1. nonprofitfinancefund.org ©2010 Nonprofit Finance Fund Nonprofit Finance Fund ® 2010 State of the Nonprofit Sector Survey: Arts, Culture and Humanities Results March 2010 For more information, please contact Jen Talansky at 212.868.6710 or visit nonprofitfinancefund.org For full survey results, please visit http://www.nonprofitfinancefund.org/details.php?autoID=199 Data is based on a nationwide Zoomerang survey of nonprofit leaders conducted by Nonprofit Finance Fund, January-February 2010.

2. 1 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund Relentless in the Pursuit of Mission Nonprofit Finance Fund recently conducted its second ‘State of the Nonprofit Sector’ survey. The survey focused on the intersection between finance and mission: are nonprofits financially equipped to keep up with the demand for services, and what are they doing to make sure they can meet the needs of their clients? We asked nonprofit managers nationwide to assess the current financial challenges they face, and to share the coping strategies they’re employing to manage through these times. 1315 nonprofit leaders, 417 from arts, culture and humanities organizations, responded to our survey. Respondents stretched from coast-to-coast, from large organizations to small, and came from all sub-sectors. What did we learn from their collective reply? While bracing for another tough year in 2010, nonprofits are relentless in the pursuit of mission.

3. 2 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What Areas of Need Do Survey Respondents Address?

4. 3 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What is the Annual Expense Size of Arts Respondents?

5. 4 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund Arts Respondents Anticipate Greater Demand for Services in 2010

6. 5 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What Are Organizations’ Revenue Expectations for 2010? Respondents are most worried about government, foundation, and corporate giving *Percentage of respondents receiving revenue from this source. Figures shown in the graph exclude responses marked “Not Applicable” for this question.

7. 6 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What are Arts Organizations’ Operating Results? It’s getting harder to operate above break-even: In last year’s survey, 37% ended 2008 with a surplus, versus 32% in 2009. Only 16% predict doing so in 2010.

8. 7 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund How Many Months of Cash Do Organizations Have Set Aside?

9. 8 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What Actions Did Arts NPOs Take in 2009 and What Are They Planning for 2010? Nonprofits are responding creatively to keep services going. In 2010, more groups are planning to expand programs and geographies than to cut them. Many are engaging with their Boards, and collaborating on programs.

10. 9 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What Financial Reports Are Arts NPOs Producing to Help Manage in These Times?

11. 10 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What Type of Technical Assistance Would Be Helpful? Arts managers expressed interest in technical assistance

12. 11 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund Will the 31% of Arts Respondents that Received Government Stimulus Funding Be Able to Replace It?

13. 12 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund What is Your Financial Outlook for 2010? How Will It Compare to 2009?

14. 13 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund We continued to publish books at the same level as in previous years, despite having a smaller staff, believing that if we are less visible we will quietly die away. Cut back on the few discretionary expenses we have; worked to keep staff morale up in the face of salary freezes, benefit cuts and vacancies. We were able to provide a high level of service in spite of problems. Re-examination of expenses… and creative collaborations with partners to share costs while expanding program options. Secured a $100,000 unsecured line of credit to help stabilize cash flow. We are very fiscally organized and well able to understand and predict our operational and program costs. What makes you proudest about how your nonprofit responded to 2009 financial challenges? Cut programming, in-house printing, outsourced phone/ box office/email, reduced ticket prices. We had just started construction on our capital project at the beginning of 2009 and we were able to mobilize our staff, kids, parents and our community to have our project be finished. We reduced our costs dramatically without impacting what our audience saw on stage and without impacting the quality of our student instruction.

15. 14 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund Conclusions For most arts and culture organizations, 2010 will be as difficult or more difficult than 2009. Despite difficult financial circumstances, nonprofits are going to great lengths to maintain– or increase– service levels. There is some optimism for 2010. For example, fewer nonprofits are planning to reduce staff-related costs. However, it isn’t known if this is a function of improving conditions or drastic cuts in 2009. Nonprofits reach out to peers in times like these. More than half are collaborating on programs. Responses to several questions indicate that nonprofits are looking to make the best use of their Boards to help them manage through economic change.

16. 15 nonprofitfinancefund.org ©2010 Nonprofit Finance Fund About Nonprofit Finance Fund: Where Money Meets Mission Nationwide network of experts in nonprofit finance Served thousands of nonprofits & funders since 1980 CDFI with $200 million in loans and over $1 billion in capital leveraged for nonprofits Financial consultant with over 1,000 customized consultancies/workshops Hundreds of strategic partnerships to advance the sector Debt, PRI/MRI management, New Markets Tax Credits Assistance in structuring philanthropic equity for change Thought leadership to advance friendlier funding practices across the nonprofit sector “[NFF is]… arguably the most influential voice in the ongoing effort to reshape thinking and practice about nonprofit capitalization.” -The NonProfit Times

17. 16 nonprofitfinancefund.org ©2010 Nonprofit Finance Fundnonprofitfinancefund.org ©2009 Nonprofit Finance Fund Nonprofit Finance Fund ® Where Money Meets Mission TM 16 For the full survey results, please visit our web site, nonprofitfinancefund.org, or click on this link:nonprofitfinancefund.org http://www.nonprofitfinancefund.org/details.php?autoID=199 For questions related to the survey, please contact Jen Talansky at 212.868.6710. Thank you. “We’re in the business of helping nonprofits run better.” –Clara Miller Nonprofit Finance Fund President and CEO