What the Folk is Going On?

Updated January 28, 2025. A previous iteration of this statement indicated that ArtsNL shifted their funding schedule from January to spring. This is not true. This was a misunderstanding of our funding calendar and we deeply regret this mistake. We want to be transparent and honest as we navigate this situation, and we will practice greater diligence with sharing information.

On Jan 17, 2025, the Newfoundland and Labrador Folk Arts Society announced immediate cost-cutting measures to secure the financial stability of the organization. There are several unfortunate events that led us here, outlined below, but let’s address the elephant in the room: this year’s Folk Festival was not a contributing factor.

Newfoundland and Labrador Folk Music Festival

This summer’s festival was bigger and bolder by choice: this expansion was an effort to make the festival financially viable. After years of a widening gap between expenses and revenue, we managed to reverse the trend, albeit only incrementally. But the groundwork has been laid for further revenue opportunities in coming years through increased sponsorship and onsite sales.

Culture Ireland Project

In October we had the opportunity, in partnership with Culture Ireland who provided grant funding, to host Irish supergroup Danu at Arts and Culture Centres across the province. It was a wonderful chance to bring traditional music to our audience, but the venture flopped. The shows in Grand Falls-Windsor and Gander had to be cancelled due to poor ticket sales, and the shows in Corner Brook and St John’s were well below capacity. Although we saved some money in venue fees by cancelling two events, the band still had to be paid as stipulated. And the grant funding from Culture Ireland? It is still outstanding. Expenses for this event were paid out of operational funds while we continue to wait for this funding to arrive.

Holiday Wassail

We carefully evaluated this event because it has been steadily on the decline in terms of revenue generation. But the fresh vision provided by our new Executive Director excited us, and we agreed: if we could find the funding, let’s make it happen. We secured a generous pledge that would underwrite the entirety of the expenses, and we proceeded happily. The event was a sell-out success, but at the last minute the promised funding fell short. We scrambled to make up the shortfall, but recouped only a small percentage of the loss.

Operational Funding

Our operations have been funded by a generous grant from Arts NL. A misunderstanding led us to believe that these grants were to be awarded in January, but the grant is, in fact, awarded in the Spring. We also learned that the grant application is up for renewal, and that these funds are not guaranteed.

The outstanding grant funds from Culture Ireland, the shortfall in pledged sponsorship for Wassail, and the uncertainty of our go-to source of operational funding, as well as a series of unpaid invoices from smaller revenue sources, have led to our very dry January. We are steering into the next three months with no operational funds unless we take swift action.

We have taken the immediate measures of temporarily laying off staff, doubling down on collecting outstanding payments owed to us, and reaching out to funding bodies for emergency funding options. We have reached out to mentors and organizations that offer advice and services to non-profits in this situation.

One thing that is clear to us is that we need to diversify our revenue stream. Relying heavily on grant funding year after year to fund operations is precarious; it is difficult to make long term plans or confidently budget even a year in advance. 

Our base operational costs are relatively low: outside of salary expenses, we pay just under $2000 a month to keep the lights on. That includes rent, utilities, accounting software, insurance, and storage for our festival gear. We are a bare-bones operation.

Other expenses relate to events and programs, paying performers, hosts, mentors, and tech staff, renting required equipment and spaces, etc. These events and programs are the core of our operations and how we work to preserve and promote the traditional and contemporary folk arts of our province. They are also potential revenue generators, and we budget to at the very least break even on all our events.

Our staff are dedicated, with finely honed expertise in their respective crafts. We want to pay them a fair and competitive wage, offer health benefits and RRSP matching. We want them to feel secure in their roles and not fear the end of another grant program. They deserve that.

We are committed to securing consistent, reliable revenue to protect the future of this organization