metlife foundation national arts forum series

Past Forums

Arts & Business Council Inc.
New York, New York

Uncertain Times: Corporate Funding for the Arts in New York
06/01/2002

Moderator: Gary P. Steuer
President and Chief Executive Officer, Arts & Business Council Inc.

Panelists:

• Michael A. Feller
  Senior Vice President of Corporate Social Responsibility and President, J.P. Morgan Chase Foundation
• Sibyl Jacobson
  President and Chief Executive Officer, MetLife Foundation; Senior Vice-President of Corporate Contributions and Community Relations,
• Judith A. Jedlicka
  President, Business Committee for the Arts, Inc.
• Charles V. Raymond
  President, Citigroup Foundation
• Mary Beth Salerno
  President, American Express Foundation; Vice President of Global Philanthropy, American Express Company

“Uncertain Times” brought together leaders in corporate philanthropy to explore the impact of September 11 and the economic recession on funding trends for the New York City arts community and the nation’s nonprofit arts sector. Although there was some good news – such as the continuing stability of New York City’s real estate market – data related to job losses and declines in consumer spending made for a sobering economic outlook. The corporate contributions leaders agreed about several aspects of the current giving climate:

• The corporate community’s massive support of post-September 11 needs did not impact their regular contributions programs.

• Their philanthropic budgets were essentially flat. In context of declining revenues and stock prices this was viewed as an enormous commitment to corporate social responsibility.

• The arts have not suffered disproportionate cuts at the represented companies, and this was not something the panelists were seeing at other companies.

• They indicated that pressures to expand their international contributions will likely continue, as corporate earnings increasingly are generated overseas.

• All were cautiously optimistic that if the economy and their specific business performance did not worsen, their support of the arts would not suffer unduly.

Jedlicka noted that changes in top level management can adversely affect contributions, including support of the arts, and noted that a generational shift in corporate leadership is now taking place, with new CEOs taking over who were not raised with the arts as part of their lives. She also made a strong case regarding the increasingly important role of small and mid-size companies, which account for a major share of arts funding in the country.

Panelists agreed that it is extremely important for arts groups to get corporate employees involved as patrons, volunteers, and audiences. They suggested inviting employees to attend performances and exhibitions and building a cadre of advocates within companies. The panelists also encouraged arts groups to leverage matching gift programs and take advantage of special programs that provide modest financial support for groups that have employee volunteers. One panelist also commented that while arts groups may be experiencing severe hardship, they had not experienced any increase in “hardship” type requests, and urged groups to be honest about their serious needs, otherwise funders will be unable to respond.

Salerno, in particular, offered a passionate defense of the New York arts community and the key role it plays in the City. “More companies get it now,” she added, “and understand the vital role the arts play in economic development and education.” She urged groups to understand that companies strive to maintain consistency in their support and that this means the ups may not be as high, but we will be somewhat protected from downturns such as the current one.