Fair Notice Policy | BC Arts Council

Fair Notice Policy for Operating Assistance
Revised September 2022

OPERATING ASSISTANCE
The BC Arts Council’s Operating Assistance program provides funding for the general operations of arts and culture organizations. Funding through the Operating Assistance program supports stability and resiliency in recipient organizations. Intake for the Operating Assistance program is typically based on a two-year cycle. Once approved to receive the funding, most organizations will continue to be approved for Operating Assistance, which allows them to build capacity, engage in long-term planning, and focus on work that contributes to the artistic and cultural fabric of the province.

PURPOSE
The Fair Notice Policy is intended to support transparency and accountability for organizations that receive Operating Assistance funding, to make sure they continue to meet the eligibility requirements and priorities of the BC Arts Council, and to make sure that the BC Arts Council funds organizations that are stable. The policy also provides clarity around the criteria and mechanisms by which an organization may be removed from the Operating Assistance program.

POLICY
Organizations that receive Operating Assistance funding are expected to continue to meet the priorities of the BC Arts Council as set out by the funding program and to demonstrate ongoing administrative and financial stability.

Organizations that do not meet expectations will receive fair notice of the area(s) of concern and are given a Concerned Status designation. Organizations placed on Concerned Status may have their funding amounts reduced by up to 20% and ultimately may be removed from the Operating Assistance program if they do not address the stated concerns and make improvements.

Concerned Status is assigned based on one or more of the following criteria:

Failure to address the BC Arts Council’s priorities for reconciliation, equity, diversity, inclusion and access;
Management, governance, or administrative practices and structures which do not align with the organization’s purposes or to generally accepted practices in the field;
Evidence of financial instability;
Substantially reduced community impact and engagement as evidenced by significant decreases in programming access, outreach, audience, visitation, sales, or membership base;
Significant decline or shift in programming activity, including artistic, curatorial or editorial direction, or failure to achieve the activity plan submitted;
Failure to demonstrate adequate planning, including strategies to address change, adapt to new circumstances, or mitigate risk; or
Failure to meet eligibility requirements outlined in program guidelines.

Organizations placed on Concerned Status must submit an annual update and are subject to funding reductions or removal from the Operating Assistance program in alignment with the following timeline:

Year 1

Concerned Status is assigned.
Level of funding may be reduced up to 20%.

Year 2

Option 1: Concerned Status designation is removed if all concerns have been addressed.
Option 2: Concerned Status designation is continued if organization is not showing sufficient improvement.
- Level of funding may be reduced (additional 20% of
  original grant amount).
Option 3: Organization is removed from Operating Assistance if there is no improvement.

Year 3

Option 1: Concerned Status designation is removed if all concerns have been addressed.
Option 2: Organization is removed from Operating Assistance if there is not sufficient improvement.

Organizations that are removed from Operating Assistance may re-apply in future years. In order to re-apply for Operating Assistance, organizations must meet the eligibility guidelines for new applicants.

PROCEDURES
During the assessment process, the Peer Assessment Panel may recommend that an Operating Assistance applicant receive Concerned Status designation based on the BC Arts Council Fair Notice Policy criteria. Any organizations placed on Concerned Status due to criteria #1 above will be reviewed by an Equity Advisory panel. The procedures below outline what happens at each stage of Concerned Status under the Fair Notice Policy.

Year One
The Senior Director, BC Arts Council Programs will send a written notice to staff leadership and Board leadership that their organization has been placed on Concerned Status at the time funding results are communicated. The notice will include:

Clear documentation of the rationale for the Concerned Status designation, in alignment with the criteria above;
Recommended areas of improvement;
Funding measures that will be applied as a result of the Concerned Status designation;
Administrative or application processes related to the Fair Notice Policy; and
What will happen if the organization does not make the required changes to address their Concerned Status.

Organizations will continue to be awarded annual funding in Year One of Concerned Status, however that amount may be reduced by up to 20 percent.

Organizations in Year One of Concerned Status will be required to submit an application for Operating Assistance for Year Two, at which time their situation will be re-evaluated by a Peer Assessment Panel.

Year Two
When submitting their application for Operating Assistance in the year after receiving the Concerned Status designation, organizations must specify what changes they have made and how they are addressing the circumstances that resulted in the Concerned Status. The Peer Assessment Panel must consider the Concerned Status criteria and how the organization has addressed the identified concerns when assessing the application.

The assessment panel is expected to recommend one of the following options based on how the organization has addressed concerns:

OPTION 1

Assessment Results

Organization has fully addressed Concerned
Status issues;
No new issues of concern.

Recommended Outcomes

Panel recommends removing Concerned Status.
Organization continues receiving Operating Assistance.
Panel recommends funding level.

OPTION 2

Assessment Results

Organization has started to address Concerned Status issues;
Some improvements are made or in progress on an acceptable timeline but not complete;
OR
There are new issues of concern.

Recommended Outcomes

Panel recommends:
1) Extending Concerned Status
2) Potential reduction to Operating Assistance (20% of original grant amount)
AND organization is required to submit
a new Operating Application for Year Three.

OPTION 3

Assessment Results

Organization has not addressed Concerned
Status issues;
Improvements have not been made or are not in progress; OR
There are new major issues of concern.

Recommended Outcomes

Panel recommends removing organization from Operating Assistance.

Year Three
By year three of the Concerned Status designation, it is expected that the designation will either be removed, or the organization will be removed from the Operating Assistance program.

When submitting a new application for Operating Assistance in Year Three, organizations must specify what changes they have made and how they are addressing the circumstances that resulted in the Concerned Status. The Peer Assessment Panel must consider the Concerned Status criteria and how the organization has addressed the identified concerns when assessing the application.

The assessment panel is expected to recommend one of the following options based on how the organization has addressed concerns:

OPTION 1

Assessment Results

Organization has fully addressed Concerned Status issues;
No new issues of concern.

Outcomes

Panel recommends removing Concerned Status.
Organization continues to receive Operating Assistance.
Panel recommends funding level.

OPTION 2

Assessment Results

Organization has not fully addressed Concerned Status issues;
Improvements have not been made or are not in progress; OR
There are new issues of concern.

Outcomes

Panel recommends removing organization from Operating Assistance

Removal from Operating Assistance
Organizations that have been removed from the Operating Assistance program because they failed to resolve their Concerned Status must meet all the eligibility criteria for new applicants in order to reapply, including receiving minimum project assistant grant requirements.

Organizations can apply for Project Assistance in the same year that they are removed from the Operating Assistance program.

COVID-19 PANDEMIC RESPONSE – Concerned Status Reset
In response to the COVID-19 pandemic, all Operating Assistance clients will be removed from Concerned Status before the 2022/23 assessment of the Operating Assistance program. Any clients that were on Concerned Status before the pandemic will not have to follow the procedures above if they apply for Operating Assistance in 2022.