Capitalization

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.

May 17, 2018 by Carmen Graciela Díaz
The National Center for Arts Research at Southern Methodist University (NCAR) has found the majority of arts and cultural organizations have "precariously low levels of working capital," or resources available to cover day-to-day operating needs. Read More...
March 28, 2018 by Carmen Graciela Díaz
Suddenly, a cash grant changes everything. Through illustrative examples of artists who have received considerable cash grants and the experiences of foundations that give them, a recent New York Times article tackles how getting a substantial cash grant can alter most artists' lives and the questions that come after awards of this kind. Read More...
February 9, 2018 by Steve
Download:    Arts Funding at Twenty-Five (318Kb) Introduction 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.”1 Read More...
January 17, 2018 by Monica
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. Read More...
January 10, 2018 by Monica
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...
November 21, 2017 by Monica

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:

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October 24, 2017 by Monica

A recent article in American Theatre describes an effort by mid-sized arts institutions in Atlanta to collectively address common fundraising challenges:

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September 19, 2017 by Monica

Rebecca Thomas recently published a blog post outlining "Six Steps for Sustainability Planning."

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July 6, 2017 by Monica

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.

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July 7, 2017 by Monica
An article in the Philanthropy News Digest discusses the results of two recent reports from The Kresge Foundation and Point Forward: Read More...