Thinking of donating to an arts charity? Read this first.

Many people who donate to cultural charities do it out of love for the arts, but their dollars might go farther if they were given to a different type of organization, a Maclean’s analysis shows.

Arts and culture organizations underperformed their peers on every criterion Maclean’s studied in its ranking of the top 100 Canadian charities. Art galleries, museums, symphonies and other similar organizations spent more on overhead and fundraising. They were also less clear about how donors’ money is being spent and the tangible results it delivers.

Greg Thomson, director of research at Charity Intelligence Canada, said arts charities may have to spend more money to solicit donations because the donor pool is limited to people with a connection to or interest in the type of programming they offer. Additionally, these charities can often get away with a glossy marketing brochure instead of a rigorous, evidence-based analysis of the benefits of their programs.

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“They’re selling a story, they’re selling a feeling. I guess all charities are," Thomson said. "But they don’t have the cancer, the puppies, the childhood heartstrings things to draw people in."

Maclean’s scored thoseCanadian charities assessed by Charity Intelligence that pull in $2 million or more in annual revenue. The ranking is based on two main criteria: Financial efficiency and transparency.

As a group, arts and culture charities performed worse than their peers overall and in almostevery category. The exception is the need for funding, which compares the amount of money charities have saved in reserves to their annual budgets. The average final grade for all charities was a C, while the average final grade for arts and culture charities was a D+.

The Montreal Museum of Fine Arts, the top-ranked arts and culture charity, earned a final grade of B+, with every other arts charity scoring B or below. Six arts and culture charities out of 28—or 21 per cent—earned a final grade of F, with just 13 per cent of charities from all sectors earning a failing grade.

In the social results reporting category, arts and culture charities scored an average grade of C, compared to an average grade of B- for all charities. The social results reporting score assesses how well charities communicate the goals of their programs and the impact they are having. It requires a data-driven analysis of how they’re affecting change — not just a marketing pitch — to earn top marks.

Danielle Champagne, director of the Montreal Museum of Fine Arts Foundation, said the organization is working on measures that would improve its social results reporting score. The museum is partnering with hospitals, research centres and scientists to study the impact of its programs on vulnerable populations like the elderly and the mentally ill, she said.

Champagne said donors who support the arts are increasingly demanding to see such data. "The trend now is not just to put a name on a wall. It’s to really... know for sure that their money has a real impact on society."

Susan Horvath, president and chief executive of the ROM Governors — the philanthropic arm of the Royal Ontario Museum, the second-highest-rated arts and culture organization — said her organization is implementing similar efforts. She said the move will hopefully help attract donors who are motivated by causes like education, accessibility and wellness, in addition to a love for the museum.

"It will make people think more broadly about museums and arts organizations," she said.

Horvath said arts organizations have a harder time finding those new donors than charities like universities and hospitals, which have lists of alumni and patients to draw from. The fact it’s harder work means fundraising costs can be higher, she said.

"We are part of somebody’s thinking about philanthropy, but we may not be their largest gift or the first gift we make," she said. "Sometimes we have to be creative and that might mean costs are higher."

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