Difficulties Financing a Nonprofit/Municipal Capital Project: The Guthrie Theater

Jay Kiedrowski

Municipal Finance Journal, 2007, vol. 28, issue 1, 65 - 76

Abstract: The Guthrie Theater in Minneapolis, Minnesota, opened its new three-stage theater center to much acclaim in late June of 2006. Although many projects like this are financed directly by private donations, the Guthrie used multiple funding sources that included state general obligation bonding funds, 501(c)(3) variable rate 20-year demand revenue bonds, investment earnings, and private donations in a combination that led to a successful within-budget financing of the project. This approach required creativity in the financing, changes in and monitoring of the Guthrie endowment, significant timely collaborations between the public sector, the private sector, and the Guthrie Theater, as well as reasonable financial markets. The Guthrie’s example can provide valuable lessons for other nonprofits and municipalities undertaking significant capital projects.

Date: 2007
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