Next Time You’re On the Poseidon, Remember to Go Up – Organizational Culture and the Dangers of Sycophancy
If things are going well, the organizational culture is usually harmonious. If not, then it’s not. As Richard Branson recently wrote, “There’s no right or wrong way to go about creating a company culture, as long as you keep the staff that it’s designed for in mind every step of the way.”
Unless you don’t, of course.
Nonprofit leaders that seek knowledge, challenge their co-workers to wrestle with ideas rather than to rubber-stamp them – these people are golden. These people inspire the best in their communities. Their vision is not their own, but that of a collective.
Those who seek sycophancy, encouraged by well-meaning boards to behave autocratically – these people are leaden. They have no ability to rally, only to bully. Sadly, but inevitably, these folks excel at leading organizations straight into a toxic dump of irrelevance.
Look in Your Wallet Before Buying That Sandwich

I’m hungry.
I have a piece of paper that says I have a budget of $150 for lunch.
I go to the deli for a sandwich. Maybe chips and a lemonade.
In a new promotion, they ask me to step behind the counter and make my own sandwich. There’s a charge for each ingredient, but I get to make whatever I want.
I make a quadruple-decker. It’s a masterpiece of breads, meats, cheeses, veggies, seasonings, and condiments. It would make Dagwood Bumstead envious.
Because of all the ingredients, it costs $150.
I’ve actually only got $12. I put the purchase on credit. After all, I have that piece of paper. And I deserve that sandwich.
Does your arts organization budget this way – put together budgets based on what a leader wants to buy rather than what’s in your institution’s wallet?
Cultural Fit: FIFA, North Korea, the Kardashians, the Nixon White House…and Your Nonprofit Arts Organization?
I just read an op-ed piece in The New York Times about the over-utilization of “cultural fit” as a criterion for hiring. “One recent survey found that more than 80 percent of employers worldwide named cultural fit as a top hiring priority.”
To an extent, cultural fit is interesting, but a “top hiring priority?” In the broadest sense, someone with an affinity for and experience in the nonprofit arts industry would seem to possess it for a nonprofit arts organization, as opposed to someone from Walmart.
But when challenges face the organization, or if an organization is seeking to “be taken to the next level,” cultural fit is the last thing you want in a key hire. Adding wax to a candle just makes a bigger candle. It doesn’t light up the night until you add the fire.
It Takes Guts to Build a Successful Nonprofit Arts Organization

Take a long inward look at why your nonprofit arts organization exists.
No. Longer.
Stop. Read the next sentence. Close your eyes and do what it says. Open.
Say out loud what the mission is – not the mission statement (because someone else wrote that) – but the from-the-gut societal problem your nonprofit organization solves.
Welcome back. Was that hard to do?
Was your interpretation in line with the mission statement?
Or is your organization a nonprofit just for the tax breaks? In other words, do you take donations to produce somebody’s vision of art (maybe even yours) with no change to your community?
Inspiring nonprofits don’t measure success by journalistic acclaim, performance buzz, or paid attendance. That’s what baseball teams and political conventions do.
Be inspiring. Be better. You’ve been given a life-altering societal charge: follow your gut.
Ethics: “You can’t just ask people to behave ethically just like that.” -Sepp Blatter, Friday, May 29, 2015
One foundation makes a grant for a pet project and then gets other foundations to commit money to that same project. And then decreases its gift by the amount the other foundations contribute.
One nonprofit arts organization that sent its executive on an expenses-paid vacation to Europe, paying for it with tax-deductible donations.
One executive director that increased the YOY marketing budget of the organization by 50% based not on history or data, but on “that’s how much we’re spending, so that’s how much we have to make.”
One board of directors that undertakes an emergency “going-out-of-business” desperation fundraising campaign, but after raising the money, changes nothing about the way it does business. And then does it again.
Hundreds of nonprofits having to deal with trust issues from nervous donors because of unethical behavior from a disgusting few.
In Charities, The Chicken Came First. There. Settled. (But Each Chicken has the Ability to Hatch a Whole Passel of Eggs.)
When communities are in trouble, specific needs arise. Charities embark on social experiments aimed at addressing issues not easily solved when profit is king.
In the arts, we tend to loudly cluck about indirect results. Economic impact. The “Anti-Gang.” Higher math scores…happy by-products, but not arts’ reason for being.
