A demonstration project, called the New York City Cultural Voucher Program, was implemented through support from the Fund for the Improvement of Postsecondary Education of the Department of Health, Education and Welfare. The project was designed to expand the kinds of audiences that use cultural institutions and expand the range of services that these institutions are willing to offer to the public. The voucher demonstration involved 15 community organizations, which served as voucher holders; eight cultural institutions, each of which was provided with a community liaison staff member; advisory board and a three-person administrative staff. Cultural vouchers subsidize cultural institutions by giving audiences funds to purchase services. The funds are awarded in the form of vouchers, which institutions accept for services rendered and that can be redeemed for cash. A description is provided of the program, transactions, policy issues, and future policy issues. Appendices provide information on the voucher tracking system and transactions and costs. (SW)