What's Happening?
Grantmakers in the Arts President and CEO Eddie Torres has highlighted the vulnerability of cultural organizations as they face reduced pandemic-era funding measures. In 2025, arts funders are grappling with the consequences of decreased flexibility, multi-year support, and relaxed reporting requirements, which have left the national cultural field exposed. SMU DataArts research indicates a 30% decline in average contributed revenue in 2024, signaling a contraction in funding even before recent cuts. Torres argues that returning to pre-pandemic norms of inflexible funding is unhealthy and urges funders to resist this trend.
Why It's Important?
The shift away from flexible funding practices poses significant risks to the arts sector, which is already facing federal funding cuts. The House's proposed FY26 appropriations bill threatens to reduce federal arts and humanities funding by 35%. This situation underscores the need for sustained and flexible philanthropic investment to prevent cultural organizations from facing existential threats. The arts sector's financial health is crucial for maintaining cultural diversity and supporting artists as public servants, which contributes to community health.
What's Next?
Grantmakers in the Arts is advocating for a long-term vision for the arts sector that includes public support for artists and cultural health. The organization is convening discussions among its members to focus on this vision. Private giving is expected to rise in 2025, with increased support for legal advice, communications, safety, and security. However, these measures may not fully mitigate the sector's vulnerability. Advocacy for changes in public policy is recommended to create a more secure climate for cultural organizations.
