Robert Hunter's presentation will outline the findings from a recent review of the Department's programs, explore observed trends and discuss how programs at the Department have evolved to ensure their continued relevance.

1. Canadian Heritage Perspectives on
Trends in the Arts
Presentation by: Robert Hunter, Director
Arts Policy Branch, Department of Canadian Heritage
Arts Consultants Canada/Consultants canadiens en arts
October 29, 2010

2. 2
SETTING THE STAGE

3. 3
Royal Commission on National
Development in the Arts, Letters
& Sciences (Massey-Lévesque)
Massey-Lévesque
Commission Report
Canada Council
for the Arts
First Secretary of State –
responsible for the
development of arts in
Canada
NAC officially opens
First national forum on
cultural policy &
Department of
Communications Act
Cultural Statistics Program and Capital
Assistance Program administered by the
Secretary of State’s Arts & Culture
Branch
• Canada Council Art
Bank – investing in
visual artists
• Local Initiatives Program
Canada Council Touring
Office & Explorations
Program
Federal government’s arts &
culture programs transferred from
the Secretary of State to the
Department of Communications
Canadian Arts
Council,
(Canadian
Conference of
the Arts)
Broadcasting Act
National Arts Centre Act
• National Museums of Canada Act
• Canadian Film Development Corporation Act
Council for Business & the
Arts in Canada
1950 20011960 19801955 1975 19851965 1970 1990 1995
Federal Cultural Policy Review
Committee (Applebaum-Hébert)
Federal White Paper on the
Copyright Act
Arts representatives at
the National Economic
Conference
Status of the Artist Act
Cultural Initiatives Program,
Department of Communications
Major
increase in
federal
funding for the
arts

4. 4
SUPPORTING
THE ARTS
The Department of Canadian Heritage, along with Canada’s major national cultural
institutions, plays a vital role in the cultural, civic and economic life of
Canadians.
We work together to promote culture, the arts, heritage, official languages, citizenship and
participation, Aboriginal, youth, and sport initiatives.

5. 5
The Government of Canada, like other national governments, focuses its
investments on professional not-for-profit artistic activity, mainly through:
Parliament
(policies, tax measures & financial investment)
Canada Council for the Arts
Artistic creation
& artistic production
Canadian Heritage
Arts Policy Branch
Professional arts training, artistic
experiences, arts spaces,
community engagement,
responsible & professional
management practices
To encourage: excellence in the arts, the creation of original
Canadian content, the development of the right skills and
capabilities, and competitiveness for a thriving arts sector…
…so that Canadians access original Canadian artistic content.

6. 6
The Arts Policy Branch and the Canada Council are two primary
federal funding bodies that support the arts sector in complementary
but distinct ways
Eligible Recipients Arts Disciplines
Ensuring
Canada has
artists
Ensuring Canadians
have access to arts
& artists have
spaces to create
Ensuring arts are sustained
over the years
Not-for-ProfitArtsOrganizations
(Project&programming)
Not-for-ProfitArtsOrganizations
(Operational)
IndividualArtists
Municipalities
Other(i.e.universities)
Performing
Visual
Media
Literary
ProfessionalArtsTrainingInstitutionstotrainartists
fornational&internationalcareers
Professionaldevelopmentforindividualartistsat
differentstagesoftheircareers
Festivals&seriespresentersthatofferavarietyof
professionalartisticexperiencesacrossCanada
Infrastructureprojectsforartsorganizations
(buildings,sound,lighting,etc.
Individualartists&artsorganizationsforresearch,
creation,production&touring
Assessmentofartsorganizationsinpartbasedon
thestrengthofbusinesspractices
Fundsartsorganizationsthroughinitiativesdesigned
toincreaseorganizational&financialsupportwithin
Canadiancommunities
Supportsartsorganizationsinaddressing
organizationalchallenges
Intervenequicklywhenproblemsarisein
organizationswithhighpotentialbutlow
administrativeskills
Arts Policy Branch
Programs
           
Canada Council for
the Arts
          
Key Policy Areas

7. 7
CULTURE MATTERS

8. 8
3,923 Performing Arts Companies in Canada
• 2,915 for-profit
• 1,008 not-for-profit
86% of Canadians attend at least one type of arts or cultural event per year
Canadians spend twice as much on live performing arts as on live sporting events
In 2003, artists and arts organizations contributed $2.51 billion to Canadian GDP
There are 141,000 artists in Canada
Canadians volunteered 74,000,000 hours for arts and cultural organizations

