Speaking as a former nonprofit administrator and fundraiser, I think [performing arts] groups should be looking to form partnerships or mergers, or even shut down and pass the assets on to healthier groups, if necessary, to keep their mission alive. As Jung quoted Freud: "Sometimes the doctor should not try to cure at all costs." Ditto for nonprofits: better to end an organization's life and pass assets on.
It would require self-sacrifice from some people, and put some out of a job quite possibly. But organizations with similar missions banding together ... could save energy, time, and resources they could then apply to doing what they are supposed to do: help, excite, refresh, renew, feed, counsel, support, cheer, nourish, nurse, and heal.
Though the LA Times' arts blog, Culture Monster, calls this a "supply and demand" approach, frankly it sounds more Soviet in its thinking and in its likely effects. Take it away, Isaac.