U.S. Pandemic Programs: Access and Fit for Arts and Culture Nonprofit Organizations

• In Event: NGOs’ Resilience Strategies During Crisis

Abstract

The U.S. federal government provided pandemic relief to nonprofit arts and culture organizations through three different programs: the Paycheck Protection Program (PPP), the Emergency Injury Disaster Loan (EIDL), and the Shuttered Venues Operators Grant (SVOG). All programs were open to both for-profit and nonprofit organizations. The Small Business Administration (SBA) implemented all three programs, which expanded its lending from $50b to over $700b. In this paper, we present our research on the access and fit of all three pandemic programs for nonprofit arts and culture organizations and draw lessons for government to improve support for arts and culture in the future.

The pandemic created a huge focusing event (Kingdon, 1984) that led to punctuated policy changes (Baumgartner & Jones, 1993). The PPP quickly infused money into qualifying business and nonprofit organizations; however, the rapid implementation led to confusion and frustration for nonprofit organizations, particularly those with low administrative capacity (Keshecki et al., 2021). The SBA’s expertise was in awarding loans to businesses. It was unfamiliar with nonprofit organizations, arts and culture organizations, or crafting PPP “loan forgiveness” when a policy revision turned loans into grants. The PPP policy design focused on a narrow view of businesses with employees, which did not fit the hiring practices in arts and culture organizations (Keshecki et al., 2021).

The lack of fit for arts and culture organizations led to advocacy mobilization for targeted federal funding (Schneider & Ingram, 1993) (Mettler & Sorelle, 2018). The creation of SVOG resulted in an unprecedented, targeted funding program for the arts and culture sector. The federal government chose the SBA again for implementation, which did not have experience administering a grant program.

This paper reflects our research on all three pandemic programs. In 2020-21 we created an online survey instrument for the PPP and EIDL programs and distributed it to New York City nonprofit arts and culture organizations. In 2023, we revised the survey to explore nonprofit and for-profit experiences with SVOG (currently in the field). Our data yield analysis of the fit and benefits of the federal pandemic programs. We supplemented survey data with semi-structured interviews with arts and culture leaders, foundations, government agencies, elected officials, and lobbyists. Our 16 interviews to date (with additional in 2024) provide context and depth to our quantitative analysis.

We conclude our work by drawing lessons for how the U.S. government can do better for the next crisis. The SVOG stands apart because it was the largest arts bill ever passed in the United States and the first grant program that funded both nonprofit and for-profit enterprises. Unlike many countries that support the arts with generous public funding, the U.S. has a small, underfunded government agency, the National Endowment for the Arts (NEA). Our research contributes knowledge informing policy design during crises to provide the support the arts and culture sector needs.

References

Baumgartner, F. R., & Jones, B. D. (1993). Agendas and Instability in American Politics. University of Chicago Press.

Keshecki, T., Griffith, E. E., & Bushouse, B. K. (2021). COVID-19 Response Policies and New York Arts & Culture: Access & Impacts. UMass Amherst / Baruch College.

Kingdon, J. A. (1984). Agendas, Alternatives, and Public Policies.

Mettler, S., & Sorelle, M. (2018). Policy Feedback Theory.

Schneider, A., & Ingram, H. (1993). Social Construction of Target Populations: Implications for Politics and Policy. The American Political Science Review, 87(2), 334–347. https://doi.org/10.2307/2939044

Authors

• Tamara Keshecki, AINOK Consulting LLC

• Brenda K. Bushouse, University of Massachusetts

• Eric Griffith, Duke University