But do regions address their specific needs – or even their happy by-products – when dominated by single museums, ballets, operas, theaters, or symphonies? Doesn’t it really take hen-houses full of them to increase a region’s vibrancy?
To achieve a community’s cultural success, dominating arts charities might consider the counter-intuitive notion of creating their own competition, risking their own vibrancy for the community’s sake. It’s certainly better for the region to incubate dozens of arts charities rather than one, especially when those “chicks” do the same once they’re able.
I’m baaaaa-aaaaack — “He who’s down one day can be up the next, unless he really wants to stay in bed, that is…”
For 8 months, I’ve been temporarily working in Detroit, mixing Cervantes (above) with Kerouac (below). Detroit was fascinating.
Where to go next is the issue.
I’ve studied nonprofit arts cultures across the country and (so far) settled on regions surrounding Seattle, Portland, Chicago, and Washington, DC.
The house and TK are in Seattle. TG is in Detroit. I’ll give you a great deal on the house, but not the others.
Criterion #1: When a region’s arts community is comprised of a whole bunch of discrete mission-based organizations – rather than everybody doing everything – then that region’s organizations succeed. That’s for me.
Criterion #2: When a region’s arts community is comprised of a precious few large arts organizations, those organizations are doomed to irrelevance. Not for me.
But my mind wanders…
“What’s in store for me in the direction I don’t take?”
Art in a Plutocratic Oligarchy: Send Lawyers, Guns, and Money
http://youtu.be/sgRfxTG1Rg8?t=9s
In the USA, we made up the phrase “freedom of expression.”
Constitutionally, the first amendment states that Congress can’t pass laws that, among other things, designate a national religion or abridge the freedom of speech or the press.
Often, these rights are lumped together and expanded to include artistic expression.
And political contributions.
And porn.
But in an America where we have officially anthropomorphized businesses, can the arts be effective tools for positive change? Or simply a numbing agent against negative change?
Have retribution-fearing foundations and donors unwittingly turned nonprofit arts charities into a series of retribution-fearing crab buckets? With the exception of organizations that seek measurable impact using arts as a means (not an end), have we become participants in social malaise?
If so, send lawyers, guns, and money to get you out of this.
If Educational Attainment is the Most Valuable Predictor of Arts Attendance, Can the Arts Become a Magnet for a More Highly-Educated Populace?
39.4% of Americans have at least a 2-year college degree.
Of the 25 most populous metropolitan areas (not limited to the city limits), only 15 surpass that percentage by more than 1%.
They are (in order of percentage, high-low):
- DC
- Boston
- Oakland-San Francisco
- Minneapolis
- Seattle
- Denver
- New York
- Baltimore
- Pittsburgh
- San Diego
- Portland
- Chicago
- Atlanta
- Philadelphia
- St. Louis
Coincidentally, every one of these cities exceeds the mean in inter-city US migration (moving from one US city to another).
When you eliminate people who have attended school-based arts performances and exhibitions in which they have a significantly personal connection to the art (a child, a neighbor, etc.), fewer than 50% of Americans have paid to experience the arts.
Does that mean that we give up on the arts in other metropolitan areas? Or might the arts serve as an attractor for highly-educated migrants?
“Diversify” Does Not Mean “Assimilate”
Diversify the audience? Yes. Diversify the experience? Not so much.
Generally speaking, arts audiences are asked to follow privileged Euro-centric (often described as “old” and “white”) behaviors. There are long-standing limitations: no talking, no eating, no drinking, no touching. Sit. Watch. Listen. Clap.
There’s a strict sensibility about enjoyment – so much so, that when a theatre allows its patrons to bring in beverages, arguments ensue as though the end of civilization is nigh.
In any arts endeavor, the key is to invite participation, not ask others to follow your conventions as though they were the default.
The same holds true in the board room. “To change (something) so that it has more different kinds of people or things.” (Webster’s definition of “diversify”) denotes change in the “something,” not changing the people to assimilate to the “something.”
Marketing Arts Charities: In 2014, It’s about Me (Not You… Me)
Attracting Millennials to the arts isn’t the easiest thing in the world. What worked with the Greatest Generation hasn’t worked with Boomers or Millennials.