9. 9
THE DESIGN

10. 10
The Arts Policy Branch Key Roles and Responsibilities
• 6 programs with annual budgets ranging from $390,000 to $33.8 million with a
total budget of $122.7 M
• Guide policy research on the arts
• Legislative issues related to arts
• Designate National Arts Service Organizations
• Work with the National Arts Centre and the Canada Council for the Arts to
realize their legislated mandates

11. 11
Three pillars for a competitive arts sector
Creation
Training + Excellence
Primarily the responsibility of the Canada Council,
which unlike the Arts Policy Branch regularly
assesses artistic merit – is the art good art?
The Arts Policy Branch also supports
excellence and diversity through one of
its programs, the Canada Arts Training Fund.
Our goal is that Canada’s most promising
artists receive excellent training for national
and international careers in the arts.
• Funding for arts training organizations
• Annual budget: $24.1 million
• 36 training programs in disciplines such as
theatre, music, and circus arts
• Diverse range of training programs, from
Korean dance to Inuit sculpture to classical
European opera
• Funding ranges from $25,000 a year for
an Afro-Caribbean dance program to
$3.3 million a year for the National
Theatre School
Access
Places + People
The Arts Policy Branch helps connect people
and the arts – helps Canadians access the arts
– through two of its programs:
Canada Arts Presentation Fund:
• Funding for festivals and series presenters
• Our goal is that Canadians have more
opportunities to access a wider variety of
the arts
• Annual budget: $33.4 million
• Over 600 clients presenting festivals and
artistic series in disciplines such as theatre,
music, film, dance, and literature
• Over 220 communities reached across
Canada, from Toronto and Vancouver to
Minnedosa, Manitoba and Dawson City, Yukon
• Funding ranges from $5,000 for smaller
festivals to $1 million for the Montreal
International Jazz Festival
Canada Cultural Spaces Fund:
• Funding for infrastructure: renovating existing
arts buildings, constructing new ones, buying
specialized equipment like sound systems or
lighting boards, and conducting feasibility
studies for proposed projects
• Our goals are that Canadians have greater
access to the arts (and to heritage) and that
artistic creativity has space within which to flourish
• Annual budget: $30 million
• 728 projects in over 250 communities since 2001
• Support for theatres, concert halls, art galleries,
museums, heritage parks, arts centres, etc.
• Funding ranges from $2,000 to $3,000 for smaller
purchases up to $2-3 million for major building
projects.
Sustainability
Partnerships +
Business Models +
Skills Development + Awards
The Arts Policy Branch helps sustain the arts in
Canada through two approaches:
Legislation
Status of the Artist Act, 1992
The importance of artists in Canadian
society self-employed artists’ right
to collective bargaining
Income Tax Act
In partnership with the Canada Revenue Agency
designate national arts service organizations
Program
Our main program for sustaining the arts sector is the
Canada Cultural Investment Fund…
THIS PROGRAM WILL BE
DISCUSSED IN GREATER
DETAIL, BUT FIRST…..

12. 12
WHY SUSTAINABILITY?

13. 13
Arts organizations require management capacity, outreach capability, financial stability
and community roots to support their chosen artistic vision.
This can be challenging – because the Arts have the highest personnel costs
of all the Cultural Industries, despite the relatively low earnings of artists.
Percent of expenditures on personnel (salaries, benefits, contract workers, freelance payments):
Source: Statistics Canada, various cultural industries surveys.
Not-for-profitPerformingArts
Heritage
BookPublishing
Film&VideoPost-
production
Periodical
Publishing
Sound
Record
-ing
Movie
Theatres
57%
53%
38%
33%
28%
14% 14%

14. 14
Doing business in the arts
The Arts Industries are characterized by a mix of tangible and intangible products, and these
products are generally unique, i.e. not mass-produced or mass-distributed.
The commercial model of doing business, where the goal is to make a profit, works best when
the cultural product in question can be mass-produced and mass-distributed (Written Media,
Film and Video, Sound Recording, Broadcasting). This model is however generally less
successful, though not impossible, when the cultural product is unique, cannot be mass-
produced, and requires the consumer to come to the product (Heritage, Arts Industries,
notably the Performing Arts).
Performing Arts & Festivals
Focus on Production
Consumer comes to the product (the
recital, play, or opera)
Revenues in part from ticket sales
Visual Arts & Media Arts
Focus on Creation
Specialized outlets (galleries, artist-run
centres)
Revenues from sales to customers

15. 15
The Performing Arts in Canada – Revenue Trends
In 2010, Canada was home to 1,008 professional, not-for-profit performing arts companies. They
operate using three types of revenues: earned, public and private. From 1991 to 2006, the
following was observed:
• Earned revenue has historically hovered around 50% of total revenue
• Over the15 years observed, the overall proportion of funding from all level of
governments has decreased from 34% to 26%
• Private funding has increased from 16% to 23%
Revenue Breakdown
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
1991 1993 1995 1997 1999 2001 2003 2006
earned govt private
Source: Statistics Canada Performing Arts Surveys.

