I slightly change the title of my speech and I'm calling at the state of the Arts with a? It has been widely reported that the Twin Cities enjoy a quality of life in this country. That is the Envy of most other large cities as a result. I'm often confronted with this difficult question. What is it that makes the Twin Cities stand out from the rest of the of the pack. It's a tough question and I've always tried to duck at pleading that I was too close to the trees to see the forest and suggesting that outside observers are far better qualified than I to make an impartial judgment, but then Bobwhite cornered me one day and asked me to tackle this subject for you at your meeting here particularly as it relates to the Arts once more. I tried to look but you all know about Bob's quiet persistence and you can well imagine that it's not easy to say no to one so well-liked and respected in our community. So here I am ready.Tackle the subject has a slightly altered it Bob wanted me to talk about the factors that have caused the Arts to thrive here. And I will do that because many of your city's don't have all those factors in place but in thinking about our past, I became even more concerned about the future of our Arts institutions and our ability to keep them as vibrant and vital as they are today. If we can't do it here. Maybe your city will have even more difficulty perhaps therefore you will be interested in our experience and our concerns for the future. That's why I've called his speech the state of the Arts with a?Why is it that the Twin Cities like no other community are size can boast of such an array of high-quality Arts institutions the Minnesota Orchestra in the Saint Paul chamber orchestra, the Walker Art Center in the Minneapolis Institute of Arts the Guthrie Theater in the children's theater, Minnesota Public Radio and its Offspring American public radio a word about each. The Minnesota Orchestra is the orchestra of Normandy Metropolis Girardi Scoville cesky Neville marriner and out 800 devard who is taking it to New artistic Heights the Saint Paul chamber orchestra is this country's only full-time professional chamber orchestra built by Dennis Russell Davies it achieved International Acclaim underpin kazoku Mount and now it is the first Orchestra in the nation to have its artistic leadership shared by three outstanding musician Christopher hogwood you wolf and John Adams the Contemporary composer of Nixon in China pain,In the 28 years of his leadership Martin Friedman has catapulted the Walker Art Center to a peak of international influence in modern art more than a museum. It is truly an art center and like him it is becoming National model. You will see and hear for yourself this afternoon. The Minneapolis Institute of Arts is one of the great encyclopedic museum. So this country hits Rembrandt. It's to God, it's Bonar Matisse. It's silver. It's Japanese screens and prince. It's crossed are as fine examples of their genre as exist in the nation. The Guthrie Theater could have been located anywhere in the country. But Tyrone Guthrie chose Minneapolis and prove that a great Repertory Theater. Could Thrive outside of New York City under the dynamic leadership of its new artistic director Garland, right? It is attracting the highest critical Acclaim. He has determined that it be this country's most important to Repertory Theater and he is succeeding in his mission as you will learn this afternoon. The Guthrie is created a voracious appetite for theater in this community. There are no more than a hundred theater companies in the Twin Cities, perhaps the most significant of these is the children's theater and all she go to the Minneapolis Institute of Arts which had a brilliant take off a crash landing and is now just completed its most successful season ever. It is clearly a national model. I am food. Minnesota Public Radio has an Art institution because of its incredible influence on the cultural life of the Twin Cities and indeed the entire state where you are never out of range of one of its 18 stations or relays NPR is clearly the outstanding public radio system in the nation and the producer of more national public radio programs than any other public radio station A Prairie Home Companion high performance in St. Paul Sunday morning to mention only three of many produced here and heard over your own favorite public radio station. Minnesota Public Radio also spawned American public radio headquartered here in st. Paul which today has 355 member stations and which distributes to the nation's public radio system more hours of good programming. Then does his older than does its older sibling national public radio NPR. Now it is American public radio APR which is providing enlightened leadership for public radio in the nation. But why here why are there so many institutions of such remarkable quality and impact here in the Twin Cities in my opinion. There are five reasons the artistic directors the Civic leadership the donor's the audience and the absence of two negative factors found in many other communities. I've listed five reasons, but by far the most important is the first the artistic directors they are the ones who have the vision set the direction aim for the top and Inspire everyone else in the Endeavor one cannot imagine the Guthrie Theater without Tony Guthrie's original vision. And inspiration or the Walker without Martin Friedman's or Minnesota Public Radio without Bill clings for the Minnesota Orchestra without that incredible array of music directors. Perhaps we've been just plain lucky, but I think there's more to it than that we've chosen well to be sure but we have attracted kept and motivated great artistic directors because we have given them the freedom and the tools to do their thing. We've put them on a pedestal we have put them at the top of the organization chart. We have accepted their vision and their leadership. We have tolerated their mistakes. We've encouraged them to be bold to think big and the aim4excellence to the best of my knowledge. We have never censored them. I've long maintained that the only role of a trustee of one of these institutions is the care and feeding of the artistic director by which I mean that our role is trustees is to do everything possible to enable the artistic director to achieve his or her mission in too many of your city's the concert programs are approved by board committees. The plays are selected by trustees. The Acquisitions are determined by wealthy donors and the institution is run by a volunteer chief executive officer. That way you will never attract or keep or Inspire great artistic leadership. The great artistic leaders cannot do it alone. Tyrone Guthrie could not have done it without John Cowles Jr. And a host of other Civic leaders who have followed him. And so it