The past few months have been a time of growth and transformation at Nonprofits Assistance Fund. We talk a lot about how an organization's programs and services should be driven by their mission. Mission shift can happen in many ways, including how we communicate about our organization. To see whether or not our message had drifted from our mission, we underwent a communications and branding assessment with Creation in Common. We discovered a lot of interesting things about ourselves during this process, including some new ways to describe who we are and what we do that better reflect our goals and vision. The core of our mission and services remains the same - fostering community development and vitality by building financially healthy nonprofit organizations - but the words we use to describe them are changing to more accurately reflect what we're already doing.
As part of this process, we have upgraded our website and online communications, including this enewsletter. Welcome to the new and updated Nonprofits Count. It will continue to feature the same financial management content, stories about our partnerships in the nonprofit community, and information about Nonprofits Assistance Fund, but it has a new look and feel to complement our website. If you have not explored the new website, visit us at www.nonprofitsassistancefund.org to see all the changes, it is quite a transformation. We also created a group on facebook as an online space for the nonprofit community to network and share their ideas. Join the group and leave a comment about what you think of NAF Web 2.0.
In addition to our online makeover, we are pleased to welcome two new staff members. Michael Anderson joins our lending team as a third, dedicated loan officer and Amanda Dlouhy is our new training assistant. Both Michael and Amanda are valuable additions who enhance our ability to help nonprofits realize their visions. For more information on any of these developments, please visit About Us below.
Upcoming Workshops
Measuring Your Financial Health
March 25, 9:00 a.m. - 12:00 p.m.
Learn how to interpret, analyze, and measure financial information to assess your nonprofit's health. This workshop builds on your understanding of financial statements by using them as a tool to assess and monitor financial health. Participants will learn about:
• Financial statements and reporting practices
• Monitoring unrestricted and temporarily restricted funds
• Calculating financial ratios
• Developing financial monitoring reports
Register today and begin implementing healthier financial practices at your organization.
Other upcoming workshops include:
• Nonprofit Budgeting: Beyond the Basics - April 8
• Understanding Nonprofit Financial Reports - April 22
And don’t forget to participate in our monthly lunch series for nonprofit leaders, the Financial Management Network. Join us on March 26 to share thoughts and ideas with your peers on this month’s topic, Preparing Grant Budgets. Just bring your lunch, your business cards, and your ideas.
Learn more about our workshops and other upcoming events.
Helping Nonprofit Theater and Dance Companies Thrive
Nonprofits Assistance Fund recognizes the important role that the arts play in making our community strong and vibrant. We are committed to these community assets and have partnered with theater and dance companies around the state, helping them with cash flow loans, capital campaigns, and union bonding. From January 2006-December 2007 alone, Nonprofits Assistance Fund approved 37 loans and five Actors’ Equity Association bonds to 17 different companies, totaling $2,242,245.00.
Theater and dance companies make a measurable economic impact, as well as enhance our quality of life. According to a 2006 fiscal study, Theatre Facts by Theatre Communications Group (TCG), theatres contributed nearly $1.67 billion directly to the US economy in 2006. While nonprofit theaters have experienced several years of financial success, TCG’s report shows a decline in working capital. As TCG’s Executive Director Teresa Eyring states in the November 2007 issue of American Theatre magazine, “A weak working capital profile presents troubling limitations on an organization’s ability to take risks, experiment with new solutions and advance its overall mission.” There are a number of possible reasons for this decline, including the cash flow challenges that are part of the business model for performing arts organizations. Nonprofits Assistance Fund is able to provide flexible financial support and strategic guidance because we are understand this model and take into account factors such as production expenses and income sources.
Nonprofits Assistance Fund has made loans to companies ranging in size, scope, and mission, including both up and coming and established organizations. We agree with Teresa Eyring that “if we succeed in creating replicable and sustainable models and a new sense of engagement among audiences, then this work stands as an investment in adapting the field to a changing environment.” We look forward to continuing these partnerships in the future.
