If COVID taught us anything, it’s that small theatres need to be nimble. The next big challenge won’t be a mystery when it arrives – it’s already taking shape. As we head deeper into a politically volatile season, arts organizations are likely to face funding uncertainty, shifting policies, and economic strain on their audiences.
Theatre has always been deeply intertwined with the cultural and political landscape, and right now, that landscape is shifting fast. Some of these changes will be gradual; others will feel like overnight upheavals. Theatres that plan ahead don’t just survive disruption – they find ways to thrive in spite of it.
And let’s be real – many of you are still rebuilding from the last disruption. The idea of preparing for another one may feel overwhelming. But resilience isn’t about bracing for impact – it’s about creating the flexibility to navigate whatever comes next with more stability and less stress.
Here’s what we’ve learned and how small theatres can apply those lessons now.
Be Ready to Pivot
Theatres that adapted quickly during COVID – whether through live-streaming, smaller productions, or renegotiated leases – fared better than those that waited for “normal” to return. Political and economic disruptions will require that same agility and creative problem-solving.
What You Can Do: Take stock of what worked for you during COVID and what didn’t. What changes gave you more flexibility? What slowed you down? Being prepared doesn’t mean predicting the future – it means knowing how to respond when things shift.
Keep an eye on policy shifts that impact the arts. Whether it’s changes in government funding priorities, restrictions on artistic expression, or shifts in nonprofit regulations, staying informed means you can adjust before you’re forced to.
Run ‘What-If’ Scenarios
With a divisive election cycle ahead and economic uncertainty growing, small theatres need to prepare for the possibility of major funding and policy changes – but that’s not the only concern. Theatres are increasingly finding themselves at the center of political and cultural flashpoints.
What You Can Do: Run different financial scenarios. What would a 10%, 20%, or 30% funding cut mean for your organization? What steps could you take if ticket sales decline? Running these numbers now gives you the chance to adjust your strategy before a crisis hits.
Consider audience behavior changes. In past election years, many nonprofits saw dips in giving and attendance as donors and audiences shifted their focus to political causes. How will you keep your community engaged even as their attention is pulled elsewhere?
Prepare for public backlash, even if it’s unlikely. Protests, social media attacks, or unexpected controversy surrounding a production are no longer just issues for big organizations – they’re happening at the community theatre level, too. What would your theatre do if a performance unexpectedly became the target of political protests? If an advocacy group, political figure, or online movement decided to make an example of your work, do you have a plan to respond?
Think ahead: If your theatre stages work that could be seen as politically charged (even unintentionally), it’s worth having a plan in place. Who speaks for the organization? How do you protect artists and audiences? When do you engage, and when do you disengage? These conversations are much easier when they happen before a crisis, not in the middle of one.
Stay connected with other arts organizations and artists. No theatre should navigate these challenges alone. Having strong relationships within the arts community means better access to shared resources, collective advocacy efforts, and emotional support during tough times.
Looking for a space to connect and stay informed? We’ve launched a beta Discord community for small arts organizations to share insights, support, and strategies in real time. If you want to be part of the conversation, we’d love to have you join.
Strengthen Audience & Donor Relationships
A large, engaged donor base is more reliable than a few major funders when times get tough. It’s not just about financial support – it’s about building a community that’s invested in your theatre’s future, regardless of outside turbulence.
What You Can Do: Personal outreach matters more than ever. Take time to nurture relationships with your audience and supporters, not just through fundraising appeals but through meaningful engagement. Theatres that are deeply embedded in their communities will have the strongest support during times of instability.
Be prepared for a shifting funding landscape. As government budgets tighten and priorities change, private donors and corporate sponsors may become even more critical. If you haven’t diversified your funding base yet, now is the time.
Collaborate & Advocate
No theatre is an island. Small theatres can have a louder voice when they work together. Political shifts often affect the arts sector as a whole – whether it’s arts funding, free expression, or nonprofit regulations. Strengthening partnerships now can make advocacy efforts more effective when they’re needed most.
What You Can Do: Consider partnerships beyond your usual network. Could you co-produce a show? Share marketing resources? Support advocacy efforts for the arts in your region? Theatres that build strong connections now will have more support when they need it most.
Pay attention to policy proposals that could affect funding, tax incentives, or programming rights for arts organizations. If a policy change could harm the arts, speaking out before it’s implemented is crucial.
Save During the Good Times
One of the biggest factors that determined which theatres survived COVID? Cash reserves. Even if growth feels more exciting than saving, having a financial cushion is what will keep your organization stable in the long run.
What You Can Do: If setting aside large reserves feels impossible, start small. Even building a 1–3 month operating cushion over time can make a major difference. Think of it as an investment in your theatre’s future, not just an emergency fund.
With economic uncertainty ahead, having a financial buffer will be more important than ever. Even small savings now could make the difference between weathering the next challenge and making painful cuts.
The Big Picture
Theatre Facts 2023 makes it clear: Small theatres are still facing an uphill battle. And with political and economic shifts already unfolding, now is the time to take control of your financial future.
What can you do right now?
✔️ Be realistic about ticket revenue – Trends suggest another drop in discretionary spending, so plan conservatively.
✔️ Build a diverse mix of funding sources – Reduce reliance on one or two major revenue streams.
✔️ Invest in digital wisely – Make sure any hybrid programming or digital efforts align with audience demand and internal capacity.
✔️ Set aside cash reserves, even in small amounts – Future flexibility starts with financial breathing room.
✔️ Stay adaptable – Theatres that adjust quickly will always be in a stronger position.
✔️ Keep an eye on policy shifts – Arts funding, nonprofit regulations, and tax incentives may all be impacted in the coming year.
Theatres have always been a place for storytelling, resilience, and community. The next few years will test all of that – but by planning now, you’ll be ready for whatever comes next.