Finance as a Creative Act

Money, at its core, is a designed system—one that reflects power, values, and priorities. The idea that finance is purely technical is a myth; it is deeply cultural and creative. Our personal and familial relationship with money greatly influences how we interact with one another. If finance is a human invention, then it can be reimagined and redesigned to better serve creativity and justice.

For creative organizations, finance should be seen as an extension of artistic practice—a tool to shape the world rather than a constraint to be feared. To truly innovate in financial structuring, creative organizations must move beyond conventional models and adopt new, impact-driven approaches that align financial success with their broader missions. This requires a fundamental mindset shift—one that redefines value beyond profit and embraces new ways of monetizing creative work.

Much of the global financial system was built on colonial extraction, racial capitalism, and wealth accumulation at the expense of Indigenous, Black, and marginalized communities. In Decolonizing Wealth, Edgar Villanueva critiques philanthropy and traditional funding systems for perpetuating these imbalances. He argues that true financial innovation requires redistributing wealth, repairing harm, and re-centering Indigenous values of reciprocity and interconnectedness.

Traditional Financial Structures prioritize Stability Over Innovation

The most common financial structures for creative organizations include:

• Grants and Philanthropy – Arts nonprofits and social enterprises often rely on grants from government agencies, foundations, and private donors. While this can be a stable funding source, it creates dependency and limits autonomy. It also has you running around frantically seeking resources like a squirrel seeking acorns before the winter comes.
• Venture Capital (VC) and Angel Investment – Startups and for-profit creative businesses often seek VC funding, but this model prioritizes rapid growth and high returns, which may not align with creative or social missions, leaving you to feel out of control.
• Bank Loans and Debt Financing – Traditional loans offer access to capital but require repayment with interest, which can be a burden for organizations with unpredictable revenue, adding to the pressure of an already intense time of being a start up business.
• Earned Revenue & Sponsorships – Many creative organizations generate revenue through ticket sales, memberships, merchandise, and partnerships, but this often requires a balance between accessibility and profitability. You can't be everywhere all of the time, so burnout risk is high with this model as long hours and hustling are the name of this game.

These models are tried and tested, but they often reinforce short-term thinking and financial precarity. The pressure to conform to traditional financial expectations can force creative organizations to compromise on their artistic vision or social impact goals.

How to Approach Finance as a Creative Act

Think Beyond Transactions—Focus on Relationships: Instead of viewing money as a commodity, consider how financial decisions impact people, communities, and ecosystems.

Design Financial Structures Like an Art Form: Just as artists innovate within constraints, organizations can experiment with new business models, cooperative ownership structures, and regenerative funding strategies.

Disrupt Extractive Models: Many financial structures have roots in colonial, exploitative systems that prioritize accumulation over reciprocity. Rethinking finance means embracing models of shared wealth, redistribution, and participatory decision-making.

Embrace Risk as Part of the Creative Process: Just as artistic innovation requires experimentation and iteration, so too does financial innovation. Creative organizations must cultivate a willingness to prototype, fail, and adapt new economic models.

Align Money with Mission

New financial models offer creative organizations ways to structure their finances that prioritize resilience, sustainability, and social impact. Some emerging options include:

1. Steward-Ownership & Perpetual Purpose Trusts

Instead of prioritizing investor returns, steward-ownership structures reinvest profits into the organization’s mission. Purpose Trusts allow organizations to remain independent while ensuring that financial gains are reinvested rather than extracted by outside shareholders.

Example: Patagonia’s transition to a perpetual purpose trust ensures all profits go toward fighting climate change rather than enriching shareholders.

2. Revenue-Based Financing & Community Investment

Rather than taking on traditional debt or equity investment, revenue-based financing structures allow organizations to repay investors as a percentage of their revenue, reducing the burden of fixed loan payments.

Example: Creative cooperatives and worker-owned studios have used revenue-sharing models to fund production without giving up ownership.

3. Tokenization and Blockchain-Based Funding

Decentralized finance (DeFi) offers artists and creative enterprises new ways to raise funds, such as issuing social tokens or NFTs that give supporters a stake in creative projects.

Example: Musicians and artists are using blockchain to sell shares in their work, offering patrons both artistic access and financial participation.

4. Hybrid Models & Regenerative Finance (ReFi)

Some organizations blend nonprofit and for-profit elements into a hybrid financial model, allowing them to seek both grants and investments while reinvesting profits into mission-driven work. Regenerative finance (ReFi) focuses on circular economic models that regenerate rather than extract resources.

Example: Creative land trusts and artist-owned real estate co-ops use hybrid structures to fund long-term sustainability while maintaining community ownership.

5. Mutual Aid & Cooperative Economics

Instead of relying on top-down funding, organizations can tap into collective financing through mutual aid networks, cooperatives, and participatory budgeting models.

Example: The Freelancers Union and other creative collectives pool resources for healthcare, funding, and support services, reducing individual risk.

The Future of Creative Finance

The future of creative organizations depends on reimagining financial structures that align with their missions. Whether through steward-ownership, revenue-sharing, blockchain-based funding, or mutual aid models, the key is to view finance as a creative tool rather than a constraint.

By embracing finance as a creative act and integrating decolonized principles, creative organizations can maintain artistic integrity, support their communities, and contribute to a more just and sustainable economy. The question isn’t whether money and mission can coexist—it’s how creatively we can design financial models that serve both. Curious to learn more? The renowned Creative Leadership faculty- Joseph Barisonzi teaches the course- Designing for Change: Finance and Structure during the winter semester. Contact us to learn more about finance as a creative act and lessons from our friend Al the squirrel.