The Best Way to Really Give Away Money

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Philanthropist Lewis B. Cullman says "release the pot of gold."

THE WALL STREET JOURNAL
August 20, 2010

The Best Way to Really Give Away Money
by James Panero

Private foundations tend to sit on their pots of gold. They should be spending them down more.

When 40 of America's richest individuals signed the "giving pledge," a challenge set by Warren Buffett and Bill and Melinda Gates to donate half of one's wealth to charity, at least one philanthropist was not impressed. "My opinion is: So what?" says Lewis B. Cullman.

With a record of giving that extends in the hundreds of millions and throughout New York's cultural institutions, Mr. Cullman, who is 91, is alarmed by how the money donated to charity by the very wealthy usually ends up. Locked, he tells me, in private grant-making foundations that may only release a trickle of the billions of dollars squirreled away inside.

Mr. Cullman's argument gets to the heart of the different ways Americans donate to charity. Most of us write donation checks directly to needy causes. Those with greater means set up private grant-making foundations, which hold nearly tax-free assets in endowments—and often give away as little as the government allows.

Under current tax law, private foundations are only required to spend 5% of their endowment per year. Twenty percent of that may go to operating expenses. Since endowment investments historically earn more than what they must give out, foundations may never need to dip into their principal assets, yet are able to feed their own administrative bloat in perpetuity.

Mr. Cullman believes their recent track record proves that private foundations exist primarily for their own self-perpetuation. In the last year, during the economic downturn, many foundations cut their rate of giving because of losses in their endowments. Based on a survey of more than 1,000 foundations, the Foundation Center estimates an 8.4% drop in giving for 2009, in inflation-adjusted terms, the steepest yearly decline since the center began its tracking in 1975.

For Mr. Cullman, this decline in giving in a time of acute need means that foundation administrators are more concerned about the size of their nest-eggs than about their philanthropic mission. He says that foundations should have "released the pot of gold" and increased their donations, even if that means cutting considerably into their endowments.

To force them to action, Mr. Cullman believes, the mandated annual payout rate should be increased from 5%; or foundations should be required to enact "sunset clauses," for spending down their assets in an established time frame. His position, spelled out in his book, "Can't Take It With You," has not made him popular in the world of foundation management. When he mentioned the premise to Vartan Gregorian, president of the Carnegie Corporation, he "almost dropped his glass," Mr. Cullman recalls. "'My God,' he laughed. 'You'll put me out of business.'"

In certain cases, going out of business might make sense. "Many foundations start out with the best of intentions," says Rick Cohen, national correspondent for Nonprofit Quarterly magazine, but "over time they tend to stagnate." Even foundations with built-in sunsets (the Gates Foundation has a 50-year spend-down) are not necessarily protected from administrative top-heaviness.

In the 1920s, Julius Rosenwald, the chairman of Sears, Roebuck & Co., first raised the alarm about foundation bureaucracy. While nothing in the law prevents private foundations from spending themselves out of existence, few big ones do. The Aaron Diamond Foundation was one example in the 1980s, giving away $50 million to AIDS research. The influential conservative John M. Olin Foundation recently completed its own spend down, put in place to prevent ideological drift.

Despite these exceptions, little ever changes in the broad landscape of foundation policy, and the cure may be as bad as the disease. "These are private organizations that ought to have control of the money," warns Leslie Lenkowsky, professor at the Center on Philanthropy at Indiana University. Sunset clauses, if government mandated, may have "unintended consequences," he says, and can not guarantee the money is used most effectively.

Even with diminishing resources of their own, many foundations are already working tirelessly to help their beneficiaries confront the economic downturn. Most experts agree that bad economic times call for increased giving by philanthropic organizations. "We ought to make the payout rule more flexible," says Mr. Lenkowsky. "In down times it should go up. In good times it should go down. It should be a counter-cyclical rule." Adds Rick Cohen: "They have endowments that are rainy-day funds. This is the time to tap them."

According to Fortune magazine, if every member of the Forbes 400 list followed the Gates "giving pledge," the total would be $600 billion--equal to the assets currently in private grant-making foundations. Should these perpetual monuments to yesterday's donors make their own giving pledge and spend down their endowments?

Just ask Lewis Cullman: "When you set up a family foundation and turn it over to bureaucrats, it is not human nature to vote yourself out of existence. It's time to end that, for the good of us all."

Head for the Hills

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An opening at the Morrison Gallery, Kent, Conn.

ART & ANTIQUES
June 2010

Head for the Hills
by James Panero

Long known for antiques, Litchfield county, conn., has developed a serious contemporary art scene.

