MONEY MATTERS:
BROWARD COUNTY TO HOST CAPITALIZATION WORKSHOP TO HELP SUPPORT ARTISTIC FREEDOM AND SUSTAINABILITY By Nila Do Simon
Philanthropic advisor Rebecca Thomas remembers the plight of a struggling regional dance nonprofit organization that was barely making ends meet. In fact, the dance company was losing money year after year, says Thomas, a nationally recognized leader in her field. The reasons why were mounting: Its costs exceeded its revenue, including a number of salaried dancers in its dance company; it was serving a socioeconomically challenged community, which limited how much it could charge for its programs, school and classes; and it was housed in an historic building that needed extensive maintenance and was even depreciating. After consulting with Thomas and her team, the nonprofit realized it had a problem with capitalization, or the resources an organization needs to fulfill its mission over time. If the nonprofit lacked funds to achieve its quarterly goals, then it was nearly impossible for the company to support its long-term desire of becoming the community’s premier arts institute. With achieving capitalization in mind, Thomas helped the dance company plan a multiyear roadmap to understand how to improve its financials and strengthen its capitalization. Some concepts were very tangible, such as employing additional staff members to improve the development department, and others were more abstract, such as cultivating relationships with donors and funders. To better maintain its aging building, Thomas assisted the organization in finding a better way to articulate and position its needs for cash reserve. 14
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Photo by Wei Ding
CREATIVE SOLUTIONS | CAPITALIZATION WORKSHOPS
