In a sign of an alarming possible trend, the For Purpose Law Group blog cites an observation by the CEO of the National Council of Nonprofits that (my emphasis):
….an “ominous sign” is that “… the most popular page on NCN’s website for the last few months has been an article on how to shut down a nonprofit.” It’s a “kind of burnout at the highest level …. Leaders are beyond fried,” explains the head of the nation’s largest group of nonprofits. “They’ve been trying to hold things together with baling wire and chewing gum.”
The full piece goes into depth about the factors at play, prime among them are decreases in philanthropy in the face of increasing inflation and compensation expectations.
On the arts side, we are already seeing this manifest with the closures and layoffs by major arts entities. This week the Brooklyn Academy of Music announced layoffs and shortening of their season of programming. A couple weeks ago, the Center Theater Group announced layoffs and the closure of the Mark Taper Forum. Earlier this month, the Public Theater announced the end of the Under The Radar Festival.
There are grumblings on social media about unsustainable business models, but the fact is everyone is pretty much using the same general business model as these places are. Last week I wrote about how Oregon Shakespeare Festival is experiencing a similar crisis, partially due to a heavily restricted endowment.
People who know theater history know these shifts in business models have occurred before. But we have the comfort of hindsight to know how the transition transpired so that theatrical practice continued. But when you are experiencing the transition, you don’t know if things are evolving toward a format more suitable to the times or heading to extinction.
I’d be very careful about dismissing too easily discussion of the business model. You’re right, of course, that everybody has been using it, which should be a cause for alarm. I think it is significant that flagship theaters are struggling, not just small and medium-sized theaters (although they are struggling, too — cf Triad Stage in Greensboro and Westport Country Playhouse in CT). Those who want to blame this on the pandemic are failing to see what is really happening.
I am not really dismissing discussion of the business model. I just feel like the fallout of Covid has pushed things past the tipping point and we are likely to see widespread change occur.
Similar to how at one time a few companies pretty much had a monopolistic lock on performance venues and there were few independent options. The operating environment changed and that is no longer the case–many of those entities still exist and hold a fair bit of theatrical real estate, but that is no longer the predominant model.
It is likely many places will continue to operate under the non-profit model, but what was something of a go-to approach won’t be as prevalent in the future.