The arts are in trouble. Many of the institutions that make the Bay Area's cultural scene so compelling are facing financial difficulties. Some are severely cutting programs; others are on the verge of closing. The arts are particularly vulnerable because they rely upon ticket sales and memberships, which are often among the first to be cut from consumer spending during an economic crisis. At the same time, the philanthropic revenues that arts organizations rely on - from government sources, foundations, corporations and individual contributions - all stand at risk today, given shrinking endowments and discretionary income.

Thankfully, arts leaders are applying their creative powers to these economic challenges, thus finding new ways to cut costs or raise revenues. For example, the Magic Theatre recently announced that it will be able to complete its season, thanks to an emergency fundraising campaign that brought in $455,000 from 1,100 donors. And the San Francisco Opera, in announcing its 2009-2010 season, was able to reduce its costs without compromising on artistic quality.

These organizations and their leaders deserve credit for doing whatever it takes to stay afloat. But all the creative ideas to keep the doors open won't be enough if we don't fundamentally change our collective understanding of why the arts matter. When times get tough and choices must be made, it is often the arts that lose. Why is this so? When compared to health or human service needs, the arts are often viewed as less important and therefore more discretionary in nature. But this line of thinking misses the point about why the arts are so important. Until we fully recognize how essential the arts are to the vitality of our communities and our quality of life, our cultural infrastructure will continue to be given short shrift. There are countless reasons why we should renew our commitment to the arts. Consider the following:

-- In the Bay Area, the arts create more than 31,000 jobs and generate $1.2 billion in economic activity every year.

-- The arts produce $105 million in local and state tax revenue for the Bay Area (far more than the government spends on the arts).

-- Surveys report that 93 percent of parents believe that the arts are essential to a well-rounded education.

-- Ten million new jobs in the next decade will be in the "creative class," according to economist Richard Florida. These are jobs that involve imagination and ingenuity which are best developed by experiencing the arts.

But the importance of the arts extends well beyond economics and education. The arts expand our horizons, unleash creativity and build social bonds. During this period of unsettling change, the arts can provide us with pleasure and comfort, while also challenging us to see the world in new ways. Two recent examples come to mind of the arts' power to build community and create a sense of common experience. First was the inauguration ceremony of President Obama. Where did we turn to put this historic moment in perspective, to build a common sense of pride and hope for the nation's future? We turned to the arts, of course, in the form of poetry, classical music and song, including performances by San Francisco's own Boys Chorus and Girls Chorus. Locally, the power and appeal of the arts was in evidence on a recent Sunday when dozens of museums and other cultural institutions opened their doors for free. Thousands of kids explored Asian culture at the Asian Art Museum, walked through a rainforest at the California Academy of Sciences, and explored world class art collections at the de Young Museum and SFMOMA. On this one day, people could experience the rich diversity of San Francisco's arts organizations, regardless of economic circumstance. But, for the rest of the year, maintaining our rich cultural landscape is anything but free. So, as your resources permit, attend a performance, buy a membership, and consider a contribution of any size. But also talk to your friends and neighbors about the transformative power of the arts and encourage them to support and advocate for the arts. The arts institutions that have created our cultural riches have done so much to help the Bay Area thrive. It's time for us to return the favor.

James E. Canales is president and chief executive officer of the James Irvine Foundation, a private foundation dedicated to expanding opportunity for the people of California. The Irvine Foundation is one of the largest private funders of the arts in California, with annual arts grant-making of approximately $20 million.

This article appeared on page A - 13 of the San Francisco Chronicle