SERVING THE NONPROFIT THEATRE

Much of the American nonprofit theatre is struggling financially. The 112 theatres that participated in the 2005 through 2009 TCG Theatre Facts survey reported unhealthy financial conditions even though these theatres included some of the largest and most prestigious theatres in the United States. Sixty-seven of these theatres reported an operating loss in the year 2009. Of those, twenty-two reported a loss of 10% to 20% of total budget and an additional eighteen reported a loss greater than 20%.

For the average theatre in the group of 112, for the most recent five-year period after adjusting for inflation, earned income declined 23%, contributed income grew 1%, while expenses grew 10%. It is true that the 2009 results were greatly affected by the economic recession, but it should be noted that the financial performance of these theatres in the preceding four years was not significantly better. The cumulative impact of poor operating results has taken its toll on the financial position of these theatres: approximately sixty-eight reported negative working capital, meaning they had difficulty paying current invoices and payroll.

Arthur Nacht, the principal of Nacht Theatre Consulting, LLC, combines financial management experience with a strong belief in the importance of live dramatic art. With an MBA in finance from Harvard, a career of over thirty years in corporate financial management, an MFA in theatre management from Yale, and a thirty-year love affair with theatre, Arthur has a unique perspective when providing a range of financial management services to nonprofit theatres.