Iowa Cultural Trust
Establishment of the Cultural Trust
In 2002 the Iowa Legislature recognized that, while cultural organizations generate millions of dollars in economic activity in Iowa and build social capital, these organizations are often undercapitalized. To assist in bringing financial stability to these organizations the legislature established the Cultural Trust as a public trust. The principal will not be used, but the income (the interest) from the principal is to be made available to supplement the operating budgets of nonprofit cultural organizations committed to strategies to attain long-term financial stability and sustainability.
The Trust’s legislation further notes that initial income from the Trust may be used for a statewide educational program to assist cultural organizations in endowment development.
Appropriations to the Cultural Trust
The Cultural Trust legislation calls for up to $1 million to be appropriated to the Cultural Trust annually through 2015 via the Iowa Values Fund. Appropriations are “earned” through trust fund credits. These credits are issued when the Department of Cultural Affairs annually documents that at least $1 million has been invested locally in Iowa cultural organizations. The Department of Cultural Affairs tracks this information through final reports to its grant programs and every year has been easily able to document more than one million credits. Below is a table of the appropriations made thus far to the Cultural Trust.
Fiscal |
Legislative Appropriation |
2004 * |
$ 475,806 |
2005 * |
$ 0 |
2006 |
$1,000,000 |
2007 |
$1,000,000 |
2008 |
$1,000,000 |
2009 * |
$ 800,000 |
2010 * |
$ 900,000 |
* Appropriations to the Trust of less than $1 million in a given year have been due to either deappropriation actions or decreased appropriations to the Values Fund in those years, not to a lack of credits.
History of Use of Trust Fund Interest
In FY 2008, funds were sufficient to begin the first use of interest from the Trust to offer workshops on endowment development and financial stability to Iowa’s cultural organizations. These workshops were offered again in FY 2009.
The Iowa Cultural Trust may offer continuing opportunities for education in endowment building and financial stability, however in order to avoid duplication of services, the Trust also refers organizations to the excellent training offered by the Iowa Nonprofit Resource Center. The Resource Center offers regular training for cultural and other nonprofit organizations on nonprofit best practices and principles. More information can be found at: http://nonprofit.law.uiowa.edu/ .
Beginning in the Fall of 2009 the first grant program using interest from the Trust will be offered: Cultural Trust Stability Grants. These small grants will help Iowa cultural organizations reach goals of fiscal stability and institute best practices in organizational strategic planning and management. See Stability Grants for more information.
At least one additional Cultural Trust grant program is being planned for launch in the Fall of 2010. This program hopes to fulfill the main goal of the Trust, to supplement the operating budgets of nonprofit cultural organizations. Applicants will be required to demonstrate that they have adopted strategies to secure their long-term stability and sustainability.
