Capitalization, Scale & Investment: Does Growth Equal Gain?

A Study of Philadelphia's Arts and Culture Sector, 2007 - 2011

In this follow-up study to the groundbreaking Getting Beyond Breakeven, the William Penn Foundation engaged TDC to conduct a financial analysis of a sample of arts and culture organizations in Greater Philadelphia, looking closely at any change over time and the effect of growth on organizations’ financial health. The study found that while financial weakness remains a challenge for organizations, the context in which they are operating has changed: competition has increased and the markets for audience and philanthropic support are rapidly shifting. Furthermore, this report confronts the fact that in the absence of other metrics for success, many organizations have chased growth and grown weaker as a result.

This report was previewed with funders at the 2014 Grantmakers in the Arts conference, and officially released on February 9, 2015 at a convening of Philadelphia arts organizations with the William Penn Foundation.