Hybrid Organizations in the Arts: A Cautionary View

Abstract

Traditionally, the choice of organizational form facing an arts entrepreneur has been between starting a commercial enterprise or a nonprofit. Recently, state governments across the United States have passed authorizing legislation for various forms of hybrid organizations that combine elements of the commercial and nonprofit. This paper presents an overview of the evolution of hybrid organizations, and the associated policy and governance questions that arise. It concludes that hybrids, at least in their current state, do not present a model likely to be widely adopted in the arts.

Keywords: L3C, Hybrid Organizations, Nonprofits, Arts, Entrepreneurship

JEL Classification: L31, M13, Z10