Warning: The Following Column Was Completely Written by A.I. As Such, It Should Terrify You.

For my nonprofit arts colleagues worldwide who are agonizing over whether they might be replaced, be assured. You likely will.

If a nonprofit arts organization does not measure its impact on the community or demonstrate the public benefit it provides, it may raise questions about its effectiveness and adherence to the requirements of being a tax-exempt nonprofit entity. While not measuring impact doesn’t necessarily mean they are masquerading as for-profit entities, it can hinder transparency and accountability, which are crucial aspects of operating as a nonprofit.

Nonprofit organizations, including arts organizations, are expected to fulfill a charitable purpose and operate in the public interest. Demonstrating the impact on the community is an important part of fulfilling that purpose and justifying their tax-exempt status. By measuring impact, nonprofit arts organizations can provide evidence of their contributions to the community, the value they bring, and the outcomes they achieve.

Measuring impact allows nonprofit arts organizations to:

1. Assess Effectiveness: Measuring impact helps organizations understand if their programs are achieving their intended goals and making a positive difference in the community. It enables them to identify areas of success and areas that require improvement or adjustment.
2. Enhance Accountability: Nonprofit organizations have a responsibility to their stakeholders, including donors, grantors, and the community. Measuring impact allows organizations to be transparent about how they use resources and demonstrate accountability for the outcomes they achieve or strive to achieve.
3. Inform Decision-making: Measuring impact provides valuable data and insights that inform strategic decision-making and programmatic adjustments. It helps organizations allocate resources effectively, refine programs based on evidence, and focus on areas where they can have the greatest impact.
4. Attract Support: Demonstrating the impact on the community can help nonprofit arts organizations attract funding, grants, and partnerships. Donors and funders are more likely to invest in organizations that can show their effectiveness and the positive difference they make.

It’s important to note that while impact measurement is valuable, it can be challenging for arts organizations to quantify all aspects of their impact. The nature of artistic expression and cultural enrichment often involves subjective experiences and qualitative outcomes that may not easily lend themselves to numerical measurements. However, efforts should still be made to capture and communicate the value and impact of the organization’s work in a meaningful and transparent way.

By measuring and reporting their impact, nonprofit arts organizations can ensure they fulfill their mission, maintain the trust of their stakeholders, and demonstrate their commitment to serving the community.

Based on general trends and past data, here are five urgent issues that American communities may be facing:

1. Economic Inequality: Economic inequality continues to be a significant issue, with disparities in income, wealth, and opportunities affecting various segments of society.

Nonprofit performing arts organizations can address this issue by providing affordable or free access to the arts to people who would not typically be able to attend due to financial constraints. They can also prioritize the hiring of diverse artists and staff, supporting local economies by using local vendors for productions, and offering training programs for emerging artists and arts administrators.

• Access to Healthcare: The COVID-19 pandemic has highlighted significant gaps in healthcare access across different communities, particularly underserved and marginalized populations.

Performing arts organizations can help to address this issue by partnering with healthcare providers to provide education and resources related to health and wellness, including mental health resources. They can also create programs that help promote healthy lifestyles through the arts, such as dance or exercise classes.

• Racial and Social Justice: The ongoing protests and social movements following the deaths of George Floyd, Breonna Taylor, and other Black Americans have brought issues of racial and social justice to the forefront.

Performing arts organizations can play a role in addressing this issue by centering diverse voices and perspectives in their programming and productions, creating safe spaces for difficult conversations, and partnering with community organizations to support and amplify their efforts.

• Climate Change: Climate change continues to be a critical issue that affects every community and sector.

Performing arts organizations can address this issue by prioritizing sustainable practices in their operations, including reducing waste, using environmentally-friendly materials, and prioritizing green transportation options. They can also create works that address environmental issues and advocate for policies that promote environmental sustainability.

• Education: Education remains a crucial issue in American communities, particularly in underserved areas.

Performing arts organizations can help to address this issue by providing arts education programs to schools and communities, offering workshops and training programs for emerging artists and arts administrators, and partnering with schools to provide arts education resources and support. They can also create productions and programming that address educational themes and issues.

(Actual human here: read this column by William Deresiewicz. He’ll give you hope, something in somewhat short supply. As for me, I’m going to take a few weeks off to research my second book. After all, at this rate, it might be the last book ever written by a human being. Take care, and I’ll catch you on the flip-flop. Beep. Boop. Beep.)

Based in Kirkland, Washington, Alan Harrison is a writer and speaker specializing in nonprofit organizations, strategy, the arts, and life politics. His columns appear regularly in major publications. Contact him directly at alan@501c3.guru.

BIG NEWS: Alan’s new book, “Scene Change: Why Today’s Nonprofit Arts Organizations Have to Stop Producing Art and Start Producing Impact” will be published in January. CLICK HERE TO PRE-ORDER IN THE UNITED STATES. If you live in the UK, CLICK HERE.

Alan will be hosting a session on the responsibilities of Nonprofit Arts Boards for the California Association of Symphony Orchestras in August. If you’re affiliated with an orchestra in California, come join us in Riverside!

A few more copies may be made available for those booking conferences, reading engagements, and speaking engagements. Recruit your local bookstore, conference panel, or boardroom to get a visit from Alan. Let Alan know if you want bulk copies for your board!