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The Newfoundland and Labrador Folk Arts Society is closing its office and laying off its staff amid ongoing financial problems, according to a letter released on Friday to the organization’s members.
The group, along with its annual music festival, has been in financial trouble — which it warned members about in 2024. The society fundraised and successfully held its 49th annual festival over the summer, but announced in July its future was uncertain.
In a letter sent to members on Friday and obtained by CBC News, the group’s board of directors wrote that interim executive director Julie Vogt had resigned.
“The society is in a precarious financial situation and faces a crisis of significant proportions,” the letter reads.
The board wrote that there is no cash flow, future funding is uncertain, and it will have to make tough decisions about the future.
“To that end, we will be calling a meeting of the membership to discuss the feasibility of transitioning to a volunteer-run model,” reads the letter.
In an emailed statement to CBC News, board president Roger Furrer said the board wishes to wait for members’ deliberations before commenting.
“After the announced meeting, we may have further information to share with the public,” he said.
MusicNL executive director, Tamara Kater, is hopeful for the N.L. Folk Arts Society’s future. (Abby Cole/CBC)
MusicNL to play role going forward
The uncertainty was playing out as musicians and industry professionals gathered in St. John’s for MusicNL week, celebrating the province’s music industry.
Tamara Kater, MusicNL’s executive director, said she doesn’t believe the N.L. Folk Arts Society will go away.
“The festival [is] recognizing that there are structural problems, taking some time to reflect and see if there’s a better model that serves them at this moment,” she said. “I think it’s actually hopeful that the festival will come back.”
Kater started her career in the industry by running folk festivals, including the Winnipeg Folk Festival. She said she understands why they’re so important to local artists.
“They are a really important part of the fabric and the backbone of our music economy,” she said.
However, she said, many festivals are encountering financial problems.
“It’s really not uncommon in this economy for festivals to have to retool what they’re doing and change and evolve,” Kater said.
Founder of the Bear Creek Folk Festival in Grand Prairie Alberta, Sarah Card, spoke on a panel about the future of music festivals during MusicNL week 2025. (Abby Cole/CBC)
On Saturday, MusicNL hosted a panel of festival organizers from across Canada. One panelist, Sarah Card, was the founder of the Bear Creek Folk Festival in Grand Prairie, Alta.
Card said a lot of festivals have recently been forced to fold due to funding sources, like grants, not keeping up with rising costs, struggling sponsors and the overall rising cost of living.
“It’s death by 1,000 cuts,” said Card. “You’ve got so many different places that are just losing a little bit from here, from there, from there. And then before you know it, it has an incredible impact on your bottom line.”
She said the most important thing for the Folk Arts Society will be getting the community to rally behind the event.
Kater said it’s more important than ever for performance and festival organizers to be working together.
“We just have to be continually talking to each other on how to have the best model possible with rising costs,” she said.
The Newfoundland and Labrador Folk Arts Society successfully held its 49th annual festival in July. (Abby Cole/CBC)
Kater wants MusicNL to play an important role in creating performance opportunities for local artists going forward.
She said there’s hope to begin conversations with industry players, and act as a resource for music presenters and festivals by developing touring networks across the province.
“We just really want to make sure that there is a healthy festival presenter venue system in our province to help grow and develop our artists,” she said.
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