16. 16
Good news – an indicator of financial health
Between 1991 and 2007, the financial health of Canadian arts organizations generally improved:
•Average deficits got smaller
•More Canadian arts organizations accumulated surpluses
•Fewer arts organizations posted accumulated deficits
-$200,000
-$150,000
-$100,000
-$50,000
$0
$50,000
$100,000
1991
1992
1993
1994
1995
1996
1997/1998
1998/1999
1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
Major Investments in Arts
Source: Business for the Arts, Performing Arts Surveys.

17. 17
Impact of the recession on the arts sector
According to Summer 2009 survey data from the Performing Arts Alliance, several detrimental effects
were felt by Canadian arts organizations during the recession:
• A majority of arts organizations reported diminished revenue in 2008-2009 from a variety of sources: year-end fundraising,
corporate contributions, foundation support, and ticket sales.
• Many organizations are forecasting a year-end deficit and have had to adjust their operations.
From Departmental monitoring and analysis, several trends emerged during the recession:
• Subscription sales declined;
• Endowment investments provided organizations with little or no return;
• Corporate sponsors reduced or withdrew contributions; and
• Some arts organizations avoided risky or unproven programming in favour of ‘sure hits’.
Despite these challenges, there is no evidence of closures of professional Canadian arts
organizations due to the recession.
Arts organizations could be facing a situation where their endowments and donations continue to be
reduced in the short-term. Nevertheless, endowment investments have begun a cautious recovery
towards the beginning of 2010.
All cultural industries have been affected at different points of the value chain, to varying degrees of severity.
• Some arts organizations reduced the number of performances or the number of different productions, planned to tour less, or
opted for safe programming.

18. 18
A MODEL FOR
SUSTAINABILITY

19. 19
Financial &
Organizational
Health
Artistic
Vision
Opportunity
for sustainability…
requires a balance
between:

20. 20
Canadian Arts & Heritage Sustainability Program (2001-2009)
Objective: Strengthen organizational effectiveness, build operational and financial
capacity of organizations in the arts and heritage sectors, and celebrating
and supporting Canadian communities’ achievements in the arts and culture.
The program pursued the fulfilment of its mandate mainly through the following components:
 Stabilization Projects – Award contributions to private, sector-led, multi-year stabilization projects,
whose role is to provide technical assistance, deficit reduction assistance and working capital to
arts and heritage organizations.
 Capacity Building – Support individual arts and heritage organizations to produce strategic or
business plans, develop revenue generation strategies, improve management tools and conduct
market studies.
 Cultural Capitals of Canada – Communities that have made arts, heritage and culture integral
elements of community life are designated Cultural Capitals of Canada.
 Endowment Incentives – Match funding from private donors to arts organizations’ endowment
funds to a maximum ratio of 1:1.

21. 21
IMPACT

22. 22
Stabilization Projects Component
Engaging community support – a shared investment
 Comprehensive, multi-year stabilization projects in 10 geographic areas supported to increase working
capital and shore up business skills of eligible arts and heritage organizations.
 Over 200 participating organizations.
 Community leaders contributed time and expertise as trustees on boards of directors as well as invaluable
insight from private sector.
 Interviews have demonstrated that stabilization create synergies between general manager, the artistic
director and the Board, thereby enabling the arts or heritage organization to move its vision forward.
Success Story
The Creative Trust
Project Goal: To support and strengthen Toronto’s mid-size, creation-based performing arts companies by
assisting them in developing their planning and financial skills, achieving organizational and financial balance, and
acquiring and maintaining a fund of working capital.
Duration: 2002-2008
Results after year 1:
• 7 companies receiving matching deficit reduction grants or their first working capital awards.
• Total revenues of all 11 participating companies increased by 6.3%, from
$14.9 million to $15.9 million.
• Of the 6 companies that entered the program with accumulated deficits, total revenues increased by
15%. These same companies reduced their combined deficits by 47%.
• All companies combined increased their private sector funding by 14.8% to $3.9 million.
Source: “The Canadian Arts and Heritage Stabilization Experience”, WME Consulting Associates, May 2006.

