How can community theaters operate on a tight budget?

Get your community to donate materials and labor - that's the real secret. I've seen this work with the local chess club actually, people donate time and skills because they believe in the project. Ask around for old furniture, fabric scraps, paint that's been sitting in garages. Post on community boards and social media asking specifically for what you need. Most towns have folks who are happy to help if you give them a clear way to do it. You'd be surprised what people have cluttering their basements.

For sets, think simple and clever rather than realistic. Paint plywood flats, use projections or lighting to suggest scenery instead of building it. I've watched community groups do amazing things with just some clever angling of lights and a few key pieces of furniture. Thrift stores are goldmines for set dressing - you can usually negotiate bulk discounts. For costumes, again thrift stores, plus reach out to local dance studios or high schools that might have old costumes taking up storage space. People who sew are often eager to help with alterations or simple pieces if you ask nicely.

Lighting is maybe the trickiest part on a budget, but you don't need fancy theater equipment to start. Borrow or buy cheap LED lights from hardware stores, learn to position them effectively. Honestly, it reminds me a bit of how I learned beekeeping - you can spend thousands on equipment or you can start with basics and get good at the fundamentals. Your first shows won't be Broadway productions, but that's fine. Focus on good acting and storytelling, and audiences forgive a lot when they can tell people care about what they're doing.