search  current discussion  categories  wanted/for sale - misc 

donated work (not-for-profit institutions)

updated sun 24 may 98

 

David Hendley on thu 21 may 98

Stephanie, good points about your not-for-profit
organization. I know that the high-rolling directors of
non-profits we hear about are the exceptions, not the rule,
particularly in arts organizations.

But it's my contention that 99% of all potters are also non-profit
businesses. Not particularly by choice.
We also work 50-60 hour weeks, change the lightbulbs, clean the
bathrooms, sweep the floors, etc., etc. And we don't even HAVE job titles.
I, myself, make an income that would be laughable in the
corporate world for someone with 7 years of college and degrees
in 3 different areas.
How about benefits? Does your not-for-profit organization provide
things like health insurance for its employees?
Two weeks paid vacation? Paid sick days?
We potters get nothing of the sort.

We also do what we do to enhance and enlighten the community,
so I completely understand why the 'donations' discussion hit
such a chord with the Clayart people.
I've copied (below) my posting from 3 days ago about 'wages and
profit'. It drew no comments at the time.
I hope those that missed it will read it now.
David Hendley

-----------------------------------
The truth is, most craft business do not make any profit.
The aim of the maker is just to be compensated for time spent
making and selling things.

When you hear that General Motors made a profit of $7 billion
last year, that means that after all expenses were paid there
was still $7 billion left.
All expenses includes payment and benefits to hourly workers,
at top-of-the-scale union wages, payment and 'options' to
executives worth millions, depreciation on plants and equipment,
....you get the idea.

If I invest $20,000 in a pottery business it would not be a wise investment
unless there is a reasonable profit paid back to me. And for something
as risky as a pottery business, I would expect a high return, on the order
of 15 or 20% a year.
How many potters are getting a return on their investment, money
left over after all expenses and wages are paid?
Slim to none, I'd say.

Another way to look at profit is 'future value'.
That's what drives the stock market - what investors think a company
will be worth in the future.
What is the 'future value' of your average potter's business?
Put another way, what would someone pay the potter for the business?
Pretty close to zero, in most all cases.
Maybe something for inventory, supplies, and equipment, but
nothing for 'future value' because there likely is no profit.

Well, although I'm aware of it, I guess I've just resigned myself to
making little or no profit in pottery.
That's not the reason I'm doing what I'm doing.
I don't view it as an investment.
Meanwhile, I'll invest in General Motors to make a profit.
----------------------------------------

At 08:00 AM 5/20/98 EDT, you wrote:
>----------------------------Original message----------------------------
>Well, this is an interesting thread. I have to agree a bit with all the
>points, but I also want to clarify some other points.
>
>First, the nature of not for profit is that it does not exist to make a
>profit. That does not mean that it should be in the red and losing
>money, but that it must re-use it's profits to fund it's mission. The
>profits cannot be paid out as dividends or stocks to it's employees,
>members or board of directors.
>
>Secondly, there are many not-for-profit organizations which do appear to
>have mass quantities of money to the outside eye, but upon examination of
>their accounts, you would discover that this is not the case. Please
>keep in mind that there are salaries being paid to employees, yet there
>are not many employees who are lining their coat pockets with the high
>salaries they are earning. Speaking as an employee of an art center and
>for my husband, who is also an arts administrator, we are barely able to
>set up a savings account. We work 50-60 hours a week (on the average)
>and there is still work to be done. Most of the departments here at the
>Indianapolis Art Center are understaffed, and we all share in duties that
>are not in our job description (I change lightbulbs, paint the walls,
>clean bathrooms, etc. I am the Exhibitions Assistant.) Two of our
>newest employees took paycuts of over $10,000 in the corporate world to
>work here.
>
>Now, why would people come to work for a not-for-profit organization?
>Well, I love our mission and believe in it- "to engage, enhance and
>enlighten our communities through art education, participation and
>observation." My husband was a hospital administrator in the Navy who
>decided he needed more in his life than a job, and volunteered with a
>small community theatre. It changed his life (and not just with a pay
>cut). He left a high paying job to go back to school and work for a
>producing theatre. We love our jobs, even in the most hectic of weeks.
>And a good not-for-profit will affect a community, it's members and it's
>audience in a positive way. yes, one should be careful and really study
>the NFP that you are thinking about donating time or money to, but just
>because one may appear to be rolling in the big bucks, dig a little
>deeper and you will find the real scoop on the financial situation.
>
>Stephanie Robertson
>Exhibitions Assistant at the Indianapolis Art Center
>and fabric artist
>

Plaznclay on sat 23 may 98

David,

I found your comments on profit interesting. It was something that I had not
considered before, just thinking wages unfortunately. I profit some from the
joy of making the piece, but maybe I should feel that I am entitled to
monetary profit also.

Thanks for introducing this idea. We are listening but sometimes still deep
in thought.
(maybe not that deep but thinking none the less)

Jenny