Five Steps to Healthier Working Capital
A white paper written by Rebecca Thomas (Principal, Rebecca Thomas & Associates) and Zannie Voss (NCAR Director):
Has your organization ever been cash-strapped? If so, you know more than you may want to know about the importance of working capital. While few arts leaders wake up with excitement over working capital management, many lose sleep over it. They should. NCAR’s analysis shows that working capital hovers at precariously low levels for the majority of cultural organizations. For example, the overall average working capital for performing arts organizations, as well as for half of the museums, is fewer than two months. Moreover, working capital has decreased over the last three years. In this paper, we will address why liquidity matters, share findings on the working capital levels of arts and cultural organizations, and provide five steps to healthier working capital through savings strategies.
