
stations for their free, nonprofit organiza- 
tion spot slots. Newspapers, community 
newsletters, fliers, church and community 
organizations can assist in the promotion 
of your events when supplied with well- 
planned, informative promotion data. 

When personal interviews with 
newspapers, radio and television stations 
occur, it is advantageous to select a repre- 
sentative who not only knows the purpose 
and function of your group, but who also 
articulates well. You want to instill interest 
in your organization and events. Again, 
carefully kept records and experienced 
individuals to implement advertising and 
promotion are essential. 



zation manager will be to identify sources 
of funding for your agency. It is imperative 
that you spend a considerable amount of 
time carefully developing a fundraising 
plan. To do this, you should weigh all of 
your project's financial needs as reflected 
in past records and current projections of 
your organization's future income. A care- 
ful analysis of need and projected income 
should enable you to predict how much 
money you need to raise for your program. 

There are various basic ways that 
your organization can solicit funds. Your 
fundraising plan should use some, all or a 
combination of these techniques. The funda- 
mental ways that a nonprofit neighborhood- 
based arts organization raises money are as 
follows: 



Membership Dues — collected from 
participants and interested persons to sup- 
port your program. Generally, there are 
several classes and/or modifications of 
membership, each with different annual 
dues. 

Service Fees — usually charged to 
make ends meet. These are fees incurred by 
the program participants. 

Grants — given by local, national, 
private or governmental agencies. This has 
historically been an area of support for 
community-based arts projects. It is im- 
portant that you develop good writing 
skills, good contacts and a lot of informa- 
tion in order to be successful in this area. 

Short-term, low-risk 
savings plans can add a 
considerable amount to 
your budget. 



FUNDRAISING 

Perhaps the most important aspect 
of your role as a neighborhood arts organi- 



12 



Business and Individual Contributions 

- your organization, as part of its 
fundraising plan, may want to develop a list 
of individuals and businesses who you feel 
will be willing to give donations to your 
organization. It helps if you have friends 
who presently know of such businesses or 
individuals. They may make the initial con- 
tact for you. Many neighborhood project 
managers and developers are too timid to 
approach the business and corporate sector. 
Your friends may be of assistance to your 
organization. 

Board Dues — some nonprofit cor- 
porations charge dues to Board members as 
another method of raising funds. 

Bequests — there are nonprofit 
corporations which receive large sums of 
money from the estates of supporters. It 
may be to your advantage to identify elder- 
ly people, interest them and get them in- 
volved in your program. They may, if they 
feel your project is worthwhile, name your 
center as a recipient in their wills. 

Special Projects — bake sales, fund- 
raising dinners and raffles are used to raise 
money. In choosing a special project, be 
sure to select one that will not cost too 
much to organize and one in which the 
community will actively participate. 



Annual Concerts and Recitals — 
your program may have as a part of its 
format an annual concert recital or other 
program display to which you may want to 
charge admission. If attendance is good, 
you can make a considerable amount of 
money this way. 

Investment Income — very few 
community organizations have money to 
invest. However, for those that receive large 
sums of money, short-term, low-risk savings 
plans can add a considerable amount to 
your budget. By utilizing temporary excess 
monies, you can get a handsome return on 
savings accounts without risking or tying 
up your monies. 



THE LAW 
AND YOUR 
ORGANIZATION 

In any discussion of management it 
is important to understand the relationship 
of your organization to the laws— local, 
state and federal. This section outlines 
some of the key issues to be considered. 



13 



Incorporation 



1. If you have not already done so, 
your organization will probably want to 
consider becoming a nonprofit corporation. 
The advantage of becoming a nonprofit 
corporation is two-fold: 1) you establish a 
corporate identity which is useful for legal 
and public relations purposes; and 2) you 
are exempted from federal income and 
local sales taxes. 

2. If you are interested in becom- 
ing a nonprofit corporation, you should 
consider retaining a competent attorney. 
He will request information from your 
state (or district) secretary of state's office 
or, where applicable, the office of the state 
(or district) recorder of deeds. 

