{"id":4281,"date":"2014-07-01T02:56:00","date_gmt":"2014-07-01T02:56:00","guid":{"rendered":"https:\/\/oafdn.ca\/?p=4281"},"modified":"2022-02-12T02:57:58","modified_gmt":"2022-02-12T02:57:58","slug":"the-value-of-unrestricted-funds","status":"publish","type":"post","link":"https:\/\/oafdn.ca\/fr\/the-value-of-unrestricted-funds\/","title":{"rendered":"The Value of Unrestricted Funds"},"content":{"rendered":"
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\"chocolate<\/p>

Imagine this, a man walks into a bakery and says to the baker, \u201cI need a gluten free cake, but I can only pay you 20% of the cost, and you can only spend my money on eggs, but not butter and not on electricity for the oven; you have to find someone else to pay for the oven\u2019s electricity!\u201d\u00a0\u00a0Nonprofit funding: Ordering a Cake and Restricting it Too<\/a><\/span>\u00a0asks the question what it would be like if a bakery operated with the same funding restrictions as not for profit organizations.<\/span><\/p>

\u00a0<\/p>


Multiple Revenue Sources<\/strong>
Arts organizations, like most not for profits, require multiple revenue sources: \u00a0government operating and project grants, public and private foundation grants, corporate donations and sponsorships, individual donations, gifts, legacies as well as box office revenues.\u00a0 Applying for a grant can be a time-consuming and a rigorous process. Grants are typically annual, and deadlines and grant applications will vary depending on the funder. \u00a0Fundraising donations, which in addition to grants are the lifeline of an organization\u2019s financial wellbeing, may come with stipulations where the donor attaches terms to their gift.<\/span><\/span><\/p>

Capital and endowment fund income is a welcome addition to an organization\u2019s revenue sources.\u00a0 \u00a0Endowment income is unrestricted – the management and board of the organization make the decision where best to apply this resource. \u00a0Endowment income is stable, reliable and not subject to an application process, filing deadlines or donor restrictions.<\/span><\/p>


Ontario Arts Foundation Endowed Funds<\/span>
<\/span><\/strong>Le\u00a0<\/span>Fondation des arts de l'Ontario\u00a0<\/strong><\/span>manages endowment funds established under both the provincial Arts Endowment Fund and the federal Canada Cultural Investment Fund \u2013 Endowment Incentives Component. \u00a0Arts organizations benefit from matching grants where privately raised funds can be doubled or even tripled, greatly increasing the value of the fund. \u00a0Organizations can breathe easy knowing they will receive an annual payout of unrestricted income, that they need not apply for or is restricted by donor\u2019s wishes.\u00a0<\/span><\/p>

One of the OAF\u2019s fund holders recently told us, \u201cOur struggle is to find sufficient, sustainable operating revenue, while keeping our fees affordable to the communities we serve. The endowment fund income is critical and helps us make up the shortfall in our operating costs, particularly at a time of year when cash flow is stretched.\u201d

<\/span>Unrestricted Funds<\/strong><\/span>
<\/span>General operating funds, admin expenses, and why we nonprofits are our own worst enemies<\/a>\u00a0speaks to the value of unrestricted funding. \u00a0The blog post offers the following suggestions to not for profit organizations on the value of unrestricted donations\/funding:<\/span><\/p>