Capacity- In what ways can the social sector adapt to meet new needs under changing conditions ?
Structure- How can the social sector refresh business models and rethink strategic plans to better prepare for the long term?
People- How can upskilling opportunities help motivate, connect and prepare social sector leaders for the future of work ?
The insights can be helpful, particularly for Boards in suggesting NFP organizations look both at responding to immediate impacts of the pandemic to a longer term view that supports sustainability and organizations having the skills to adapt programming, operations to new ways of working.
The article concludes with a checklist for boards and management teams to help prepare for the future.
Shifting the Mindset
Empowering learning for the long term
Aligning support to help future-fit the sector
The Role of an Endowment in COVID-19 Times
June 04, 2020
As arts organizations seek to manage the financial challenges they face during the current pandemic, the place an endowment holds in their financial picture is gaining attention.
Long-Term Asset Foundations are being called upon to use endowments ‘more actively’, and provide much needed cash flow and income to their beneficiary organizations. It has long been a successful model that an endowment be considered as a long term asset. The stability of a stable, recurring annual income is important to an organization’s day to day operations and financial planning. The perspective of long term investing, disbursing a portion of annual returns ( generally 3 to 5%), allows a fund to grow over time, protect that annual income against inflation and provide for increased cash flow over time. It is a model that serves the arts community through the Ontario Arts Foundation well.
Source of Additional Income The Ontario Arts Foundation has tried to address this by recognizing the need for financial support (which is now), and deciding to pay out additional income to our arts organizations in addition to the annual payout. The Board felt comfortable that the positive growth in endowment portfolio’s over time, leaves the foundation with the ability to increase current support, be confident that we can continue our pattern of stable income over time, and continue to carefully grow for the long term. That translated in May to an additional $1.0 million dollars in operating support for Ontario arts organizations.
Different Endowment Use Perspectives For a U.S. perspective, this New York Times article shows how U.S. cultural organizations are considering the use of endowment assets more broadly, more creatively in response to current needs.
In Canada, a group of Foundations, through Give5.ca, are encouraging funders in 2020 to increase the level of endowment giving to 5% of assets – traditionally the high end of range of annual payouts. The sector recognizes, that endowments have a strong role for the long-term, but can be adaptable and accessible when shorter-term needs become paramount.
Arts and Culture Organizations – Adapting for a New Environment
May 21, 2020
I’ve observed recently that Ontario arts organizations are now moving to an environment where they are trying new ways to communicate their arts mission, how best to respond to the current COVID-19 world we live in.
Plans for the future TRG Arts has produced a helpful report that may be useful as arts managers and Boards make plans for the balance of 2020, and into 2021 and beyond. It suggests that every organization consider four questions:
• What might next year look like? • What is the source of our strength? What do we do that is most meaningful and relevant to the community? • How will we manage our people and revenue propositions to confront this new reality? • When our doors reopen, where will we gather?
Helpful articles The report offers a series of discussion points that every organization can consider and apply to its own specific mandate and place in its local community. Along with the report are links to a series of related articles that can add depth to each of the questions and issues arts organizations face.
It is refreshing to see that, despite the significant challenges, arts organizations are exploring new options for presenting art and supporting our communities during this time of social distancing. This is truly an example of resilience and creativity.
