Simplistically speaking, charities are like scientific experiments — unemotional methods to gain insight.
Sometimes, we make conclusions based on these experiments with the bias of survival as a sustaining strategy.
In nonprofit arts organizations, boards often conclude that their organization should last for some version of forever. It’s the biggest mistake a nonprofit arts organization board can make.
Sometimes, it’s time to close, not out of failure, but out of symptoms/findings:
- Chasing dollars with dollars
- Last-ditch “give us a million by next month or we’ll go out of business” campaigns
- Capital campaigns that mask company debt
- Doing off-mission work that “pays for” the mission-oriented work
- Unwritten HR policies that permanently institutionalize attrition
- No quantifiable proof of external impact
Boards – no shame to close an organization when findings lead you to that conclusion, even when your finances are sound.