Nonprofit Finance Fund

Prepared for

An Independent Assessment of the CurrentFinancial Situation of Shakespeare & Company, Inc.Massachusetts Cultural Council

THIS ASSESSMENT REPORT DOES NOT RECOMMEND, ADVOCATE OR SUGGEST ANY PARTICULAR COURSE OF ACTION ON THE PART OF MCC,S&Co., THE COMMONWEALTH OF MASSACHUSETTS OR ANY OF ITSAUTHORIZED ENTITIES OR INDIVIDUALS, S&CO.’S BANK LENDER OR OTHER CREDITORS OR ANY OTHER INTERESTED PARTY. ANY ATTEMPTTO PORTRAY NONPROFIT FINANCE FUND AS RECOMMENDING,ADVOCATING OR SUGGESTING ANY PARTICULAR COURSE OF ACTIONON THE PART OF ANY OF THESE PARTIES IS A MISREPRESENTATIONOF BOTH THE INTENT AND CONTENT OF THE ASSESSMENT REPORT.

Contents



Introduction



Objective of the Assessment



Background



Scope of the Assessment



Summary of NFF’sKey Criteria for Nonprofit Financial Health andSustainability



Information Relied Upon for the Assessment



The History of Shakespeare and Company’s Current FinancialSituation



Summary of Shakespeare and Company’s Financial History



The Current Financial Situation of Shakespeare and Company



Summary of the Independent Assessment of the Current FinancialSituation of Shakespeare and Company

Introduction

Objective of the Assessment

In its approach to this report, “An Independent Assessment of the CurrentFinancial Situation of Shakespeare and Company, Inc.”(“S&Co.”, and the “Assessment”), the Nonprofit Finance Fund (“NFF”) has taken pains to provide theMassachusetts Cultural Council (“MCC”) with an objective, factual reportof thecurrent financial situation of S&Co.The content of the Assessment is limited to facts and observations supported by(i) the multi-year data we reviewed, (ii) interviews with selected S&Co. boardmembers and senior managers and (iii) an on-site visual inspection of S&Co.’sproperty and facilities (see “Information Relied Upon for the Assessment”).