This summer, Coca-Cola put names on the bottles (common first names for those born in the 80s and 90s). Then, a Coke turned into something about “me.”
Look what I’m drinking… it’s me!
We’ve also seen hundreds of bucket challenges to support ALS research, which is great. The product sold in the videos is “me.”
Look what I’m using to do good in the world… it’s me!
Marketing the transformative experience of the arts works best when it’s about “me.”
Look at that amazing artwork/ballet/opera/play/musical… it’s me!
If you can make the experience about the patron (not for the patron), you’ll have a fan for life.
Or at least until the next big thing.
Careers in the Arts: It’s Pretty Ugly Out There
Paul Begala said, “Politics is show business for ugly people.”
The converse, that show business is politics for pretty people, is equally true.
Pretty (young) people enter nonprofit arts leadership believing that they should land a high-paying managing director’s job within 3 years. Ginormous student debt is predicated on that prospect.
Ugly (old) people, therefore, had better vamoose, and decrease the surplus population, to paraphrase C-Dick.
Pretty people panic at red ink. They leave. No experience or belief in failure.
Ugly people see an opportunity. They know when to duck and when to charge.
Consider for your next important hire:
- When hiring for “fit,” by definition, you’re hiring to appease. Don’t expect much change.
- When hiring for “innovation,” you’re hiring to anticipate obstacles. And only someone who has experienced obstacles (and carried on) knows how to do that.
Arts Charity Strategy: When Substitutes and Competitors Blur, Does Your Organization Become Unfocused?
In 1979, Porter’s Five Forces Analysis tool was published by the Harvard Business Review. If you haven’t studied it, do so. But study it hard – it’s far more comprehensive and complex than “5 Tips to Get More Donors” or others in the current mini-list nonsense arena.
When arts charities view competitors (those that do what we do) and substitutes (those that do something that the customer will do instead of what we do) as one force, they lose mission focus, and once that happens, they begin the downward spiral.
To wit: if you run a theatre, your competition is “theatres.” If you make the mistake of thinking that “video games” is a competitor (rather than a substitute), the logical conclusion is that you need to provide “television” instead of “theatre.”
Be a theatre. That’s hard enough these days.
Good and Bad in Charity Funding

Milk, Nicolas Cage’s acting; mugs saving trees or cups saving wash water; bottled water — good or bad?
Good:
Unrestricted funding.
Ice Buckets/Challenges (unless you’re Charity:Water. Then bad.)
Matching gifts.
Nihil Pro Quo.
Public funding.
Multi-year gifts.
Endowments that cover >20% of the organization’s annual budget.
In-kind gifts that are already in the budget.
Thousands of low-level donors.
Dozens of high-level donors.
100% of trustees/board members donate.
100% of trustees/board members donate one of the 3 highest gifts they give all year.
100% of employees want to at least donate $1.
Bad:
Funding restricted to programs unsupported by the mission.
Funding restricted to vanity projects.
Quid pro quo.
Corporations choosing charities via popularity contests/computer click-offs.
Large donations that overly entitle either donor or recipient.
Endowments that cover <20% of the organization’s annual budget.
Panicky, deleterious “Going-Out-Of-Business-Unless-We-Raise-Millions-By-Tuesday” funding schemes.
The Politics of Charity: Minding Your Speaking Your Mind
Some of us are more candid than we probably ought to be. We put ourselves out there. But remember this as you read this blog and other business columns: things change.
Each charity has a special mission (or at least should) that may relate to other charities in the universe, but not exactly. There is no right or wrong way to do it. And expressing a thought in a column – such as 137 Words – does not equate to either a Sermon on the Mount or a whisper from Jiminy Cricket about that charity. It is merely an expression based on the writer’s own vantage point.
So when Covey, Collins, Porter, or even Harrison proclaim a truth, it’s not backpedaling to say that the “truth” is a reaction to what’s happening right now. And that things change.
The Future of the Arts: It’s About the Impact Outside the Building
I’ve been scouring mission statements. Some inspiring, some boring; some engaging, some self-indulgent. Indications of what the charity values? Absolutely.
