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. <\/p>\n
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. <\/p>\n
For one, it had so much to offer: independence, identity, and tax-deductibility. Additionally, this model was adopted by foundations and government funding entities as required<\/u>, in order to receive grants. These funders specifically stated (and continue to state) that they would not make grants to organizations under fiscal agency. The reasons for this restriction were understandable at the time. Fiscal agents were often unstable themselves, frequently purported an artistic point of view, and generally charged what was perceived as too high a percentage of budget for services rendered. Funders understandably wanted insurance that their funds would be used responsibly, and also wanted to encourage organizations to stabilize, grow and thrive.<\/p>\n
Fiscal agency appears to be emerging as a viable alternative now, as many have addressed the historical issues associated with them. It’s not the only solution, but one of many possibilities for arts entities to consider. With its administrative benefits come risks, as the fiscal agent is subjected to many of the same potential unstable elements as any independent NFP. However, in considering the fiscal agency option, an arts organization or artist can assess the agent’s track record, historical stability and conditions for “membership.” But in order for this option to even be considered seriously, foundations and government funders must<\/u> rewrite their guidelines for this alternative to be considered.<\/p>\n
My future postings will explore additional alternatives to the standard NFP. <\/p>\n
<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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