#TOArtsThanks

by Jini Stolk

I’ve seen a lot of budgets over the years, but I’ve never seen one as positive for the arts as was recently unveiled in Ottawa. Simon Brault’s moving response on behalf of the Canada Council talked, with passion but not exaggeration, about a new chapter having been opened in the artistic and cultural history of this country.

But first things first: Prime Minister Justin Trudeau, Minister of Finance Bill Morneau, and Minister of Canadian Heritage Melanie Joly deserve an outpouring of heartfelt thanks, and I do hope you all – every one of you – lets them know how much their belief in the importance of the arts is appreciated. If you’re thanking them by twitter, use hashtags #TOArtsThanks; #TOArts; and @melaniejoly, @bill_morneau, and @JustinTrudeau; if by email, [email protected], [email protected]; and [email protected]. Actual letters are perhaps nicest of all, especially if they come from both your Chair and CEO; addresses are here).

The government’s intention to “strengthen our cultural and creative industries” was clear from Minister Joly’s mandate letter, whose goals were realized only a few months later in the budget:

  • increasing funding for CBC/Radio-Canada ($675 million in new funding over the next five years) and, equally importantly, reviewing the process of appointing members to the Board of Directors (CBC has a hard road ahead in overcoming years of losses of staff, technical resources, and even the sale of their 70,000 piece costume collection )
  • doubling investment in the Canada Council for the Arts (a $180 million increase over five years)
  • increasing funding for Telefilm Canada ($22 million more over five years) and the National Film Board ($13.5 million over five years)
  • restoring the Promart and Trade Routes International cultural promotion programs, making it possible for our artists to tour internationally and advance Canada’s reputation and values around the world ($35 million over two years, and hopefully beyond); this funding will also free up support from other governments that’s been unavailable because of lack of reciprocity
  • making significant new investments in cultural infrastructure ($168.2 million over two years to the Canada Cultural Spaces Fund) for the renovation and construction of arts and heritage facilities; also $4 million over two years for the costs of construction and renovation to improve accessibility for people with disabilities in Canadian communities
  • increasing funding for the Young Canada Works program to help prepare the next generation of Canadians working in the heritage sector

And those are just the highlights.

Not to be greedy, but these few more things would make me completely happy:

  • funds for greening theatres and arts spaces, and maintaining heritage buildings housing cultural organizations
  • reviving the National Portrait Gallery to showcase the thousands of works previously collected for this important national project, abruptly cancelled by the previous government. I’ve been delighted to see that I’m not the only one who kept that dream alive over the years; the CBC, Toronto Star, Ottawa Citizen, Globe and Mail and more have called in recent weeks for the Portrait Gallery to be reinstated, and I gather there’s renewed optimism at Library and Archives Canada (where the collection is now held.) Just imagine: a flourishing contemporary cultural scene and a place that provides an inspirational spotlight on our history through portraits of the artists, scientists, political, government, military and community leaders who helped make Canada great
  • I will also put in a word of support for one of Canada’s ambassadorial buildings abroad, inexplicably scheduled for “de-accessioning” several years ago. The Villa Grandi in Rome was given to Canada by the Italian government at the end of the Second World War. It has served as the Canadian Ambassador’s residence and is a prominent monument to the pivotal role of Canadian soldiers fighting in Italy. It should of course be maintained.

federal budget 2016

From Growing the Middle Class, Federal Budget 2016

 

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Spotting the red flags

by Jini Stolk

Goodwill Industries Toronto’s sudden collapse after 80 years of providing work, training and other opportunities to people in need, especially those with disabilities, opened the doors to a flood of criticism and blame (even while their stores’ and workplaces’ actual doors were shuttered and locked tight.) I wrote about Goodwill’s lack of foresight and planning in a changing environment; others focused on the board’s lack of oversight and their attempts to run and hide when disaster struck.

Winding up on the front page of The Toronto Star is probably the worst nightmare of those of us who serve on arts or other non-profit boards. Although public collapse and disgrace is rare in Canada’s charitable sector, the Goodwill story offers fundamental lessons on the meaning of oversight and fiduciary responsibility. We don’t need to be wary, timid, or risk-averse around our board tables, but it would be terrific if we all learned how to spot the signals of trouble ahead.