Performing arts charities, more than any other, tend to value programming over impact:
“to sustain, encourage, and promote the performing arts and to educate the public with relation thereto” – Lincoln Center
“producing and presenting the greatest examples of music, dance, and theater; supporting artists in the creation of new work; and serving the nation as a leader in arts education” – Kennedy Center
In contrast, public broadcasting tends to value impact over programming:
“to create a more informed public – one challenged and invigorated by a deeper understanding and appreciation of events, ideas and cultures” – NPR
“to inform, to inspire, and to educate” – PBS
Do you see the difference? Do you want the difference?
More on Charities and Families: Find a Way to Answer “NO” to Form 990, Part VI, Line 2
“XYX YXYXYXYX (WHO SERVES AS GENERAL DIRECTOR AND ARTISTIC DIRECTOR, CEO) AND XXX XXXXXXXX (WHO SERVES AS EXECUTIVE DIRECTOR – DEVELOPMENT AND MARKETING) HAVE A FAMILY RELATIONSHIP”
Their two combined salaries (excluding payroll taxes) to total budget: 6.0%.
Their two salaries to all salaries: 12.7%
These two employees to all 406 employees: 0.5%
Ratio, these two employees’ salaries to all employees’ salaries: 25-1
Current year surplus/(deficit): ($3,239,641)
Are your decision-makers married or in some family relationship? For a for-profit company, that’s fine. Family businesses and for-profit nepotism are mostly fine.
But charities, owned by the community and answerable to its constituents, are not family businesses. And when they act irresponsibly, like the above arts organization, it’s a travesty that negatively affects the whole industry.
Because now we have to convince supporters that this won’t happen to their donation.
Arrogance, thy name is YXYXYXYX.
The Case for Individual Artist Support Begins with Measuring Hope
Painter sculptor carver glassblower metal-artist potter actor set-designer lighting-designer costume-designer sound-designer playwright director choreographer jazz-dancer ballet-dancer modern-dancer opera-singer jazz-singer classical-singer musical-comedy-singer performance-artist rock-singer rock-musician classical-musician poet novelist ballroom-dancer hip-hop-dancer hip-hop-singer beat-boxer aerialist cinematographer folk-dancer native-dancer folk-singer Latin-dancer swing-dancer belly-dancer tap-dancer clog-dancer sketch-artist screenwriter clown mime country-singer storyteller improviser busker magician juggler composer lyricist ethnically-specific-singer ethnically-specific-dancer ethnically-specific-visual-artist
Apologies to those I neglected.
Art breathes life into our lives. Art offers us the only thing on the planet that has the capacity to make us better – hope. Even existentialism compels us to rebel… and hope nonetheless.
Unfortunately, hope is not a measurable outcome.
We must find it within our best selves to find a system to fund individual artists separate and apart from arts organizations. Not instead of, but in addition to. We deserve to hope for better.
Negatively Commenting on the Title of a Post (What You’re Reading Now) is Akin to PETA Boycotting “To Kill a Mockingbird” Because, You Know, They’re Killing a Mockingbird.
Recently, a foundation advocate negatively commented on the title of a 137 Words blog post. On the title, not the post.
As Ben Franklin once said, “We are all born ignorant, but one must work hard to remain stupid.”
Thank you for reading 137 Words and sharing it with your colleagues. We’re pretty amazed when 137 Words evokes derision, praise, or questions.
If you haven’t shared yet, please do – karma will be kind.
In 6 months, 137 Words has picked up about 6,000 readers. That exceeds all our expectations. We are truly grateful.
And to those like this advocate who only read the title and not the posting (what you’re reading now), I only wish bliss. Or, should I say, additional bliss.
Harsh? Maybe so. Because I am all too often a card-carrying member of the Right to Extreme Stupidity League.
Arts Charity Leaders: The Economic Impact Argument Has Become a Losing Proposition…Move On
From ArtsFund, Seattle:
“Together the activity of nonprofit arts organizations [in our region]…generates close to $2 billion in the Central Puget Sound’s economy creating 32,520 jobs, $882 million in labor income and $83 million in taxes.”
From Viking Stadium (new NFL stadium), Minneapolis:
“Construction will support approximately 13,000 jobs…almost $300 million in wages…upon completion, 3,400 full and part-time jobs…the economic activity from a new stadium will generate over $26 million per year in tax revenue and over $145 million in direct spending by Vikings fans inside the State of Minnesota.”
From McDonald’s:
“McDonald’s provides tax revenue for local, state and national governments…$1.3 billion in United States national and state corporate taxes in 2011…McDonald’s spends hundreds of millions upgrading or building new locations.”
