Council approves $25K in emergency funding to The Guild as non-profit faces 'imminent collapse'

Charlottetown council has approved $25,000 in emergency funding to The Guild in an attempt to keep it afloat during its financial freefall.

Council voted 8-1 on Monday evening to provide the funding, with Coun. Bob Doiron voting against and Coun. Kevin Ramsay abstaining.

The Guild CEO Roma Dingwell has been asking for the money to get the arts and culture centre to the end of the fiscal year. TheP.E.I. Arts Guild, a non-profit, runs the building,which has a100-seat black box theatre, an art gallery spaceand offices rented out by tenants.

Dingwellsaid the age and footprint of the building makes it costly to run, and it's been tough to get people back through the doors post-COVID. She said four staff have been laid off in the last year, saving $80,000, but the space has lost more than $337,000 inthe last three years overall.

I think sometimes we have to, sort of, step up and take on a little bit more of a major role than we would necessarily like to. Coun. Norman Beck

Dingwell said those losses were offset by pandemic funding, but financial problems keep rising.

"It makes me worried because numbers tell a story," Dingwell toldIsland Morning host Laura Chapinlast week.

"We are at the phase at The Guild right now, looking at where we have been, where we are at, where we are going to go, and we will know the results of that process in the next three to six months."

'I do see this as important work'

The Guild's net assets dropped from about $200,000in 2022 to about $74,000 this yearand it islosing cash fast. Itwent from $118,818 in cash at the end of fiscal 2022to $28,385 by the end of fiscal 2023, according to its audited financial statements.

"We were challenged, there's no two ways about it," Dingwell said. "It's a tough time for The Guild."

The Guildhas been asking the city for financial support for months, and has already received $55,000 for operating money in 2023 as well as a one-time grant of $4,840 and $24,000 in lieu of taxes.

In the council package prior to Monday's council meeting, it said The Guild faces"imminent collapse" and was "urgently seeking $25,000" from council.

Coun. Norman Beck said this is a "buying time" exercise where the city is trying to support the arts and culture community in the short-term while The Guild forms itslong-term financial plan.

"I'd hate to see us lose that. I think sometimes we have to, sort of, step up and take on a little bit more of a major role than we would necessarily like to," Beck said prior to the vote. "I do see this as important work."

The $25,000will allow The Guild to keep the doors open while it waits for the consultant's report from accounting firm MRSB, which will outline the best steps forward for the arts and culture institution.

Dingwell saidthere will be public consultations after the report comes back from MRSB about the best way forward.

"That's why we are here: to serve the public," she said. "To serve the arts and culture community. They are part of us."

The Guild also launched a public engagement survey and is asking for feedback on peoples' experiences in the space.