Are you financially ready?
Three years ago, the Arts Council England’s
budget was cut by 30 percent during the country's austerity efforts. Those cuts have led to a shrinking theater scene in England, and will undoubtedly continue to impact the arts throughout the UK and Europe.
Now in the US, we are faced with our own governmental cuts as the Federal sequester
takes effect in the coming weeks. While these types of cuts are scary, we can anticipate them and work to minimize their impact on our constituents.
However, it is the unforeseen crises that cause the most damage. Perhaps embezzlement is discovered, a senior staff member suddenly resigns, or your CFO must take a leave of absence. When faced with something that is unforeseeable, or even unimaginable, having your financial house prepared can lessen the blow to your organization.
Here are a few steps you can take to become more financially ready...
Create or update your Guidestar Account. This ensure that donors can understand the mission and services of your organization and make informed decisions about providing you with funding.
Set up remote banking with multiple signatories/authorizers, so you can continue to pay staff and vendors if your facility cannot be accessed.
Prioritize programming and explore alternate funding resources. Learn about sites like Indiegogo, GoFundMe.com and Kickstarter.com for additional sources of project-based funding.
As you consider your financial readiness, remember that the best way to protect your organization's future is to fund it right now.