Esperanza Castellanos English 104 Research Paper Final Draft 12/09/13 Nonprofit theatres have been around since

the beginning of the 19th century (Cryer, 2008). According to DeCicco, (2013), a nonprofit organization is an organization that is mission driven, or goal driven, meaning that the company has a goal other than to gain profit that they are trying to accomplish. Nonprofit theatre companies are also mission driven because they are nonprofit organizations. A few examples of some nonprofit theatre companies are The Goodman Theatre, The Metropolitan Opera, Steppenwolf Theatre Company, and Childrens Community Theatre. Some people agree that nonprofit theatre companies can more positively affect a community compared to professional theatres. One argument against nonprofit theatre companies is that their audiences have been decreasing (Novick, 2011). Another debate is that there is not enough funding for theatre nonprofit companies (Novick, 2011). I disagree with these arguments because theatre nonprofits play a significant role in positively affecting communities. Nonprofit theatre companies are better for communities than professional theatres and when an organization is beneficial then attendance and funding will be provided from the local audiences. A nonprofit theatre company is mission driven, which means they have a specific goal; sometimes their goal is to show plays to everyone in a community (DeCicco, 2013). Since nonprofits are formed because of a vision that people have, their focus is specifically on accomplishing that mission. The mission is what divides a nonprofit theatre company from a professional theatre company. Cherbo (1998) states, nonprofit producers are more missiondriven, concerned with artistic excellence and innovation. Professional theaters are geared

towards making a profit for their investors; these theatres select their shows by focusing on the bottom line and their concern is on artistic merit and entertainment value. (Cherbo, 1998) In the 19th century, when nonprofit theatre companies began, these theatre companies were only for people in the upper class (Cryer, 2008). Then in the 1960s, the nonprofit theatre began to expand to broader audiences (Cryer, 2008). Commercial Theatres and not-for-profit theatres have interacted with one another throughout the 19th century. Cherbo (1998) cites from Bain and Company 1997 that until the 1960s, Broadway was the originator of over 60 percent of all new plays and musicals. After this period, Cherbo (1998) also states that, a down cycle in the industry caused Broadway producers to begin shopping for new properties in the not-forprofit arena and trying potential commercial properties in the not-for-profit regional system-- a pattern that has continued. During the 19th century, Broadway produced new plays and musicals but once they had a downfall in the industry Broadway had to begin looking for new ideas which lead it to look into the not-for-profit theatres industry. According to Cryer (2008), nonprofit theatre companies are a part of a large sector, which are nonprofit organizations. Philanthropists with a specific vision helped build the arts sector in nonprofits (Cryer, 2008). Theatre nonprofits fall under a subsector, which is called art, culture and humanities. There are five categories within the arts, culture, and humanities subsector: museums, venues, performance groups, governing bodies, and distribution channels (Cryer, 2008). Theatre nonprofit companies fall under the third category which is performance groups (Cryer, 2008). Some of the other nonprofit performance groups that also fall under this category are dance companies, orchestras, symphonies, and bands (Cryer, 2008). A few philanthropists who began theatre nonprofits include Paul Mellon who funded, National Gallery of Art, and William Vanderbilt, which funded the Metropolitan Opera (Cryer,

2008). In the 1950s, not-for-profit theaters expanded throughout the United States with the founding of the Arena Stage in Washington, D.C., the Milwaukee Repertory Theatre, the Alley Theatre in Houston, and the Cleveland Playhouse (Cherbo, 1998). These nonprofit theatres were improved with money from the Ford Foundation and the National Endowment for the Arts, the financial support of these corporations led nonprofit theatres to flourish (Cherbo, 1998). In 1965, the federal government established The National Endowment for the Arts (NEA). The NEA is the largest annual funder of the arts in the United States, its mission includes making the arts accessible to people outside of major cities (Cryer, 2008). NEA has helped other nonprofit organizations in the arts sector begin by providing funding (Cryer, 2008). Some organizations NEA has helped include: the Sundance Film Festival, Steppenwolf Theatre Company, and Minnesota Public Radios A Prairie Home Companion (Cryer, 2008). Cherbo (1998), states that there are hundreds of not-for-profit theaters in the American landscape today cited from Zeigler (1973). The growth of the arts sector allowed more people to participate in art, but it also began a controversy about the purpose of public art (Cryer, 2008). An event that led some citizens to object the NEA-funded artists was when Robert Mapplethorpes photographs of male nudes were presented during the AIDS crisis (Cryer, 2008). Cryer (2008), states that Mapplethorpes exposed photographs led to a controversy between citizens because some citizens viewed them as pieces of art with social significance and other citizens viewed them as obscene (Cryer, 2008). The National Endowment for the Arts is a main funding resource for all art organizations; but city and state governments also contribute along with businesses, small-dollar donors, and families (Cryer, 2008). According to Cryer (2008), the NEA was able to distribute $162 million to art organizations up until 1995; then in 1996 the government cut the NEAs funding due to the