One of the best-kept secrets of the New York art world isn’t a neighborhood of converted lofts or gritty garrets. It’s a stretch of Connecticut countryside 90 miles north of the city called Litchfield County. “It’s very countryish, but much more sophisticated,” says Nicholas Thorn, vice president of Litchfield County Auctions. “It’s New England.” In 2008 Jane Eckert moved her gallery, Eckert Fine Art, from Naples, Fla., to Kent, an unassuming village at the center of Litchfield County’s growing contemporary scene. “To have as many galleries as we do in this area is unique,” she says. “They are just really first-rate, high-quality galleries.”

Occupying the northwest corner of Connecticut and incorporated back in 1751, Litchfield County takes its name from the even older Litchfield township (founded 1721), at one time the county seat. Two hundred years ago, Litchfield was one of the largest commercial towns in the state. America’s first law school was founded here in 1773 (its first graduate was Aaron Burr). In the early 19th century, the Presbyterian minister Lyman Beecher arrived to preach the gospel of temperance. His daughter Harriet Beecher Stowe was born in Litchfield in 1811.

Like much of New England, the area’s commercial fortunes declined in the late 19th century, but industry’s loss proved to be tourism’s gain. Opting out of the crowded beaches and hectic scene of other weekend destinations, successive waves of New York gentry gravitated to the preserved historical character and charm of the Litchfield Hills. In 1965, the private antiques dealer Peter Tillou became one of them. Tillou helped turn the historical hamlet of Litchfield into a center for American and English antiques. Peter’s son Jeffrey now runs one of America’s finest antique shops, Jeffrey Tillou Antiques, off the Litchfield village green and anchors the town’s antiquing district.

In the 1980s, a different scene took shape in nearby Kent. The furrier Jacques Kaplan, best known as the creator of “fun fur” and an eccentric collector of contemporary art, bought a second home in the area. In 1984, out of an old caboose parked on a rail spur in town, he founded a contemporary gallery that he called the “Paris-New York-Kent-Gallery.” Kaplan, who died in 2008, supported the opening of other Kent galleries and the arts of the area. “Jacques started it all. He put Kent on the map,” says Rob Ober, the owner of Kent’s Ober Gallery, founded in 2006. Now Kaplan’s efforts have been taken up by another transplant, James Preston, the former CEO of Avon. Along with his son, Matthew, Preston has been developing a 12-building complex of stores and gallery space, called Kent Village Barns, at the main intersection of town. “What Jim Preston did in these spaces, it added this modern spark,”says William Morrison, the owner of a soaring 7,000-square foot gallery at the center of the complex.

Kaplan’s promotion and Preston’s development have given rise to a host of sophisticated galleries within walking distance of each other and the other shops of Kent (the hot chocolate at Kent’s Belgique Patisserie is not to be missed). Morrison recently had a show of Hans Hofmann, and regularly shows monumental work by the painter Wolf Kahn and sculpture by Peter Woytuk, an area artist with a growing international reputation. Ober has shown Russian avant-garde art from the 1920s and satisfies his hunger for contemporary Russian work by inviting Russian artists to work in New York for a season and showing the results in his gallery. Both gallerists’ exhibition programs match artists who live and work in the area, like Allen Blagden, Tom Goldenberg and Sally Pettus, with established artists’ estates and up-and- comers from the city.

Many of the county’s small towns now boast their own art destinations. A gallery crawl (or drive, or bike) can extend to venues like The White Gallery and Argazzi Art in Lakeville, New Arts in Litchfield, Joie de Livres in Salisbury, KMR Arts and Behnke Doherty Gallery in Washington, and Ella’s Limited and Traces Fine Art in Bantam. Several of the area’s artists have open studios along the way. The painter Curtis Hanson operates what is perhaps the best known. His studio, in a converted church called Cornubia Hall tucked in the valley of Cornwall Hollow, is one of the most picturesque sites in the region.

Weekend antiquing is one thing, but the area’s thriving arts scene has been supported by a singularly sophisticated demographic that calls Litchfield home, or at least second home. “When I look through the top 200 collectors in the world, there’s here,” says Morrison. “Aggie Gund comes in. Jasper’s been in here.” Johns, that is, who lives in a large estate up the road in the town of Sharon.

“You’ve got some of the biggest collectors here,” says Ober. Ray Learsy and Melva Bucksbaum, whom Ober calls “the Medicis of Litchfield County,” live in Sharon. “They are huge supporters of the arts,” says Ober, “and their taste is eclectic.” The husband-and- wife collecting team have just completed a state-of-the-art private museum and storage center on their property called the Granary. Their invite-only vernissage in mid-December was complicated only by an ice storm that descended on the county and kept several of the guests away. The unaccommodating weather served as a reminder that while its art scene may be international, Litchfield County remains true New England—and no one would want it any other way.

