A recent article in the NY Times (http://www.bloomberg.com/apps/news?pid=20601088&sid=abbSrsyWqA4E&refer=muse) discussed a support fund and management network for a select group of nonprofits that serve the public -- including the arts.
Critical to the plan, which includes loans to help cover the income gap experienced in this economy, is management support to help executives plan and manage. One of the key phrases of recent years has become increasingly important: sustainability.
Funders expect organizations that ask for money to be able to sustain themselves in the long term WITHOUT that funding. For instance, if an arts organization begins a new playwrights program, Funder X might give them a 3 year staged grant to fund the program ($100,000 the first year, 50,000 the second, and 25,000 the third). The organization must demonstrate that the program needs the money at the initial level and that they can sustain the program well after the initial 3 years of funding has ended (SUSTAINABILITY).
What I find encouraging about the NYC loan program is the support feature -- they are providing financial support and management resources to figure out sustainability for the future. What better way to help ensure you will get your loan repaid!
The hard part, of course, is making the decision to NOT fund a program because it is NOT sustainable (be it an arts program, organization or a health agency serving AIDS patients . . .).
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