FULL TRANSCRIPT OF THE PODCAST

In today’s post, we’re tackling a challenge that’s getting more urgent by the year: How do arts organizations grow fundraising and ensure long-term sustainability when expenses are rising faster than earned revenue growth?

The reality is this—as expense budgets increase, arts organizations become more dependent on their donors and grantors for fiscal sustainability. And here’s the kicker: in general, fewer people are visiting our stalwart arts institutions—our orchestras, opera companies, dance companies, museums, and theaters. So, how do we close that funding gap? And perhaps more importantly, how do we attract donors who may not be consumers but still believe in the value of the arts as part of the community fabric?

That’s what we’re digging into today. So, if you’re in fundraising, leadership, or marketing in the arts world, today is for you.

THE CHALLENGE: Rising costs, declining audiences

Alright, let’s lay out the problem clearly. Arts organizations are facing a few concurrent pressures:

1. Expense budgets are rising. Inflation, rising labor costs, increased marketing expenses, and expanding outreach efforts all mean it costs more to put on the same performance or exhibit than five or ten years ago.

2. Traditional audience and membership numbers are declining. This isn’t just a blip—it’s a trend. Over the last decade, and even if your participation is strong, attracting consumers to the arts is getting more difficult and more expensive. Fewer people are subscribing to season packages, fewer people are making the arts a core part of their social lives, and competition for attention is fierce.

3. The byproduct is that earned revenue isn't keeping up with expense growth. If you’ve been in this field long enough, you know that ticket sales, memberships, and concessions used to cover a much bigger portion of operating budgets. Today? Not even close. The earned revenue percentage has shrunk while the need for contributed revenue has skyrocketed.

4. Philanthropy doesn’t always grow fast enough to fill the gap. While donor contributions are still strong in many markets, they’re not scaling at the rate necessary to meet rising costs. And as generational wealth shifts, new potential donors aren’t necessarily stepping in at the necessary levels.

Scared yet? Probably not, because if you are in arts leadership, you deal with these realities daily. So, what do we do about it? If people aren’t coming through the doors in the numbers we need, but we still need them to be invested in our success, how do we make it happen, and where do we find new donors year after year?

At RSC, we realize that’s where expanding our donor base beyond personal consumers becomes essential. And while the ideas I’m about to present aren’t a replacement for consumers who give, perhaps it’ll stir some ideas as you look to broaden your donor pyramid.

THE SOLUTION: Attracting donors who believe in the arts but may not attend

Let’s go there…What can arts organizations do to attract donors who may not be consumers of the art, but who believe in supporting institutions that strengthen their communities?

Here are five possibilities:

1. Stop Leading with the Art—Start Leading with the Impact

For decades, arts organizations have fundraised by focusing on the art itself. And while that works for existing patrons, it doesn’t necessarily resonate with potential donors who don’t attend performances, exhibits, or classes.

Instead, lead with the impact. You’re a high-value organization—act like it. How does your organization shape the cultural and educational landscape of your city? How many students do you serve? How do you contribute to the economy? Frame your case around why your institution matters beyond just the stage or gallery. Think in terms of “value” statements to build that case.

2. Build a Case for Community Investment

Here’s something that doesn’t get talked about enough: many civic-minded donors and corporate funders aren’t looking to support the arts—they’re looking to support their community.

If your organization can position itself as an economic driver, an educational partner, a community bridge-builder, you’ll tap into funding that goes beyond traditional arts philanthropy.

Think about it this way: if your organization folded tomorrow, what would your city lose beyond music? That’s part of the message to focus on. Not in a negative way, but again, positioned as “valued.”

3. Tap into Corporate and Non-Traditional Philanthropy

Historically, corporate sponsorships for the arts have been tied to hospitality perks—premium seating, VIP receptions, branding on program books. But as audience numbers decline, that value proposition weakens.

Instead, think of corporations as “people,” especially small businesses. In this way, you can position corporate sponsors on the broader impact of supporting the arts: workforce development, civic pride, economic growth, employee satisfaction. Shift the conversation from “How many people will see my logo?” to “How does this investment make our city (and your employees) better?”

Additionally, consider partnerships with foundations or non-arts funders who care about the community benefits of arts institutions—education, access, and opportunity.

4. Re-imagine Major Donor Engagement

For too long, major gift fundraising in the arts has focused on wooing patrons who are already deeply engaged. And while that’s a valuable and necessary strategy, there’s a whole other group of high-net-worth individuals who don’t attend but still care about the arts existing in their city.

How do you reach them? By treating them like community investors rather than audience members or visitors. Instead of inviting them to events, invite them to roundtable discussions on civic engagement. Instead of gala invitations, invite them to exclusive behind-the-scenes looks at how their gift impacts the next generation.

Meet them where they are, not where you want them to be.

5. Fundraising and Marketing: A United Front

Marketing and fundraising need to stop operating in silos. If you want to build a donor pipeline, your messaging needs to reach beyond just ticket buyers or visitors.

That means using digital ads, email campaigns, and social media not just to sell tickets, but to tell the story of why your organization matters. Philanthropy messaging should be baked into your public communications, not hidden in donor newsletters.

If you remember just one thing from today’s podcast, make it this…

Fundraising success in the coming decade won’t come from chasing a shrinking consumer base. It will come from inviting new people into the story. Donors don’t have to be attendees. They just have to believe that your organization matters in ways that are important to the community. Show them why, and they’ll invest in your success.