controversy that arose between citizens about Mapplethorpes photographs. Funding for the NEA was cut to $99.5 million and the government continued to cut funding until 2000 (Cryer, 2008). Fortunately, funding has increased since 2001 and in 2007 funding increased to $124.5 million (Cryer, 2008). Nonprofits acquire income through grants from the government or through supporting foundations. Nonprofit theatres can also get funding by accepting donations, selling tickets for admission, selling concessions, selling merchandise, or through contracts (DeCicco, 2013). In addition to the limited ways they acquire income, a nonprofit has to be transparent, which means they need to provide information that shows sponsors, donors, contractors, and the government how the money they have invested in this nonprofit is being used (DeCicco, 2013). According to DeCicco (2013), there are three financial reportings in nonprofits: reporting to funders and grantors, reporting to the public, and reporting to the government. Making financial information available to the public enhances transparency and shows accountability to donors, and this may help attract new donors (DeCicco, 2013). A nonprofit is tax exempt, meaning it does not pay any taxes; nonprofits have to fill out 990 forms in order to make sure the nonprofit can be reported as tax exempt (DeCicco, 2013). Furthermore, each nonprofit theatre company has its own specific mission statement which makes it unique and suits its community. The mission of one well-known theatre nonprofit, the Goodman Theatre, is: [that] [it] dedicates itself to three guiding principles -quality, diversity, and community-- seeking to be the premier cultural organization in Chicago, providing productions and programs that contribute to the quality of life in the city of Chicago (Mission Statement, n.d). In DeKalb, the mission of another nonprofit theatre company, Childrens Community theatre, focuses more on developing interest in dramatic arts among

people of all ages, specifically children and young adults. They seek the creative expression of the arts and encouragement and appreciation of participation from the community in the theatres activities (About Us, n.d.). Although these are two nonprofit theatre companies they both have a different mission statement and they each positively affect their communities in different ways. The arguments stating that audiences for nonprofit theatre companies are decreasing are true. The audiences for nonprofit theatre companies have decreased and some theatres do not sell out all of their seats. One way this issue can be resolved is by promoting the productions more effectively. Americans now live in a world filled with technology and most people get informed about different events through the internet. By promoting productions on internet sites, such as Face book, more people will know about productions and attend them. The nonprofit theatre companies can also promote themselves by informing local schools and other nonprofit organizations in the community. They can get their actors and people who volunteer for the nonprofit to promote to their families and friends. It is possible for the audiences to grow but the important factor is the way the nonprofit theatre company promotes itself. Another argument is that there is not enough funding for nonprofit theatre companies and this relates with the argument about small audiences. It is true sometimes that there is not a lot of funding, but this issue can be fixed with the promotion of the productions. By promoting the productions, more people will become aware of the shows and will attend them which means they will each pay at the entrance. One alternative is to try to find different career paths in theatre in order to leave a path open for future artists (Novick, 2011). An alternative career path that the article suggests is using the performers with administrative skills to also run other jobs in the company, while making sure they are getting paid well (Novick, 2011). The article discusses the

