A Heart For The Arts: Reasons To Support Arts Through Philanthropy

Most philanthropists have been reluctant to extend funding support to the arts. For some of them, there is no apparent advantage in doing so.

Funders were asked their opinion about supporting the arts, and some of them believe that it is just a minority interest reserved for philanthropists with financial resources to spare. In addition, they think that arts philanthropy produces no measurable impact that would justify contributions. They find matters such as poverty, hunger, and others as demanding more urgency.

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While the previous statement is valid, arts philanthropy can benefit both the economy and the community.

Supporting the arts also means aiding cultural organizations that fuel the local economy. In Washington State alone back in 2014, more than 35,000 jobs had been directly and indirectly created by such organizations, equivalent to a little less than $1 billion in labor earnings and benefits and more than $100 million in tax revenue.

Providing financial aid to the arts can foster connections within the community. Arts have given a reason for diverse groups of people to share common experiences and insights, enabling them to understand one another and to accept different perspectives.

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John Kleinheinz, a global leader in the hedge fund industry, is an avid philanthropist. Together with his family, he has supported various endeavors, including giving a $2 million gift to Southern Methodist University’s Department of Art History, which was used to establish an endowed chair. Read more about the family’s philathropic work on this website.

SMU's Second Century Campaign: The Drive For Excellence

Back in April 2002, Southern Methodist University (SMU) concluded its A Time to Lead campaign, securing a record-breaking $542 million from more than 40,000 donors across the world. They exceeded their original target by $242 million, making the drive a success.

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Fifty-eight percent of the collected amount was allotted for academic programs, positions and facilities, 25 percent for the improvement of the campus and student life programs, while the remaining 17 percent for athletics amenities and programs. The campaign provided a better campus for the students, the faculty, and staff.

Come 2008, the Board of Trustees initiated another campaign, with the intent of improving the quality of the university, faculty, academic performance, and the overall campus experience. The drive was named SMU Unbridled: The Second Century Campaign.

The goal was to raise a total amount of $750 million through donations. Seven years past and the astounding support from alumni, friends, partners, and students produced a total of $1.15 billion in commitments, the largest campaign receivables in the history of Texas private colleges and universities.

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John Kleinheinz, whose daughter graduated from SMU Meadows School of the Arts in 2012, made a sizeable contribution of $1.5 million, which was specifically endowed to the chair of Meadows’ Department of Art History.

Global finance and investment expert and hedge fund superstar John Kleinheinz is an avid philanthropist who, together with his family, gives back in the area of arts and education. For more information about him, visit this website.

Pay It Forward: Understanding University Endowments

Universities or colleges constantly receive donations of money or other financial assets from private individuals (usually alumni) or institutions to fund their operations and capital requirements. Upon receipt of the endowment, the academic beneficiary then complies with a fairly strict policy allocation to make sure that their specific needs funded, and that a substantial part of the resource is invested to account for inflation and supplementary expenditures.

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Two of the more common types of university endowment are the following:

Endowed professorship: Also called endowed chair, an endowment fund can be specifically used for a designated position in the university. Not only will the funding augment the operating budget of the school, a professorship is also considered an honor in the academe.

Endowed scholarship or fellowship: Endowment funds can also be allotted for the tuition of a number of scholars, along with other costs incurred in providing the students education. The scholarship can either be merit-based or need-based, based on the preference of the school or the donor.

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John Kleinheinz, an acclaimed leader in global investments and finance and hedge fund manager, appreciates the concept of paying it forward, and has therefore created endowments in various universities and schools. An alumnus of Stanford University, Kleinheinz has endowed there two professorships in environmental law and European studies.

With his wife, Martha, who shares his vision in extending a helping hand to those in need, John Kleinheinz has donated substantially to other academic institutions, including Southern Methodist University, where their daughter attended college, and Our Lady of the Lake Catholic School in Oregon, where Kleinheinz graduated. Read more about his philanthropic activities on this website.

How America Became a Global Leader In Arts Philanthropy

Author Tyler Cowen, who is also the Chair of Economics at George Mason University, wrote in his book, “Good and Plenty: The Creative Successes of American Arts Funding,” how the US has provided an environment conducive to philanthropic support for the arts and creative enterprise.

Arts funding has been polarizing the nation for a long time, with some arguing that US has no arts policy and the federal government is penny-pinching its support of the arts. Even internationally, the US is seen as lacking in concern for arts and cultural values.

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Back in 1965, a breakthrough was achieved when President Lyndon Johnson created the National Endowment for the Arts (NEA), an independent agency of the federal government that provides support and funding for projects exhibiting the nation’s artistic excellence. A roadblock, however, appeared in the 1980s, when the legislative branch limited the support for the arts through myriad justifications.

The Congress gives an annual budget of $125 million to the NEA, which is significantly less than what some European governments spend on the arts.

Even so, Giving USA reported in 2014 that an estimated $17.2 billion was donated to arts and culture. While the government does not directly give funds to organizations in the field of arts, it mobilizes the private sector more effectively than European nations do.

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Prosperous hedge fund manager John Kleinheinz believes in giving back. He is a major philanthropist who has donated millions of dollars to various organizations from different fields, such as education, arts, and environment. Follow this Facebook page for more articles about philanthropy.