Nonprofit theaters across the United States are facing a financial crisis as attendance levels continue to lag behind pre-pandemic levels. Major organizations such as Center Theatre Group in Los Angeles and The Public Theater in New York have announced layoffs and budget cuts in response to the ongoing challenges. Even well-known theaters like the Oregon Shakespeare Festival, Lookingglass Theatre Company, and the Brooklyn Academy of Music have had to implement cost-cutting measures and launch large-scale fundraising campaigns.
The decline in attendance is a major concern for theaters, as they heavily rely on ticket sales as part of their financial model. Rising costs, including inflation and labor shortages, have further exacerbated the situation. While some theaters have employed dynamic ticket pricing, they also strive to provide accessible ticket prices for the community, which limits their ability to keep up with rising costs. Many theaters had been able to sustain themselves in previous years through government funding programs like the Shuttered Venue Operators Grant and the Paycheck Protection Program, but these funds have now run out.
CEO Meghan Pressman of Center Theatre Group believes that larger theaters have been able to reduce programming and make cuts to mitigate losses for now. However, smaller and mid-sized theaters are struggling and have resorted to fundraising campaigns to stay afloat. The Oregon Shakespeare Festival, for example, has faced rising costs, supply chain delays, and labor shortages. The theater has already launched several fundraising campaigns and is now seeking to raise at least $12 million to $13 million for its 2024 season.
One potential solution that has been proposed is seeking federal government assistance through increased funding for the National Endowment for the Arts. Nonprofit theaters hope that increased grants from the federal government could provide the necessary support to navigate the current crisis. A group of over 100 nonprofit theaters formed the Professional Non-Profit Theater Coalition during the pandemic to advocate for inclusion in government relief programs. They have continued to meet with lawmakers to build relationships and secure support for the theater industry.
Nonprofit theaters are calling for additional funding, particularly for organizations that have traditionally received less outreach, such as theaters led by people of color. With the appointment of Snehal Desai as the new artistic director of Center Theatre Group, there is hope that innovative approaches and programming could help revitalize the industry. The Pasadena Playhouse, recipient of the 2023 Regional Theatre Tony Award, had success with a Sondheim celebration, but even with increased fundraising, ticket sales fell short of expectations.
Nonprofit leaders warn that without a new model for producing theater and additional financial support, many more theaters may face a similar fate. The theater industry is looking for solutions to navigate the changed landscape and calling for government assistance to help sustain the art form.