importance of keeping a core group and using them with all of the abilities that they can provide for the company, which will benefit the company (Novick, 2013). By keeping a core group and using the members in the group in various ways, the company saves money and helps the members further develop their skills. Since nonprofits theatres make money through selling tickets for admission, concessions, and accepting donations, promoting themselves will help them earn more profit during show times (DeCicco, 2013). Through better promotion and selling admissions tickets, the nonprofit theatre company will be able to get funding. Because nonprofits theatres also obtain money through grants from the government or foundations they can count on various forms to obtain funding (DeCicco, 2013). Other ways nonprofit theatres rely on to obtain funding are through selling merchandise, and charging membership fees (DeCicco, 2013). A nonprofit has to be transparent so people who invest money into the company always know where it is going (DeCicco, 2013). This results in many possible ways for theatre nonprofits to obtain money in order to continue providing their services. Promoting well will also result in an increase in attendance, income, and nonprofits will be able to help a community. Communities benefit from nonprofit theatre companies more than they do from professional theatres. Professional theatres and nonprofit theatres each bring something different to a community. Although a professional theatres main goal is to make a profit, they are still using theatrical art, which is important for audiences in society to see. Every director, owner, and performer has a different mission in mind, and that person is free to accomplish his/her own goals. Essentially, theatre is theatre, but the way that nonprofits can help a community through theatre is something to admire. For that reason, theatre nonprofits are more beneficial to a community than a professional theatre.

In the article The Profit in Nonprofit by Zelda Fichandler, she discusses how profit theatres and nonprofit theatres both desire to show talent and art. Fichandler says a nonprofit theatre desires a profit of social nature and a profit that is earned from examination of reality by means of theatrical art. Overall, both theatres show art to an audience. However, a nonprofit does not only desire to show talent it also desires to help people involved in their theatre, the essential nature of art, without being blinded with the intention to only gain profit (Fichandler, n.d.). Although both of these theatres are different from one another they need each other to enhance the differences between them. Not-for-profit theatres are more focused on their mission, while commercial theatres are focused on the profit that they make. If either theatre did not exist, than their distinctions would not be notable or what they each have to offer the nation. Because nonprofit theatres and professional theatres both exist then the audiences can choose which theatre they support, depending on what they are interested in. If a family is interested in only getting entertainment then they would go to a commercial theatre. If a family would like to help out its community and get entertained then they would choose going to a not-for-profit. Also, not-for-profit tickets are more affordable to low income families, than tickets for commercial theatres. Professional theatre companies do not have mission statements, but they still have goals. Essentially a professional theatre companys goal is to make profit. In order to make profit, professional theatres work on building their reputation by focusing on producing top notch shows. One professional theatre in Chicago called Broadway in Chicago states, Broadway in Chicago brings the best entertainment to the heart of Chicagos Downtown Theatre District (Broadway in Chicago, n.d.). Through this statement, Broadway in Chicago demonstrates their

reputation by stating that this business brings the best entertainment to Chicago. Professional theatre companies are important to the private sector in America. All professional theatres like Broadway in Chicago are important because they provide money for the government through taxes because unlike nonprofits, for-profits are not tax exempt. Professional theatres focus on producing bottom line shows to please the public. Broadway in Chicago states, [they] [are] best known for attracting pre-Broadway productions, highlights of those include The Producers, The Addams Family, Wicked, Disneys The Lion King, and Billy Elliot the Musical (Who is Broadway in Chicago, n.d.). Since professional theatres produce high quality and high demanded shows the ticket prices can range up to $100 or more per ticket. Fortunately, citizens in Chicago and other areas are able to support professional theatres and help keep these businesses running, because they are important for our economy. Mayor Daley states on behalf of Broadway in Chicago, Broadway in Chicago is a leader in the Downtown Theatre District, and an economic engine that will keep our downtown alive and full of energy for years to come (Who is Broadway in Chicago, n.d.). Daleys statement clearly states the importance of professional theatre companies for the economy of a city. Every community needs something different; therefore, each nonprofit theatre company must meet the requirements that each community needs. In the Childrens Community Theatre in DeKalb, it is noticeable how the nonprofit theatre focuses on helping the people involved in its theatre through its specific program called the Penguin Project; this project is specifically for children ages 10-22 with disabilities. The project allows children with disabilities to perform in plays. Each child is teamed up with a mentor who memorizes all of the childs lines and is basically the childs twin. The mentor is with the disabled child throughout the entire play and is by the childs side telling him/her what to do or his/her lines in case he/she forgets them (The

