Financial Woes Threaten Clayton Arts Organization

The interim executive director of the in said this week he is "a little bit embarrassed" about the issuance of a news release indicating the organization might close if $75,000 is not raised quickly.

The release sent Wednesday specifically identifies increased City of Clayton rental rates as one of the reasons for the Guild's financial troubles. The text of the release is posted at the end of this article.

"I was only using that as an illustration to the membership," said Michael Drone, who has served as interim executive director for about a week and on the Guild's Board of Governors for five months.

The Save the Guild fundraiser announcement was intended not for the public but for the organization's 537 members, he said, each of whom would need to contribute just under $200 to reach the target. A Guild staff member who did not realize the fundraiser was meant to be internal issued the release.

The group, founded in 1886, is one of the oldest arts organizations west of the Mississippi. It hosts exhibitions, workshops, artist residencies and other events.

Drone said that the Guild's relationship with Clayton "couldn't be any better" and that the rental-rate increase from $1 per year to $18,000 per year happened two years ago. That rate is substantially below market value for similar properties in other places, he said.

The rent figures also appeared on a special page of the Guild's website. There, a note from Drone states in part: "Unfortunately, with the economy in the doldrums, grants going away and increased operating expenses, the St. Louis Artists’ Guild has fallen on hard times…Times hard enough that unless there is an immediate infusion of cash for operations, the Guild may have to close."

In a statement responding to the Guild news release, the City of Clayton provided additional details about the rent increase.

"Fifteen months ago, we reached agreement with the Artists' Guild on a new lease that, among other things, called for moderate rent to help recoup costs associated with the building and park grounds," the statement said. "To the best of our knowledge, they have been pleased with the agreement, and we hope will prosper in their current location."

Drone said money is needed for operating expenses such as paying staff, bills and insurance. The because of its age and storm damage.

But he downplayed the risk of imminent shuttering.

"Is it going to close?" Drone said. "No, I would have to suggest not."

There is money in the organization's endowment and restricted funds, but those funds cannot be used for operating expenses.

Raising the desired funds would keep the Guild open through the end of the year. In particular, he said, it would help the organization now through March, a period of time that is traditionally a financial challenge because of the limited events held during that time. 

Contributions have dropped amid the economic downturn, Drone said. He did not have numbers immediately available comparing money available for operating expenses this January as compared to last January.

If the fundraising goal isn't met, the Guild would first limit its hours in an effort to reduce costs, he said.

He expressed optimism that a new program beginning soon in St. Louis would help the organization's finances. In it, Guild staff would help businesses identify artwork appropriate to their companies, lease or sell it to them and hang it for them.

Both the Guild and the artist would receive a fee.

The Guild also hosts weddings and other functions, which help fund the group's operations.

While the Guild is not soliciting contributions from the public at this time, Drone said, it will not turn them down. Donations may be made on the Guild's website.

Drone said the second quarter of the year will include more functions, shows and activities than the first quarter, which will help financially.

"I think everything is very upbeat," he said.

The following is a copy of the news release distributed to two media outlets:

St. Louis Artists’ Guild may shut down if fundraising goal is not met.

CLAYTON—The Board of Governors of the St. Louis Artists’ Guild, a not-for-profit fine arts organization, has announced that the Guild may be closed if they cannot raise enough money for operating expenses. The Board points to a slow economy and increased operating expenses (such as the City of Clayton raising their rent) as the reasons for the organization’s financial troubles.

The St. Louis Artists’ Guild has begun a “Save the Guild” appeal, with the goal of raising $75,000, and is seeking donations from organization members and the wider community to keep the organization’s doors open.

Founded in 1886, the St. Louis Artists’ Guild is one of the oldest arts organizations west of the Mississippi. Today, the St. Louis Artists’ Guild continues its mission of being a resource and an advocate for creative expression. Programming at the St. Louis Artists’ Guild includes art exhibits, classes, workshops, and artist residencies. In 2011, the St. Louis Artists’ Guild received a Cornerstone Award from the Clayton Chamber of Commerce in recognition of its impact on the community.

Those who are interesting in supporting the St. Louis Artists’ Guild are encouraged to make a donation through the St. Louis Artist’s Guild’s website (www.stlouisartistsguild.org/new/save-the-guild-appeal). Any contributions are appreciated.