The Quiet Crisis in the Arts - FEDAPT's 1989/1990 Annual Report

For this particular (1989-1990) edition of their annual report, FEDAPT focused on what was then the recent crisis facing arts organizations, how the conditions evolved, and how the arts community was responding in terms of understanding and action.

FEDAPT provides organizational assistance to performing artists and their organizations. FEDAPT staff, together with a core of working professionals, assists artists in identifying the appropriate structure and resources for the realization of their work.

The organization is concerned with the rapidly deteriorating financial and operational condition of so many performing arts organizations. They also commented that all types and sizes of organizations were susceptible to the crisis of debt and dysfunction, however they noticed several characteristics that can bring about a crisis. Those characteristics are found in organizations that:

• are revenue intensive (meaning they rely heavily on current income to support current expenses);
• usually have no endowment or significant cash reserve;
• have a limited or no line of credit; and
• carry sizable debt in accounts payable that has accumulated slowly.

In general, these groups are straining to operate at levels estimated between 30 to 50% higher than their existing human and financial resources can safely and reliably support.

The publication also addresses each of the following factors that lead to crisis:

• Financial Shifts and the Debt Culture.
• The Shrinking Human Capital Fund.
• Over regulation and Stagnation.

The report concludes that change should not seem threatening and that by addressing the issues of crisis, change should be possible and will bring about a process of national recovery and revitalization for the arts.

CONTENTS

• Introduction.
• Challenge and crisis.
• The arts in crisis.
• The crisis of note.
• The quiet crisis.
• Factor One: Financial shifts and the debt culture.
• Factor Two: The shrinking human capital pool.
• Factor Three: over regulation and stagnation.
• Debt pathology/symptoms and behavior.
• Defining the gap.
• Pre-edge.
• At the edge.
• Over the edge.
• Summary:

For this particular (1989-1990) edition of their annual report, FEDAPT focused on what was then the recent crisis facing arts organizations, how the conditions evolved, and how the arts community was responding in terms of understanding and action.

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