July 8, 2020
Idaho, Oregon, Washington: Creative Borrowing Webinar
The COVID-19 pandemic has presented arts organizations with unprecedented financial challenges. Their primary sources of income—program earnings and contributions—are likely strained or delayed, and their ability to fundraise has been limited. ArtsWA, the Idaho Commission on the Arts and the Oregon Arts Commission recently partnered to present a webinar, Creative Borrowing for Your COVID-19 Comeback, that discussed how nonprofit organizations can use fully secured borrowing to help them through a financial crisis.
Fully secured borrowing is a creative cash flow stabilization strategy that uses relationships an arts organization already has (supporters such as audience members, donors and volunteers) to provide credit collateral. Supporters, known as credit holders, park funds in a certificate of deposit, which allows many modest amounts to aggregate into a significant sum. This collateral can then be used by arts organizations to apply for secured loans through their local bank. The credit holders get their funds back once the certificate of deposit matures.
During the webinar explaining fully secured borrowing, Richard Linzer of Linzer Consulting presented an overview of this powerful financial tool. Irene Namkung, former board chair for Northwest Folklife Festival, and Stuart Weiser, Idaho Commission on the Arts deputy director and former manager of the Eugene Symphony Orchestra, shared examples of how their organizations used fully secured borrowing to manage their financial crises and ultimately become stronger, more resilient organizations. The webinar was attended by nonprofit arts organizations in all three western states. The session was also live-streamed on TVW, Washington’s public affairs television network. Webinar resources include a recording of the session, slides, and a manual that complements the webinar and further explains the concept. For more information, contact ArtsWA Executive Director Karen Hanan.
In this Issue
From the President and CEO
State to State
- Connecticut: Artists Respond Grant Program
- South Dakota: Residencies for Recovery
- Idaho, Oregon, Washington: Creative Borrowing Webinar
The Research Digest
Announcements and Resources
More Notes from NASAASubscribe
To receive information regarding updates to our newslettter. Please fill out the form below.