Iowa Cultural Trust
NOTICE: The new deadlines will be announced once they are determined. For questions, please contact Matt Harris, matthew.harris@iowa.gov.Establishment of the Cultural Trust
Purpose
In 2002 the Iowa Legislature recognized that cultural organizations are critical to Iowa’s future: they generate millions of dollars in economic activity; attract people to live and work in Iowa’s communities; train minds for the creative economy jobs of the future; and build social capital. At the same time, these vital cultural organizations are often undercapitalized.
Recognizing the crucial importance of these organizations, the legislature established the Cultural Trust with the goal of supplementing the operating budgets of and assisting in bringing financial stability to the Iowa nonprofit cultural organizations that meet specified criteria and are committed to strategies to attain long-term financial stability and sustainability. See Iowa Code 303A Iowa Cultural Trust.
Appropriations to the Cultural Trust
| Fiscal Year | Legislative Appropriation |
2004 * |
$ 475,806 |
2005 * |
$ - |
2006 |
$ 1,000,000 |
2007 |
$ 1,000,000 |
2008 |
$ 1,000,000 |
2009 * |
$ 800,000 |
2010 * |
$ 900,000 |
2011 |
$ 760,000 |
According to Iowa Code 15 G. 111, the Legislature can appropriate up to $1 million each year for the Cultural Trust Fund during the period 2004 through 2015. At the current time, the funds are appropriated via the Iowa Values Fund. These appropriations must be “earned” through trust fund credits. The credits are issued when the Department of Cultural Affairs documents that at least $1 million has been invested locally in Iowa cultural organizations during that fiscal year. The Department of Cultural Affairs tracks this information through reports to its grant programs and has been able to document more than one million credits every year the Cultural Trust has been in existence. Below is a table of the appropriations made thus far to the Cultural Trust Fund.
* Appropriations to the Trust of less than $1 million in a given year have been due to legislative reductions, not to a lack of credits.
The Treasurer of the State of Iowa acts as custodian of the Cultural Trust Fund and oversees investment of its monies. The interest on the funds is transferred to a Cultural Trust grant account to support the operations of Iowa cultural organizations. By law, only the interest from the appropriated funds can be used for Cultural Trust programs.
Use of Trust Fund Interest: Cultural Trust Grant Account
By FY 2008, sufficient interest had accumulated in the Fund to begin the first Cultural Trust programs—a series of workshops on endowment development and financial stability for Iowa’s cultural organizations. These workshops were offered in FY 2008 and 2009.
In the Fall of 2009, the first grant program using interest from the Trust was introduced—the Cultural Trust Stability Grants. These small grants of up to $2,500 are structured to help Iowa cultural organizations make measureable progress towards goals of fiscal stability and implementing best practices in organizational strategic planning and management. See Stability Grants for more information.
The Cultural Trust’s second grant program was being launched in the Fall of 2010. The Iowa Cultural Trust Endowment Challenge Grant program addresses the main goal of the Trust to supplement the operating budgets of nonprofit cultural organizations. Applicants are required to demonstrate that they have adopted and implemented strategies to secure their long-term stability and sustainability and that one of their strategies is to increase the organization’s endowment. Grant recipients are required to raise $3 in new endowment funds raised specifically for this campaign for every dollar awarded in grant funds. See Endowment Grants for more information.
Cultural Trust Administration
The Iowa Cultural Trust is overseen by a thirteen-member Board of Trustees. These include five members appointed by the Governor (subject to Senate confirmation) and one member appointed by each of the following: the Senate Majority Leader, Senate Minority Leader, Speaker of the House, and House Minority Leader. In addition, the board includes four ex-officio members: the Director of the Department of Cultural Affairs, Iowa Arts Council board chair, State Historical Society of Iowa board chair, and the State Treasurer (or designee). The Department of Cultural Affairs provides support to the Cultural Trust board and manages the day-to-day operations of the Cultural Trust.