Nonprofit Quarterly ran an unexpectedly relevant piece called Red Flags for Boards early last year, identifying a string of financial markers of fundamental instability including diminishing cash, ballooning debts, and recurring deficits. Yet, it also pointed out that board best practices warn about micromanaging and that most boards rely on the executive and staff to be forthcoming with information, including about problems. Kate Barr’s advice is for board members to learn how to ask good questions, such as “Is this is a trend or pattern that we should talk about?” “Is this unexpected?”, and to pay attention to cumulative problems on the balance sheet. A far cry from micromanagement, this advice recognizes that board members have a broad institutional scope and the advantage of observation over time.

This piece, written after Goodwill Toronto’s closing, says there were warning signs that management and board should have recognized in time to change Goodwill’s direction. Bill Kennedy outlines some obvious red flags that anyone could have seen – if they were paying attention – including:

  • the organization’s recent selling of assets to pay for operations;
  • inadequate reserve funds; Charity Intelligence Canada says that Goodwill’s 2012 financial statements included reserves of only 7% of annual expenditures. (I wonder how many arts charities hold reserves greater than that?)
  • labour unrest, a big factor in public statements by the CEO and others about stresses and difficulties that faced the organization. (To which I say, “Your mission was to provide dignity, work, and job training to people in need: how could you have allowed labour unrest to grow so out of hand that it sank your organization?”)
  • And the big one, a changing landscape, which as I mentioned in my blog post, seemed to have taken everyone by surprise and left no opportunity for changes to Goodwill’s business model. (I don’t buy it.)

This piece talks about how to recognize the signs of financial fraud (and I think we all know that there have been some quietly resolved tales of embezzlement in Toronto’s arts community), usually signalled by significant lifestyle changes, puzzling and previously unaffordable purchases, or the sad indications of addiction.

Rick Cohen’s tale of hair-raising conflicts of interest in a range of nonprofits in the States is a healthy warning against complicated business deals involving top staff or board members or their spouses or close relatives. A conflict of interest policy is always a good idea for an organization dealing in large sums (although, as I look at Creative Trust’s board Conflict of Interest policy I note that it only dealt with grant-making or other financial decisions benefitting individual companies, and that the Conflict of Interest section in our Employee Policies was too wishy-washy in retrospect.)

I think there are other red flags not highlighted in any of these posts, including internal conflict, lack of transparency or honesty in communications inside and outside the organization, fear of change, fear of failure, lack of creative thinking, putting off until tomorrow what should have been done today, etc.

The antidote? A smart and energetic staff working in harmony with a committed and engaged board of directors – the topic of the Toronto Arts Foundation’s next CREATIVE CHAMPIONS NETWORK Get on Board Speaker Series and networking event for boards of directors. This one features the wonderful Robin Cardozo, Chief Operating Officer of SickKids Foundation, with distinguished panelists including Andrea Bellefeuille, Chair, Against the Grain Theatre; Helen Burstyn, Chair, Evergreen; and Nancy Webster, Executive Director, Young People’s Theatre. Join us!

Engaging your Board Effectively – and having fun in the process

April 27, 2016, 5 – 7 p.m.

Gardiner Museum – Lecture Hall

5 p.m. Doors Open & Registration

5:15 p.m. Remarks

Panel discussion, Q&A, refreshments and networking to follow

Please reserve your seat by April 20 with Natalie Kaiser, [email protected] | P: 416.392.6800 x226

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It’s unanimous! Why?

by Jini Stolk

I’m delighted to welcome Luminato’s new Artistic Director, who’ll be coming to us from Australia’s Melbourne Festival to helm the festival’s 2017 edition. I wish her great success in this exciting new position, and look forward to working together over the coming years.

I also warmly welcome Luminato’s new CEO; he came to us from England. I look forward to meeting the new Director and CEO of the Art Gallery of Ontario/AGO (from Honolulu); Shaw Festival’s new Artistic Director (Exeter, the U.K); The National Ballet of Canada’s Executive Director (Boston); the new Managing Director of Tafelmusik (the U.K.); and the new Director and CEO of the ROM (Salem, Massachusetts) – and to getting to know Harbourfront Centre’s wonderful new CEO (Australia) better.

I wish them all the greatest success, and hope that they’ll find the same joy as I have had in becoming part of Toronto’s and Canada’s smart, delightful and diverse cultural community.

I can’t help, though, wondering what’s up with our nation’s Hiring Committees.

There’s something to be said about our responsibilities to our own cultural community’s next generation of leaders, and our duty to develop, mentor and support them as they move to positions of increasing responsibility and prominence.

