Let’s call him Erik for now. As long as things are going well, nobody notices Erik. But sometimes things go wrong. Income drops, operations come under pressure, and suddenly Erik is in the spotlight.
You: How are we going to solve this?
Erik: I just do the bookkeeping; the rest is up to you.
You: But we don’t know anything about finances!
Many organizations do not make optimal use of the years of plenty. Everything is neatly budgeted, agreements are properly followed, and Erik keeps everything firmly under control. Fine, right? But has there also been investment in the future? Have plans been made for the longer term? Unfortunately, often not. And when, after seven years of plenty, the lean years arrive, the consequences hit hard.
Behind every plan is a strong budget
It would be great if organizations saw that there is a financial model beneath every project. In fact, finances are a lever for realizing your mission. Every organization deserves financial leadership: someone who understands the figures and can translate them into the substantive work. Someone who brings the team along with the numbers and ensures that finances become accessible to everyone, not just Erik. That way, employees don’t disengage at the sight of an Excel file, but instead help think about the future.
Finances do not have to be a black box at all. Imagine if every employee knew how his or her work contributes financially to the organization’s mission. Not by bombarding them with spreadsheets, but by turning the figures into stories and opportunities. A dashboard that shows your team how every euro spent creates value — that makes the difference. It makes finances not only understandable, but also inspiring.
Divide and conquer
Another crucial element is diversifying income. Too many organizations depend entirely on one or a few sources of funding. That may seem ideal, until one of those income sources disappears. And what about building reserves? Maintaining a buffer may not be sexy, but it makes a world of difference. It is a safety net when income falls, but also a springboard for launching new projects. Those who build a solid, varied financial foundation are building a sustainable future.
Organizations with financial leadership stand on firmer ground. They dare to invest in good times and anticipate less favorable times. And not only Erik, but the whole team understands how finances work. The result? An organization that not only survives, but flourishes. Sounds good, right? But does it also sound familiar?
Three challenges for your financial policy in 2026
- Explain your budget to your entire team. Make it visually appealing and present it at a summary level. Show trends over the years, show the relationships between different types of costs, and discuss the ambitions for 2025 and the following years. Make sure everyone understands the figures.
- Get on the digital train. By 2025, the digitization of financial processes and bookkeeping has reached a mature level. The tools work, are user-friendly, and save time. Many tools have also become scalable and affordable, so there is no longer any good reason for arts organizations, large or small, not to take steps in this area.
- Draw up an investment plan. Think consciously about the investments you want to make in the coming years and schedule them over time. Make use of your accumulated equity, your retained earnings. Dare to invest in the future, but also build buffers for setbacks. Look for a good balance between the two and, above all, do so consciously.
