It's Your Money: Arts Foundation

A Balance Sheet reader asks: "Where did the Commission come up with the $240,000 for the arts foundation, and were there any goals set?" 

To raise funds for the Young Circle ArtsPark, Greater Hollywood Arts Foundation was registered as a Florida nonprofit corporation in April, with the following four persons constituting the initial Board of Directors:  Samuel F. Morrison, Julio F. Gallo, Susan Best, and Alan Koslow. The Foundation's offices are located at the Art and Culture Center of Hollywood. 

Mr. Morrison is the former director of Broward County Libraries (now retired); Dr. Gallo is a noted plastic surgeon in Miami; Susan Best is a Wachovia trust officer who owns a historic home in Hollywood; and Alan Koslow is the former city attorney who now wields untold influence over the city commission as a private attorney with Becker & Poliakoff representing developers. Dr. Gallo is past chair and Mr. Koslow current chair of the Hollywood Art and Culture Center.

Cynthia Berman Miller, the former executive director of the Art and Culture Center, who now holds the title of Director of Art and Cultural Affairs for the City of Hollywood on a part-time basis, has been in charge of establishing the new foundation, although not on city time presumably, since the city has repeatedly emphasized that the foundation must be a private organization, completely separate from the city. But it is not entirely separate as it turns out, at least not when it comes to funding.

On June 15, the Hollywood City Commission voted to enter into a one-year agreement with the foundation that could be renewed for two additional one-year terms at a cost of $240,000 per year ($720,000 for all three years). The agreement provides that the foundation is to "directly manage and coordinate the promotion, endorsement and fundraising for ArtsPark for the City of Hollywood."

Goals and Benchmarks:

• to develop "fundraising criteria for fundraising/donation parameters" for Commission review within 60 days;
• to submit to the Commission within 90 days a "projected payment schedule regarding capital fundraising."
• to provide quarterly reports to the City Manager specifying fundraising commitments and collections.

Funding Source

The first year's funding comes from the city's 2005 budget, from the Office of Art and Cultural Affairs Promotional/Marketing account, and is to be paid to the foundation in one lump sum. Not more than half of the year's funding is to be used for salaries (one senior staff member and one staff assistant) and administrative expenses.  The remaining $120,000 is for "operational expenses."

We do not know who has been (or will be) selected to staff the new foundation.  Cynthia Miller, as the aggressive propelling force behind creation of the ArtsPark for many years now, would be the logical choice for "senior staff member," but that would not be appropriate if she retains her post as Hollywood's Director of Art and Cultural Affairs. If not in a staff position, she can be expected to be a powerful behind-the-scenes force in the work of the foundation. 

Use of Funds Raised

Capital fundraising targets alone are $6.8 million by October 2007.  Additional funds raised are to be used for the following purposes among others not specified in the contract between the city and the foundation:

• Marketing, advertising and press relations
• Events scheduling and publication 3 months in advance
• Children's and adult programming
• Creation of a menu of giving options
• Development of a membership benefit table

The agreement specifies that funds raised by the foundation are to be transferred to the city.

 

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