A recent report from Propel Nonprofits examines the financial health culturally specific organizations in Minnesota. The organization uses the term culturally specific to refer to “nonprofits led by people of color and rooted in historically marginalized communities.” From President & CEO Kate Barr:
Grantmakers in the Arts defines capitalization as “the accumulation of the resources an organization needs to fulfill its mission over time,” specifically with regard to financial health. In response to the observation that it has been the norm for the nonprofit arts sector to be poorly capitalized, an issue which disproportionately affects ALAANA organizations, GIA embarked on the National Capitalization Project (NCP) in 2010. Since its launch, GIA has provided resources, conferences sessions, publications, and workshops on nonprofit capitalization. GIA’s Conversations on Capitalization and Community are specialized workshops, held separately for funders and nonprofit grantees, focusing on what each group can do to support the financial health of nonprofit arts and culture organizations. These workshops are available upon request.
Arts Funding at Twenty-Five (318Kb)
The easy convenience of typing a few key words into a search box and promptly being immersed in data can make one forget that this capability has existed for a remarkably short period of time. Just twenty-five years ago — a point in time well within the recollection of most members of the arts and culture sector — Stanley N. Katz, then president of the American Council of Learned Societies, observed, “the serious study of arts philanthropy is less than a generation old, and we are just beginning the sorts of data collection and analysis…we need to make sound judgments about the field.”1Read More...
From Philanthropy News Digest:
Nearly 80 percent of impact investors believe they have a responsibility to ensure that their investments create lasting impact, a report from the Global Impact Investing Network finds.
Based on interviews with impact investors and entrepreneurs, the report, Lasting Impact: The Need for Responsible Exits (44 pages, PDF), outlines the strategies investors employ throughout the investment lifecycle to ensure long-term success and sustainability of the projects they invest in.
The National Center for Arts Research (NCAR) at Southern Methodist University has released a report detailing financial health of arts organizations in the US. The report examines organizational bottom lines using data collected from over 4,800 organizations between 2013 and 2016. Overall, the report shows that it has become increasingly difficult for arts and cultural organizations to break even, a trend that is particularly alarming given the current period of economic growth in the US.Read More...
A recent article in American Theatre describes an effort by mid-sized arts institutions in Atlanta to collectively address common fundraising challenges:
Rebecca Thomas recently published a blog post outlining "Six Steps for Sustainability Planning."
An article in the Stanford Social Innovation Review discusses how grantmaking policies affect the financial stability of nonprofits, as researched by Michael Etzel, a partner at Bridgespan, a nonprofit consultancy, and Hilary Pennington, a vice president at the Ford Foundation. The duo developed a grantmaking pyramid which "reframes how funders and grantees think about building organizations," emphasizing the need for "foundational" support at the base of the pyramid. This strategy is now being utilized by the Ford Foundation to examine their grantmaking portfolio.
An article in the Philanthropy News Digest discusses the results of two recent reports from The Kresge Foundation and Point Forward:Read More...
The Nonprofit Quarterly has published an in-depth article on nonprofit financial capital, covering various types of capital, how nonprofits obtain capital, and various methods for monitoring and financial reporting.
Two years ago, I had breakfast with a colleague — very nice guy who has helped build the social, or “impact,” investing sector. I shared my ideas about how to connect impact investing with the arts.
To him, investing in the arts meant buying a Picasso or a Van Gogh, collecting art objects. He agreed there was a market for fine art. But impact investing in the arts? He was dead against it.Read More...