The American theatre industry, particularly the nonprofit sector, has long been a space where crisis and innovation coexist, especially in times of major societal disruptions. Over the past few years, theatre organizations have faced unprecedented challenges, primarily brought on by the Covid-19 pandemic, which also led to significant turnover within the workforce. As the world entered lockdowns and social distancing measures, theatres were forced to close their doors and conduct business remotely, sparking predictable debates about the sustainability of the business model.
The debate rages on, even years after the end of lockdowns. So: Is nonprofit theatre in crisis, or is it simply evolving to meet its new realities with more urgency? The answer is more complex than a simple yes or no.
At the heart of the nonprofit theatre sector’s struggles lies the fundamental question of survival. While many organizations faced significant layoffs and institutional pauses during and since the pandemic, a surprising number of theatres are weathering the crisis, continuing to produce shows and retain audiences, albeit under drastically changed conditions.
But this survival has often come at significant cost. The industry has been forced to confront multiple challenges in its business model and culture, including increased reliance on individual philanthropy, reclaiming audiences, talent retention via remote work incentives, and the ongoing tension between mission-driven values and the financial realities of operation.
As the cost of theatre production has steadily increased, philanthropic support has become even more essential to realize and sustain artistry that keeps audiences engaged. While many theatres have adapted by prioritizing new strategies for fundraising and operational efficiency, the philanthropic landscape is not as stable as it once was. Today’s swiftly fluctuating economy and the shifting priorities of foundations, corporations, and government funding sources have made it more difficult for theatres to rely on traditional revenue streams. Theatres have responded by diversifying their income sources, cultivating relationships with individual donors, and developing cost-sharing/co-producing partnerships with other organizations. The reduction of productions, as well as great reductions and compression in the workforce, have become necessary for many organizations to recover in a meaningful way. Others have turned to presenting models to leverage ready-made art to mitigate the labor and risk that undertaking an entirely new production requires.
The short tenure of some of these highly anticipated new hires—many having served less than three full seasons in leadership before resigning—has not gone unnoticed.
Theatres are also interrogating the tension between the business model and an imperative to promote greater accessibility through affordability. Managers are grappling with the common perception that lowering ticket prices automatically increases buy-in and that higher ticket prices are the main barrier to attendance. While the goal of reaching a broader, more diverse audience is often held as a shared ambition amongst theatre leaders, some leaders are conducting active risk analysis on what the market will bear when it comes to raising ticket prices to mitigate operational costs. Even these measures are not always sufficient to ensure long-term financial sustainability.
Despite these challenges, the number of nonprofit theatres announcing upcoming seasons has remained relatively steady, indicating that the sector is not as fragile as some might fear. In fact, many theatres have seen audiences return with renewed energy, especially in the wake of the pandemic’s worst years, when masking and social distancing inhibited comfort and capacity for human interaction. These audiences are motivated not only by familiar titles in a season brochure, but also by the sight of new faces in theatre leadership.
Perhaps most intriguing in this shifting landscape is the ongoing evolution of leadership and change management within many theatrical organizations. The nonprofit theatre sector has experienced a widespread and significant shift in leadership roles, with more women and people of the global majority rising to top executive positions. This change has been accompanied by a broader reckoning within the industry, as movements such as We See You, White American Theater have called for increased accountability and a reexamination of the industry’s entrenched practices and assumptions about race and equity.
This shift in leadership has not been without its challenges. While new leaders bring fresh perspectives and a commitment to inclusivity, they also face the difficult task of navigating organizations in significant transition. For many institutions, this has meant grappling with the departures of long-standing staff and board members who upheld traditional standards of success. And the short tenure of some of these highly anticipated new hires—many having served less than three full seasons in leadership before resigning—has not gone unnoticed.
Despite these prevailing challenges, many theatres are continuing to sustain and thrive, thanks in no small part to the resilience and discernment of new leadership, tenacious staff, and the consistent support of dedicated foundations and donors.
In times of crisis, the worst mistake one can make is failing to recognize that a crisis is occurring.
The nonprofit theatre business model has long been criticized as “broken,” and the desire for innovation has grown more urgent. Calls for fresh ideas and new revenue streams have been echoing for years, but they have not always been answered. While there has been no shortage of plays being produced, the broader question remains: What does it take to sustain the theatre in a rapidly changing world?
The answer may lie in the ability to embrace change without losing sight of the core values that define nonprofit theatre. The key to survival may not lie solely in finding new ways to raise money or streamline operations, but in recognizing the deep-rooted value of theatre itself. The live theatre experience offers something that other art forms cannot: a communal, ephemeral event that sparks conversation, fosters empathy, and transcends the boundaries of time and place. Nonprofit theatres must continue to find ways to preserve this unique art form while bringing in as many communities as possible and adapting to new economic and social realities.
In times of crisis, the worst mistake one can make is failing to recognize that a crisis is occurring. The nonprofit theatre industry has faced significant challenges in recent years, but it has also demonstrated remarkable resilience and adaptability to navigate a path to recovery. Whether in crisis or evolution, the nonprofit theatre sector will continue to thrive as long as it remains committed to the values of artistic expression, community engagement, and lasting social impact.
The road ahead will be difficult. But through collective action among the sector’s most engaged leaders and philanthropic entities, and a shared commitment to sustaining the core mission of creating transformative theatrical experiences with and for community, some of our nonprofit theatres can emerge from this crisis stronger than ever, determined to stage another day.
Kelvin Dinkins Jr. (he/him) is executive director of American Repertory Theater.
