The cooperative model for running a gallery is an effective way of enabling artists to present their work in a supportive and collegial environment. Email Article Print Article Bookmark RSS Related Content:   Artist Finances   Websites for Artists   Quit Job for Art   Create Your Blog

The effort may be a cooperative one among colleagues with a common purpose. It may be based on the spirit of volunteerism and without the expectation of huge profits. That being said, it is still very much a business venture, and so it may be helpful to review some business basics. 1

Organizing

Especially if your group is just starting out, defining a mission or purpose for the gallery helps to get everyone to share a sense of what they are there for. Is it to keep costs down? Does the group have an interest in growing? Is the purpose educational? Is it for the display of art, and if so, what types of art will be shown? Is it for fine art only or for crafts as well? Are there any restrictions on what should or should not be displayed?

A good way to start out is to meet as a group and talk the issues through until there is a consensus. As with any organization, there should be a written mission statement, a charter and by-laws. The charter should talk about the kind of organization to be formed and the by-laws should address things like the roles of the officers and what jobs each of them will agree to do. (These are discussed in more detail below).

The largest single obligation the cooperative is likely to take on is a purchase or a lease of retail space. Assuming that the group will be leasing space, the rental agreement is likely to run for a term of a year or more. This means that when someone enters the group, they do so offering to share a financial commitment, and when they leave the group, they leave this obligation resting on the shoulders of the remaining members. While the choice of who can be a member should be primarily about their art, the group also has to weigh whether or not the candidate can participate responsibly in the co-op.

Beyond this, the co-op has to decide whether or not it would be willing to incur debts for various purposes, on how much cash should be carried in a bank account, and on how profits or losses should be divided.

An important reason to incorporate is to insulate the members of the co-op from liability in the rare and unfortunate case where someone falls and is injured, or something else happens to hurt a patron, an art work, a neighbor or someone just passing by. The co-op can carry insurance to protect against the financial impact of an accident.

The group should also decide whether to organize as a for-profit or a not-for-profit entity, and here is where the advice of an attorney would be especially helpful. A co-op whose purpose is to show and sell the works of member artists does not qualify as a "not-for-profit" organization 2; only a co-op whose purpose is educational or which is organized as a museum can qualify for tax-exempt status.

Location, Location, Location

Since the gallery is a retail business, location is perhaps the most critical decision to make. It should be visible and accessible, and hopefully the sidewalk will have a high level of pedestrian traffic. Some considerations: Are there other galleries nearby? If so, how large is their floor space? How much are they charging for their work? How similar is it to the work your group will be displaying? What is their layout? Is there nearby parking?

Being located near other galleries can actually be a benefit. Competition among retailers gets more intense when they are selling substantially the same products. But comparing the original art in one gallery to that in another is not like shopping for some manufactured product. In fact, if all of the galleries in a district agree to a monthly unveiling of new art on say, the first Friday of the month or the last Thursday, it creates something of an event for potential buyers to get out and see.

Places where art galleries are located can be commercial, retail, warehouse or entertainment. The type of area in which your gallery will be located will determine the hours that it should be open.

In a commercial district - envision a Wall Street environment - there is some pedestrian traffic as people are coming into or leaving work, and there is a hectic scene at lunch. The evenings and weekends are relatively quiet.

A retail location will likely have heavier traffic on the weekends than during the week. Think of a shopping mall as a retail environment - hours are regulated and it is usually open late to accommodate people who have to work during more traditional business hours.

A warehouse district would be a special destination for art lovers. Here, an opening night and the few days that follow are likely to have heavy traffic, especially if it is a regular event that has been gone on for some time. The benefit of a warehouse district is that rents are relatively low and spaces large, but pedestrian traffic is limited.

An entertainment district is likely to be populated with movie houses and theatres, restaurants and bars. While it may be quiet during the day, it seems to come alive at night. The gallery should be open when the pedestrian traffic is the heaviest. Many galleries with modestly priced art especially benefit from a tourist business.

Once you've found the right place, vacant and ready, it's time to make a commitment to a lease. Commercial leases, unlike residential leases, can have clauses that make the tenant responsible for refurbishing and maintenance, as well as for a share of increases in real estate taxes or assessments. A commercial lease can even require a percentage of the gallery's total sales to be part of the monthly payment.

Lease terms can be anything from very short (month-to-month) to very long (99 years). For most businesses, staying in one location for several years can be a benefit. Awareness of the business and what is available in it grows and its clientele become established. The mere fact of being in business for a long time lends credibility to the value of the products it sells.

The commercial lease is likely the largest financial commitment that the co-op will be undertaking, and so, here is another place to seek the help of an attorney. Also, most localities have rules concerning the type and placement of signage on the outside of the building.

