"Too many organizations chasing too few resources." That is how some grantmakers have described the state of the cultural nonprofit sector today. "We have spent more than a half century creating organizations and building an infrastructure that is now overbuilt. We simply cannot support everything that is out there." (Read more...)

Many of our clients and friends are understandably worried about the likely effects of the economic downturn. They report much conflicting advice and confusion and disagreement among stakeholders. What will be the impact on foundation grants? Private giving? Earned revenues? What is the responsible way forward for management and board leadership? (Read more...)

In conversations with arts executives, I often hear two, seemingly contradictory, beliefs about the likely effects of the aging U.S. population on future arts attendance: Belief #1 is that audiences are getting older and unless something is done about it, arts organizations will be in serious trouble. Belief #2 is that arts audiences have always been old, as these types of programs are more likely to attract individuals with more leisure time and disposable income. (Read more...)

Endowments have been called the “Holy Grail" of nonprofit finance. Nonprofits aspire to develop endowments as relief from the burden and uncertainty of annual fund raising. Many foundations have fashioned “stability" and “sustainability" strategies around endowment building, usually in the form of a challenge investment that triggers a capital campaign. Endowments are excellent targets for planned giving programs, which can be within the reach of organizations of all sizes. (Read more...)

Evaluation can be one of the most widely misunderstood aspects of designing and conducting programs, especially in the area of arts education. Many approach it simply as a means of securing a (hopefully good) grade for their activities. Difficulties, mistakes, and uneven data get smoothed over. But meaningful evaluation should engage all stakeholders in the hard – but essential – work of improvement. (Read more...)

Community foundations have long been a critical component of the support network for arts and culture. Even as a child, I was hearing about the work of our local community foundation from my father who started a new community-based visual arts education organization with major help from the Philadelphia Foundation. Many years later, my experiences as an arts administrator and a consultant involved projects and organizations underwritten by community foundations. (Read more...)

There are few tasks as stimulating to a group of civic-minded individuals as the prospect of overseeing the creation—or renovation—of an arts facility. It is exciting to conceive of “world-class architecture�? or “a major new icon for our community.�? There is a temptation though, to put the proverbial cart before the horse. The way a building will look architecturally is certainly important, but other decisions (and much research) must come first. Earlier steps involve some or all of the following... (Read more...)

How can we gain a better framework for thinking about arts activities? One way is to look at them through the lens of the consumer—from a demand standpoint, that is, rather than from a supply standpoint. Recent research commissioned by the Connecticut Commission on Culture and Tourism sent 20 teams of arts administrators and board members to conduct individual in-depth interviews with a cross section of audiences using a common set of questions. (Read more...)

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Some nonprofit organizations have been created by funders. Others are heavily subsidized by a single funding source. In both cases, those providing the money are the lifeblood that keeps a valued effort going. This Working Paper addresses the challenges that arise for funders and nonprofits alike when the decision is made to significantly reduce or terminate support. (Read more...)

Much ink has been devoted to the rise of the so-called “creative class�? and its potential impact on the revitalization of cities. As part of this trend, governors, mayors, and business leaders are paying increased attention to arts and culture. New building programs, expanded cultural tourism, increased cultural participation, improved arts education, and innovative economic development initiatives have all grown out of planning that has arts and culture at its core. (Read more...)

Every few years since my textbook on managing nonprofit organizations appeared in 1984, I am asked by the publisher to update it. The title has changed twice*, specific chapters have come and gone, and others have undergone major revision. But, surprisingly, the chapter on boards of trustees has not changed substantially. Despite transformations in society, in the funding environment, and in patterns of nonprofit administration, many of the fundamental ideas about boards seem to hold. (Read more...)

“Founder’s Syndrome�? is a ubiquitous and sometimes intractable challenge throughout the nonprofit field. At Wolf, Keens & Company, we have worked with many organizations that continue to be run by founders. These charismatic individuals can offer a dynamic vision, enormous knowledge, a wealth of contacts, tremendous energy, and a palpable passion for the causes to which they have devoted their lives. Yet the boards and staffs of these organizations, and even the founders themselves, often express frustration with the subsequent directions that are taken and how things are working – or not. In these cases, everyone has a sense that some sort of transformation is needed, but achieving such transformation seems nearly impossible. (Read more...)

Over the course of the last twenty years, the trend toward outcome-based evaluation in philanthropy has grown from a trickle into a tsunami. Woe to the organization or program officer who hasn’t seen it coming. This movement – complete with adherents, acolytes, and its own special language – has made believers of many and sharp critics of others. In any case, it is now a fact of philanthropic life. (Read more...)

Ask a trustee of a nonprofit corporation to explain the organization’s financial statements and you may be surprised. Many would have great difficulty. And you can hardly blame them. Since new standards affecting financial reporting for nonprofits were introduced by the Financial Accounting Standards Board (FASB) in 1993 (implemented beginning in 1995), trustees have struggled with confusing and counterintuitive balance sheets and income statements. (Read more...)

During the weeks following September 11th, 2001, there were many reports of organizations in crisis. The crises in many cases were only tangentially related to the September 11th events, if at all. Some were an outgrowth of poor management, others of inattentive board leadership. Sometimes, a qualified leadership team was caught totally by surprise. Other times, the crisis was inevitable. (Read more...)

The last few years have seen many articles and studies on the subject of venture philanthropy — both from proponents and critics. The theory behind "VP" is that strategic long-term investments in a nonprofit, along with hands-on management assistance, will build its sustainable capacity to serve more people more effectively. (Read more...)

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