23. 23
Cultural Capitals of Canada
Building sustainability at the local level
 Since 2002-2003, there has been a total of 141
eligible applications from communities
of all sizes, and 37 designations have been
awarded for a total of $26.2 million in
approved contributions.
 In recipient communities, many activities
undertaken in the year of designation have
been sustained even after federal support is no
longer present.
 Municipalities increase involvement in cultural
policy development and further
integrate culture in municipal planning.
“You can do an awful lot with
$2 million of federal money.
You're not going to build stadiums
with that kind of money but you can
build relationships, said John Mahon,
executive director of the Edmonton
Arts Council, adding one of the
lasting legacies from this city’s
2007 award is the commitment to
connect newcomers to Edmonton's
artists and art institutions.”
Winnipeg Free Press
28 August 2009

24. 24
Endowment Incentives Component
How it works:
Encourages arts organizations to strengthen their
organizational and governance resources
Helps arts organizations build and diversify their financial
resources
The resulting ripple effect gives arts organizations the
opportunity to focus on their human and physical
resources
+
“The Canadian Arts and
Heritage Sustainability Program
is enabling us to build on the
generosity of our donors to
Increase our endowment to a
level which is now substantially
impacting the Citadel Theatre’s
operating budget and helping us
to remain a strong, vital
organization. We greatly
appreciate the opportunity to
participate in the Program...”
Penny Ritco
Executive Director,
The Citadel Theatre
Edmonton, Alberta
Cultural Affairs Sector
2007-2008 Annual Report

25. 25
Sources of Endowment Donations
from 2004-2005 to 2009-2010
$55 680 921
$22 686 457
$20 664 082
$15 094 412
$5 947 429
$4 112 211
$0
$10 000 000
$20 000 000
$30 000 000
$40 000 000
$50 000 000
$60 000 000
Individuals Corporations Non-Governmental
Foundations
Beneficiary Arts
Organization
Publicly Listed
Securities
Other
Sources of Donation
TotalAmount
A Powerful Partnership
Since 2001-2002, $149 million have been donated by Canadians to arts organizations’
endowment funds*
From 2004-2005**, individuals alone have contributed $55.7 million (34% of total
donations)
* Based on eligible applicants
** The program started capturing the information in 2004-2005.

26. 26
In 2009-2010, 66 applications received funding totalling $14.9 million from the
program, matching $0.71 for every dollar donated by the private sector.
Despite the global economic recession, the private sector donated close to
$21 million to arts applicant organizations’ endowment funds, only 1% less from
the previous year.
Nearly half (46% or $9.6 million) was donated by individuals while corporations
and non-government foundations donated 23% each ($4.9 million and $4.7 million
respectively) – the remainder came from other sources.
This significant financial commitment is a clear indication that Canadians and arts
organizations continue to believe in the value of endowments.
Endowment Incentives – coming together even in difficult times

27. 27
Capacity Building Component
Strengthening Business Skills
 From 2002-2003, close to 1,300 individual capacity building projects supported improved governance,
financial self-sufficiency, marketing and fundraising activities.
 Over 70% of these projects were for governance and fundraising.
 A survey showed that once organizations addressed core areas such as governance or management
practices, they felt better equipped to improve other areas such as financial self-sufficiency and audience
development. For “one-off” projects, after working on just one competency, 90% of organizations felt ready
to work on another.
The 2009-2010 fiscal year marked the final year of Capacity Building individual project support, with a reduced grants
and contributions budget. In 2009-2010, the following was observed:
 93 requests for projects were submitted of which 66 were supported.
 35 projects for arts organizations and 31 for heritage organizations approved to improve management
practices.
 Over 41% of supported projects were related to improved governance, 29% to audience and membership
development, 15% to management practices and 15% to financial self-sufficiency.
 The federal investment in the capacity building of arts and heritage organizations totalled $1,688,286. This
represents 42% of the total project costs.
 For every $1 invested by CAHSP, $1.40 was invested by the recipient organizations and partners within
their community to undertake organizational capacity building projects.

28. 28
Capacity Building Component
Number of requests
0
100
200
300
400
2002-
2003
2003-
2004
2004-
2005
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
Total Number of Requests
PEAK
Capacity Building Projects – Decrease in Demand

29. 29
Moving Forward – Building on Past Accomplishments
The Summative Evaluation of the Canadian Arts and Heritage Sustainability
Program concluded that:
 The program has successfully stimulated a cross-Canada focus on issues of sustainability
and leveraged funds from other levels of government and the private sector.
 There is a continuing need for such a program to strengthen the effectiveness, management
and financing of arts and heritage organizations, and help them face new challenges.
 The vast majority of organizations that were interested and eligible to participate and benefit
from the Stabilization Projects component have already done so, as no new projects have
appeared in the last four years. There is a general consensus that Stabilization Projects
have completed their objectives and are naturally winding down.
 The Department should build on the accomplishments of the program and develop a
strategy to foster an environment for sustainable arts and heritage organizations
collectively.
Source: “Evaluation of Canadian Arts and Heritage Sustainability Program (CAHSP)”, Office of the Chief Audit and
Evaluation Executive, Evaluation Services Directorate, February 2009.