Let’s move on to quantifying our outcomes before we bury ourselves with more “economic impact” studies. It’s just not a winning argument for the arts.
Kibitzing is the Road to Hell for Charitable Organizations: “You know what you SHOULD do…”
Kibitzing. Webster’s definition: “watching other people and making unwanted comments about what they are doing.”
Good intentions (egad). Some people pay for the privilege via their donation or board service. My mother believes it’s her birthright.
For arts charities, kibitzing mainly involves comments, programs, and activities that are unsupported by research or any evidence of success.
Instead: come with solutions rather than problems. Shortfalls are as unintentional as bad art. No one intends red ink or a lousy play with bad acting. But rather than more bake sales, auctions, galas, or (egad) a “give-a-million-dollars-or-we’ll-go-bankrupt-on-Tuesday” campaign; rather than creating a program committee (because anyone can pick plays) or a marketing committee (because anyone can market the arts), work with your ED toward real, verified solutions.
The road to hell is paved with kibitzers. The road to bankruptcy, too.
Charity Culture: If Doing the Right Thing Makes You an Endangered Species, Do It Anyway
Sadly, few people know “Profiles in Courage.” Ask around.
Among performing arts charities, some leaders shrewdly keep their positions because they fear appearing impolitic. They seek sustainability for themselves first, and then, secondarily, their organizations.
To them I implore:
- Pay performers wages, on the books, legal standard or better, for every hour they spend: rehearsals, performances, fittings, etc.
- If your charity isn’t making a substantial difference, merge or close. If it is, share your secrets.
- It’s about social progress, not black ink. Both are preferable, but you’ve failed if your best work is 30 years of balanced budgets.
- Take a stand. Don’t buy trouble, of course, but don’t become invisible to save your own skin.
- Theatres: plays aren’t written, they’re wrought. It’s about the production and the viewpoint, not the script and sets.
- Do something. Don’t be something.
The Creation of Art: Diamonds and Great Art Come from Tension and Pressure
Artists don’t work alone. They require collaborators.
A script isn’t a play. A score isn’t a symphony. A scene isn’t a painting. Choreography isn’t a dance. A libretto and score isn’t an opera.
And a vision isn’t an arts charity.
For any piece of art to be considered finished (and viable), a team is required. Playwrights, composers, choreographers, visual artists, and arts charities may be the ones who create artistic launching pads, but art, like space exploration, requires a slew of equal partners. Among those: directors, performers, designers, interpreters, tools and toolmakers, and audiences. All partners create tension. And that’s good.
No single artist deserves immunity from collaborative pressure. A piece of true art isn’t done until it’s done. Not before. Not after. The immutable pressure of the finish line makes the race exciting, meaningful, and artistic.
Have You Heard? I’m a “Bomb-Throwing Provocateur!” Who’d Have Thought an Artist Could be One of Those?
A few posts ago, we talked about the enmity brewing between the arts charities and the rest of the charity sector. That many US arts charities concentrate on the quality of their art while the rest of the sector concentrates on outcomes. That arts charities are pretty much the only part of the charity sector in which the donor also uses the charity, exacerbating the arts’ reputation as being elitist.
Responses were 50-50. Those that agreed tended to come from arts marketers and fundraisers while the rest came from artistic directors and producers. Break it up…nothing to infer here.
Funniest comment was from a 36-year arts veteran decrying elitism; it’s part of the title here. She could have said, “You’re an asshole.” Or “jerk.” Or just plain “wrong.”
I might be all those things. After all, I’m an artist.
This Just In: Artists Value Money Just Like You Do
I just read an article in the Chicago Tribune about actors receiving no payment for some performances. I’m not sure why it was written, except as acknowledgment that, well, actors receive no payment for some performances. Even for hit shows.
But why? “We can either pay you guys and not do a show — or not pay you and do a show,” said one producer in the article.
Here’s the thing: there are lots of performers. The competition forces them to undervalue themselves.
But that doesn’t mean that it’s ethical not to pay them. At least minimum wage. For rehearsal and performance time.
If that producer decides not to make money on a project, that’s his prerogative. But no pay to performers is abusive, unless he’s offering 40 acres and a mule after the run of the show.
