has been with each of these institutions. One of the incredible things about this community has been the willingness of leading citizens men and women to devote their time and energy to these institutions in every case. The board is chaired by a person already loaded with corporate or Civic chores in no case is the lay leadership devolve to some nice person who has made a lifetime career. A caring that institution here. We believe in Enlighten governance. We believe in rotating chairs and rotating boards in the last 10 years. For instance. The Minnesota Orchestra has had five chairs the Guthrie six and the walker eight. And some of your cities I know chairs who have already stayed too long and worse who have no intention whatsoever of giving up the hill. Are Civic leaders have engendered a wonderful sense of trusteeship here we serve because we care not because of personal Glory or Grandeur in all my years of involvement. I have never heard anyone refer to my Orchestra my theater or my museum can all of you say as much. A trustee is after all the keeper of a public trust and let us never forget that these institutions are public domains not private. You cannot run great institutions no matter how outstanding the leadership lay or artistic without lots and lots of money the donors of this community individual corporate and Foundation have been incredibly good to the Arts. The Twin Cities are known for their generous philanthropy and a high proportion of that philanthropy is directed to the Arts. In fact, the proportion is double the national average. You heard this morning about our corporate 5% Club. Let me mention just two of the hundred and forty members Dayton Hudson, which rank is a hundred and 83rd nationally in corporate profits is the 19th largest corporate donor in the nation a 5% Giver 4/43 years 40% of its giving goes to the Arts. And of course, none of our Arts institutions would be what they are today without the incredible generosity support and Leadership provided by another 5% ER the Minneapolis Star and Tribune and its Executives both past and present in contrast to many of your leading corporations prefer to give at that comfortable national average 1% of profits to charity and only 10th or 12% of that to the Arts. We are also blessed with several large and enlightened private foundations individual donors, of course are the foundation of every institution. We have had many individual gifts in the millions. But even more important is the broad base of support the Minnesota Orchestra has 34,000 contributors the largest number of any major artist and Minnesota Public Radio has 65,000 contributing members by far the largest number of any public radio station in the nation. We are also blessed with several large and enlightened private foundations all of which it played significant roles in the Arts with big grants when the occasion called for it and with creative and Innovative awards for especially where the projects the foundation's like individuals and corporations recognize the unique role that the Arts organizations play in this community and they're giving their for reflux. that recognition the audience of course is crucial to success ours is a sophisticated audience more willing than most to embrace untried new and difficult works. I recall was telling Neville marriner that our audience was trained by the young Normandy and buy Metropolis dorati inscreva cesky who won International awards for their creative programming. We were therefore prepared for far more adventuresome and searching programs. Then he assumed coming as he did from London which seems to tolerate only the safest programming. The Guthrie audience respond readily to the most difficult and controversial theater and the Walker has been exploring the frontiers of art for so long that its audience would only be disappointed by something fried and safe. One of the aspects it amazes me most about her audience is that each institutions audience is quite different from the others. Each institution has built not only its own audience its own constituency and its own base of support. That's why I've never feared competition in the Arts. It has just fostered and ever larger total audience and support for all the Arts in some of your city's I fear the establishment would never tolerate such competition a small committee would decide which institutions could ask for how much money and when here it's open season all the time. That's why we have such a richness of Arts institutions not speaking just about Minneapolis. I would like to mention two other factors or rather the absence of two negative factors that have been the hibited the Vitality of Arts institutions in some of your cities. First there is no United giving we have never had a United Arts fund or any Coordinating Committee how stifling that would be right now the Art Institute The Walker the Guthrie in the Saint Paul chamber orchestra are all involved in major Capital campaigns the others have either just finished or are now gearing up for similar drives. In my opinion when you have a United Arts phone all the top leaders gravitate to that board leaving the Arts institutions with second team players for their boards institutional initiative as stifled funds are doled out. It's really just a business man's protective Society may it never happened here far better for each institution to dream its own dreams planets on future and then seek out the means necessary to achieve it our second absence of negative of the negative factor is honorary fundraising dinners. We just don't have them. We consider them to be a fraud and nothing short of blackmail using the good name and reputation of the honoree the blackmail his or her business associates and their corporations into buying tickets. There are a very high-cost an inefficient form of fundraising but more importantly they protect the institution from having to go out and sell its case to every potential donor large or small. Well, I've Crow too much about how great we are. And I apologize now. Let me eat some Crow. I do it for this reason. I have serious concerns about whether our institutions or yours can retain their Vitality in the future because some of the factors of past success are either changing or disappearing thank God, there is no shortage of great artistic director ready willing and able to tackle the challenges, but how about trusteeship will Enlighten trustees you continue to guide these great institutions or will the board's change will the leading citizens in the corporate CEOs continue to give their time energy and resources. Can they But I was pressed into the Minnesota orchestral Association 36 years ago the date and Company is filled indicated was one store in Downtown Minneapolis. Now it has 675 stores and 38 States and does 12 billion dollars in 