3. Annual reports must be filed to 
maintain your nonprofit corporate status. 
This filing is usually made between January 
1 and April 30 of each year. This is the 
responsibility of your organization's 
registered agent as named in your articles 
of incorporation. 

4. The Constitution and Bylaws. In 
most states and in the District of Columbia 
a nonprofit corporation, as other forms of 
corporations, must make some provision 
outlining how the internal affairs of the 
corporation will be handled. In most cases, 
a constitution and bylaws serve this pur- 
pose. 

In the constitution and bylaws, 
detailed policies and procedures are spelled 
out. Usually these include a statement of 
purpose; who the Board members will be 
and how they are elected; provision and 
classes of membership; methods for dis- 
posal of corporate properties; and descrip- 
tions and definitions of corporate officers 
and staff. 

In conclusion, the constitution and 
bylaws are a very necessary and valuable 
tool in the management of a nonprofit 
corporation. In addition to the fact that 
they are usually required by law, they are 
necessary because they provide a written 
and relatively comprehensive statement on 



how your organization is to do business. 
You should always be aware of the fact 
that it is incumbent upon your organiza- 
tion, as a public charity, to observe legal 
requirements scrupulously. Because the 
constitution and bylaws are of such great 
value, it behooves the Board and managers 
of a nonprofit corporation to review and 
revise them periodically to keep them up to 
date and useful. 

5. The Board of Directors. The 
governing body of a nonprofit corporation 
is usually called a Board of Directors. These 
individuals are responsible for setting policy 
for the organization. They also have the 
legal responsibility to ensure that the 
corporation's activities are consistent with 
state and federal laws and with the organi- 
zation's constitution and bylaws. In short, 
the Board of Directors of a nonprofit cor- 
poration is responsible under the law for 
being the custodian of corporate resources. 
It is important that these individuals be 
aware of their obligations and responsibili- 
ties if the organization is to survive and grow. 



Tax-Exemptions 

After successful completion of 
incorporation, your next step is to file for 
local or state sales tax-exemptions and 
federal income tax-exemption. 

1 . Sales tax-exemption allows you 
to make purchases without having to pay 
taxes on them. Local or state sales tax- 
exempt numbers are issued to nonprofit 
corporations that meet certain guidelines. 
You can get detailed information on sales 
tax-exemption from your local govern- 
ment's office of taxation. This filing needs 
to be done only once. 

2. Federal income tax-exemption 
allows religious, charitable, educational 
social service, and other nonprofit groups 
to pay no tax on their income. After in- 
corporation you should go to your nearest 
federal Internal Revenue Service (IRS) 
Office to get instructions and forms for 
filing for income tax-exemption. More than 
likely, you will be applying for the status 
of 501 (c)(3). If you qualify for this tax 
status, in addition to being exempt from 



14 



federal income tax, contributions made to 
your organization are also tax deductible. 
Federal income tax filing is done once a 
year between January 1 and April 15. 

Like incorporation, this process 
may become somewhat complicated; it 
may therefore be to your advantage to 
consult with an accountant or an attorney 
who is familiar with federal tax laws. 



How It Works 



INSURANCE 

One legal question you might have 
about your organization may concern in- 
surance coverage. What type of insurance? 
How much? Can I do without it? This sec- 
tion on insurance outlines some of the im- 
portant facts you will need to know con- 
cerning insurance coverage for you organi- 
zation. Insurance is important to your 
agency, particularly if your project is being 
operated in a high crime area or if your 
project has a high degree of public 
exposure. 

The points covered are grouped 
under three headings: coverages that are 
essential for most nonprofit organizations; 
coverages that are desirable for many 
organizations, but not absolutely necessary; 
and coverage for employee benefits. 

Used correctly, insurance can con- 
tribute a great deal to your success by 
reducing the uncertainties under which you 
operate. It can reduce employee turnover, 
encourage community participation in your 
program and help keep your program going 
in case an insured peril interrupts opera- 
tions. The potential benefits of good in- 
surance management make it well worth 
your study and attention. Planning an 
insurance program for your organization 
will most likely involve a delicate balancing 
act: through careful study and periodic 
review, you must determine what are the 
risks against which you feel you must be 
insured and what is the amount of funds 
available for insurance premiums, given the 
expenses of running your programs. It will 
also be to your benefit to discuss your in- 
surance needs with a qualified agent, 
broker or other insurance counselor. 



