ANNUALREPORTFiscalYear2016

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MISSIONThe Metropolitan Regional Arts Council increases access to the arts in 7-county metropolitan area communities by providing information, organizational support and grants.

VISION

We believe that the arts strengthen communities, and stimulate diversity of expression, communication, and commemoration of communities and cultures, and that all people should have opportunities to engage in the arts. Accordingly, MRAC’s vision for the region is that:

• Artists, arts organizations, and arts activities thrive. • Art is integrated into the social fabric and identity of every community. • Public value of the arts is understood and acted upon by community members, leaders

and policy makers.

GOALS

• MRAC will provide grant applicants and other constituents with clear, thorough, prompt and respectful service and assistance.

• MRAC will maintain transparent decision-making processes, and accessible public information.

• MRAC’s programs and services will reflect its Mission, and achieve its Vision.

SERVICE

The Metropolitan Regional Arts Council serves nonprofit arts organizations, informal arts groups, community education, and non-arts nonprofit organizations with annual operating expenses under $400,000, and individual artists in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties. This region includes urban, suburban, and rural communities. While the region comprises only 4% of the state’s geography, its population is approximately 50% of the state’s total.

As one of the 11 regional arts councils in Minnesota, MRAC’s funding is derived primarily from appropriations from the Minnesota State Legislature with money from the State’s general fund and Arts and Cultural Heritage Fund. MRAC also receives a generous grant from The McKnight Foundation.

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OrganizationalUpdates Last year, MRAC went through a leadership transition and embraced change at multiple levels of the organization. From January 2, 2008 - January 30, 2016, Jeff Prauer served as MRAC’s executive director. Julie Sand was appointed by MRAC’s board to serve as Interim Executive Director from January-June 2016. Amy Crawford was selected to lead MRAC as its new Executive Director and began her position in June 2016. Ms. Crawford is an accomplished and versatile leader who comes to MRAC with more than 30 years of successful experience working with diverse organizations in the nonprofit and philanthropic sectors, guiding organizational change and grantmaking efforts. In addition, Kelly Affeldt was promoted to be the new Program Director for the Next Step Fund and Arts Learning Program, Masami Kawazato was appointed as a new Program Director for Arts Activities Support and Community Arts Grant programs, succeeding long time Program Director Bob Burns who resigned after 19 years of service. We also want to acknowledge the tremendous contributions of over 250 extraordinary community volunteer panelists who contributed their time and expertise to reviewing over 800 funding applications in the past year—we could not do our work with you! Finally, we appreciate our community partners and allies for working together to increase access to the arts for all Minnesotans. Thank you for your support of our mission and we look forward to another successful year. Amy Crawford Peter Leggett Executive Director Chair, Board of Directors

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FISCALYEAR2016OVERVIEW

In FY 2016, MRAC awarded 467 grants totaling $3,146,433 to organizations, which includes two grants for an Arts Achievement Award. The final grant total also includes a $195,000 grant to VSA Minnesota for their role in re-granting ADA Access Improvement Grants for Twin Cities metro arts organizations, which resulted in 16 grants. MRAC was able to fund 40-60% of applications, depending on the grant program. These grants were funded by an appropriation from the Minnesota State Legislature with money from the State's general fund, and by the voters of Minnesota, thanks to a legislative appropriation from the Arts and Cultural Heritage Fund.

In addition MRAC awarded 37 grants to individual artists for the Next Step Fund totaling $174,666 with a grant from The McKnight Foundation. MRAC also provided 11 arts management training sessions, 30 grant application workshops and 33 panelist orientation workshops.

PROCESSATAGLANCE• MRAC staff reviews all applications for eligibility. • A peer review panel reviews all eligible applications. In spirit of the Minnesota Open

Meeting Law, the panel meeting is open to the public. Applicants are encouraged to attend to enhance their understanding of the application review process and to hear the panelists’ comments directly. All applicants are notified of the meeting.

• The panel submits its recommendations to the MRAC board of directors, which makes the final decisions on funding.

GRANTPROGRAMS

In FY 2016, MRAC coordinated seven organizational grant programs and one grant program specific to individual artists:

Organizational Development provides grants of up to $10,000 for projects designed to strengthen the management or administration of nonprofit arts groups. The projects must advance the mission of your group AND have the potential for significant or long-term impact.

Capital provides grants of up to $10,000 to purchase equipment and related supplies and services, or to make capital improvements. The activities must advance the mission of the group AND have the potential for significant or long-term impact.

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Arts Activities Support provides grants of up to $10,000 in project support for groups wishing to offer quality arts activities in any discipline to communities within the seven-county metropolitan area of Minnesota. Grant requests may include costs for artists and other personnel, facility and/or equipment rental, postage, supplies, printing and other expenses necessary to carry out the project.

Community Arts provides grants of up to $5,000 in project support for groups wishing to offer quality arts activities in any discipline to communities within the seven-county metropolitan area of Minnesota. Grant requests may include costs for artists and other personnel, facility and/or equipment rental, postage, supplies, printing and other expenses necessary to carry out the project. In this program, MRAC assigns a "block" of funds in each county to ensure that arts activities take place throughout the region.

