This posting describes 2 organizational variants.  The first occurs often, but nonetheless needs highlighting. I believe the second is rare and worth examining.A number of standard NFP's own, or partially own a commercial entity.  These range from real estate and parking garages, to catering facilities, ticketing operations, and licensed software, e.g. Tessitura software is owned by the Metropolitan Opera.  From what I can glean, the percentage of annual budget that these entities provide range from 5 to15%. Outside the immediate … [Read more...]

I grew up professionally in the 501(c)3 world. It was "the" aspirational model.  At the time, in the late 1960's/early 1970's, I don't think anyone foresaw the enormous growth of these NFP's in the arts, or the concomitant problems this growth would cause.  To get to a place where arts entities can freely consider alternative organizational models, it's essential to learn why the 501(c)3 model became the standard.  For one, it had so much to offer: independence, identity, and tax-deductibility.  Additionally, this model was … [Read more...]

My recent post, Too Big to Succeed, generated some discussion about what constitutes success.  I believe organizations would likely define success as implementation of their mission at the highest level permitted by their finances.  Does this make sense?  Yes, of course, but it  obfuscates the delicate relationships within the production of the artistic product, its relationship to money and organizational size. We have become accustomed to a certain kind of thinking, that in order to perform or exhibit a challenging … [Read more...]

I have appreciated the many comments that my first blog engendered.  My initial outline for future postings included "ranting" a bit about the systemic issues that make the standard NFP model dysfunctional, and then post some new and emerging models I've discovered.  These models range from those currently in action to those still in construction.  For artistic entities, the ultimate goal is to understand what one's or one's organization's structural needs are in relation to mission, then either match them with what's available, … [Read more...]