Detroit Talks to Safeguard Art Put Stress on Foundations

As leaders of the Detroit Institute of Arts meet with federal bankruptcy officials to work out a plan to protect its artworks from sale, foundations are under pressure to upend their long-term investment strategies, and some local cultural groups worry they will suffer the consequences, says The Detroit News.

Under the plan, mediated by chief U.S. District Judge Gerald Rosen, foundations would spend as much as $500-million to help Detroit Emergency Manager Kevyn Orr dig the city out of bankruptcy without selling the museum’s art.

That puts pressure on foundations, which plan their spending years in advance, says William Schambra, a senior scholar at the Hudson Institute and a Chronicle columnist.

Other cultural leaders in the city who want to see the museum survive also worry that the solution will mean less money for their programs.

“If the DIA can come up with this grand bargain, I’ll be the first to toast it,” said Vincent Paul, president of the Music Hall Center for the Performing Arts. “I just don’t want to take a hit from it. There’s just a finite amount of money out there.”

See The Chronicle’s coverage of foundations’ efforts to bail out Detroit.