The Humanities vs. The Humanitarians

Institutions of high culture are struggling like always to reach new money donors.

The Wall Street Journal offers a free article reporting on efforts of major cultural institutions to attract new donors from young and the wealthy ("Hunger vs. the Arts" by Jacob Hale Russell).  The reporter wants us to believe that high profile humanitarian causes favored by the likes of Bill Gates & Angelina Jolie are crowding out traditional cultural giving. 

But even the lead of the article doesn't support that claim:  the rich young philanthropist Michael Tennenbaum just gave $10 million to three universities and sits on the national board of the Boys & Girls Club of America (EIN 13-5562976 Form 990) (along with Hank Aaron & Denzel Washington).  No Africa trips for this guy—it's still higher education and kids that drive his giving.  (See my comment  earlier this year: "Meet the New Donor ... Same as the Old Donor."

So the rest of the article surveys some of the highly traditional ways that arts organizations are reaching out to enculturate a new generation: receptions, dinners—and of course galas.  The Lincoln Center for the Performing Arts (EIN 13-1847137 Form 990) started up a new gala with a focus on attracting hedge fund managers.  Reynold Levy, who came to the Lincoln Center from the humanitarian group International Rescue Committee (EIN 13-5660870 Form 990), came up with the idea. 

The reason that cultural groups see themselves in competition with humanitarian groups may have more to do with the personnel.  Mr. Levy earns $731,500 in salary and benefit plan contributions at Lincoln Center, while his successor at IRC George Rupp takes home $357,367.  But fundraisers don't make the big bucks by innovating:  they just take their same trusty bag of tricks to larger fund raising venues.  Far from being competitors, the second tier humanitarian groups look more like the minor leagues that are developing the fundraising talent for the big league name brands. 

High culture certainly has to reposition itself from time to time, yet it has an enduring appeal as a luxury good and will endure, especially in the metropolises with a still thriving financial industry like New York and San Francisco.  The challenge is most acute in cities that are losing their role as financial centers due to corporate mergers (currently the challenge in Boston).