Penguin Project). This nonprofit theatre company benefits the city of DeKalb because it gives opportunities for people with disabilities to be a part of something in the community with many other people. It has become a comfortable place, where the children are encouraged to explore their creativity and are supported in what they do (Impact of project). Not only does the penguin project give children with disabilities an opportunity to be in a play, it also brings parents the joy of sitting in an audience to watch their children perform and succeed in ways they could have not imagined (Impact of project, n.d.). The parents meet other parents, not to lobby for rights and services, but instead to share something encouraging and uplifting with their children as well (Impact of project, n.d.). All of these examples show how a community can benefit from a nonprofit theatre company. A nonprofit theatre company can meet the need that the community cannot obtain. When a nonprofit theatre company can meet a need then its community will support it, because it is benefitting the community. Overall, nonprofits are mission driven and this mission is what motivates everyone in the company (DeCicco, 2013). Nonprofit theatre companies focus on publishing art and using art to serve communities as best as they can. Nonprofit workers do receive a paycheck and do not work for free but their motivation is not to obtain money (DeCicco, 2013). Theatre nonprofits are a subsector, which is a part of the large sector which is nonprofits (DeCicco, 2013). Since theatre nonprofits are consistently growing they are important to the economy. Although people have various views on whether theatre nonprofits should be formed, there are also people in the theatre nonprofits working on ways to create open doors for the future artists (Novick, 2011). Nonprofits benefit communities better than profit theatre companies, as exemplified in DeKalb with the penguin project. Professional theatre companies like Broadway in Chicago, positively affect communities economy, but do not focus on meeting special needs. These theatres instead

focus on artists talents and entertainment; they are not able to meet the needs of a community like nonprofits can. Professional theatres focus on making money, not helping the community members be more involved with the community. While nonprofit theatre companies affect communities more positively by focusing on building community engagement and meeting the need that the community is missing.

References: About Us. (n.d.). About us. Retrieved from http://www.cctonstage.com/aboutus.html Who is Broadway in Chicago. (n.d.). Broadway in Chicago. Retrieved from http://www.broadwayinchicago.com/theatreinfo_whois.php Broadway in Chicago. (n.d.). Broadway in Chicago. Retrieved from http://www.broadwayinchicago.com/shows_dyn.php?cmd=display_arch_welcome Cryer, S. (2008). The nonprofit career guide: How to land a job that makes a difference. Saint Paul, MN: Fieldstone Alliance Novick, R. (2011). Please dont start a theatre company next-generation art institutions and alternative career paths. Grant makers in the Arts. Retrieved from http://www.giarts.org/article/please-dont-start-theater-company Mission Statement. (n.d.). About the Goodman. Retrieved from http://www.goodmantheatre.org/about/ About Us. (n.d.). About us. Retrieved from http://www.cctonstage.com/aboutus.html The Penguin Project. (n.d.). Retrieved from http://www.cctonstage.com/penguin_project/faq.html Impact of Project. (n.d.). Retrieved from http://www.penguinproject.org/impact.html Fichandler, Z. (n.d.). The profit in nonprofit. Retrieved from https://mailattachment.googleusercontent.com/attachment/u/0/?ui=2&ik=388fb1a6d3&view=att&th =14137a8e46ff9331&attid=0.1&disp=inline&safe=1&zw&saduie=AG9B_P8h-

KnDvTEHiYL2UbkUEMYG&sadet=1383920985241&sads=B4PvZ0nwTqDmvHzv4_b GoM3NGW0&sadssc=1 DeCicco, S. (2013, September). Financial Reportings and 990 Forms. Community Leadership and Civic Engagement 100. Lecture conducted from Northern Illinois University, DeKalb, IL. DeCicco, S. (2013, August). What is a Nonprofit Organization. Community Leadership and Civic Engagement 100. Lecture conducted from Northern Illinois University, DeKalb, IL. DeCicco, S. (2013, October). Arts, Culture, and Humanities. Community Leadership and Civic Engagement 100. Lecture conducted from Northern Illinois University, DeKalb, IL. Cherbo, M. J., (1998). Creative Synergy: Commercial and Not-for-Profit Live Theater in America. Journal of Arts Management, Law & Society, 28(2), 129. Retrieved from https://arted.osu.edu/sites/arted.osu.edu/files/paper3.pdf