NYFA Blog

The Artist’s Digital Toolkit: Part 3

July 26, 2011 at 2:32 pm Michael Royce 3 comments

Funding for Artists

My previous posts in this series looked at new ways that artists are incorporating digital resources into networking and collaboration. The next step in many artists’ creative processes is finding the money to fund projects. With the steady decline of public support for the arts, and existing grants becoming increasingly competitive, artists are seeking new financial resources to fund their work.

Crowd-Funding

One of the fastest-growing markets in arts support is crowd-funding. Websites like Kickstarter, ArtistShare, and Emphas.is, help artists and entrepreneurs raise money for projects by soliciting donations directly from their fans. Though still in its infancy, crowd-funding has produced two distinct models for the platform, each with its own benefits and drawbacks.

The first, and most popular, model of crowd-funding is the general-use website for all types of projects. General crowd-funding platforms, such as Kickstarter, IndieGoGo, and Invested.in, are open to just about everyone and projects range from independent films to 3D printers. While these sites tend to be the most well-known and established forms of crowd-funding, the quantity and diversity of projects can make it difficult for someone browsing the site to happen upon your fundraising campaign and decide to invest. Of course, these high-traffic sites also have the benefit of occasionally going viral.

Kickstarter, an all-or-nothing fundraising platform, allows artists and entrepreneurs to raise money for specific projects. Like many of the crowd funding sites, Kickstarter encourages members to offer rewards to participants who donate at various levels.

IndieGoGo, a similar fundraising platform, allows all types of projects from all over the world (Kickstarter is US only). Also, IndieGoGo allows users to keep donations they receive even if they don’t reach their fundraising goal (the catch being that Indiegogo takes a bigger cut of those donations).

Recently, new crowd-funding websites have narrowed their focus to appeal to smaller communities with shared interests. For example, the Japanese site Green Girl specializes in promoting female artists and entrepreneurs; Emphas.is is dedicated solely to photojournalism projects; Ideame (launching soon) aims to help Latinos realize their projects through community funding. Appealing to a smaller group with shared interests allows greater potential for creating and fostering an active online community.

Another benefit of boutique crowd-funding sites is that they can offer users services that apply directly to their community or field. For example, Green Girl regularly features project creators on its Facebook page and curates a quarterly digital magazine with articles on their artists. Emphas.is gives media organizations added incentive to invest in exciting projects by offering first publication rights for funding at least 50% of a project’s budget. These small features strive towards the foundation of a community centered on funding and engaging with community-related projects. It will be interesting to see how these specialized organizations evolve in the coming years.

Of course, creating a compelling project proposal isn’t the end of fundraising; that’s where the work really begins. Once artists have their campaign underway, they need to engage as many dedicated fans as possible. One of the easiest ways to do this is through social networking sites. Facebook, LinkedIn, and Google+ are all excellent resources for organizing a network of donors, while Twitter serves as a way to provide committed funders with information and project updates. Often, the success or failure of a campaign will depend on how well an artist has cultivated and engaged his audience. Networking, collaborating, and connecting are often essential for laying the groundwork for fundraising.

Grants

Another vital source of funding for artists is grant writing. While the process of finding, researching, and applying for grants can be arduous and discouraging, several online resources have made the process faster and easier.

Foundation Grants to Individuals Online offers a searchable database of grant opportunities available to individuals. Check your local library for free access to their online database.

NYFA Source provides a powerful tool for finding grants and award opportunities nationwide. With listings for over 4,500 arts organizations, 3,600 award programs, 4,700 service programs, and 900 publications for individual artists NYFA Source is an invaluable resource for discovering funding opportunities.

Organizations like Grantspace offer classroom and online courses and grant writing workshops. Additionally, many local arts organizations offer information sessions and workshops to help artists prepare successful grant applications.

Fiscal Sponsorship

Another important resource for individual artists and emerging arts organizations is fiscal sponsorship. Fiscal sponsorship allows individuals and groups to ‘borrow’ an organization’s tax-exempt status for a limited duration or scope project. This means the sponsored individual or group can gain access to grants requiring 501(c)(3) status and also accept tax-deductible donations. Sponsorship can also lend more credibility to artists and projects.

There are hundreds of organizations that offer fiscal sponsorship including Artspire, Fractured Atlas, and the Brooklyn Arts Council. When applying for sponsorship, you may want to choose an organization whose goals align with your goals as an artist or entrepreneur. Additionally, some non-profits offer different services and charge different fees, so it’s worthwhile to do some research before applying.

A more complete list of organizations that offer fiscal sponsorship can be found here.

Effects of New Markets

Tanja Aitamurto’s case study from last year highlights several interesting ways that crowd-funding has impacted journalism. The notions of ‘cause marketing’ and ‘pitching in public’ are perhaps most applicable as these issues have the potential to influence significant changes in the arts world. Though these new markets present exciting opportunities for individual artists, they also pose provocative questions about our notion of culture. Does crowd-funding the arts stifle creativity in the name of mass appeal? Or does it encourage innovation, experimentation, and social criticism? What long-term effects might we expect from the reduction or elimination of public funding for the arts? What art is worth funding?

Additional Links: More info on designing a successful crowd-funding campaign; RocketHub.com; Spot.us; Sellaband; Grantseeking for Individuals Webinar

Entry filed under: Digital Culture, Fellowships, Grant Opportunities, NYFA Programs, Professional Development. Tags: Art, Artist, Arts funding, Facebook, Grant, NYFA Programs, Professional Development, Social Media, Technology.