Presentation to the Budget and Finance Committee Grants for the Arts: Funding to Underrepresented Groups ( ) April 29, 2015 Budget & Legislative Analyst’s Office

Background Grants for the Arts (GFTA) established in 1961 Receives funding from hotel tax revenue Approximately $80 million in funding for arts programs citywide in FY Approximately $11.8 million in GFTA funding in FY Funding in FY and future years is estimated to be $11.4 million per year – or approximately 3.5% to 3.9% of hotel tax revenues 2

Grants for the Arts Grant-making Process Aims to provide a reliable, sustained source of funding Receives 30 to 40 applications from new organizations annually GFTA does not have criteria for funding underrepresented groups GFTA does not have a definition for “underrepresented” 3

Defining People of Color and Underrepresented Organizations For this report, the Budget and Legislative Analyst proposed a definition of underrepresented Other definitions could be used that would yield different results GFTA grantees were classified as representing a racial/gender/ethnic minority or labelled “predominantly white” Criteria used: Background of staff and organizational mission Special cases: SF Jazz, Lines Ballet, groups with multiple designations 4

Findings: Historical Funding to Groups by Race, Ethnicity, and Gender ( ) 5 From , on average: 23% of funding awarded to groups representing racial minorities 2% of funding awarded to groups representing ethnic/cultural minorities 7% of funding awarded to groups representing women and the LGBTQ community

Percentage Change in Funding to Organizations Representing People of Color from FY to FY

Comparison of San Francisco Demographics to GFTA Funding Awards, Percentages GFTA Funding (FY ) Population (San Francisco) Predominantly White*79%42% People of Color**21%58% African-American6% Asian7%33% Hispanic/Latino3%15% American Indian0%0.2% Two or more races5%3% Disparity between funding level and people of color as percentage of the population

Relationship between Grants for the Arts and Cultural Equity Grants : 48% of CEG grantees also received Grants for the Arts funds (on average) No formal relationship exists between CEG and GFTA Calendar YearTotal CEG Grantees* Grantees that Received CEG and GFTA Funds Percentage of CEG Grantees that Received GFTA Funds % % % % % AVERAGE %

Conclusion 9 Grants for the Arts does not have criteria specifically for funding underrepresented groups, nor does it have a methodology for defining the term “underrepresented” This report defines organizations as underrepresented based on the backgrounds of key staff and on the organization’s mission There are many possible reasons why funding to people of color organizations has declined slightly since FY The Board may request that GFTA analyze trends in grant funding and evaluate its outreach to specific types of arts organizations

Questions? 10