Philanthropy: Collaborative soup: a nonprofit partnership

February 17, 2011

By Anne Nash

Lexington, KY - "Collaborative soup." That's how Natasha Williams described the Balagula Theatre Company's recent partnerships with other nonprofits to raise awareness and funds.

Williams and Ryan Case are the artistic/managing co-directors of Balagula Theatre in downtown Lexington. They were troubled by the funding struggles of many local organizations, particularly arts-related ones. So they decided to use their own productions to link to other nonprofits. By doing so, Balagula hoped to not only fill their own seats but to introduce audiences to new causes.  

A nonprofit partner is selected for each performance. Partners bring marketing materials to the performance and speak directly to the audience about their programs. One-third of the ticket sales go to the spotlighted organization, as well as a percentage of proceeds from food and drink sales at Natasha's Bistro. However, the project is about much more than that, Williams said.

"The important thing is the human resources we share and all the intangibles," she said. 

The initial performances have led to more substantive collaboration. For example, Balagula will join with the Carnegie Center for Literacy and Learning to offer a summer theater camp. Carnegie was a partner with Balagula for recent performances of The Woman in Black, along with the Kentucky Historical Society Foundation. Balagula is also talking with the Kentucky Historical Society Foundation about additional joint projects.  

Balagula aims for organizations with missions that directly link to the subject matter of the performances. For Marx in Soho last October, social justice and poverty-oriented groups were highlighted. The partnering groups included Seedleaf, Kentucky Environmental Foundation, the University of Kentucky and Bluegrass Community and Technical College Student Socialist Unions, Kentucky Jobs With Justice, Central Kentucky Housing and Homeless Initiative, and Kentuckians for the Commonwealth.   

Ryan Koch, executive director of Seedleaf, said they were flattered to be included and were glad for the fundraising help. "More importantly, though, was that this began a relationship for us where none existed previously," Koch said. "We look forward to partnering further on the restaurant side (by offering fresh Seedleaf produce) as well as the theater side. Natasha even offered to put on a cooking class featuring some long-keeping root vegetables, a staple of Russian food culture. We hope to take her up on this in 2011." 

The Balagula Theatre project is an innovative way to foster cooperation among nonprofits, to cross-pollinate audiences and to keep nonprofits visible. It couldn't come at a better time.  

More than half of all nonprofit groups in the United States experienced a drop in donations in 2009, and many continued to see lower donations in 2010, although giving seems to be slowly increasing again overall. Interestingly, this slight uptick in giving does not appear to be the case with wealthy donors. Charitable giving by wealthy households was down roughly 35 percent in 2009 and got even worse in 2010.  

Arts groups have been especially vulnerable. The National Arts Index 2010, an annual measure of the vitality of arts and culture in the United States compiled by Americans for the Arts, reached its lowest point in 2009 since its survey started 12 years ago. Declining attendance and losses in charitable giving have taken a toll on arts organizations, although the sector continues to grow amid a new emphasis on audience engagement and arts education.   

Fortunately for Kentucky arts groups, the climate has not been quite so difficult. There are fewer groups, and hence less competition for funds, than in many other areas of the country. Nevertheless, funding is still a challenge.  

Lori Meadows is the executive director of the Kentucky Arts Council, which provides operating support to 95 arts organizations throughout Kentucky. Meadows notes their grants have decreased due to the 28 percent cut in state appropriations that all state agencies have been subjected to. That represents a drop of slightly more than $1 million and takes them back to 1993 funding levels. However, Meadows said most of the arts organizations are weathering the storm and are doing so based on strong relationships with donors that preexisted the economic downturn. It has also helped that federal dollars through the National Endowment for the Arts are still available.  

Funding has remained largely constant for LexArts, according to James M. Clark, president and CEO.

"We have seen modest declines in revenues with some of our groups, but for the most part they are doing well in the midst of economic challenges," Clark said. "Most of the groups have scaled back expenses and developed programs that were more attractive to corporate sponsors."  

In this "new normal" economic reality for both businesses and nonprofit organizations, the collaborative effort of Balagula Theatre and its partners is smart. Fundraising is usually competitive, but this partnership seeks to change that and to strengthen giving by working together.  

If you would like to taste the next "collaborative soup," Balagula will present a March 16 benefit performance of Fabric, Flames and Fervor: Girls of the Triangle, an original play created and produced by "Looking For Lilith," a Louisville-based ensemble theatre. For reservations, call (859)259-2754 or visit beetnik.com.

Anne E. Nash, J.D., is a Lexington attorney and owner of My Giving Advisor, LLC.