This Master’s Project was conducted in partial fulfillment for a Master of Arts Degree in Arts Management from the University of Oregon. It details the research conducted for this mixed methods study of how program evaluation and grant reporting influences state funding for arts organizations. Included is a review of key literature regarding community arts, community cultural development, current and historical evaluation methods, and standards of performance measurement and accountability used by State and Local granting agencies. The findings of this study are framed as a narrative synthesis of the literature review in comparison to the interviews and questionnaires, and the literature review in comparison to the content analysis. This study concludes with a discussion of findings and recommendations for: (1) the Washington State Arts Commission, (2) Local Arts Agencies, (3) preparation in the field of Arts Management, and (4) further study. To read the study, CLICK HERE