Fundraising for the Arts: cures for the cost disease

Abstract

As a musician and a student of the arts, I have become increasingly aware of the valuable products and services that arts organizations provide to society. It is, therefore, unfortunate that these organizations often struggle to secure adequate financial resources for their activities. This project examines key issues in the financial management of arts organizations. These issues are evaluated from both theoretical and practical standpoints using principles of accounting, economics, and marketing. Following a review of related literature, three case studies are presented that describe the fundraising techniques and financial management strategies of each organization. One of these organizations is a metropolitan ballet company that has a track record of successful financial management. Another is a well-established symphony orchestra with large resource needs. And the third is a university marching band that initiated a new fundraising effort. The relative success or failure of each organization is evaluated in an attempt to provide useful general guidelines for economic well-being to non-profit organizations. The purpose of this project is to provide insight into the financial issues and obstacles facing the performing arts and other not-for-profit organizations in society today. By examining the fundraising and operating techniques of various arts organizations and their relative success or failure, I hope to provide advice that these organizations can use to improve their financial position. Another purpose of this project is to provide examples of fundraising and operating techniques that have already been used, either successfully or unsuccessfully, with the expectation that other arts organizations may be able to benefit from this information.