Guidelines: Organization Structural Change Grant

Coming out of the first year of the COVID-19 pandemic, Calgary Arts Development recognizes that the sector shut-down and health mandates have disproportionately impacted the arts sector and there will be difficult conversations taking place among board members and organizational leadership in the coming months.

The Organizational Structural Change (OSC) Grant is new in 2021 and the intent is that it is only available for one-year to support the transitions organizations will need to face in the coming year. Our research data indicates that there are some arts organizations that will not be financially viable due to loss of revenue, limited ability to adapt, and no reserves to support their ongoing work. There are costs to closures along with the need to preserve the artistic contributions and assets of the organization for the arts ecosystem.

Some of those changes and decisions will need to consider the organization’s place in the ecosystem and its financial and people capacity to continue operations. The pandemic provides an opportunity for some boards to consider different organizational changes specifically around mergers, strategic partnerships*, hibernations, and even organizational closure. The principles driving Calgary Arts Development’s reasons for creating this funding support are:

• To help art-centred non-profits in Calgary be prepared for the anticipated organization changes·
• To hospice with care any closures in our arts community.
• To ensure the contributions of the organizations are acknowledged and preserved.

*Please Note: Strategic partnership does not mean one-time project or collaborations. This support is focused on partnerships that shift the operating models and structures of the organizations involved.

These are not easy conversations but important ones. In the summer of 2020, more than 50% of Calgary’s arts organizations didn’t think they would make it operationally to the end of the year. Experts in the non-profit sectors are anticipating that these shifts may come in 2021.

Calgary Arts Development, along with other non-profit support organizations and arts funders, have been working together to offer support for non-profits who choose to close, merge or adapt their organization structure through alliances.

As part of that, the Muttart Foundation has published a couple of great guides for all boards to review in these times of transition whether or not your organization is considering organizational structural change.

• Restructuring & Insolvency Guidebook for Charities & Non-Profits
• It’s Time to Go

At Calgary Arts Development, we want to honour the work of organizations who choose to close their doors and that is what this OSC Grant seeks to do.

By walking alongside an organization either merging or closing, Calgary Arts Development will be a support and we know that dollars are required to understand the complexities of these decisions. For mergers, it is important that organizations are in a place of strength to merge. Mergers take an incredible number of resources to do well. This applies to closures as well because there are many financial and legal accountabilities that require financial capacity to do properly.

We also understand the need for confidentiality which is why the assessment and decision process for this grant will be done by Calgary Arts Development’s leadership team with consultation of our community investment team. We are willing to sign non-disclosures to ensure due diligence and sensitive matters are dealt with properly. The process will be one-size-fits-one to ensure each organization has the support and resources it needs for the specific situation.

Any non-profit arts organization in Calgary seriously considering the structural changes of merging, closure or strategic partnerships during the 2021 calendar year. It will be a rolling grant and focus on the needs requiring support during the three distinct phases of organizational change. The phases are as follows:

• Phase 1: Exploration: Grant up to $5,000 for organizations to start exploring the organization structural changes and possibilities for their organizations.
• Phase 2: Experience: Grant up to $15,000 for organizations to secure the expertise to help guide the steps towards the structural change and needs for them.
• Phase 3: Execution: Grant up to $20,000 for organizations that are in a memorandum of understanding stage and moving forward into mergers as well as those organizations in the final stages of closure.

All Calgary-based non-profit arts organizations regardless of their relationship with us can apply. Organizations can apply and receive a grant for each phase of their organizational structure journey depending on the outcomes and decisions at the end of each phase. Each grant provided can cover almost any expense related to the structural changes.

To start the conversation, please reach out to Melissa Tuplin, Interim Director, Community Investment, at melissa.tuplin@calgaryartsdevelopment.com to see how Calgary Arts Development can support your organization through any of the three phases that we are able to support.

Applications are accepted through the online grant interface. After your conversation with the director of community investment, you will receive access to the application.

As part of our responsibility to Calgarians to ensure equitable access to public funding, Calgary Arts Development is dedicated to addressing and working to eliminate institutional inequity in our programs, policies, and practices. We also acknowledge that our actions—both conscious and unconscious, past and present—have benefited some communities while limiting opportunities and outcomes for others.

Projects will be funded based on the following considerations:

Phase 1 – Exploration

• Articulated need and plan to begin exploration.

Phase 2 – Experience

• Demonstrated completion of initial conversations and board agreement to hiring expertise to support the process along with a clear plan/timeline forward.

Phase 3 – Execution

• Demonstration of final phase of mergers, closures or strategic partnerships. The agreements between partners are in place or a clear plan for closure is developed. The applicant has demonstrated a clear understanding of what is required to complete the structural change and a plan to execute it.

Applications to the OSC Grant will be reviewed by Calgary Arts Development’s leadership team as applications are submitted between February 8 and November 30, 2021.

To start the conversation, please reach out to Melissa Tuplin, Interim Director, Community Investment, at melissa.tuplin@calgaryartsdevelopment.com to see how Calgary Arts Development can support your organization through any of the three phases.

Applications are accepted through the online grant interface. After your conversation with the director of community investment, you will receive access to the application. If this is your first time applying to Calgary Arts Development you will need to create a profile from the login page. If you have any questions or need assistance in setting up a profile or creating an application, please contact grants@calgaryartsdevelopment.com.

We also understand the need for confidentiality which is why the assessment and decision process for this grant will be done by Calgary Arts Development’s leadership team with consultation of our community investment team. We are willing to sign non-disclosures to ensure due diligence and sensitive matters are dealt with properly.

The process will be one-size-fits-one to ensure each organization has the support and resources it needs for the specific situation.

This application may be submitted entirely in writing by providing the following information.

• Organization name (Lead organization for mergers or partnerships)
• Contact information (name, address, phone, email)
• Phase of structural change
• Funding request
• Description of current situation, reasons for requesting support, co-applicants involved if a merger or partnership, and work done to date (up to 6,000 characters).
• Proof that the board of directors support the structural change.
• Project plan for next steps, budget, and timeline.
• Most recent financial statements and current cash flow statements.
• Any other applicable support material (up to four additional files). If this is a merger or strategic partnership, demonstration of support and alignment will be required.

Applicants will be notified of their results by email. Successful applicants will be required to sign and return an investment agreement within 30 days after receiving notification of success in order to receive funding.

• Describe your experience of completing the phase for which your organization received funding. What were the outcomes? What were learnings that could be shared to the sector?
• Optional: Additional comments you would like to share with Calgary Arts Development (4,000 characters maximum).
• Optional: Please share any materials that resulted from your activities, such as images, website links, video or audio material, written samples, etc. (up to four upload fields, maximum 3MB each, video and audio material should be provided as a link).

Successful applicants may also be asked to participate in optional surveys, research, and peer-to-peer learning.