NFF established the Cultural Facilities Fund initiative (CFF) in 1993 in response to key findings from our National Cultural Facilities Study. CFF became a collaborative effort, bringing together various private and government funders with financial institutions to support and strengthen arts and culture nonprofits. CFF was a core initiative at NFF through the late 1990s, by which time its work was absorbed into our general activities. Its lessons continue to inform much of our consulting, lending and thought leadership today.

The National Cultural Facilities Study found that prevalent planning, management and financing practices regarding facilities were frequently a contributing factor to the financial challenges of arts organizations. The study also found that facilities dominate arts operations to an extent rarely seen in any sector. To combat these challenges, the study recommended the creation of a national program to improve practices through technical assistance and targeted investment from a central fund. CFF’s goal was to guide managers through a holistic planning process for arts facilities.

The basic principle: the scope of facilities should follow, not lead the organization’s mission, needs and capacities. The program had a three-pronged approach: it provided (1) technical assistance in the form of a one or two-day facilities project development workshop; (2) planning grants; and (3) below-market-rate short-term loans for pre-development and longer-term development loans. Headquartered in New York City, the initiative opened offices in Boston, Chicago, Philadelphia and San Francisco; nonprofits elsewhere were served through the National Alliances Program. CFF later expanded to New Jersey in 1999 thanks to the generous support of the Geraldine R. Dodge Foundation.

Through the Cultural Facilities Fund initiative, NFF deployed more than $1M in planning grants to 150 organizations. Additionally, more than $10.5M was financed to 43 organizations to support project costs of more than $39M. The core support to launch CFF was provided by the Wallace Foundation (formerly the Lila Wallace--Reader's Digest Fund). The study’s supporters included the William & Flora Hewlett Foundation, the James Irvine Foundation, the John D. & Catherine T. MacArthur Foundation, the National Endowment for the Arts, the New England Foundation for the Arts, the Pew Charitable Trusts, and the San Francisco Foundation.