Insurance has been defined as a 
system in which "winners pay losers." 
Those who are lucky enough to avoid loss 
contribute through premium payments to 
the unlucky ones who do suffer loss. If you 
never collect from your insurance, consider 
yourself ahead, because you are one of the 
winners. If you suffer a loss for which you 
are insured, you have the security of 
knowing that the other members of the 
insurance system will relieve most of your 
burden. 

In this sense, you come out ahead 
either way. Your premiums are the price 
you pay for freedom from worry about 
economic loss from conditions beyond 
your control. 



Essential Coverages 



Four kinds of insurance are 
essential: fire insurance, liability insurance, 
automobile insurance and workmen's com- 
pensation insurance. In some cases and for 
some types of nonprofit organizations, 
crime insurance— which is discussed under 
"Desirable Coverages"— is also essential. You 
should know the following key facts about 
these various types of insurance. 



Fire Insurance 



1. You can add other perils— such 
as windstorm, hail, smoke, explosion, van- 
dalism and malicious mischief— to your 
basic fire insurance at a relatively small 
additional cost. 

2. If you want comprehensive 
coverage, your best buy may be one of the 
all-risk contracts which offers the broadest 
available protection for the money and can 
be written to cover almost any peril you 
deem necessary to include. 

3. The insurance company may 
indemnify you— that is, compensate you 
for your losses— in any one of several ways: 
(a) it may pay actual cash value of the 
property at the time of loss; (b) it may 
repair or replace the property with material 
of like kind and quality; or (c) it may take 



15 



all the property at the agreed or appraised 
value and reimburse you for only the face 
value of the policy at the time of the pur- 
chase of the insurance. 



Liability Insurance protects your 
organization in cases where it is sued by an 
individual claiming injury on your 
property. 

1. Legal liability limits of $1 mil- 
lion are no longer considered high or un- 
reasonable for even a small business. 

2. Most liability policies require 
you to notify the insurer immediately after 
an incident has occurred on your property 
that might cause a future claim. This holds 
true no matter how unimportant the inci- 
dent may seem at the time it happens. 



3. Most liability policies, in addi- 
tion to bodily injuries, may now cover per- 
sonal injuries— libel, slander and so on— if 
these are specifically insured. 

4. Under certain conditions, your 
business may be subject to damage claims 
even from trespassers. 

5. You my be legally liable for 
damages even in cases where you used 
"reasonable care." 

6. Even if the suit against you is 
false or fraudulent, the liability insurer 
pays court costs, legal fees and interest in 
judgements in addition to the liability 
judgements themselves. 

Discuss your Insurance 
needs with a qualified 
insurance counselor 




16 



7. You can be liable for the acts of 
others under contracts you have signed 
with them— for example, the actions of a 
security guard on contract with your organ- 
ization. This liability is insurable. 

Automobile Insurance 

1. When an employee or a sub- 
contractor uses his own car on your 
organization's behalf— for example, running 
an errand or transporting program partici- 
pants to an outside event which is part of 
the organization's program— the organiza- 
tion can be legally liable, even if it doesn't 
own the car or truck. 

2. You can often get deductibles of 
almost any amount— say $250 or $500— 
and thereby reduce your premiums. 

3. Automobile medical-payments 
insurance pays for medical claims, in- 
cluding your own, arising from automobile 
accidents regardless of the question of 
negligence. 

4. If your organization owns an 
automobile or has activities which require 
extensive use of an auto, in most states, 
you must carry liability insurance or be 
prepared to provide other proof— surety 
bond— of financial responsibility when the 
automobile is involved in an accident. 

5. You can purchase uninsured- 
motorist protection to cover your own 
bodily-injury claims caused by someone 
who has no insurance. This coverage is 
particularly important if your organization 
is located in a state which does not require 
liability insurance. 

Workmen's Compensation protects 
employees in the case of work related in- 
juries. 

