The BCA Report: A New Look at Business Support to the Arts in the U.S.

GENERAL

Research Abstract
The BCA Report: A New Look at Business Support to the Arts in the U.S.

Commissioned by the Business Committee for the Arts. The Business Committee for the Arts, Inc, (BCA) commissioned Research & Forecasts, Inc. to conduct a nation-wide survey of American business. The study was undertaken in order to provide the BCA members, the business community and the general public with an in-depth understanding about business attitudes and support activities on behalf of the arts. In particular, BCA was interested in placing information about monetary donations to the arts within a larger context of business philosophy and business philanthropy, thereby contributing to the overall understanding of business support of the arts.

This study departs from studies previously commissioned by the BCA in that, it represents the entire 955,876 U. S. businesses- with sales revenues of $1 million and over - listed by Dun and Bradstreet, Inc. in 1988. A sampling frame was purchased from Dun and Bradstreet, Inc, from which the final sample of 1,007 companies that are included in this survey was randomly selected.

Today, support of the arts is no longer the exclusive province of major corporations. Ways to support the arts, for business of all sizes, have evolved that include many alternatives to cash contributions, including: gifts of securities, company products, professional services, property, space and/or equipment. Moreover, there is a growing recognition that involvement with the arts can meet business objectives and generate good public relations in the community where companies conduct their business.

BCA, in its role as the advocate of business patronage of the arts, serves a critical function. In light of this function, the BCA decided to expand the scope of this study to include, in addition to the previously sought estimates of business financial support of the arts, several important attitudinal questions as follows: Why does business choose to support or not support the arts? Who is making these decisions? Who is benefiting from these decisions? Are there special decision-making systems established to handle support for the arts? If so, in which types of companies? How does business feel about its role and responsibility with regard to charitable causes in general and the arts in particular? What are the perceived benefits of supporting the arts? What are the disappointments? Does business have an obligation to pick up the slack for decreasing government giving?

The Overview following this introduction summarizes key findings derived from analysis of the sample data, projecting these onto the entire U. S. business population. Distinctive trends or patterns pertinent to type of industry, size of company, and regional location, are emphasized when appropriate. Sections 1 through 4 present a discussion of the findings accompanied by supporting tables. The findings of the BCA survey are set forth at the end of each section, followed by comparative analyses. When discussing the BCA findings, the references are made to BCA members or just to the members. In contrast, when presenting findings which pertain to the representative sample of the entire business population, the references are made to the sample or non-members or the entire business population.

Since membership in the BCA organization implies, by definition, a commitment to the arts, it seems to override any differences in type of business, size and location observed for the general population. Therefore, the BCA findings are presented without distinguishing the type, size, or business location. Does business give? In the past three years, 84% of the businesses surveyed contributed to a variety of charitable causes. Companies that did not contribute during the past three years gave the following reasons: Did not consider charitable giving a priority; Were not approached; Short of cash; Spent money on other things.

The most frequently mentioned recipients of business philanthropic dollars were: Community charities - 52%, Community action organizations - 42%, Art forms and organizations - 35%, Educational institutions - 27%. (Frequency of response does not necessarily reflect the actual incidence of giving. Therefore, while 35% mention the arts as recipients of support, the arts do not comprise 35% of the total funds donated to all charitable causes). In 1988, 42% of all contributors to charitable causes, or 35% of the businesses surveyed contributed to the arts. Sixty seven percent (67%) of the total of all cash and non-cash contributions made by business to the arts were awarded by small and a significant proportion of medium-size businesses with estimated annual sales revenues of between $1 and $25 million. The greatest amount of art support - 40% of the total dollar amount given to the arts - comes from the Eastern part of the U. S. The South provides 33% , the Midwest 14% and the West 13% of the total contributions to the arts. Support to the arts in 1988 by type of industry is as follows: Manufacturing - 31%; retail - 21%; other (transportation, communication, and utilities) - 18%. Services (hotels, health, education and welfare) - 17%. Wholesale - 8% and F.I.R. (financial, insurance and real estate) - 5%. The three art forms which received the greatest share of support in 1988 were: the symphony orchestra, museums - 16% each and the theatre - 12% of the total business dollars given to the arts. How much does business give? In 1988, the business community reported contributions of approximately 3.7 billion dollars to an array of social institutions and organizations. The arts received $634 million (distributed among the various art forms) or 17% of the total reported contributions for all charitable causes.

CONTENTS
Foreword.
Introduction.
Overview.

Section 1. Charitable contributions and art support:

How much does business give?
Distributions of arts support.
Business support to the Arts - Past, present and future.

Section 2. Business role in public service:

Business attitudes toward charitable contributions.
Contributors and non-contributors to charities.
Who benefits from business charitable support.
BCA members.

Section 3. Procedures and preferences in support of the arts:

Decisionmaking.
Procedures for art support.
Preferences in art support.
BCA members.

Section 4. Why does business give to the arts?:

Reasons for giving.
Expectations.
BCA members.

Methodology.
Questionnaire.

Commissioned by the Business Committee for the Arts. The Business Committee for the Arts, Inc, (BCA) commissioned Research & Forecasts, Inc. to conduct a nation-wide survey of American business. The study was undertaken in order to provide the BCA members, the business community and the general public with an in-depth understanding about business attitudes and support activities on behalf of the arts. In particular, BCA was interested in placing information about monetary donations to the arts within a larger context of business philosophy and business philanthropy, thereby contributing to the overall understanding of business support of the arts.
BIBLIOGRAPHY

Report
Research and Forecasts
91 p., appendix
December, 1988
PUBLISHER DETAILS

Research and Forecasts, Inc.
110 E 59th Street
New York
NY, 10022-2900
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