NonProfit Art Group Basics
The Prince William Art Society (PWAS) is a nonprofit art group with the 501(c)(3) certified status. This blog post is to help artists that join any art group have a better understanding of the background into the parts and pieces that help build the group you join and the perhaps the people and costs that are a part of giving that art group a future.
501(c)(3) Certification
Disclaimer: This is not a guide nor formal procedures on the specifics on the Prince William Art Society operations nor any particular art group's way of doing business. It is only to gain a basic understand of what a nonprofit art group can be and how a member's dues and other monies might be dispersed. There are expenses that can and do fall into multiple allocations. Links are provided when there is a direct PWAS website page dedicated to the referenced material or info found elsewhere.
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A nonprofit art group is often designated as a 501(c)(3) certified art organization, although there are apparently 29 different 501c tax exemptions offered by the government. The 501c3 status is the most popular with art groups that are mainly based on educational, charitable, or a religious mission and purpose. This is a tax-exempt status and means that the group does not operate for commercial gain. The group does not pay full federal taxes and can receive tax-deductible donations.
As with any governmental organization, there are annual and/or quarterly/monthly documents, fees, and maintenance requirements that are all reportable, with due dates assigned. Speaking of documents, there is a lot of paperwork involved in nonprofit start up as well as for maintenance, and when applying for grants.
Pros and Cons of 501(c)(3) Nonprofit Status for Artists
Scholarship, Charitable, Education
Giving back to the community is a large part of the nonprofit 501c3 status in some way which can be in the form of education, scholarships, and/or a charitable purposes.
PWAS does have an annual Scholarship given to one or two Prince William County art student(s) that are pursuing college in an arts capacity. Donations to the Scholarship go directly to the fund set aside, so see The Jewell Pratt Burns Art Scholarship
Giving art education and appreciation for the arts local to your organization can be accomplished in many ways for a nonprofit group. Reaching out to the youngins, the adults, and all the way up to the retirees, and those in need; there are so many ways to give and give-back around you.
Occasionally, some locations that offer space for art shows don't necessarily charge a fee, but they do ask for a donation to help support their own organization. Or does the school near you need art supplies that you could help with?
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Finances, Expenses - What Art Groups Spend On
Where does the money go? (Where applicable for that organization...)
- Administrative Costs - especially if outsourced
- Accounting services
- Legal services
- Any expenses incurred with Board Meetings
- Human Resources Platforms
- Indirect Costs
- Shared Costs - costs shared by more than one party, or accounted for across various projects or activities.
- Fixed Costs - continuous monthly expenses
- Facility rent, insurance
- Staff salaries
- Flexible/Variable Expenses - typically non-essential costs that "could be cut" when needed.
- Operational Costs
- Member Meetings - Guest speakers, programs, snacks/beverages, cake
- Licenses - business license
- Storage Unit - where to store all the art show gridwalls, signage, etc.
- Facility rent, insurance, utilities, etc. Location fees for monthly meetings, some art shows and/or a gallery space and/or building expenses
- Staff salaries, benefits and taxes
- Supplies and Equipment - maintenance, office supplies and business cards, postage and PO BOX fee, printer, point of sale equipment, fees, Zoom equipment, laptop, etc. Cleaning supplies and services.
- Art Show Entry Fees - there may be a cost to the art group to purchase a space or two for members to "show" there. The fee may be reimbursed by a small or discounted fee for each participating member.
- Marketing and Advertising - online, offline, in print, printed materials and handouts.
- Web and Tech - annual/monthly website and internet fees, IT services and social media, Software and updates. Call for Art management software too.
- Art Supplies!
- Development Costs
- Silent auctions
- Community Fundraisers, Races
- Galas, Banquets
- Art receptions - and all or in part food, beverage, rental of equipment, space, or other expenses
- Workshops and Classes - some will charge a fee and some will be free
- Program Services - those activities that support the art organization's purpose.
- Scholarship Program
- Fundraising Activities - planning, hosting, mail campaigns, recruiting volunteers and staffing donation drop-off. distribution of materials, connecting with potential donors
- Art Contests
- Educational Programs
- Field Trips
- Classes, Teaching
- Guest Speakers
Staff Training, Consulting, Traveling, Lodging - these types of expenses can also be a part of an art groups records as well.
- Let me know if I missed anything here - I probably did!