1 . Common law requires that an 
employer provide his employees with a safe 
place to work and safe tools, as well as 
warn them of any existing danger. 

2. If an employer fails to provide 
the above, under both common law and 
workmen's compensation laws he is liable 
for damage suits brought by an employee. 



3. State law determines the level or 
type of benefits payable under workmen's 
compensation policies. For information 
contact your state workmen's compensa- 
tion board. They will inform you of re- 
quirements and refer you to insurance 
companies which offer policies. 

4. Not all employees are covered 
by workmen's compensation laws. The 
exceptions are determined by state law 
and, therefore, vary from state to state. 

5. In about half the states, you are 
not legally required to cover your workers 
under workmen's compensation. If you do 
not, however, you may lose some of your 
legal defenses in employee suits. 

6. You can save money on work- 
men's compensation insurance by seeing 
that your employees are properly classified. 

7. Rates for workmen's compensa- 
tion insurance vary from 0.1 percent of the 
payroll for safe occupations to about 25 
percent of the payroll for very hazardous 
occupations. 

8. Most employers in the majority 
of states can reduce their workmen's com- 
pensation premium cost by reducing their 
accident rates below the average. They do 
this by using safety and loss-prevention 
measures. 



Desirable Coverages 

Some types of insurance coverage, 
while not absolutely essential, will add 
greatly to the security of your organiza- 
tion. These coverages include crime 
insurance and participant health insurance. 

Crime Insurance provides coverage 
in cases of criminal acts against persons 
and property. 

1. Burglary insurance excludes 
such property as accounts, display articles 
in a window and manuscripts. 

2. Coverage is granted under 
burglary insurance only if there are visible 
marks of the burglar's forced entry. 



17 



3. Burglary insurance can be 
written to cover, in addition to money in a 
safe, inventoried merchandise and damage 
incurred in the course of a burglary. 

4. Robbery insurance protects you 
from loss of property, money and securities 
by force, trickery or threat of violence on 
or off your premises. 

5. A comprehensive crime policy 
written just for small businessmen is avail- 
able. In addition to burglary and robbery, 
it covers other types of loss by theft, 
destruction and disappearance of money 
and securities. It also covers thefts by your 
employees. 

6. If you are in a high-risk area and 
cannot get insurance through normal chan- 
nels without paying excessive rates, you 
may be able to get help through the FAI R 
plan or through the U.S. Department of 
Housing and Urban Development. Your 
State Insurance Commissioner can tell you 
where to get information about these plans. 



coverages should be thoroughly investi- 
gated before you complete your organiza- 
tion's insurance plans. 

Organize Your Insurance Program 

A sound insurance protection plan 
is just as important to the success of your 
business as good financing, public relations, 
personnel management or any other busi- 
ness function. And, like the other 
functions, good risk and insurance manage- 
ment is not achieved by accident, but 
rather by organization and planning. 

Insurance coverage can 
be used to provide em- 
ployee benefits. 



Participant Accident Health Insurance 

1. You may want to provide health 
insurance benefits to participants in your 
program who might become injured during 
a program activity. 

2. This coverage is not required, 
but you might want to provide it if you 
feel your program— for example, dancing 
—may expose the participant to some 
degree of physical injury. 

3. Such coverage is usually fairly 
inexpensive if purchased for a relatively 
large group. You may want to add this 
amount in the form of a program service 
fee. 



Employee Benefit Coverages 



Insurance coverages which can be 
used to provide employee benefits include 
unemployment insurance, social security, 
group life insurance, group health in- 
surance, disability insurance and retirement 
income. Although not explained here, these 



18 



Programming 

where rhetoric 

meets 

reality 




CHAPTER 3 




Develop a program 
planning document that 
explains your objectives. 



An art project should be about art. 
All of the rhetoric in the world will not 
produce a good program. It is vital that 
the program be of the highest quality. The 
program is where rhetoric meets reality; it 
is at this point that potential energy must 
become kinetic force! 



PROGRAM 
QUALITY: 
A MUST! 

First and foremost in your con- 
sideration should be program quality. 
Although there may be a host of social, 
recreational and other related needs, your 
first concern as a programmer should be 
the development of good arts techniques 
and skills to deliver excellent arts products. 

