Capitalization
Grantmakers in the Arts defines capitalization as “the accumulation of the resources an organization needs to fulfill its mission over time,” specifically regarding financial health. Capital is money saved in order to respond to challenges and opportunities. Capital is different from revenue (which is immediately spent), and from assets like endowments or facilities (which are not available as liquid cash that can pay expenses). It has been the norm for the nonprofit arts sector to be poorly capitalized, an issue which disproportionately affects organizations of color. In response, 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 Capitalization and Nonprofit Financial Health Workshops 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. GIA has also updated the workshop to reflect the financial impacts of the pandemic and to reflect a racial equity lens. These workshops are available either in-person or online by contacting workshops@giarts.org.
2009, 29 pages, Working Knowledge, Harvard Business School, hbswk.hbs.edu.
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It Is Okay for Artists to Make Money…No, Really, It's Okay (178Kb)
As the Twentieth Century approaches a finale, the arts in America exist in a vast array of styles, disciplines and organizational structures. The purpose here is to examine one major organizational component of the American arts scene, the nonprofit sector, as an organic system that has progressed through three distinct stages over the past century.
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