This presentation has a four-fold purpose: (1) to highlight the importance of the arts in New York City; (2) to mention the major problem areas facing cultural institutions today; (3) to examine the contribution to New York City cultural institutions made by Federal, State, and local agencies; and (4) to suggest a strategy that has been developed for the expenditure of the New York Community Trust's all-purpose funds. The importance of New York City as the nation's cultural capital is underscored by mention of the wide variety of cultural experiences available in the city, by indicating the numbers of people who attended events or visited cultural institutions in 1976, and by estimating the amount of income generated by cultural activities. New York City's cultural institutions find the majority of their support in earned income with additional support from governmental and private agencies. Cultural institutions are currently facing a financial crisis resulting in operation at a deficit. These institutions do receive financial support from the National Endowment for the Arts, the New York State Council on the Arts, and the New York City government. These funds are for the most part advised and designated, with only 12% considered all-purpose. Recommendations for use of New York Community Trust funds for improving the administrative, financial, and artistic conditions of New York's cultural institutions are made. (MK)