30. 30
ADAPTING THE MODEL

31. 31
Canada Cultural Investment Fund
The Canada Cultural Investment Fund builds on the success of the earlier program by
continuing to help improve the sustainability of the environment in which arts and heritage
organizations operate.
The program objectives are to:
 Help arts and heritage organizations build and diversify their revenue streams;
 Strengthen their organizational capacity, business skills and competitiveness;
 Assist them in being better rooted and recognized in their communities.
This will be accomplished through the following main components:
 Cultural Capitals of Canada
 Strategic Initiatives (new)
 Endowment Incentives

32. 32
Capacity Building for individual organizations
Organization A
A
D
C
PCH
B
Organization A
Organization A proposes
project X
Various partners involved so
that organization A
undertakes project X
Organization A benefits from
developing a business
competency thanks to project X

33. 33
Various funding partners
involved so that project X is
undertaken
Strategic Initiatives = broader impacts
A
Organizations (a min. of 3)
get together to propose
project X
Project X is completed and
shared with many organizations
A
D
C
PCH
B
B
C
Project X

34. 34
Community involvement
• Provincial & municipal
governments; private/business
sectors; community arts
organizations; citizens
Cultural Capitals
of Canada
Moving to Strategic Initiatives
Stabilization
Projects
Capacity
Building
Business community
commitment
• Private sector – business
leaders
Individual Projects
• Arts & Heritage
organizations
Endowment
Incentives
Matching grants
• Individuals; corporations;
foundations; beneficiary
organizations
Cultural Capitals
of Canada
Strategic
Initiatives
Collective initiatives with
broad impacts
 Private sector; public sector;
not-for-profit sector; academia
Multiple partners to undertake
initiatives to strengthen
effectiveness, management and
financing of arts & heritage
organizations, and advance
cultural development at the
local level.
Networking
Initiatives
Local cultural involvement
• Provincial & municipal
organizations; elected officials;
municipal professionals
Endowment
Incentives
Community involvement
• Provincial & municipal
governments; private/business
sectors; community arts
organizations; citizens
Matching grants
• Individuals; corporations;
foundations; beneficiary
organizations

35. 35
WHY?

36. 36
BECAUSE THE WORLD
IS CHANGING FAST

37. 37
Renewal of major
arts funding
Renewal of major federal
arts funding – a new
approach
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Start of the global
economic crisis
Canada on the
way to economic
recovery
The new millennium – Choices are abundant, audiences are diversifying, the
marketplace offers more platforms to reach out to the world, collaborate and further
develop relationships.
Canada’s Economic Action Plan
Major new federal
funding for the arts

38. 38
96% of
Canadians
aged 12 to 17
use the internet
87% of
Canadian
Internet users
connect to
Social networking
sites
13 million
Canadians
use
Facebook

39. 39
Strategic Initiatives Requests - What we have noticed already
2010-2011
45% of eligible projects are to streamline processes and use technology to
improve efficiency
2011-2012
25% of eligible projects are to streamline processes and use technology to
improve efficiency

40. 40
THE WEEKEND CULTURE
OPENED ITS DOORS TO ALL

41. 41
Culture Days 2010
In September 2010, thanks to Culture Days, Canadians across Canada were invited to take part in
arts and culture activities in their communities.
Over 1,100 organizations and/or partners worked together to open their doors to Canada. Hundreds
of thousands of Canadians across Canada celebrated arts and culture in their communities during
this first annual edition.
More than 700 Canadian cities and towns opened their doors and offered 4,500 free Culture Days
hands-on classes, excursions, tours, demonstrations, seminars, panels and behind-the-scenes
experiences, for free.
For the first time, the Department had to means to participate in this innovative, collaborative
success. Through Strategic Initiatives, funding was provided to assist the development of a Learning
Network, a marketing, communications and public relations campaign, a digital strategy and research
on the impact of the initiative.

42. 42
Culture Days – Connections A Mari usque ad Mare

43. 43
‘Thinking’ arts enterprises
deserve
‘thinking’ arts funders
The Arts Policy Branch’s key challenge:
How do we continue to respond to the ongoing challenges of the sector?
Source: Lynn duFort and Kathleen Speakman, “Sustainability & The ‘Thinking’ Organization,”
VAST/APASF Presentation, 4 Nov. 2003