Frequently Asked Questions About the Cultural Trust
Why are Iowa's cultural organizations essential in the New Economy?
- They generate billions of dollars in economic activity
- They attract people to live and work in Iowa communities
- They are a magnet for tourists
- They are a catalyst for downtown revitalization
- They train people for the creative economy jobs of the future and provide opportunities for lifelong learning
- They build social capital
How do we make sure that Iowa communities are vigorous, prosperous places to live, work and raise a family?
Healthy cultural organizations make healthy communities in the New Economy. We need to develop a diverse revenue mix to secure, strengthen and support Iowa's cultural assets.
Why must the state invest in cultural organizations?
State investment is necessary in order to:
- stabilize Iowa's nonprofit cultural organizations. Nationally 1/3 of all cultural organizations are operating at a deficit;
- compete with other states that recognize the high-impact economic development role of cultural institutions. In Iowa, state operating support makes up approximately 3% of its cultural organizations' budgets, compare to to 10% national average. Iowa ranks 41st in the nation in its per capita funding of the arts, below almost all of its neighboring states;
- stimulate and leverage private investment in cultural institutions;
- secure Iowa's investment in cultural vertical infrastructure;
- position Iowa as a cultural leader; and
- energize the cultural community.
How can Iowa help secure the future of our cultural organizations?
By establishing the Iowa Cultural Trust. The Trust will help stabilize cultural organizations in many ways:
- Stimulate local investment in local cultural institutions by leveraging local dollars with state dollars
- Keep local dollars in their home communities
- Encourage new relationships between cultural organizations and local funders
- Enable prosperous communities to leverage state dollars for underserved communities
- Secure Iowa's investment in all of its cultural institutions through the support of operating budgets
- Encourage cultural organizations to use strategies to secure their own financial future
- Provide Iowans with the benefits of a healthy, vigorous cultural environment
How will the Iowa Cultural Trust be created?
Iowa will establish a $10 million Cultural Trust over the next ten years. The State will allocate up to $1 million each year for the next ten years. Funding of the Trust would be the State's role in a statewide public/private partnership in support of our cultural institutions.
Will local funds raised by cultural organizations go into the Iowa Cultural Trust?
No. Local funds will stay at home. It is important for local cultural organizations to build long-lasting relationships with the local individuals and businesses that benefit most from the work they do.
Will the State raise money from Iowa corporations or individuals to achieve the $10 millions goal of the Trust?
No. Iowa businesses and individuals will contribute directly to their local cultural organizations.
Why will money from the Trust be dedicated to support operating budgets?
Because operating dollars are the most difficult dollars for cultural organizations to raise. Individuals, corporations and foundations find special projects, performances and exhibits attractive destinations for funding. But it is tough to get donors excited about paying the electric bill or staff salaries.
Will the Trust fund be distributed only to cultural organizations that help build the Trust by reporting new money?
No. Iowa Cultural Trust funds will be distributed statewide, no matter where the local matching dollars— the dollars that triggered the draw-down— were raised.
Is this fair?
Yes. Not every community or cultural organization has the capacity to raise significant new dollars. But every cultural organization and community can benefit from the Trust.
Why would cultural organizations be motivated to report new dollars if that gives them no particular advantage in accessing Trust dollars?
Because our cultural organizations know that a rising tide raises all ships. As the cultural environment improves across the state, cultural awareness increases, participation increases, communities are invigorated and Iowa becomes more attractive to potential new residents. All of this is good for all cultural organizations.
What will be required of cultural organizations that receive funding from the Trust?
They will be required to demonstrate that they are working on strategies to secure their own long-term stability and sustainability. These strategies could include the development of an endowment, participating in training on planned giving, or board development. They would also be required to have or secure at least one paid employee.
How will the Trust funds be distributed?
The funds will be distributed by the Department of Cultural Affairs through an application process. Interest from the Trust in the first two years will be applied to the development of a statewide education campaign to support the efforts of Iowa's cultural institutions. In subsequent years, cultural organizations will apply for funding to support their operating budgets.
How will the Trust motivate new local contributions?
The Trust will give donors a new reason to give. They know that every dollar they contribute to a local cultural organization will be matched by the State with a contribution to the Iowa Cultural Trust. Donors want to live and work in state that has a vibrant cultural environment.
Will the Trust replace funds now appropriated by the State to the Department of Cultural Affairs, the Iowa Arts Council or the State Historical Society?
No. All state-funded grant programs within the DCA will be maintained at current or higher levels.
Why do we need the Iowa Cultural Trust now?
If Iowa is to prosper in the New Economy it must have strong, vigorous cultural institutions. Iowa acknowledged the high-impact role of cultural institutions in the New Economy when it committed $200 million dollars to their construction through Vision Iowa. Iowa must now take the next step to secure that investment by supporting the programming that will bring these showpieces to life.
The Iowa Cultural Trust is the insurance policy that secures the most powerful
and importance investment in the future that Iowa has made in decades. Other states
are aggressively pursing economic development strategies that harness the power
of cultural institutions. Iowa does not want to be left behind.
