Case for Change Capital in the Arts
NFF has published a new series on
the need for and uses of capital in the arts. The series of written and video
materials conveys 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.
With support from the Doris Duke
Charitable Foundation, ten artistically excellent performing arts
nonprofits are working with NFF over five years to develop and implement plans
for achieving this transformation. Nearly three years into this exciting
Initiative, we now have much to share with the field, both funders and
The Case for Change Capital in the Arts (view pdf) shares
the philosophy governing the Leading for the Future Initiative and
discusses the need for and application of change capital in the arts. It
also outlines core principles and practices that can improve
capitalization in the sector but that will require changes in behavior by
both nonprofits and funders alike. The piece tells how each of the participating
organizations is applying change capital to undertake meaningful artistic,
organizational and financial change.
Financial Reporting Done
Right (view pdf) introduces
a new way of financial reporting that improves transparency around how
organizations manage their capital resources. While conventional
accounting and reporting treat capital and revenue in the same way, NFF
recommends that nonprofits make straightforward adjustments for capital
that better reveal their true operating performance and progress.
Change Capital in Action: Hear how three organizations
are applying change capital to realize their artistic and organizational
ambitions! Center Theatre Group, National Black Arts Festival and
Steppenwolf Theatre Company share their stories in these short videos.
NFF has long advocated for greater
access to capital for nonprofits, particularly as they invest in growth or
change (Please see our Growth Capital Services resources to learn about the philosophy underlying this initiative). We’re excited to share these real-life examples of change capital in
action in the arts. Please contact us if you have any questions or
would like to discuss our perspective and recommendations for improved
capitalization the arts, or if you are interested in discussing how these
principles can be applied to other nonprofit sectors.