In days long past, artists and arts workers would have been noisily protesting this influx of folks from away. These days, I have quiet conversations with people who use words ranging from “outraged” to “disappointed.”

I know we have to get used to the fact that Canada is becoming an increasingly attractive employment destination/new home of choice to many people around the world. “There is a vision of what a progressive Britain could be. It’s called Canada.” according to Gaby Hinsliff in The Guardian. One of the reasons people find Canada so appealing is undoubtedly our ability to embrace new people and new ideas, remaining tolerant, relaxed and at ease in our own values and value.

But in the meantime, here’s a nice piece we might all take a look at on Steps to Developing Your Future Leaders.

 

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Lest we forget

by Jini Stolk

A few timely reminders:

Audiences complete the circle. This heartfelt thank you to audiences from veteran box office employee Christine Quintana, reminds us of our responsibility to understand and honour the wisdom, diversity and caring of the people who come to see our shows.

Your audience will change over time. Lessons from the world of professional wrestling, via Mission Paradox, that nothing lasts forever and that successful evolution requires planned and considered change. “The audience that built your dance company probably isn’t the one that will sustain it.”

There is always a “new normal.” Responding to the changing environment in audience behavior requires curiosity, an open mind, and a willingness to experiment – from tweaking curtain times to “random acts of culture” to attract new audiences. Meanwhile in the U.S. as in Canada, new structural models are emerging in response to tensions around funding and the sustainability of traditional arts organizations. “May you live in interesting times?” Perhaps this is not so much a curse as an invitation to bold and creative thinking … (Thanks to Eileen Cunniffe and the Americans for the Arts Artsblog.)

A few more practical reminders:

If you’re hosting foreign artists on tour in Canada, you’re likely going to have to secure each a new Electronic Travel Authorization. According to CAPACOA, the application process is fairly simple; the fee per person is $7 CAD, the processing time is normally under 10 minutes, and applications are trackable via an online status portal. (NOTE that U.S. citizens are exempt from this requirement.)

We’ve talked before about the confusion and uncertainty around police record checks: a time-consuming fact of life for many theatre for young audiences and other arts presenters. There’s good news from the ONN. New provincial legislation has been introduced, setting a standard practice for the kinds of information required within employee and volunteer record checks, and to be released by police services

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Board members as donors

by Jini Stolk

Should each board member make a personal donation to your organization? Yes. How much should they give? From each according to their ability…

I’m not sure why anyone would want to join an arts board without being excited enough about the work to want to personally support it, and bring friends, family and acquaintances to share the joy. I’m also not sure why an arts organization would want anyone to join their board who’s not passionately connected to their art and vision.

A board member doesn’t have to have great personal wealth to make a great contribution. The most important thing organizations can do is help their board members identify how they can best use their skills and energies to build resources and support.

Cynthia Armour wrote insightfully about Creating Fundraising Savvy Boards for Creative Trust. Finding the Right Development Officer for Your Organization describes the type of person who would be comfortable, even enthusiastic, about building a board’s success in giving and raising funds. BoardConnect’s checklist on The Board’s Role in Securing Philanthropic Support defines the role board members might play in an individual donations strategy.

I really like Buddies in Bad Times’ Personal Fundraising Worksheet for Board Members. It’s specific, easy to understand, and – what’s the right word? – unscary. It lists 14 ways to contribute to Buddies’ development activities, including: becoming a monthly donor, inviting prospective donors to shows and events, assisting in cultivating donor prospects at events, signing thank you cards, directly soliciting donations, selling tickets to fundraising events, and finally, making connections with potential corporate partners and attending meetings with high-level donors. The last two options on the Worksheet are left open, allowing board members to come up with their own ideas!

Simone Joyaux is also in favor of creating a menu of choices for board members’ involvement in giving and raising funds, and offers a clear strategy starting at the board prospect’s nomination interview.

More:

Few of us will encounter someone whose extraordinary generosity results from a brain injury, but The Man Who Couldn’t Stop Giving published about a year ago in the Atlantic talks about the clear consistent link between generosity and happiness and its neuroscientific roots!

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Creating a network of champions

by Jini Stolk

It was exciting to be part of the first advisory meeting of the Toronto Arts Foundation’s new Creative Champions Network. Even more exciting was the enthusiasm for bringing arts board members together to learn and connect, and the great new ideas that were generated.