A major pitfall is that many proj- 
ects attempt to expand too quickly. Many 
studios, in an attempt to provide a larger 
number of participants with services, 
grossly weaken the quality of their pro- 
gram. In short, be sure to place quality 
before quantity. The value of your program 
lies in its quality. 



20 



It is good to have an annual or 
seasonal display for the public. This should 
be planned as part of your basic program. 
This allows the participants a chance to 
display their talents and gives them a show- 
case to work toward. In addition, it gives 
your program the public visibility it will 
desperately need for its success. 



SETTING 
REALISTIC 
GOALS AND 
PLANNING AHEAD 

Be sure that your program design is 
suitable for the space, staff and budget that 
you have available. It is also important that 
you develop a program planning document 
that explains to all concerned where you 
are going and what your objectives are. 



DON'T PROGRAM 
IN A VACUUM 

One of the most frequent problems 
in community arts projects is the fact that 
all too often they exist in isolation from 
other artists and other arts projects. This is, 
indeed, a shame. Despite the fact that 
many arts projects are physically situated 
within reach of each other, there is no 
meaningful contact between them. 

A major reason for this isolation is 
an ignorance of other program resources. 
This, like egomania, must be avoided. Your 
agency should make a conscious effort to 
expand and develop relationships with 
others in the arts community. In short, you 
should have an open house in which you 
invite others in the arts community to 
come and share experiences. Whatever you 
do, do not program in a vacuum! 

A major contributor to this 
problem is the "egomania" of the artists 
and founders of these various arts projects. 



Some feel that they know it all; others feel 
that other neighborhood artists are not 
doing the right things or don't know what 
they are doing. Egomania builds walls 
separating community talent, and these 
walls should not be there. It is your 
responsibility as a programmer, manager or 
participant to build bridges and establish 
lines of communication connecting your- 
self with other artists and arts projects. 
Only through this kind of cooperation can 
the true end of neighborhood arts be 
reached— providing the immediate com- 
munity with a range of exposure to the arts 
and the developing of its artistic talents. 



THINGS TO 
REMEMBER 

A few tips to keep in mind when 
operating or developing your program: 

• Always remember, do not try 
too much too soon. Take your time and 
plan your program well. Keep in mind that 
quality should not be compromised. In the 
long run, your program will be better if 
you do not attempt premature expansion. 

• Although you should not 
attempt too much too soon, you should, 
nevertheless, not be afraid to experiment. 
Try new methods, but keep them within 
the scope of your resources. Don't be 
afraid to be creative, but don't go out on a 
limb to do it. Flexibility is important. A 
flexible program allows for a latitude of 
creative expression. Let the participants do 
their thing within a controlled scope. A 
flexible program is vital for participant 
growth and development. 

• Above all, make sure that your 
program is relevant. Ask questions of the 
neighborhood. Get involved and find out 
what you can do to ensure that your pro- 
gram has value! A program that is meeting 
the creative and artistic needs of the neigh- 
borhood, if managed properly, will grow 
and flourish. 

A more detailed exploration for 
the processof planning and implementing 
programs may be found in Ideas Into Prac- 
tice (volume 3) of this series. 



21 



CHAPTER 4 




Case Studies: 

community 

program 

operations 

pro and con 



22 



This chapter presents examples of a 
good and a bad single-discipline arts proj- 
ect. Facts in these cases are true; names and 
other identifying elements have been 
changed so as not to discredit anyone. 
These cases are used as examples and are 
designed to be instructive, not critical. 

CASE STUDY ONE: 
A Good 
Single-Discipline 

Art Project 

Single-discipline Project A was 
established in 1970 in a large northeastern 
city. This single-discipline center was 
established to teach dance to minority 
inner-city youths. Started by Mary J., a 
Black professional dancer, the center grew 
and developed over the years. 



The art studio has 1 1 classes of 
dance, with an average class size of 16. The 
school has 6 full-time instructors and 10 
part-time and student instructors. There are 
4 large dance studios and 2 smaller ones. 
The studio itself is located on the basement 
level of a large community church. The 
space at one time was used for storage. 
Mary J. had it renovated with funds 
supplied through one of the grants she re- 
ceived from a large government agency. 
The space was given to her at no cost, be- 
cause her uncle was a good friend of the 
minister, who was interested in the devel- 
opment of neighborhood art. 

