Theater nonprofits across the United States are rapidly adjusting their operations in the face of uncertain federal funding.
The Minnesota Fringe Festival lost federal grants designated for 2026, resulting in a $60,000 shortfall in its budget. This development has led the organization to pursue new revenue streams, including heightened outreach to individual donors and the introduction of year-round initiatives such as equipment rentals to smaller theaters.
Executive Director Dawn Bentley explained the challenges of timing changes for a festival and the value of diversifying beyond the main event.
"As a festival, changes made in the fall may not be fully realized until the following summer. This is also an argument for augmenting our largest program (the festival) with smaller, year-round, activity (such as access equipment rental to small theaters or fiscal sponsorship to theater makers)."
In response to similar pressures, Broadway Cares/Equity Fights AIDS awarded a record $18.3 million in grants during fiscal year 2025. This total includes $9.5 million distributed through its National Grants Program to 483 organizations in all 50 states.
These funds aim to assist groups dealing with government funding reductions. Executive Director Danny Whitman highlighted the organization's commitment.
"At a time when so many of the organizations we support are facing devastating budget cuts, your continued compassion ensures they can keep providing food, medication and care to those who need it most. While we can’t replace every dollar of lost funding, we can promise this: Broadway Cares will remain a steady, reliable partner – now and in the years ahead. The need has never been greater, and neither has our shared humanity."
Arts and performing arts nonprofits more broadly are exploring earned revenue models, such as monetizing digital content and offering fee-based services. Many are also forming strategic partnerships or considering mergers to navigate the 2026 funding landscape shaped by policy shifts and federal reductions.
