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:
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.
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.
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by Steve
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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
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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.
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.
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by Monica
A recent article in American Theatre describes an effort by mid-sized arts institutions in Atlanta to collectively address common fundraising challenges:
by Monica
Rebecca Thomas recently published a blog post outlining "Six Steps for Sustainability Planning."
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.
by Monica
An article in the Philanthropy News Digest discusses the results of two recent reports from The Kresge Foundation and Point Forward:
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by Monica
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.