Why has The Arts and Culture Program developed a new national strategy?
As part of The Kresge Foundation’s strategic planning process, the Arts and Culture Team looked broadly at the challenging issues facing arts and culture organizations today. The analysis revealed a strong need for greater understanding and support of best capitalization practices. Kresge’s critical role in the 20-year cultural facility building boom that swept the arts sector has given it a unique window into arts organizations’ financial management practices. We have found that the creation of building reserves has not been universal and that organizations have not planned for increased costs of a new or expanded facility. Too often, these capitalization issues are addressed only in the context of facilities planning, if at all. Research and our experience have shown, however, that capitalization must be addressed broadly, not simply within the scope of facilities projects. The need for adequate capitalization was also underscored by the impact of the economic recession on our grante