Arts Learning provides grants of up to $10,000 for high-quality, arts education activities in any arts discipline to develop knowledge, skills, and understanding about the arts and/or learning through the arts. Projects must have clearly articulated, measureable learning objectives that will be evaluated.

Management Consulting Fund provides grants of up to $1,500 to cover consulting fees related to small projects designed to strengthen the management or administration of the group.

Management Training Fund provides grants of up to $600 for the staff and volunteers of nonprofit arts groups to attend management-related workshops, seminars or conferences in the state of Minnesota.

Next Step Fund, funded by The McKnight Foundation, provides project grants up to $5,000 to professional artists in any discipline for the purpose of career development and artistic achievement.

In addition to the eight grant programs, MRAC provides the Arts Achievement Award to two organizations each year that particularly exemplify MRAC’s mission of increasing access to the arts in 7-county metropolitan area communities. The MRAC Board of Directors reviews the nominations and selects up to two recipients, who also each receive a cash award of $5,000.

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FinancialStatements

STATEMENTOFFINANCIALPOSITIONJUNE30,2016ASSETS Current Assets: Cash and Cash Equivalents $1,069,347 Accounts Receivable 11,619 Prepaid Expenses 17,099 Total Current Assets 1,098,065 Permanently Restricted Cash 45,000 Property and Equipment – Net 4,206

TOTAL ASSETS $1,147,271

LIABILITIES AND NET ASSETS

Current Liabilities: Accounts Payables $30,643 Accrued Expenses 10,504 Fiscal Agent Funds 33,302 Grants Commitments Payable 850,698 Total Current Liabilities 925,147 Net Assets: Total Unrestricted Net Assets 169,303 Temporarily Restricted Net Assets 7,821 Permanently Restricted 45,000 Total Net Assets 222,124 TOTAL LIABILITIES AND NET ASSET $1,147,271

STATEMENTOFACTIVITIESANDCHANGESINNETASSETSFORYEARENDJUNE30,2016SUPPORT AND REVENUE

Minnesota State Arts Board $3,868,231 Investment Income 8,438 Miscellaneous Income 24,269 Total Support and Revenue 3,900,938

EXPENSE

Program Services: Grant Services 3,824,174 Educational and Technical Assistance 70,027 Total Program Services 3,894,201 Support Services: Administration 196,311 Fundraising 3,929 Total Support Services 200,240 Total Expense 4,094,441 Change in Net Assets -193,503 Net Assets – Beginning of Year 415,627 Net Assets – End of Year 222,124

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STATEMENTOFFUNCTIONALEXPENSEFORTHEYEARENDEDJUNE30,2016 PROGRAM SERVICES SUPPORT SERVICES

Grant Services

Education & Technical Assistance

Total Program Services

Total Admini-stration

Total Fund-raising

Total Support Services Total All Services

Salaries $255,613 $28,736 $282,349 $100,298 $3,000 $103,298 $387,647 Employee Benefits 63,791 4,679 68,470 21,494 706 22,200 90,670 Payroll Taxes 18,921 2,127 21,048 7,423 223 7,646 28,694 Total Personnel Costs 338,325 35,542 373,867 129,215 3,929 133,144 507,011 Grant Allocations 3,321,099 3,321,099 3,321,099 Professional Services 32,562 16,151 48,713 34,613 34,613 83,326 Rent 43,409 3,185 46,594 15,105 15,106 61,700 Training/Workshops 15,827 9,985 25,812 25,812 Comm./Online Grants 18,233 18,233 18,233 Dues and Subscriptions 10,030 736 10,766 3,491 3,491 14,257 Panel Expenses 12,287 12,287 12,287 Printing 6,180 453 6,633 2,151 2,151 8,784 Staff & Board Develop. 5,735 420 6,155 1,996 1,996 8,151 Telephone 5,005 367 5,372 1,742 1,742 7,114 Insurance 4,463 327 4,790 1,553 1,553 6,343 Travel 1,248 863 2,111 2,773 2,773 4,884 Office Supplies 2,676 197 2,873 1,068 1,068 3,941 Office Maintenance 2,506 183 2,689 872 872 3,561 Equip. Rent/Maintenance 2,329 171 2,500 810 810 3,310 Regional Workshops/RAC 1,167 1,167 1,167 Postage 258 133 391 225 225 616 Biennial Planning Depreciation 2,002 147 2,149 696 696 2,845 Total Expense $3,824,174 $70,027 $3,894,201 $196,311 $3,929 $200,240 $4,094,411

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FY16BoardofDirectors

Julie Andersen Dayna Martinez, Treasurer Jill Anfang Colleen McLaughlin Bethany Brunsell Tom Moffatt Shelly Chamberlain, Vice President Kathy Mouacheupao Marisol Chiclana-Ayala Adam Napoli-Rangel Anthony Galloway Heather Rutledge Jamil Jude Andrea Sjogren Tricia Khutoretsky Dameun Strange, Secretary Peter Leggett, President Melissa Wright Jeff Prauer, Executive Director Julie Sand, Interim Executive Director (January 2016) Amy Crawford, Executive Director (June 2016)

2324 University Avenue West Suite 114 St. Paul, MN 55114 (651) 645-0402 mrac@mrac.org www.mrac.org