In my new job at Drexel as Professor of Arts Administration, I’ve been able to research a question that has been of particular interest to me. Is the traditional not-for-profit, 501(c)3 (NFP) so cumbersome in its structure as to actually impede the very promise of its original intention? I’ve recently had the luxury to delve into this question, and in the process of examining it, have found what I believe are some startling flaws, but also some promising alternate structures.<\/p>\n
So, is the NFP too cumbersome in its structure to impede the flow of artistry it is created to facilitate? As a one-size-fits-all model, the answer is absolutely “YES.” For small start-ups, and for perpetual start-ups, the requirements to achieve NFP status, as well as the ongoing requirements, from financial reporting to maintenance of a fiduciary board, often overshadow the creation and presentation of artwork. <\/p>\n
In the arts world, an odd personalization of the NFP has evolved that has accelerated their growth in numbers. Creative artists from all areas want to create their own organization, so that they can create their art. It’s almost as if one step has to precede the other. Yes, it likely grew out of the need to raise money, and a somewhat unfounded belief that no one would give to them without the imprimatur, but back to my initial premise, the creation of an organization before the art itself proves my point, that the NFP impedes its very promise.<\/p>\n
While at the start-up level the NFP structure presents a visceral challenge, as organizations grow larger, the effects of the structure are more subtle, more insidious. In larger NFP’s, because of the need to raise larger budget percentages of contributed revenue, boards of directors become exceedlying large, as does the administration needed to service them. These boards rarely universally possess knowledge of or passion for the mission itself. At the very least they may understand a small portion of the mission’s program activity. With these large organizational entities, flexibility is lost, and mature organizations quickly move into decline, as they cannot address the changes presented to them in their communities, from their audiences, and external factors. These organizations become “too big to succeed.” And yes, there are myriad factors contributing to this state, but high up on the list of culprits is the NFP.<\/p>\n
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