Through this expansive series of case studies and reports, the Nonprofit Finance Fund shares lessons learned from a pilot initiative in which a group of arts organizations worked to “strengthen their business in a shifting environment.” The changing business environment for nonprofits (including, but not limited to, those in the arts) is forcing many organizations to reconsider their sustainability strategies. This pilot program provided participants access to significant investments of change capital over four years, allowing them to make transformational change in their organizational models and business practices.
Change capital “is money to grow, shrink or adjust an organization’s business model in ways that will lead to reliable recurring revenue to cover full costs…and contributes to a more flexible and appropriate balance sheet capable of supporting…mission over the long term.” The Nonprofit Finance Fund argues that this type of capital is indispensable for organizations that need to make significant structural shifts to increase sustainability over time.
This set of resources helps nonprofits think about their own capitalization structures and the types of capital that may be most appropriate for their long-term goals. The types of new capital described in this site are tools that nonprofits may utilize during a change period to increase effectiveness and scale.