For a more complete overview of our financial assessment of nonprofit theater and dance companies, please read Spotlight on Minnesota’s Theater and Dance Companies. And for more information on Nonprofits Assistance Fund’s collaborations with visionary leaders in the performing and visual arts in Minnesota, visit www.nonprofitsassistancefund.org.
Realizing Freedom from Debt – Penumbra’s Story
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.
When Chris first met Kate Barr from Nonprofits Assistance Fund, “I perceived her as a banker, and as someone to whom we owed a lot of money.” Chris outlined Penumbra’s vision, committed to being open, honest, transparent, and accountable, and asked for support. Kate did not hesitate; she believed in Penumbra. Nonprofits Assistance Fund refinanced their loans, providing additional credit that stabilized cash flow during Penumbra’s four year restructuring process. “It was a sign of confidence. She gave us a second chance and 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 organizations, word got around.” They were always just a phone call away, available to answer a question about financial vocabulary or to offer advice. “Nonprofits Assistance Fund never judged us; they just helped us through it. They understood where we were in our learning curve, giving advice at the level we were at, rather than where we should be.” Strategic guidance from Nonprofits Assistance Fund helped Chris and Penumbra’s board make the best financial decisions to meet their goals.
 There was no easy fix, but with hard work and determination, Penumbra took steps towards sustainability, implementing healthy financial practices that improved their financial management and making timely loan payments. Kate credits Penumbra’s leadership with the transformation,“Chris, Lou, and the board did the hard work. They created 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 accumulating debt and is looking at long-term sustainability. And they have a new vision, aptly called The New Era, which includes staging August Wilson’s entire 10 play cycle of the African American experience, a new play initiative, 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
About Us
• Launch of NAF Web 2.0
• Welcome Michael & Amanda
Launch of NAF Web 2.0
Nonprofits Assistance Fund unveiled our updated website at the end of February, which features a new design scheme and more interactive features. The focus of our online presence remains our commitment to helping nonprofits realize their visions through transformational lending, encouraging healthy financial practices, and providing strategic guidance.
The website will continue to provide information about loans from Nonprofits Assistance Fund and background on nonprofit borrowing; access to our free and practical financial management resources, including Kate's blog, Balancing the Mission Checkbook; information on our skill-building workshops that help nonprofit leaders develop and hone their financial management skills; and stories about our partnerships with others in the nonprofit community. Check our site for updates on these and other developments from Nonprofits Assistance Fund.
We also decided to jump on the online social networking bandwagon and created a Nonprofits Assistance group on facebook. We hope it becomes an online space for the nonprofit community to share thoughts and ideas on healthy financial practices, financial management resources, and other relevant topics. Join the group and leave a comment about what you think of NAF Web 2.0. We look forward to continuing to build our online presence in 2008, so stay tuned.
Welcome Michael Anderson & Amanda Dlouhy
We are pleased to announce the addition of two new staff members, Michael Anderson and Amanda Dlouhy. With this additional capacity, Nonprofits Assistance Fund will be able to provide increased financial support and strategic guidance to the nonprofit community, as well as continue to build our financial management resources and training curriculum.
Michael Anderson joins our lending and training team as a third, full-time loan officer. He is responsible for advising nonprofits during the loan application and review process, as well as throughout the life of the loan. He will also deliver training workshops and provide technical assistance on financial management topics. Previously, Michael worked in the City of Minneapolis Office of Management and Budget. He holds a BA from the University of St. Thomas and a Master of Public Policy from the University of Minnesota’s Humphrey Institute for Public Affairs, where he concentrated his studies in nonprofit financial management.
Amanda Dlouhy will coordinate Nonprofits Assistance Fund’s training program, including overseeing the workshop schedule, logistics, and evaluation process. She recently graduated from the University of Minnesota with a BA in history and is currently a Company Dancer with Ragamala Music and Dance Theater, a company creating work rooted in South Indian classical dance. Amanda is also active with several other area nonprofits, including the Hennepin History Museum and the Phillips West Neighborhood Organization.
Please join us in welcoming Michael and Amanda to the Nonprofits Assistance Fund team.
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