Nonprofit Finance Fund Details Barriers and Opportunities for Arts Nonprofits and Funders to Foster Financial Stability

Nonprofit Finance Fund (NFF) has released new analysis of its 2014 survey of nonprofit organizations, which includes responses from 919 arts organizations nationwide. The State of the Arts and Culture Sector report captures the challenges and triumphs of nonprofits grappling with financial pressures, changing demographics, new technologies and new opportunities to expand the reach of their programs and services.

According to the report, financial stability remains elusive; 47% named achieving long-term financial sustainability as a top challenge. NFF's report outlines systemic barriers to success, including:

• Mismatched funding, with a focus on program development at the expense of preserving or building reserves. A staggering 41% have less than 3 months cash on hand.
• Missing dialog; 53% of respondents can have an open dialog with funders about program expansion; only 9% about flexible capital for growth or change.
• Misaligned reporting requirements; 42% faced reporting requirements outsized relative to the size of a grant.
• Funding that falls short of full costs. Just 14-23% percent (varying across funder type) reported that funders always or often cover full costs of the programs they intend to support.

Get the full report.