Revenue - What Art Groups Can Make Money On
Earned Income may include any of the following:
Commission on Art Sales - can vary greatly. A commission is charged to the artist when an artwork sells and can run 10% and up to 60% in some high end locations. This show commission is taken out of the sale prior to the check being sent to the artist.
Even with PWAS at a 20% commission, occasionally when the group participates in locations that charge an additional fee of 20-30%, PWAS will lower its commission so that the art sales are not as high for its members. Artists should always be aware of the commission charged per location, event, or show and be priced accordingly.
- Gift Shop or Art Store Sales - anything from hand-made arts and crafts and Christmas ornaments, to group logo T-Shirts, to artwork for sale.
- Program Ad Sales - printed materials with ad space for sale.
- Subscriptions
- Sponsorships
- Fundraising Events - Fundraising Guide
- Ticket Sales
- Investments and Endowment Income
- Program Service Revenues - perhaps a class fee.
- Donations, Grants
- Art Supply Sales
- Affiliate Programs - Amazon...
- Renting out their art space for events
- Art Contests, Challenges - charging a fee to enter.
- Workshops and Classes - some will charge a fee, or discounted fee, and some will be free, perhaps subsidized by grant monies.
- Art Talks, Art Round-tables, Art Critics, Demos
- Showcase Web Gallery - many art groups provide options to an artist "gallery" for their members that might have an additional fee or be included in their membership and on their website. PWAS Showcase and PWAS Membership
Obviously, Sales Tax MUST be paid.
- Do you have ideas to add to this list? Add them in the comments!
Donations - Support the Arts
Everyone hears it, "Support the Arts" and understand the importance of that saying and the help needed to achieve an art organization's purposes and goals. Often, the arts culture in some areas (cities, towns) is sorely lacking. In appreciation of a thriving arts culture in your community, corporate and private donations are a necessary part of achieving success for a specific project.
Corporate Donors
Private Donors
Benefactors, Sponsors, Patrons
Crowdfunding - people give in whatever sum they are comfortable with.
Grants
A 501c3 designation allows art groups to apply for state or county-run grants or other discounts. Detailed financial documents are all a part of the applications to apply to various grants out there to support the arts culture for individual artists and art groups. The requested amount from your organization may not be what is awarded for many reasons.
Art Grants to nonprofit art organizations can help pay for rent and many other expenses. There are many types of art grants in small to large amounts of money, for project-specific, general support, and restricted grants. Do some research in your area to learn more about grants available to your group.
Virginia Commission for the Arts https://vca.virginia.gov/grants/
What are Artist Grants? An Introduction for First-Time Applicants
Volunteers - Another Way to Support the Arts
For many an art group, I venture to say, there is no paid staff. Their revenue does not support the salaries, benefits and employee taxes that are all necessary when you hire staff. Hence the need of those imperative volunteers that step up to help in every way they can to support that art organization.
Board Members can be elected Volunteers. Committee leaders and members are Volunteers. Social media, webmasters, blog post writers, grant writers, marketing persons, the people that make the flyers, brochures, and other printed materials are all Volunteers. Art show coordinators, program directors, and the folks that help bring the snacks and beverages to a meeting are all Volunteers. And there are tons of other people that make an art group a success including fundraising, member recruiting, planning, and more.
In appreciation of all those people that step up and ask, "where can I help?" ...a BIG THANK YOU!! and let's learn more about that here...
PWAS Committees
About Nonprofit Art Group Committees
Benefits of Volunteering, Joining Your Local Art Group
Nonetheless and after all that, as you can see, it takes not only a village to run an art group, but a budget and great management in expenses and use of income to orchestrate the often complex and diverse use of funds. Did you realize all that? Drop any comments below.
Author: Donna Liguria
Artistry Spin Blogmaster and an artist member of PWAS in Woodbridge, VA, specializing in acrylic painting. She paints landscapes, seascapes, animals and many subjects. Visit her Website at DonnaLiguriaArt.com, her Donna's Esty site and her Blog at Donna’s Cave Paintings.
Local Art: The Prince William Art Society is a 50+-year-old non-profit art group in PWC for the appreciation of fine art throughout the county and Northern Virginia. Visit us at any of our local art shows or join us for our monthly meetings - held on the 4th Monday of the month at the Tall Oaks Community Center at 12298 Cotton Mill Dr, Woodbridge, VA at 7:30pm
Want to join PWAS? Go to https://www.princewilliamartsociety.com/membership
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Donna Liguria beginning her painting, photo by Tom Payne 
