Nonprofit Arthouses

They are making an impact and proving their sustainability, as this article from Variety reports.

An excerpt.

"The major exhibition chains have ShoWest in Las Vegas. The independent venues have Art House Convergence in Midway, Utah.

"Though the confab, now in its fourth year, continues to grow steadily and attract such bold-faced names as Michael Moore, few would mistake the two events. After all, with 75% of this year's 180 attendees representing not-for-profits, there's less talk about popcorn sales and more about the ins and outs of 501(c)(3) tax loopholes.

"While the majority of unaffiliated arthouse cinemas have gone the nonprofit route, many of the remaining mom-and-pop shops are mulling the switch, marking a watershed moment in the world of indie exhibition.

"I noticed there's a lot of similarities between arthouse theatres and not-for-profit performing arts organizations," says conference director Russ Collins, who came from a performing arts management background before taking on the executive director post at the Michigan Theater in Ann Arbor. "I thought it's kind of silly that the primary model for an arthouse cinema is a commercial model. There's a model for a community arts organization that is already quite successful."

"In fact, Collins notes that at the turn of the 20th century, all performing arts organizations were for-profits including symphonies, operas and theater groups. Gradually throughout the 20th century, most morphed into not-for-profits.

"They weren't sustainable on a commercial model," explains Collins. "Think about the movie industry and the music industry in an analogous way. It makes sense that if music has a range from very commercial to very subsidized, film should too. There are all kinds of movies, and there should be all kinds of outlets."

"A decade ago, Nashville's Belcourt Theater was struggling mightily before it shuttered altogether. A group of community activists united to save the theater's iconic building, which was erected in 1925. The cinema, located near Vanderbilt University, was reinvented as a community-based mission-driven nonprofit. Managing director Stephanie Silverman says the Belcourt enjoyed its strongest financial year ever in 2010. And being a not-for-profit also gives the theater wide latitude with programming choices.

"It allows us to bring in a film that doesn't have to be and shouldn't have to be commercially viable," adds Silverman, noting that 75% of Belcourt's budget comes from earned revenue and 25% from contributions. "We love it when (an arthouse title becomes a box-office hit). But we don't want to have to make decisions based on commercial viability."