Funding the Extraordinary: An Evaluation of The Kresge Foundation Arts and Culture Program's Institutional Capitalization Grantmaking

Abstract

In undertaking an assessment of Kresge's Capitalization Program, NFF applied its own high-level framework to help answer Kresge's primary research questions and assess the progress of each grantee in meeting its stated capital targets. NFF has found that effective capitalization in the nonprofit sector requires attention to three key financial priorities: liquidity, adaptability and durability:1. Liquidity: Does the organization have adequate cash to meet its operating needs?2. Adaptability: Does the organization have flexible funds that allow it to make adjustments as circumstances change?3. Durability: Does the organization have sufficient resources to address the range of needs that it may face in future years?NFF's review of Kresge's grantees sought to assess capitalization by looking for evidence of organizational progress in building liquid funds for immediate operating needs, as well as longer-term balance sheet savings for adaptability and durability. NFF's evaluation of grantees involved a combination of data analysis and interviews