For the interior space, it is helpful to envision where artwork will be placed and where any display cases would go. The placement of a desk or counter is especially important, since not only will it serve as the place where any purchases occur, it is the place where whomever is "minding the store" will be spending the most of their time, and it would be best for them to have a view of as much of the gallery as is possible.

Other considerations include the adequacy of the space for viewing the size and kind of works that will be displayed, the flow of the gallery and its capacity for holding as many people as everyone hopes will come to an opening.

Equipment and Supplies

As compared with most retail businesses, the equipment needs of a gallery are relatively small. The short list includes a telephone, a credit card processor, a sound system, adequate lighting, a security system, a desk and chairs, a cash register, a computer and internet connection (especially if your coop maintains a web site), and, as many display cases, shelving or tables as may be needed to show works suitable to them. Of course, it's always good to have some spackle and a can of touch-up paint for the walls.

Management Roles

Something to be decided on when the co-op is being organized is how space will be divided among the participating artists. Locations can be fixed spaces, or artists can rotate among the locations; or, the entire collection of submitted work can be considered a single show and arranged by a hanging committee. There are almost as many ways to allocate space as there are galleries. What is important here is that the method for allocating space is clear and agreeable to everyone who participates.

Most galleries will also have a featured artist, or a place where one or more of the artists can have a "solo" show. It's a good reason to generate publicity and interest, and it gives the members a chance to display a larger collection than they normally do. A position as a featured artist is something that can happen as a matter of taking turns or paying an extra fee. As with the allocation of space, the rules for doing this should be clear and in writing, and a person or committee should be in charge of creating this schedule.

Some co-ops leave the task of hanging to the individual artists; others will have a hanging committee or volunteers. If there are more artists than here is space, some system for deciding whose work will be displayed will have to be put in place. A jury can make this decision, but to be impartial, it should be composed of experts who have no other connection to the gallery.

Closely connected to hanging is the maintenance of the property. Routine tasks like cleaning and simple repairs can be handled by whoever is working at the gallery. Painting should be done periodically, and should be done by professionals if the co-op can afford it.

Publicity and marketing are critical to the success of a gallery. An opening for a featured artist is a newsworthy event, and most newspapers would be willing to accept a press release on the subject. It helps the newspaper to have a photo of what will be on display because an article with a picture is a more interesting story than an article with words only. Regional magazines may also have an interest in upcoming exhibitions, but will likely need several months' advance notice.

To generate interest, some co-ops sponsor competitions or children's events, or do community outreach by offering art classes or some other creative activity. In addition to generating publicity, competitions can be a source of new members, and children's shows bring new patrons into the gallery.

A website is a very useful source of information for people who have any curiosity about the co-op - including prospective clients as well as potential new members. It can be especially useful if your co-op is located in a tourist destination or college town where visitors may be searching for something interesting to do. Linking to a tourist bureau or town site can help to increase web traffic. If there are no members who are able to build and maintain a site, these services can be hired.

Most co-ops also maintain a mailing list, and new shows are announced with a postcard or more elaborate mailing. Clients who have purchased paintings once are likely to purchase again, and so it is helpful to keep them informed about new shows. People who visited the gallery and signed a book are showing interest in what is being presented, and so mailing an invitation to them to see a new show can perk their interest.

Every co-op will eventually have members leave and new members will join. In order to facilitate this process, one or more members should assume the responsibility of training new members in how to work at the gallery. At times, new members even have to be recruited, and so it's important to get out and observe new work by artists who are not being represented locally.

The task of training goes beyond knowing how to work the cash register or process a credit card transaction. Members can also benefit from sales training. Original art, depending on its price, can be a minor luxury or a major commitment. There are approaches and techniques that can enable members to help buyers better understand the value of what they are looking at, and to feel more comfortable with the idea of acquiring it.

Someone will also have to prepare the "books." Sometimes, this is a talent that none of the members of the co-op may possess, but it can be hired out. Tasks include paying bills, reconciling bank statements, preparing sales and income tax filings, as well as charging and keeping records of dues payments, key deposits, hanging fees, application fees, commissions or other charges, as well as payments to artists for works sold.

Finally, if the gallery is going to be staffed by the members, someone has to take the responsibility for scheduling the times when each person will show up, for getting extra help during the openings and for organizing the periodic meetings of members.

Conclusion

The cooperative model for running a gallery is an effective way of enabling artists to present their work in a supportive and collegial environment. While getting started may be a significant amount of work, the job of maintaining an ongoing coop is reasonable if the members are helpful and cooperative and actively participate in the management of the business. A co-op can last for many years, and its success depends largely on having a core of members who are willing to put in the effort it takes to run a retail business. But the rewards are there as well - having a place to welcome the public can be as much of a creation as anything that is on display in it.

1. Based on a random survey of 100 artists' cooperatives in the United States .

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Robert Klonoski is an Assistant Professor of Business at Mary Baldwin College, VA.