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Patricia Watwood, Fate (2010), courtesy of the artist

THE NEW CRITERION
June 2010

Gallery Chronicle
by James Panero

On “Patricia Watwood: Portraits 2010” at Open Source, Brooklyn, “Michael Klein: Recent Paintings” at Arcadia Gallery & “Paul Resika: Recent Paintings” at Lori Bookstein Fine Art.

For years beaten down, another victim of the assault on representational art, traditional portraiture nevertheless endured. Although it had to cede its place in the limelight of high art, a premodernist style of portraiture survived the last century largely as a commercial form. Traditional portraiture filled the walls of libraries and law schools, government offices and private homes, but it remained largely absent from the nation’s art museums and the critical press. An argument could be made that, in the bargain, the last century’s portrait painters helped preserve the knowledge of the academic tradition. Untangle the genealogy of today’s realist revival—who taught whom in the movement sometimes referred to as “Classical Realism”—and the line often passes through a generation of portraitists living and working outside the mainstream.

A critical mass of younger painters in this art world in exile, the students of revivalists and illustrators, has emerged to challenge traditional portraiture’s second-class status and to reassert its place in the main currents of art. As these painters enter the full flowering of their talents, they are also discovering a culture that has grown more amenable to portraiture’s importance. We may be living, once again, in portrait-friendly times.

Recently I took part in the Portrait Society of America’s annual “art of the portrait” conference, this year in a suburb of Washington, D.C. Established in 1998, the PSOA began as an educational clearing house for the portrait trade. Its annual conference has become something more. Along with its displays of natural pigments and tutorials on such concerns as “Hands: What’s the Point?” and “Simplifying the Mystery of Flesh Tones,” the conference has become a watering hole for the country’s best young revivalist painters, who aim to take the art of the traditional portrait beyond the commercial commission.

My official role at this year’s conference was to appear in a panel discussion on “Realist Revolution and Critical Relevance: Is The Mainstream Media Missing an Important Cultural Trend?” My co-panelists were the painters Jacob Collins, the New York-based champion of the classical atelier, and Alexey Steele, an L.A.-based exile who made off with Soviet Russia’s entire reserve of charisma. Rounding out the panel was Vern Swanson, the director of the Springville Museum of Art in Utah, one of those few national institutions amenable to contemporary art painted in a traditional mode. The moderator was another young painter, Jeremy Lipking, also from Los Angeles.

The quick answer to the topic question was, yes, the mainstream media is missing out on realism’s revival, brought about by a renewed study in the classical painting techniques of the nineteenth-century academy. Why? Because of a political correctness that has associated representational art, at various times, with both Fascism and Communism —and because Pop and its market champions have elevated bad technique over good. For most critics the story of this revival remains tainted by politics, while the paintings’ craft remains outmoded.

But that’s all in hindsight. How about the future? At the time of the panel I had little to offer—just certainty that, were this particular “realist revolution” to come, the critical establishment would be the last to know. In the days and weeks after the conference, a more satisfying answer came into view: Today’s young realists, trained in the classical tradition, are a social group. I absorbed the full meaning of this note-to-self only after I returned home and checked in online. I discovered that these realists are connected. The fact that they do not appear to despise each other’s work, like so many other artists do, is itself revelatory. I doubt that any other artistic milieu, per capita, maintains a more active social network of Facebook, Twitter, and weblog accounts. These artists posted so much about the conference—videos, sketches, photographs, discussions, notes from the field—that they must have analyzed every moment of our time at the Hyatt Regency Reston.

Of course, much of their sociability has emerged out of necessity. Without the patronage of museums or traditional schools, realist painters have been forced to find ways to organize themselves outside of regular art-world channels. They have to be extroverted. But their networking also speaks to a renewed cultural interest in the connections of society, to which traditional portraiture can contribute. There is a reason an ever growing number of artists is lining up for portrait classes. Unlike the inward vision of modernism, in portraiture we find a social art for a social generation.

Like a form of social networking, portraiture is a display of connections—here between artist, subject, and viewer. In this understanding we may find a secret to the portrait artist’s success or failure—not necessarily in the quality of the paint handling, but in the vitality of the network. Portraiture has long been building connections to the real world in a network that only grows over time. Even back in the dark days, the traditional portrait painter’s standing could be based, in part, on the social ranking of the commissions: Presidential, royal, and ecclesiastical portraitists at top; the corporate, judicial, and celebrity painters in the middle; and finally the university-dean trade. Many of these painters have become the elders of the Portrait Society: Everett Raymond Kinstler, Daniel Greene, Burton Silverman, and William Draper, to name a few.