The Network’s goal, under the Honorary Chairmanship of John D. McKellar, is to develop the engagement and impact of Toronto’s more than 1,200 arts board members – providing them with resources and opportunities to learn about the expectations and practice of good governance; share experiences and learn from each other; understand the context, trends and outside forces impacting their work; and become even more powerful champions of the arts.

Certainly, the response to the first Get on Board workshops on the Art of Good Governance: Getting the Basics Right was clear: board members are eager to learn how to contribute as fully as possible to the health and success of the arts organizations on whose boards they serve.

The idea of creating a network of board members is a first, not only in the arts, but in the non-profit sector. We believe it can have a powerful impact on the artistic growth and organizational development of individual organizations – and on the arts community as a whole.

If you or members of your board want to get involved and receive the Creative Champions monthly mailing, with helpful resources and information on upcoming workshops and events, drop a note to Michelle Yeung at the Toronto Arts Foundation ([email protected]).

 

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Funding reform

by Jini Stolk

Toronto’s arts community enjoys the unique privilege of having arms-length funding bodies at all three levels of government, specifically mandated to support our work. We have the possibility of ongoing operating support; places to go with project proposals; and a built-in connection through peer juries to community feedback and oversight. The Arts Councils’ boards monitor artistic developments and changing needs to ensure that the range of supported work is relevant and reflective of community priorities.

With all this, there are also funding programs we can apply to at federal, provincial and municipal government ministries and departments. These are much more directly tied to government political priorities – and the resulting complexities of process and decision-making are behind the Ontario Nonprofit Network’s Funding Reform initiative.

The ONN’s vision of a relationship and process that allows both government and nonprofit organizations to spend less time on administration and more time on program delivery and improving results is worth our attention. Those of us whose core or special project funding comes from the Province of Ontario should be able to get behind goals including: administrative processes that have been streamlined and standardized across ministries and programs; nonprofits that function more efficiently because there is predictable, stable long-term funding; reporting processes that are easier to navigate and focus on outcomes; and savings generated by streamlining processes that are reinvested in communities.

Vu Le has written often and passionately about the many absurdities of restricted line-item oriented funding, and has identified excellent funding practices as clearly as I’ve ever seen. More and more people are making the case for funding that includes full overhead expenses, and funders like the Metcalf Foundation are exploring which funding practices yield the best social impacts.

There are changes in the air in Ontario: a Joint Funding Reform Forum has been working on “Transfer Payment Administrative Modernization”, which could help cut through the tangles in the system.

A funding approach that’s flexible within reasonable limits, that allows for long-range planning, and that takes into account real costs – such as organizational administration, professional development, program evaluation, reporting, quality assurance, and fiscal management – characterizes “good funding,” no matter where it’s coming from. The arts have a great deal to contribute to this discussion – and potentially a great deal to learn.

If you need help this summer – whether for filling out fundraising applications or for some better more mission-oriented purpose – the Canada Summer Jobs program has been expanded in 2016 and is now taking applications (through February 26, 2016, so get going!). It offers eligible non-profit employers subsidy of up to 100% of provincial adult minimum hourly wage.

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Be it resolved

by Jini Stolk

Is it ever too late to make New Year’s resolutions? I think not.

It’s certainly never too late to share Vu Le’s list of Ten Resolutions for the Nonprofit Sector for 2015. If you are one of those people who still think the arts are not really, truly, part of the non-profit sector, I defy you to find any of these that you don’t think the arts community should adopt.

How about saving yourself time and disappointment by having all the essentials in place before writing this year’s grant applications: key messages (fine-tuned so they’re clear, persuasive and inspiring); a concise case for support; research, evaluation and project plans; and a list of alternative prospects in case your first proposal is turned down.

Why not write lovely notes to people who attend your shows, like Tarragon does, thanking them for coming, inviting feedback and comments, and letting them know how they can save money on future visits.

Consider whether you can make a strong argument that your show or event will draw tourists, boost the local economy and create jobs. If so, get in touch with the Ontario Cultural Attractions Fund, which helps arts and cultural organizations develop, promote and present unique events and exhibitions that bring visitors to communities across the province.

And finally, resolve to lose 5 pounds (again) and to take a break this winter like I’m doing by spending this month in sunny Mexico. See you soon.

