Walton Arts Center – History and Process for Council Nominations

During Walton Arts Center’s 30-year history, the organization has grown into Arkansas’ largest non-profit performing arts center serving more than 375,000 patrons and students annually. Governance of Walton Arts Center is overseen by the Walton Arts Center Council or Board whose directors are community leaders united by a love of performing arts, are passionate advocates of Walton Arts Center’s mission and ensure the organization is being properly governed and managed in a fiscally responsible manner.

Why do the city, the University of Arkansas and Walton Family Foundation nominate council members?

The University of Arkansas, the City of Fayetteville and the Walton Family Foundation were instrumental in providing initial support to start Walton Arts Center in 1986. A lead gift from Helen Walton to the University of Arkansas and financial support from the City of Fayetteville led to the formation of an independent 501c3 nonprofit. Ultimately $13 million was raised to build Walton Arts Center theater which opened in 1992.

In their founding roles, the city and university nominated members to serve on Walton Arts Center's Council or Board. In 2014, Walton Arts Center's governance documents were updated and formally approved by Fayetteville City Council, the University of Arkansas and Walton Family Foundation.

Why were the governance documents updated and what were the major changes?

The governance documents were updated to better reflect the growth of Walton Arts Center as a regional nonprofit entity that serves the entire Northwest Arkansas community. Importantly, the Walton Family Foundation was added as a third nominating entity and the revised documents clarified Walton Arts Center’s status as an independent 501c3 rather than a government agency.   

How do the Walton Arts Center Council nominations work?

The nominating process for Walton Arts Center Council members is a two-step process. In general, Walton Arts Center helps identify possible nominees based on the job description and qualifications for council members and provides recommendations to each of the three nominating entities. Once officially nominated by one of the nominating entities, all nominees meet with the review committee before being presented to the council for potential ratification.

What is the process for Walton Arts Center’s ratification for nominees?

Nominations from the city, University of Arkansas and Walton Family Foundation must be ratified by Walton Arts Center’s Council to assure that incoming members meet the fiduciary and governance requirements of Walton Arts Center and demonstrate support for the organization’s mission. 

The backgrounds and expertise of nominees are reviewed by staff and members of the Executive Committee or Nominating Committee prior to being brought to the full council for a vote.

While Walton Arts Center Council members may bring a perspective informed by the entity that nominated them, it is important to note that council members are obligated to serve the interests of Walton Arts Center based on their fiduciary duties as a board member. This is a crucial requirement essential for any functioning board, including those of a nonprofit. 

Members of the Walton Arts Center Council must be passionate advocates for the purpose and the mission of the organization and act responsibly and prudently as its steward.

How are nominations to Walton Arts Center different than most other city appointments?

Nearly all city appointments are to committees or entities that are part of the city’s operation or a related city entity.  Most are funded in part or exclusively by the city. Walton Arts Center is an independent 501c3, not a city entity, and does not receive annual dedicated funding from the city.

What is the relationship between Walton Arts Center, the city and university? 

The City of Fayetteville and University of Arkansas each have a 50% ownership stake in the property on Dickson Street where Walton Arts Center is located, and that property is leased to the arts center. All the leasehold improvements made by Walton Arts Center are owned by Walton Arts Center Inc. (the operating entity) and are amortized over the course of the lease.  

There is a 25-year lease in place between the city, the University of Arkansas and Walton Arts Center Inc. that can be renewed in 2039 for another 25 years.  The lease stipulates that Walton Arts Center must maintain, operate and care for the building over the term of the lease. Walton Arts Center must maintain a level of programming and make an investment of $20 million during the term of the lease. Walton Arts Center completed a $24 million renovation in 2016. The lease, with all of its terms and conditions, is the primary vehicle in which the city and the U of A’s property is protected.  Walton Arts Center is in compliance with the terms of the lease.   

The nonprofit’s operating entity, Walton Arts Center Inc., is not owned by any of the nominating organizations.  

What information is shared with the public and nomination organizations and what is not?

Walton Arts Center follows reporting guidelines similar to other nonprofits, including regularly filing 990’s and tax returns per IRS guidelines. Since 2022-23, the organization publicly issues an annual community impact report that is also shared with the city council, city staff and nominating organizations, and it conducts an annual audit that is available upon request.

Deliberations and information regarding council meetings, personnel, operations, artists, ticket sales, subscribers, donors and sponsors are held in strict compliance with industry standards. Walton Arts Center welcomes questions from the nominating organizations, the public and the press at any time and will respond as we are able.