CCA Bulletin 10/09

March 24 , 2009

American Arts Organizations Hit Hard by Recession

Just the Facts

The current economic recession is taking its toll on the American arts community. The National Endowment for the Arts (NEA), the American version of the Canada Council for the Arts, reports that unemployment for artists has risen sharply.

The NEA is also administering a fifty million dollar recovery fund to keep jobs in the arts. The fund is part of the larger $ 787 billion dollar recovery package passed by the Congress last month. The grants under the recovery plan are one-time grants.

Arts organizations are facing difficult choices. The Rose Gallery of Brandeis University in Waltham, Massachusetts is one of the most prestigious collections of American art. Due to a shrinking in its endowment, the University decided to sell off its collection to make up for the difference. This decision prompted a public outcry which caused the University to reverse its earlier decision.

The National Academy is another prominent arts organization under pressure. The membership of the Academy features the best-known American visual artists each of whom have contributed a work to be held in its collection. Facing a serious shortfall in the revenues of its endowment, the Academy planned to sell two works from its vast collection to make up the shortfall. The American Museum Directors Organization (AMDO) blocked the move on the basis that the collection of the Academy is held in public trust and cannot be sold off. The Academy and the AMDO have reached an agreement which reaffirms the public trust over the collection.

One of the largest American arts umbrella organizations, Grantmakers in the Arts, has started a blog, Economic Turmoil and Change, which is updated daily with articles on how the arts are being affected by the current economic environment.

Tell me more

The CCA is monitoring the impact of the current recession on the Canadian arts and culture sector. Any information you might have that would add to this picture would be most appreciated.

In December 2008, the CCA submitted a brief to the Minister of Finance, the Hon. James Flaherty, detailing measures which would help the arts and culture sector stimulate the Canadian economy. The CCA also informed the Minister that further measures might be required and that he would be advised of further developments in the sector. So far, one of the most pressing recommendations made by the sector has been to reinvest urgently in the development of foreign markets by replacing the TradeRoutes and PromArt programs. These representations have not yet received a response from the Heritage Minister, the Hon. James Moore.