From the GIA 2010 Conference blog, Arlene Goldbard reports on the discussion of Capitalization, a focus topic of the conference:
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.
by Steve
Nonprofit Finance Fund has published a new series on the need for and uses of capital in the arts. The materials convey stories and lessons learned from NFF’s $15 million Leading for the Future Initiative, the first national Initiative to deploy a specific kind of investment – change capital – to help arts organizations adapt their programming, operations and finances to thrive in a changed and changing economic and cultural landscape.
by Steve
The inception of the National Capitalization Project was the release of the Capitalization Literature Review and the National Capitalization summary in 2010.
by Steve
Progress Report on GIA’s National Capitalization Project (.pdf, 316 Kb) (2014).
by Steve
Critical Steps Toward Capital Health in the Cultural Sector (.pdf, 61 Kb) (2014).
A Capitalization tip-sheet authored by Rebecca Thomas, Nonprofit Finance Fund, and Holly Sidford, Helicon Collaborative.
February 2015, 31 pages. TDC, 31 Milk Street, Suite 310, Boston, Massachusetts, 02109. (617) 728-9151, www.tdcorp.org.
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Read More...December 2014, 14 pages. Nonprofit Finance Fund, 70 West 36th Street, 11th Floor, New York, NY 10018. (212) 868-6710. http://nonprofitfinancefund.org/
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Critical Steps Toward Capital Health in the Cultural Sector (61 Kb)
The full version of this report is available here