The Arizona Theatre Company (ATC) fund-raising campaign launched in early 2016 to raise $2 million by Friday, July 1 to continue operations and produce the 2016-17 season has reached a critical juncture.

ATC Board of Trustees Chair Cameron C. Artigue said that if the necessary funds are not secured, the company “will be forced step back and consider all of our options which include going on a temporary hiatus to restructure the business model to ensure its long-term sustainability or permanently shutting down.”

“Ironically, despite the past two seasons being our most successful, both in terms of artistic acclaim and ticket sales, we experienced a disappointing year in our ability to attract the necessary level of contributed income to continue that progress,” he said. “We remain hopeful, but have to address the situation realistically.”

As a nonprofit 501(c)3 arts organization, ATC generates 40 percent of its annual operating budget from contributed revenue through grants, sponsors and individual donations that underwrite ATC productions and support statewide youth education outreach initiatives which include the Student Matinee Series, Summer on Stage and Theatre on the Go – Shakespeare Residencies. Ticket sales represent about 60 percent of ATC’s overall revenue.

The Summer on Stage program is fully funded and will complete the current session that begins June 27 and runs through July 29.

“While considerable progress has been made toward long-term financial sustainability, the ongoing effort to attract contributed income to ensure continued artistic and financial success has fallen short of expectations,” Artigue said.

ATC Artistic Director David Ira Goldstein said that he is “incredibly grateful for the support we have received from the community who appreciate the artistic excellence and quality performances we have consistently produced in both Tucson and Phoenix. I am extremely hopeful that we will benefit from that support at this very troubling time.”