Due to her professional contacts, 
Mary J. was able to get her organization 
funded. In 1971 Mary J. contacted a 
lawyer friend who set her studio up as a 
nonprofit membership corporation. Mary 
then developed two categories of member- 
ship: participating and sponsoring. Partici- 
pant membership is $5 per year; sponsoring 




23 



membership, $25. Through this method she 
was able to raise $16,000 in revenue. In 
addition to this, Mary J. had semi-annual 
recitals each year and was able to raise 
$3,000. Mary J. made it a point to always 
ask her equipment and materials suppliers 
for discounts and contributions. The major 
advantage Mary J. had, in addition to her 
own dance talent, was her ability to get 
things done at little or no cost. In fact, all 
her bookkeeping and accounting was done 
free by a local Black CPA firm. 

In short, Mary J. was a very re- 
sourceful manager and programmer. For 
these reasons she continued to watch her 
dance program grow and develop. Mary 
made every effort to share and work with 
other dance projects and went so far as to 
have intercity exchange visits with a dance 
group from a neighboring city. 

Mary J. provides us with a very 
good example of the successful single- 
discipline art project manager and 
programmer. She utilizes effectively all re- 
sources available to her and attempts to 
expand and improve her program. 



At one time the studio had 9 classes 
of 10 students. The studio employed 5 
full-time and 6 part-time drama instructors. 
The project started in a small storefront 
building; then, after receiving a large grant 
from a foundation, it was moved to a larger 
space. The project lost a portion of its 
funding because reports were not filed on 
time. When this happened, the project was 
forced to move to smaller and less desirable 
spaces. 

Although incorporated in 1971, the 
organization lost its charter of incorpora- 
tion due to its failure to file an annual re- 
port. The reason, said Oscar B., was that he 
did not know that he had to file such a re- 
port every year. Other problems included 
improper amounts of payroll taxes being 
withheld and the organization's yearly in- 
come tax statements being filed on the 
wrong forms. The reason for this was 
obvious. Oscar B. had hired his nephew, a 
first-year accounting student at the local 
community college, to keep his books. Being 
unfamiliar with the intricate corporate and 
income tax reporting systems, the young 
man made several serious errors. 



CASE STUDY TWO: 
A Poor 

Single-Discipline 
Art Project 

Single-discipline Project B started, 
as did Project A, in 1970. Single-discipline 
Project B is located in a large midwestern 
city. The program of this project is theatre 
training for minority youths in the inner- 
city area. Started by Oscar B., the center 
did quite well in its first year. However, 
over time, the project deteriorated. Oscar B. 
is a well-known actor and playwright. Be- 
cause he is so active in his personal career, 
he has little time to pay close attention to 
project details. To add to the problem, 
Oscar B. does not like to delegate responsi- 
bility to others. Oscar is quoted as once 
saying, "There ain't nobody but me that 
can run this program the way it should be 
run." 



Single-discipline Project B depends 
entirely on a single grant from one founda- 
tion. Oscar B. feels that: "They gotta fund 
us 'cause we're Black and poor. They can't 
take all our money away without catching 
hell!" Therefore, no real attempt has been 
made to raise funds from other sources. 

In short, Oscar B. feels that because 
he is Oscar B., his program will always exist. 
Oscar B. also feels that he does not need "to 
deal with any other projects. I know what 
I'm doing, but I'm not sure if they do!" 



CONCLUSION 

The success of your organization 
relies heavily on good management and 
structure. Careful planning and implemen- 
tation of your group will guarantee its sur- 
vival and assist in making your dream 
become a reality. 



24 



I 



PHOTO CREDITS 
Page Number Photographer 

Inside Front Cover Edward Klamm 

4 Perlmutler 

11 GaryTenen 

14 Martha Swope 



Graphic design by Portfolio Associates, Inc., Philadelphia, Pa. 
Lisa Werchow, Art Director