Diane Ragsdale

L3C Cha-Cha-Cha

Posted by Diane Ragsdale, May 16, 2011


Diane Ragsdale

Diane Ragsdale

In his book The Revolutionary Stage, Joseph Zeigler states that Arena Stage in Washington, DC, began as a for-profit corporation by selling shares totaling $15,000 (at seven percent interest) to 300 Washingtonians. As part of doing research related to my dissertation topic—the impact of economic forces on the American resident theater movement—I recently read a speech called “The Long Revolution” written in 1978 by Zelda Fichandler, founder of Arena Stage.

She writes that she founded the theater in 1950 as a regular profit corporation, in order to better maintain control of its artistic policy, and that the theater became a nonprofit seven years later “in order to become eligible for gifts and grants, especially from the Ford Foundation which entered the field that year.”

Ms. Fichandler elaborated on the transition to becoming a nonprofit, saying:

“[…] we made all of our expenses at the box office for roughly the first fifteen years of our existence. It was as late as the mid-sixties when we conceded that we couldn’t continue to do this, but had to become a deficit-producing organization. 

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Patricia Martin

The Power 7: A Checklist For Future Business Models in Arts & Culture

Posted by Patricia Martin, May 18, 2011


Patricia Martin

Patricia Martin

Open talk about new business models in the arts is a cultural signal. It’s a watermark that tells us the tides are shifting. Digital culture is eroding some of art’s traditional value proposition.

That’s not what worries me.

This does: Even if the arts can come to occupy a new role in people’s lives, will they will be able to communicate this role to attract new users—especially younger audiences?

Cultivating younger audiences will be important. They are the future. But using marketing messages and tactics from the past to reach them might mean that your organization—no matter what its business model, will not be around to see them join your ranks. 

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Ms. Margy Waller

Risky Behavior

Posted by Ms. Margy Waller, May 24, 2011


Ms. Margy Waller

Margy Waller

Before we start developing the public policy campaign to maintain status quo for charitable status and deductions, let’s make sure we know why we are doing it – and that it’s really a good fit for us.

Reviewing all the blog posts in this Salon in one read, I’m struck by the number of writers pointing out limitations of the special status that makes donors to nonprofit arts organizations eligible for a tax deduction.

Patricia Martin encourages us to rethink the slavish devotion to 501(c)(3) status if we want our organizational structure to keep up with the “rising generation [that] has already changed how it consumes culture and interacts with institutions." 

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Ms. Claudia J. Bach

Over or Under Modified?

Posted by Ms. Claudia J. Bach, May 16, 2011


Ms. Claudia J. Bach

Claudia Bach

The nonprofit arts organization. An ungainly set of modifiers. But in the pre-professionalized mid-1970s, when I had to create my own bachelors degree in arts administration, I felt like I was part of an exciting evolutionary force, helping to grow the structural integrity and value of the arts within the conceptual and legal arts nonprofit corporate framework.

At that time it appeared to be a boundless horizon: a corporate structure where artists could gather force to develop and publicly share their work, communities could access entertainment and elucidation, and where we could rest assured that cultural legacies would inspire us and be preserved for future generations. I don’t think I, or my fellow travelers, questioned this as a common good. It was the chosen path and our work was to use it to good advantage in service of the arts. 

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Paul Miller

Circus Mojo - Part Two

Posted by Paul Miller, May 19, 2011


Paul Miller

Paul Miller

Circus as an industry has been incredibly exploitative.

When I joined the circus as a college drop-out in the late 1990s, the Soviet Union fell and with it, went their highest art form—the circus. Their amazing artists had no support from the government, so American circuses enticed these talented individuals to come to the United States. They were paid thousands of rubles which seemed like a lot of money but was, in fact, only about $50 per week. This is not unusual.

I’ve worked with many Russian and Asian circus teachers who can barely read or write. In 2000, I had a six-month gig in Japan with a fellow performer who could speak seven languages but his agent stole half his fee because he could not read the contract. 

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Adam Huttler

Low-Profit But How Much Potential? (Part 1)

Posted by Adam Huttler, May 26, 2011


Adam Huttler

Adam Huttler

The L3C (low-profit limited liability company) construct has been getting a ton of virtual ink lately. As a way of establishing my dubious credentials, I’ll note that I was among the first in our field to note the arrival of the L3C, and I’ve written and debated about it quite a bit since then. Fractured Atlas formed an L3C subsidiary for our insurance program back in 2008.

All of that is just to establish why I’m having trouble thinking of something new and inspiring to say about the L3C. I suppose it also explains why I’m interviewed on the subject frequently enough that I can confidently lump the questioners into two categories: (1) big thinkers – often grad students or consultants - who see tremendous potential in the L3C but have only a vague concept of its real legal and financial contours, and (2) jaded skeptics – often professors or attorneys – who know just enough about the L3C to have serious doubts about its applicability to the arts. 

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