I joined art_works as an intern last summer, eager to contribute to the company's mission of amplifying the voices of visual artists through paid opportunities while simultaneously promoting values of equity and social justice. Although the goals of art_works were important a year ago, they have become even more critical in the context of the COVID-19 pandemic and the expansion of the Black Lives Matter movement.
The past nine months have been devastating for working artists who rely on museums and galleries for exposure and, ultimately, artwork sales. Visitation to public-facing art institutions has severely declined in the course of the pandemic. Collectively, since March 2020, U.S. museums have lost a staggering thirty-three million dollars per day. Many institutions have turned to digital platforms to continue sharing art with the public, often with great success in terms of site visits and clicks. Yet, only twelve percent of those engaging with online art content paid for the experience, further contributing to the budget deficits faced by both nonprofit and for-profit organizations within the cultural sector. With limited digital platforms through which to showcase their artwork, artists have struggled to find an audience, let alone individual collectors willing to acquire artwork sight unseen. Economic uncertainty, coupled with the inability to see artwork in person, have clearly altered the way people buy art, and global art sales are expected to decline by over fifty percent between 2019 and 2020.
The economic and health outcomes of 2020 have further contributed to systemic social and economic inequalities. Along with many others, artists and art organizations face financial devastation while some sectors of the economy grow in unprecedented ways. White-collar workers in technology, finance, and law -- jobs that have seamlessly transitioned to Zoom -- have, by and large, continued “business as usual” and maintained, or even grown, their incomes. For example, at the extreme end, most billionaires are wealthier than they were before the pandemic -- America’s wealthiest people have collectively accumulated over one trillion dollars since March 2020. The growth in income inequality that we have seen this year can be attributed to the fact that stocks and other speculative financial instruments are primarily owned by already wealthy individuals and institutions. Despite there being over 10 million fewer jobs than in February 2020, the stock market has recovered relatively quickly when compared to the rest of the economy. Additionally, technology and e-commerce platforms are booming as socializing, work, and school transition to digital platforms, and executives in these fields have made large profits while small businesses have suffered.
At art_works, via our corporate and individual partners, we approach collection building strategically, thinking about acquisitions and commissions within the parameters of what we call “impact investing.” This term was recently defined on Hyperallergic as “making investments to generate positive social or environmental change, in addition to financial returns.” Acquiring or commissioning art not only benefits artists financially, but also indirectly supports their communities. Artists are able to use their creative perspective to humanize social justice issues and start important conversations that can lead to meaningful change. At a time when many communities have been drained of energy due to the pandemic, it is essential to invest in local artists in particular to help them maintain the vibrancy and culture of the places where we all live and work.
“it is essential to invest in local artists in particular to help them maintain the vibrancy and culture of the places where we all live and work.”
It must be noted that impact investing in an artist without gallery representation has a greater financial benefit to the artist than impact investing via galleries. In traditional gallery-artist relationships, the gallery takes a commission on every sale. Direct sales allow the artist to take home 100% of the purchase price. Race and gender also come into play, as historically it has been especially difficult for women and artists of color to gain representation in prestigious galleries. As of 2017, according to artnet News, 70% of all artists represented by New York City’s top galleries were men and 80% were white. While many galleries are actively doing the work needed to redress this imbalance, the art world overwhelmingly remains a place where privilege begets success. When collecting art through the lens of impact investing, supporting artists outside of the gallery system is an essential component in overcoming years of systemic injustices.
Through my time at art_works, I have experienced firsthand how art can have both qualitative and quantitative net-positive outcomes on communities. art_works has already demonstrated its commitment to generating opportunities for under-represented artists through its work with companies and brands. The collective challenges of 2020 have spurred us to think beyond the outlines of our business model and further leverage our relationships, research systems, and curatorial experience. To that end, in summer 2020 I helped develop Collector Partnerships, a new initiative that aims to guide philanthropically-minded individuals interested in building collections through strategies like impact investing.
Art can and should add cultural vibrancy and financial stability to our communities. By thinking broadly from an impact investing perspective, we can sustain local economies while also shaping a more equitable future.