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Planning to survive

by Jini Stolk

I confess. Sometimes I’ve felt good about the fact that Canada has far fewer big charitable scandals than the United States. Whether the story’s about financial malfeasance (United States Navy Veterans’ Association), shady use of donated funds (Wounded Warrior Project), dramatic loss of trust and supporters (Susan G. Komen for the Cure) or the abrupt closure of a much-loved institution (Sweetbriar College and the San Diego Opera) Canada’s been relatively immune.

And then along came Goodwill Toronto, reminding me not to be so smug.

At this time, there aren’t many reliable details on why Goodwill spiralled so quickly out of control. But a few things are immediately obvious, even at this early stage. Creative Trust included planning as one of the key characteristics of strong and healthy arts organizations. “Organizations that plan and learn are able to respond, adjust and take advantage of changing realities” we said in our Year 3 Evaluation Report. “Each Creative Trust company details its commitment to take specific steps towards health and sustainability in a written Work Plan.” Analyzing and balancing risk, ensuring that each organization understood the financial, human and other resources needed to fulfill their mandates, and planning for expected and unexpected financial difficulties were all part of our program.

Where was the planning at Goodwill?

You’ll notice that my baffled outrage doesn’t include questioning the CEO’s approximately $200 – 250,000 a year salary. Here’s where the critics have it wrong. This seems like appropriate, even modest, compensation for someone managing a $28 million a year organization…as long as their skills are up to the job.

By the way, while it’s a drastic error to stumble into a crisis without any plans in place, planning is also essential when the good times roll around. Any major change to an organization’s environment or business model requires thoughtful and detailed planning – in writing – or it won’t go well.

Surprising fact: Thinking and planning skills are centered in the prefrontal cortex section of the brain. Eat your Wheaties, with blueberries on top.

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After the chill

by Jini Stolk

Many of us are feeling a bit warmer…and freer…since Minister Diane Lebouthillier’s announcement calling off the Canada Revenue Agency’s political activities audits. This much criticized review of charities’ involvement in public awareness and advocacy was unveiled in the 2012 Federal Budget which provided CRA with $13.4 million to track down charitable scofflaws. The program always looked to me like a nationwide SLAPP suit, meeting its goal of silencing unwelcome political disagreement just by existing.

As expected, the audits uncovered few actual examples of charities breaking the rules around allowable political activities. Of the five completed audits that resulted in a determination to revoke charitable registration, my guess is that all five organizations will be exercising their right to appeal.

Ever since my August 2015 post on Fear of Advocacy I’ve been meaning to write again about why charities need to be free to contribute to public debate. I was going to re-emphasize that the CRA itself acknowledges (in its published policy CPS-022) that Canadian charities “have experience, expertise and ideas that should be used to help government develop better public policies and programs,” and that BoardSource just added advocacy to their list of the Ten Basic Responsibilities of Nonprofit Boards. In honour of the rule that charities devote no more than 10% of their resources to allowable political activity, I was going to call my new post Getting to 9.9%.

But I couldn’t write it. I found that the political activities regulations and reporting procedures were so loosely defined, subject to arbitrary interpretation, and onerous that I couldn’t in good conscience advise organizations to push the advocacy boundaries. Schedule 7 of the T3010 charitable return requires charities to detail all “political activities” (without clearly defining what that means) and to assert that they haven’t engaged in anything that “explicitly communicates to the public that a law, policy or decision of any level of government inside or outside Canada should be retained, opposed, or changed” or “encourages the public to contact an elected representative or public official” and urge them to do so.

These requirements remain on the books, and serve to contradict the CRA’s assertion that “Canadian society has been enriched by the invaluable contribution charities have made in developing social capital and social cohesion.” Can we still do this while self-censoring and scrupulously monitoring our twitter accounts, blogs, and LinkedIn profiles to ensure that no one – not even in the comments section – urges public action or makes a statement that could be interpreted as partisan?

The next step for our new government is to rethink the role of charities in public discussion and advocacy for social change, and bring CRA’s rules more closely in line with countries like the Netherlands, Britain, and the United States. It’s another welcome change to see that Minister Lebouthillier is planning to do just that.

The Ontario Nonprofit Network will be much involved in this process but anyone with a lawyer/activist on their board might want to dive into this discussion. I’d be very glad to see arts organizations play a leading role: our sector, after all, has a long history of fighting legal challenges to free expression. Gallery owner Av Isaacs, who died this month, was a warrior for the right of artists to create and exhibit according to their own aesthetic and perspective, no matter how unpopular, shocking or even “disgusting” – or how far they went “beyond walls.”

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