11th September's impact on the Cultural Sector

IFACCA/Artshub,
03 January 2002, USA

by Daniel Beattie, National Endowment for the Arts [The following report was distributed to the National Council on the Arts, November 2001] In the aftermath of September 11, 2001, the nonprofit cultural sector throughout the entire nation is experiencing a multitude of short term, mid-range, and long-term effects that seriously undermine the vitality of the American artist and arts organization. The most immediate consequences of the devastation in New York were a number of irreplaceable losses - both human and physical. Foremost, the collapse of the World Trade Center claimed the life of one artist, Michael Richards, who was working in his studio on the 92nd floor of Tower One when the hijacked planes hit the Twin Towers. Mr. Richards was a participant in the Lower Manhattan Cultural Council¹s World Views artists-in-residence program. The Council¹s offices, also located in Tower One, were destroyed along with the studios and artwork of 15 other resident artists. Additionally, the attack destroyed more than $100 million of artwork in and around the World Trade Center, including 300 Rodin bronze sculptures and numerous works by Alexander Calder, Roy Lichtenstein, and Louise Nevelson. The collapse of the Twin Towers also destroyed a newly installed $10 million digital broadcast system and tower belonging to New York public television Channel 13 WNET. A handful of other nonprofit arts organizations in Lower Manhattan also lost their facilities, including 3-Legged Dog (Performing Arts) and Rhizome (Media Arts). Each organization is scrambling to find a new home and develop plans for the future. While these instances reflect some of the most tangible examples of loss, innumerable arts organizations both in New York and around the country experienced a wide range of more subtle effects, though the cumulative total is beginning to multiply rapidly. These areas of impact can be broadly characterized in two general categories: Modified/Cancelled Events and Programs ‹ and ‹ Financial Fallout from economic uncertainty and shifting philanthropic priorities. I. Modified/Cancelled Events and Programs In the days and weeks immediately following September 11, 2001, countless arts performances and tours nationwide were reconfigured or cancelled altogether. These changes were the results of the inability and/or fear to travel and avoidance of public gatherings, disrupted marketing or broadcasting schedules, and the general question of the appropriateness of some types of art programming immediately following a national tragedy. A few examples in this area of impact include: Cancelled/modified performances, exhibitions, broadcasts, and tours nationwide including program changes at the Metropolitan Opera, cancellation of the New York Film Forum, cancellation of the Joyce Theater¹s Quebec Festival. The primetime broadcast of the Endowment-supported "Art21" scheduled to air on PBS in September was cancelled in most parts of the country; the American Ballet Theater¹s national tour suffered schedule disruptions; attendance at the Smithsonian has dropped nearly 40%; the National Ballet of China cancelled the opening performance of its national tour in Lincoln, Nebraska and later cancelled all tour dates; the Colorado Symphony Orchestra announced substantial cuts in the number of performances for this season, and the Milwaukee Art Museum indefinitely postponed the opening its new $75 million addition because of lagging press interest in the aftermath of September 11th Disrupted or cancelled artists-in-schools residencies nationwide and cancelled school class tours of museums nationwide Postponed or cancelled book tours and release dates for the fall book season, one of the publishing industry¹s most commercially important times of year - while University presses are working hard to fill a greater demand for Middle Eastern history and Islamic faith study titles Increased scrutiny of travel visas immediately following the attack caused travel delays and cancellations for many international artists traveling to the U.S. for previously scheduled performances and events Shipment to/from the U.S. of works of art insured through the Endowment-administered Indemnity Program have been delayed and in some instances cancelled altogether because of tougher FAA regulations, difficulty in finding international couriers, and disrupted flight schedules. II. Financial Fallout The combination of uncertain economic times, shifting priorities in philanthropic giving, and lost revenue and additional expenses are affecting nonprofit arts organizations nationwide in some of the following ways: Dramatic downturn in year-end giving as funds are directed to charities involved in 9/11 relief Decreased membership/subscription revenue for arts organizations across the board Arts fundraisers/black-tie events cancelled because of limited advance ticket sales - or when the events are held, many arts organizations feel it is more appropriate to donate funds for disaster relief efforts Revenue lost from cancelled performances and low attendance at arts events, with corresponding decreases in gift shop, café, and space rental income (For example, the Pittsburgh Dance Council reported a 50% decline in ticket sales and a higher than normal "no-show" rate for local performance - figures similar to these are being reported by innumerable arts organizations around the country) Potential cuts in the budgets of state and local arts agencies as municipal and state revenues are seriously affected by declining tourism, new appropriations priorities, as well as a widespread economic downturn (For example, SAA appropriations fell on average nearly 30% during the Nation¹s last economic decline between 1990-92) New York City recently announced an across the board 15% cut in funding for cultural organizations, directly affecting operating and programming expenses Additional administrative expenses for increased security and insurance costs at some public performances/exhibitions (For example, one museum reported that an insurance quote for an exhibition jumped from $50,000 to $275,000 after September 11, 2001 and the Philadelphia Orchestra recently decided to hire costly security services for its touring performances) Smaller arts organizations without a financial cushion are struggling to survive and one organization, the Colorado Dance Festival, has already incurred financial difficulties so severe as to cease operations entirely. These examples represent only a small sampling of the programmatic, administrative, and financial challenges faced by countless arts organizations across the entire nation in the aftermath of September 11th. Yet while examples of immediate impact are plentiful, long-range effects are much more difficult to gauge due in part to economic uncertainty and the possibility of future attacks on the nation. As arts organizations, both big and small, reconcile this altered financial and cultural landscape with their plans for the future, they move through new territory in search of reassurance and guidance in their mission to support the vitality of America¹s creative spirit.

http://www.arts.endow.gov/Sept11/Report.html