General operating support grants are a direct way to support the
quality and sustainability of a wide range of arts organizations that
present ongoing public programming—from major annual festivals to
year-long series of events; generally about 130 per year. While
organizations undergo a thorough biennial review, these funds are a
relatively steady and dependable source of annual funds to help the
organizations to connect to diverse community needs. They are
unrestricted giving organizations the flexibility to use the funds where
they make the most impact.
These funds help support the infrastructure of arts organizations
including staffing, programs, marketing, outreach and education.
Over time we have developed a framework that distributes funds in a
transparent way to the broadest range of organizations. Large
organizations receive the smallest percentage of an average of the three
years of their adjusted income; smaller and mid-size organizations
received a larger percentage of their budgets, recognizing their smaller
staffs and more limited capacities to fundraise. We expect to also
maintain the current practice where no one organization may receive more
than 12-15% of its annual operating income. This policy is meant to
encourage multiple funding sources and ensure that, should state funds
disappear or reduce that loss will not put the organization in jeopardy.
A condition of the funding, as described in the legislation creating
the Arizona Arts Trust Fund, which accounts for about 70% of these
grants, is that organizations must have a diversity plan and action
steps to have a culturally diverse board, ensuring that boards are
representative of the community served. In addition priority is given
to those organizations that are rural, ethnic-run or serve people with
disabilities.
Each level of funding from small to large organizations has
additional conditions:
Level I: smallest organizations use the funds for operating
expenses
Level II: mid-size organizations hiring a full-time
professional staff person, but they can use the money as they determine
Level III: mid-size to large organizations for operating
support
Basic Aid/Locals Aid: largest organizations
See attached chart that shows the different expectations and
requirements for each level of support.
Working Capital Reserves Grants are awarded through the income
generated by the funds in the state arts endowment, Arizona ArtShare.
Phase I organizations that participated in the original stabilization
program, sponsored by the Flinn Foundation must document that they have
retained or replenished the working capital reserves initiated through
this program in the late 1980’s; Phase II organizations must have
completed a two-three year training program by National Arts Strategies
and meet specific criteria.
As we look to the next five years of the plan and through the
grantmaking process, we plan to work with organizations to support the
development of organizational capacity and sustainability, and more
explicit connections to public participation. The goal will be to
identify indicators for healthy organizations and strategies and
measures for building participation. These elements will be developed
in consultation with organizations and may take several years to
implement.
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