Today’s younger portraitists build their network on the creativity of their connections rather than on the heft of the commissions. Informed by Classical Realism, they often have a more fundamental approach to the canvas than do their predecessors trained in commercial illustration. By eschewing photographs and other modern conveniences, these younger artists often trade expediency and the gauzy conventions of commercial work for greater aesthetic vitality and a more fundamental connection among painter, subject, and viewer—connections that can be lost when a painter works from photographic studies.

The careful selection of subject has long been a secret of non-traditional portraiture’s success in the mainstream. Think of Chuck Close on the composer Philip Glass, or Lucian Freud on the performance artist Leigh Bowery. More recently, Kehinde Wiley has built a cottage industry out of painting hip-hop celebrities in the mode of Jacques-Louis David. Elizabeth Peyton has turned cocktail-napkin doodles of rock-star friends into prized creations. One might even consider Warhol and his Factory subjects as a sort of portrait circle. Now it falls to the classically trained portrait painters to extend their craft to a population that calls out for a more genuine connectivity free of celebrity culture.

One realist who has taken up this call is Patricia Watwood. Fresh from the conference, Watwood has mounted an exhibition of her portraits in a small gallery called Open Source in Gowanus, Brooklyn.[1] An artist who both works and lives in the area around the gallery, Watwood finds her subjects in her own neighborhood: a student, a filmmaker, two members of her local congregation. She writes in her artist’s statement: “The connection of the spirit between painter and subject, and between the subject and the viewer, shows the resonance of all human interaction.” Unlike many of her classically trained contemporaries, Watwood had developed an idiosyncratic palette that often casts her images in greens and blues rather than the “brown sauce” of traditional painting. The effect leaves her work with an alien glow, strange and other worldly. Her best portraits, like her figurative nudes, are those that capitalize on this strangeness. Dorothy (2010), the “church lady,” is a fine example: an unnaturally centered head-shot frames the subject in a totemic gaze. The longer portrait of Fate (2010), a “gospel and jazz singer,” has an equally compelling face, but I found the rendering of the shirt distracting. When set against Watwood’s particular affinity for physiognomy and skin, such materials lack urgency. A smaller self-portrait, Myself (2010), in which Watwood gazes out of the canvas with an inquisitive expression, is the show’s most compelling painting as the artist-subject brings the theme of the series full circle.

Another realist from the conference, Michael Klein, also has an exhibition of recent work on display. Like Watwood, Klein is a product of Jacob Collins’s ateliers, and his work hews closely to the Water Street style—so-called after the street address of Collins’s first school in Dumbo, Brooklyn. Klein has just returned from living with his wife in her native Argentina. His extensive selection of paintings at Arcadia Gallery in May placed her and her family in genre scenes of rural life.[2] The Wash Girl was last on display at the portrait society conference, where it was a finalist in a competition that also featured excellent work by Kate Sammons, Scott Burdick, as well as Lipking—an artist whose paintings go up at Arcadia in June. The curve of the wash girl’s pose, which finds her holding a pail by a stream, is nearly flawless. Her heavy eyes combine with a small half-smile that speaks of heavy labor and, perhaps, relief at our arrival. The background landscape, alas, is less convincing. The rendering of the water is clichéd. In the hanging at Arcadia, which put the painting in unfair light, the flesh tones lacked the suppleness of Collins’s work. Klein adopts Collins’s approach to paint handling, but here the technique has left too many regions of the large canvases incomplete. The open background of Late Night seemed unfinished. Where Klein excels is in his fine rendering of fabric and other objects. The galvanized metal of the wash girl’s bucket is exquisite, as is the satin sash and pillow of La Juventud and the black tulle of The Bride. Klein’s locates his connections in the exotica of a foreign world filtered through his contemporary family.

A final word about a must-see show. The painter Paul Resika has now found a home, after the collapse of Salander-O’Reilly Galleries, at the new Chelsea beachhead of Lori Bookstein Fine Art.[3] His first show at the gallery takes up the three bugaboos of modern subject matter—sunsets, sail boats, and lighthouses—and makes every brush stroke count. This latest work could be the basis of a tutorial on how to put paint on canvas. The geometry of the taut series marks out space in a constructivist shorthand of ships at sea. For such familiar subject matter, the work is a rare delight. Abstract and representational tension is at play while the color-rich brush work fills each shape with energy. Resika is a modern master delighting in his supreme command of color, line, and form—and it is a delight to behold.


Notes
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  1. “Patricia Watwood: Portraits 2010” opened at Open Source, Brooklyn, on May 7 and remains on view through June 2, 2010. Go back to the text.
  2. “Michael Klein: Recent Paintings” was on view at Arcadia Gallery, New York, from May 13 through May 28, 2010. Go back to the text.
  3. “Paul Resika: Recent Paintings” opened at Lori Bookstein Fine Art, New York, on May 5 and remains on view through June 5, 2010. Go back to the text.