Dispelling the Myths about Nonprofits is part of a new educational initiative by Marty Khan, who has pioneered the use of the 501(c)(3) nonprofit for jazz artists and professionals. Over the past 30 years, Khan has helped found and guide over 100 nonprofits and has had an indelible impact in advancing how businesses practices in the realm of arts and culture can be improved. Khan developed and guided the careers and affiliated nonprofits of some of the most important names in late 20th century music/arts – The Art Ensemble of Chicago, George Russell, World Saxophone Quartet, John Zorn, Alwin Nikolais, Sam Rivers and many others – providing groundbreaking, new creative uses of the nonprofit for jazz artists and professionals.

“Pursuing a career in the higher arts – either as creator or service provider –
without the use of an affiliated nonprofit, is like playing the piano while handcuffed.
You can do it, but you will be significantly limited.” – Marty Khan

As a manager, producer, project director, and strategist Khan has pioneered the use of the 501(c)(3) nonprofit for jazz artists and professionals since the early 1980s – a few years before jazz was brought into the performing arts world mainstream.

Khan says “When that acceptance finally did occur, I thought that there would be a general encouragement to embrace the nonprofit business model, which is the spinal column of all of the higher arts. Classical composers and ensembles, choreographers and dance companies, theater companies, etc. all used this nonprofit entity to empower their artistic and educational imperatives.

But it didn’t happen. Instead, the focus was entirely upon large-scale entities which would supposedly ‘administer’ to the needs of the artists and smaller professionals. So, how’s that worked out for most of y’all these past 30+ years?”

To this day, jazz artists and professionals are discouraged from setting up dedicated nonprofits, and instead are directed toward conduit entities for all funding – other than the various grant competitions against other artists and the occasional arbitrarily-given awards for artistic achievement. “You may get the money, but not the empowerment that allows you to develop a business opportunity and development.”

Nonetheless, more and more artists and arts professionals are considering the use of the entity, but getting the proper information is challenging. And to be sure, a nonprofit does not have to be an archaic business structure; it can ideally be operated in a very innovative and visionary manner.

Here are some of the key reasons typically cited to discourage the use of a nonprofit:

• They are difficult to set up.

• They are very expensive to set up

• They are very complex to operate and manage

• Their primary purpose is to get grants and contributions

• Using a conduit can be just as good as a dedicated nonprofit

• Managing the board of directors has a lot of inherent problems

• The artist can easily lose control of his/her own artistic and proprietary control

• The artist isn’t allowed to make money

• If you are on the board you can’t get paid

• Nonprofits have rigid guidelines and restrictions

• Investments can’t be made in nonprofit activities

• Bookkeeping and reporting is very complex

In these two sessions Khan dispels those myths and answers questions to provide a clear sense of the advantages and realities of this highly versatile, viable and productive methodology. Despite the jazz focus, these sessions are NOT just for those whose aspirations are in music. In addition, Khan is offering a free download of the 57-page chapter on nonprofits from his acclaimed business book – Straight Ahead: A Comprehensive Guide to the Business of Jazz (Without Sacrificing Dignity or Artistic Integrity). Vetted and partially written by the extraordinarily accomplished and respected expert nonprofit attorney, Leonard Easter (who together with Khan has launched more than 100 jazz nonprofits) it delineates everything you need to know about nonprofit in 89 Q/As, covering set-up, structure, operation, management,control and participation.

For more information about the download and other options, you can email Marty directly.

This two-part session is the initial offering of the Empowerment Initiative™ a multi-faceted program developed by five accomplished and respected music veterans through a four-organization partnership. Its purpose is to provide pragmatic and valuable business guidance to both students in institutional education and artists and professionals who are already in the field.

Stay tuned for more information soon.

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