Penumbra Theatre in Saint Paul, MN is one of the country’s preeminent arts organizations rooted in the African American experience. Founded in 1976 by Lou Bellamy, Penumbra has received national acclaim for its artistic vision, groundbreaking productions, the community impact of its education and outreach activities, and its commitment to nurturing artistic talent. Financially, though, Penumbra’s progress has been rough and unstable. In 2003 the board recommitted to Penumbra’s original mission and determined to pay off the $600,000 in accumulated debts. When managing director Chris Widdess joined the theatre in 2004, the organization’s future and long-term viability remained uncertain, although the organization was working to towards short-term sustainability. To make this happen, Chris was given an enormous task – eliminate the remaining $400,000 in debts over the next three years.

She set up meetings with all of Penumbra’s lenders. Discussing her first encounter with Kate Barr, Chris remarked, “I perceived her as a banker, and as someone to whom we owed a lot of money.” Chris delivered her message – Penumbra wanted to settle its debts, but she would need support in order to figure out how to make that happen. She didn’t make any promises or discuss the past, but committed to being open, honest, transparent, and accountable in the future. Kate did not hesitate, she believed in Penumbra’s vision of stability and freedom from debt, and she had faith that they would be able to realize these goals. Nonprofits Assistance Fund refinanced their loans, providing additional credit to stabilize cash flow during Penumbra’s four year restructuring process. According to Chris, Kate’s decision was a leap of faith: “It was a sign of confidence, but also a gamble. She gave us a second chance, which was really inspiring. It inspired me to want to do more than just beat the odds; I wanted to justify her faith in us.”

Kate became more than just a banker, she became a friend. Chris thinks that Nonprofits Assistance Fund’s enthusiastic support helped others in the Twin Cities regain their interest and confidence in Penumbra. “Because Nonprofits Assistance Fund touches so many nonprofit organizations, word got around. I would go to meetings or receptions and people would come up to me and say, ‘I hear Nonprofits Assistance Fund is working with you, if they’re willing to do it, maybe we should too.’” Chris continued, saying, “Nonprofits Assistance Fund never judged us, they never meddled or managed; they just helped us through it. Kate was someone you could call to bare your soul to.” During these conversations, Kate would listen, ask questions, and offer advice. When trying to determine the best way to secure union bonding for an upcoming season, Kate explained that Penumbra’s current plan would tie up a lot of cash. Why not have Nonprofits Assistance Fund guarantee the bond? This freed up Penumbra’s own funds, which were used for other expenses. Nonprofits Assistance Fund staff was always just a phone call away, available to answer a question about financial vocabulary or to offer advice. “They understood where we were in our learning curve and they were patient about giving advice at the level we were at, rather than where we should be. If we gave them a blank look, they would offer examples, answer questions, even lead exercises to help us understand the financial concepts.” Strategic guidance from Nonprofits Assistance Fund helped Chris and Penumbra’s board make the best financial decisions to meet their goals.

With Nonprofits Assistance Fund firmly in their corner, Chris and others at Penumbra set out to realize their vision. There was no easy fix, but with hard work and determination, Penumbra took steps towards sustainability. Staff attended Nonprofits Assistance Fund’s workshops and implemented healthy financial practices, improving their financial management each year. As promised, Penumbra made timely loan payments and shared their financial information. Describing Penumbra’s transformation, Kate said: “Chris, Lou, and the board did the hard work. They created a cultural shift, a sea change at Penumbra.” Over a four year span, they eliminated $600,000 in debt, restructured the organization, and transformed their fundraising. Penumbra has freed itself from the burden of accumulated debt and is looking at long-term sustainability. They have a new vision, aptly called The New Era, which looks to the future while honoring the past and is firmly rooted in their mission. Highlights include staging August Wilson’s entire 10 play cycle of the African American experience, a new play initiative called “The Okra: African Diaspora Theatre Development Process,” cultivating new artistic leadership, and aggressive fundraising to meet these goals.

Ansa Akyea as the “Angel” in Penumbra’s production of Black Nativity: Twenty Years of Holiday Cheer!

Photo Credit: Ann Marsden