{"id":4020,"date":"2012-06-18T22:18:00","date_gmt":"2012-06-18T22:18:00","guid":{"rendered":"https:\/\/oafdn.ca\/?p=4020"},"modified":"2022-02-11T22:19:50","modified_gmt":"2022-02-11T22:19:50","slug":"long-term-capital-for-an-arts-organization","status":"publish","type":"post","link":"https:\/\/oafdn.ca\/fr\/long-term-capital-for-an-arts-organization\/","title":{"rendered":"Long Term Capital for an Arts Organization"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"4020\" class=\"elementor elementor-4020\" wpc-filter-elementor-widget=\"1\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b1bd993 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b1bd993\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7cc09bf\" data-id=\"7cc09bf\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6406515 elementor-widget elementor-widget-text-editor\" data-id=\"6406515\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-medium wp-image-4021 alignleft\" src=\"https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/long-term-300x200.jpg\" alt=\"road\" width=\"300\" height=\"200\" srcset=\"https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/long-term-300x200.jpg 300w, https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/long-term-18x12.jpg 18w, https:\/\/oafdn.ca\/wp-content\/uploads\/2022\/02\/long-term.jpg 400w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p><p>Behind all arts programs and performances, lies the challenge for arts organizations of having financial stability in a continuing volatile economy. Should this take the form of a \u2018reserve\u2019 or longer term capital fund (\u2018endowment\u2019). A reserve is attractive as the fund has flexibility and remains available to the organization at the discretion of the Board. An endowment has a long term focus, providing the security of an expected income, available to the organization without restriction and governed externally.<\/p><p>\u00a0<\/p><p>For the Executive Director or Board member, it is critical to think through the purpose of long term funds, who will decide how capital is to be managed and accessed. As an organization, you should understand your donors, what motivates their decisions to provide annual financial support and longer term gifts. At the end of the day, the yield from an operating surplus, reserve or endowment provides the means to help you ensure artistic vision and creative programming can continue.<\/p><p>\u00a0<\/p><p><strong><span class=\"blue\">Change Capital<\/span><\/strong><\/p><p>A new dynamic phrase is emerging in the USA \u2013 \u2018change capital\u2019. This refers to financial support that supports improvements in the quality or efficiency of the arts organization\u2019s programs, supports growth or \u2018right sizing\u2019 of an organization and enables the organization to take risks, innovate and remain vibrant. Characteristics of change capital are three fold:<\/p><ul><li><span class=\"plain_grey\">Funding is separate from regular earned or contributed revenue, and typically is received during a limited time frame<\/span><\/li><\/ul><p class=\"half_line_spacing\"><span class=\"plain_grey\">\u00a0<\/span><\/p><ul><li><span class=\"plain_grey\">Flexibility \u2013 how the organizations spends the funding is of lesser importance than what it achieves \u2013 does the use allow the arts organization to enhance how arts programming is delivered or build efficiency into its operating model<\/span><\/li><\/ul><p class=\"half_line_spacing\"><span class=\"plain_grey\">\u00a0<\/span><\/p><ul><li><span class=\"plain_grey\">Is the result increasing and reliable revenue that creates operating surpluses<\/span><\/li><\/ul><p><span class=\"plain_grey\">\u00a0\u00a0<\/span><\/p><p>Each form of capital \u2013 reserve fund, endowment and change capital have a place to help fund improvements in efficiency and quality of programming. They help to align the size and fixed costs of an organization with its sources of revenue (\u2018right sizing\u2019) and are tools to help arts organizations take risks, be innovative and pursue new visions. A series of papers on capitalization of the arts that speak to this topic and illustrate how arts organizations put them to use can be found through the website of GrantMakers in the Arts \u2013\u00a0<a title=\"\" href=\"http:\/\/www.giarts.org\/\">www.giarts.org<\/a>\u00a0\u2013 National Capitalization Project. All are worth reading, and the NonProfit Finance Fund paper titled \u201cCase for Change Capital in the Arts\u201d expands on the concept of change capital.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Behind all arts programs and performances, lies the challenge for arts organizations of having financial stability in a continuing volatile economy. Should this take the form of a \u2018reserve\u2019 or longer term capital fund (\u2018endowment\u2019). A reserve is attractive as the fund has flexibility and remains available to the organization at the discretion of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4021,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"nf_dc_page":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Long Term Capital for an Arts Organization - Ontario Arts Foundation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/oafdn.ca\/fr\/long-term-capital-for-an-arts-organization\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Long Term Capital for an Arts Organization - Ontario Arts Foundation\" \/>\n<meta property=\"og:description\" content=\"Behind all arts programs and performances, lies the challenge for arts organizations of having financial stability in a continuing volatile economy. 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