Part I.
To assist MacArthur in thinking about its future grantmaking, it would be essential to hear directly from the arts community in Chicago about the key developments and trends that had been experienced since the arts program was introduced in 1980 and, further, about the critical issues and problems facing various art forms today. A series of focus groups was held early in 1990 to provide a forum for Chicago artists to speak.

As background for these sessions, a number of short papers were prepared outlining, from a national perspective, the major developments in the field of arts and culture in the past ten years and identifying key issues and problems for the future. The papers were sent to all participants prior to the focus groups and provided a stepping-off point for the individual discussions.

The document that follows is organized by discipline. Each section begins with a national perspective outlining major issues, followed by a summary of the individual focus groups. Each session was taped, transcribed and summarized, with frequent use of quotations, so as to provide the reader with a sense of the flavor and substance of the conversation. The final section summarizes, from a national perspective, the major trends and developments in financial support of the arts in the since 1980.

Summary of key national issues: There are six themes that emerge repeatedly in a reading of the national background papers. While each theme does not appear in all the sections, the six are mentioned with enough frequency so as to deserve special mention. They are:

1. Dramatic growth in all areas of the arts throughout the country.
2. Financial support: While contributions from all sources, earned revenue and organizational budgets have increased greatly in recent years, there is little evidence to suggest that arts organizations are any more stable than they were ten years ago.
3. Audiences: Individuals and organizations across the board are worried about future audiences.
4. The impact of cultural diversity.
5. Management training and succession.
6. Freedom of expression.

Summary of key focus group issues: An overwhelming sense of pride and accomplishment was evident at each of the focus groups conducted with Chicago artists and managers. While there were many criticisms and problems voiced and a good deal of apprehension about the future expressed, there was almost unanimous agreement that Chicago was a more culturally vibrant city today than ten years ago. People spoke of a strong sense of community that had developed in recent years and cited a number of specific accomplishments and positive developments that had occurred.

Many of the issues that concern Chicago cultural organizations are identical to those that emerged in preparing the national background papers. As The Conservation Company has not examined the cultural scene in other localities, it is not possible to compare the major local issues with, for example, Minneapolis, San Francisco, Dallas or Philadelphia. The focus groups were designed to let the members of Chicago's cultural community speak for themselves. While there were many issues specific to individual art forms or fields, a number of cross-cutting issues and problem areas were common among sessions. They were: Audience development, City Govermental leadership, criticism, art education in the schools, financial stability, freedom of expression, multi-culturalism, and space.

Part II. 
In the summer of 1990, the Conservation Company designed and distributed a survey to 105 grantees of the John D. and Catherine T. MacArthur Foundation. The purpose of the survey was to learn how the grantees as a group have fared over the past decade - particularly over the last three years - and to identify the major financial, artistic, and management issues they are facing.

The survey included financial questions relating to earned and contributed income, deficit/surplus, and year end fund balance for the most recent three fiscal years (1987, 1988, 1989). In addition, qualitative, open-ended questions were asked - both general questions regarding artistic and management issues, audience development, capital improvements, and changes in revenue patterns; and questions specifically related to MacArthur's cultural grantmaking program (see appendix A). Qualitative survey: Seventy-nine respondents completed the survey questions. Key findings from these qualitative questions include: Five issues were identified as the most critical facing the majority of grantees. These were artistic freedom, funding, demographic changes, arts education, and city support. (Introduction.)

Part III.
A key component to The Conservation Company's overall review of MacArthur's Chicago grant program is an examination of major foundations throughout the country which are active in the field of arts and culture. It was thought, first, that an analysis of the operating styles of other foundations might assist MacArthur in positioning itself in the Chicago grantmaking community, and second, that initiatives and strategies adopted in other communities to address specific problems might be replicable when addressing those same issues in Chicago. The methodology centered on interviews with 24 foundations with strong local grantmaking programs in the arts in Chicago, Indianapolis, Kansas City, Minneapolis/St. Paul, Philadelphia, Pittsburgh and San Francisco; and five large foundations (four private, one corporate) that are based in New York City and that operate national or international programs. A standard interview guide was used and is included as Appendix B. Annual reports and other material were also reviewed. (Introduction.)

CONTENTS
Part I. 
             Introduction. 
             Dance.
             Dance: Report from Chicago focus groups.
             Music.
             Music: Report from Chicago focus groups.
             Theatre.
             Theatre: Report from Chicago focus groups.
             Art museums.
             Science and natural history museums.
             The state of living collection institutions.
             Museums and living collections: report from Chicago focus groups.
             Literature.
             Literature in Chicago: Report from Chicago focus groups.
             Film and video.
             Film and video: Report from Chicago focus groups.
             Individual artists.
             Individual artists: Report from Chicago focus groups.
             Financial support for arts and culture.
             List of sources.

Part II.
             1. Introduction. 
             2. Major findings. 
                 A. Financial survey.
                 B. Qualitative survey.
             3. The sample and methodology. 
             4. Financial analysis. 
                 A. Financial trends over three years.
                 B. Components of income.
             5. Qualitative survey: 
                 A. General questions. 

             Appendix A. survey instrument.
             Appendix B. survey tables.

Part III.
             Introduction.
             1. Characteristics of foundation behavior.
             2. Variables in foundation funding.
             3. Selected local initiatives.
             4. Major national foundation programs. 

             Appendix A. Foundation profiles.
             Appendix B. Interview guide. 
             Appendix C. List of individuals interviewed.

To assist MacArthur in thinking about its future grantmaking, it would be essential to hear directly from the arts community in Chicago about the key developments and trends that had been experienced since the arts program was introduced in 1980 and, further, about the critical issues and problems facing various art forms today. A series of focus groups was held early in 1990 to provide a forum for Chicago artists to speak.