Emergencies in Arts Funding

I usually focus my blog posts on evergreen content, but I recently read about a current event in the arts funding sphere that made my blood boil.

A few weeks ago (June 2024), Florida’s governor zeroed out $32 million in arts grants from the state’s FY25 budget, leaving arts organizations around the state scrambling to make up for the loss.

I’ll cover the background of what happened in Florida, suggest some next steps if you have a major funding source that suddenly dries up, and reflect on what might be coming next nationally.

Florida’s arts funding emergency

While no arts organization ever counts on any funding as a sure thing, all signs pointed to state funding through the normal process this year.

Nonprofits around the state applied through the standard process. The state’s Division of Arts & Culture made recommendations to the legislature. In March, lawmakers appropriated $26 million in operating grants and $6 million in capital funding. The next step – the governor’s approval of the legislature’s appropriations – is usually a foregone conclusion. So organizations had made plans for the funding they expected to receive after the state’s fiscal year started on July 1. 

Instead, Ron DeSantis vetoed the entire budget line devoted to state arts funding, plus another ~$920 million in other budget appropriations, to get the state’s budget under the previous year’s.

Meanwhile, Florida ranked among the top states in the country for per capita arts funding for the fiscal year that just ended. Needless to say, slashing the entire budget is a major step back.

Next steps if your organization has a funding emergency

Nonprofit best practice is to keep a diverse portfolio of raised and earned funding sources. But best practice isn’t always reality, especially if you have a loyal major donor or if a gift comes out of nowhere. If you find yourself in the same situation as those arts nonprofits in Florida, how should you move forward?

Contact your board

Your first call is to your board chair. She may want to bring in your fundraising committee chair and/or the executive committee to discuss next steps to make up the budget shortfall. Depending on the amount of the anticipated award, it may merit an emergency meeting of your board. Be prepared to talk about cash flow projections, new and existing sources of funding, and any major donors who may be willing to help in a pinch. Also consider the possibility of serious expense cuts to make up the difference.

Reach out to existing funders

Appeal to individual donors, whether in a formal or informal capacity. Perhaps you already had a fiscal year-end appeal letter scheduled, and you can take advantage of the timing to let your donors know you need their help. Or, you have a good relationship with a major donor who might offer a challenge or match.

Contact your local foundations, particularly if they are long-time supporters of your organization. Most foundations (especially those with full-time staff) keep their finger on the pulse of the philanthropic industry, and if this is a major news item they’ll already be familiar with the issue.

Make a plan for new funding

While your board might immediately turn to bringing on new funders, this costs time and money and isn’t a quick solution. But take a look at your fundraising pipeline to see if there are asks you can move to sooner in your cycle.

Plan for the long-term

Nonprofit leaders know to never count on the “sure bet” – always make a contingency plan for your budget. Consider the budget worst-case scenario and have discussions with your board and fundraising committee ahead of a catastrophic shortfall.

Stay up to date with philanthropic news in the public and private sectors. Florida nonprofits had a clue last December that the governor might not include arts funding in his budget. But they assumed that, since lawmakers had approved a budget with arts appropriations, they were all set. Establish a relationship with your state’s arts lobby so you are up to date with what might be coming on the horizon.

Be ready to petition on your organization’s behalf, whether for public or private funding. There are many resources available, including the Arts & Economic Prosperity Study by Americans for the Arts, as well as advocacy resources at National Association of State Arts Agencies and other similar organizations.

What’s next in arts funding?

With the exception of COVID-19 funding in recent years, government funding for the arts has fallen significantly. I started my career during the economic downturn of 2008 and almost immediately understood the pessimism around state arts funding. But what we’ve witnessed in Florida in the last few weeks is different and frightening.

Will other governors adopt this short-sighted plan to cut the arts? Will private foundations pick up the slack, especially considering their portfolios are performing better than ever? How many more nonprofits will fold in the coming years? It’s hard to know exactly what’s next – but with an already tough post-pandemic fundraising landscape, nonprofit leaders may need to strap on their seatbelts and get ready for a rough ride.

Cover photo from Canva