3 m is no longer a local Saint Paul company, but worldwide with 54 offices in 50 countries can their CEOs devote the time energy to Civic responsibilities that their predecessors did. Well so far the signs are very positive. But even more I fear the possibility that the nature of trusteeship will change with more emphasis on what trusteeship can do for me rather than what I can do as a trustee to serve the welfare of our Arts institutions in the and the community. I know if two instances here, we're in the last 10 years well-meaning, but overly zealous volunteers have tried to elevate their own by downgrading the role of the artistic director. Obviously in this community neither attempt succeeded and eyesight it only to show that it can happen even here and how about the donors individuals corporations foundations and governments? Will they continue to give us in the past individuals of course count for most giving to the Arts increasing wealth particularly in the upper brackets ought to be a plus but will New Wealth gives generously is old wealth has I see many encouraging signs here, but many discouraging ones as well. The book is still out I fear. But the thing I fear most about individual giving is the new tax laws the top bracket rate has gone from 70 to 28% So $1,000 gift now cost the donor $720 instead of the $300. It did formerly even worse as far as the Arts are concerned is the Alternative Minimum Tax which severely punished has the donor of appreciated property. It is forcing great works of art under the auction Market rather than encouraging their gifts to museums instead of going from private to public hands as was the case art today is going into new private hands off on a broad. And we'll never get to our public museums. What a tragedy that is. Of course the Alternative Minimum Tax applies equally to Gifts of appreciated stock on which all sort of all Arts institutions are dependent for Capital gifts to raising large endowment funds are building funds will become increasingly difficult in the future even worse is the change in government attitude towards philanthropy. It used to be National policy to encourage. Now, the government's attitude is that any charitable donation is a tax loophole to be closed not too long ago. I attended a briefing session at independent sector the nation's Chief spokesperson for and defender of the non-profit world at that session Senate and House staffers briefed has all the potential legislation that could affect the independent sector of this country of the dozen or so items review reviewed not one not a single one helped the sector every single potential piece of legislation either made. More difficult for the sector to do its job or made it more owners for a donor to give to the sector. This it seems to me strikes at the very nature of our society. How's that for editorial fodder? And more recently. It's gotten even worse bad enough to go from a national policy of support to one of their tolerance now is we're all reading in the papers today and it is rapidly moving to one of antagonism and even censorship if the Arts are censored who will be next. We know corporate giving is leveling off nationally and maybe heading down work what with mergers Acquisitions takeovers and leveraged buyout. Will the new owners be as responsible as though as the former ones, you know, we have lots of rumor takeover candidates around here and it certainly worries us. I just some of you have some to on the other hand the most hopeful sign of all that I see on the corporate front is the civic-mindedness of the Professional Management Service who have succeeded the family Management's that founded our great headquarters companies. You may be surprised at what I say, but I'm delighted to tell you that as far as General Mills Pillsbury 3M IDs Honeywell Dayton Hudson, the Saint Paul Pioneer Press dispatch can many others are concerned the professional management have proven in every case to be as generous and in most cases far more generous than where they found her family Management's here. There is great. Hope and also great credit through What generous they are, but how about their priorities I fear they are changing all across Corporate America and the Arts may be pushed. Once again to the periphery their fashions in corporate giving just as there are fashions and apparel and everything else right now to put it in the vernacular of an old Merchant. The Arts are becoming post-peak. Well child abuse to mention just one of many new fields of philanthropy is Shirley in Cumming. The new CEOs of the nation are tougher they want and giving as in everything else a quick pay out an immediate return alas in too many instances giving is becoming cause-related marketing and less and less. Is it an investment in a better environment in which to work and live? Tougher they are the CEOs, but perhaps more timid to I suspect you will not soon again see corporate sponsorship of anything like us around o or mapplethorpe show. So the corporate donor may become as much a sensor as the government frightening. To a certain degree the same concern applies to foundations which exists by governmental sufferance. But here my main for fear again is the tax law changes that end that they will reduce the incentive to create New Foundations after all now that you can leave all of your estate tax free to a spouse. What is the incentive to create a foundation or for that matter of fact to make it benefaction or a major bequest with current tax laws. I seriously doubt that our largest foundations would have been created or our greatest benefactions May. Over the Long Haul, of course, nothing matters as much as the audience. Will it continue to be as interested in the Arts as today's audience? How can it when there is so little art education and so little art exposure among the younger generation. We are producing a generation that is culturally and aesthetically num num by Mindless movies trashy TV and you're splitting sounds what can the Arts expect from such a generation and lastly. How long can we in Minneapolis continue to hold out against some great United Arts fund idea probably fostered by one or more major corporations are Foundations at a time when the going is particularly tough for all concerned or can we continue to resist the temptation to have just one fundraising dinner for some great benefactor who can't possibly say no to his or her favorite and very needy charity. And therefore reluctantly agrees to be honored by a five-course banquet that would raise big dollars of which I suspect at least 40% but get to the Arts. Well with that sour note. I am rejoicing in what so many good people have accomplished in this community. And yet as you can tell more than a little concerned about the future of our Arts institutions and yours. Thank you.