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PERFORMING ARTS |
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Back to Facility ManagerContents |
Raising
Money Not All Just Fund And Games By Robert Freedman I am sure that many of you, like myself, have been asked to speak to groups and organizations in your communities about your performing arts center. People want to hear about the programs and services that you offer, what new shows are coming up, and, usually, some inside scoop about the artists that have appeared at your facility. If you are like Ruth Eckerd Hall, you must raise a significant amount of funds each year to keep your operation going. In addition, many institutions rely on local government support as well. After many of these community speeches, I found that during the question and answer period, almost inevitably someone would raise the question about why your organization could not be self-sufficient. After all, look at the prices you are charging—from the price of tickets to parking, from merchandise sales to concession prices, you must be raking it in. Or, why can’t you run that place like a business? Usually, our speeches include that ticket prices only cover a certain percentage of our operation. But the question still arises: Why aren’t ticket prices enough? Clearly, just saying that ticket prices only cover a certain percentage of our costs does not seem to be satisfactory enough to explain why that is the case and why we have the need for private and/or public contributions. I have come up with three succinct reasons that would help explain the necessity for on-going funds beyond earned income to the Rotarians, Junior League members, Lion’s Club members and other groups. I offer these to you now and
hope that you will find them useful. Certainly, they are yours to use. After
reading these, you may come up with your own way of explaining this issue or
you may come up with different examples than I offer. For each of the above I offer examples. In our presentations, we strive to bring the very best performers to our community. We spend time reviewing acts and attractions, reading reports of performances and looking for the very best in each performing genre. While not necessarily denigrating any retail activity, I mention that each of us understands the difference in quality and, most often, quality is expensive. There is a difference between shopping at Neiman-Marcus and K-Mart. While each has its place, people generally can understand this difference. The next item is that we are labor intensive. Can you truly perform an orchestral piece that requires 45 musicians with only 10? Can a string quartet be adequately represented with only two instrumentalists? Can a full-length ballet be adequately appreciated without a corps de ballet? While other industries and businesses can find ways to reduce labor costs and create efficiencies, the arts cannot compromise in the same manner. And there is the necessary cost
of loading in, running and loading out a performance. I most often will use
the example of a recent Broadway show that has played our market. It could
be CATS. CATS, like most Broadway shows, takes about three-and-one-half
weeks to load in to a Broadway theater prior to opening. Finally, there is the issue of accessibility. This can take many forms, but primarily the accessibility that I discuss is the price of the tickets. As an arts institution, I explain, we do not necessarily begin with viewing the pricing of tickets from a profit point of view. While the commercial world might look at the pricing of the product and ask, “What is the maximum price that I can charge so that I can earn the most amount of money?” arts institutions start with the question, “What is the least that I can charge and still come out with a reasonable or hoped-for return?” And most often, I also explain that in pricing tickets we look to cover the cost of the event, but not to fully pay for the overhead operation of our facility or organization. If we were to try to cover these costs in the ticket price, they might be two or three times higher than they currently are, making it impossible for many in our community to attend events. At this point, I also usually mention the student price that we offer and the many complimentary tickets we provide to community groups for fundraisers and to disadvantaged groups that might not be able to pay for tickets at all. I have found, over the years, that the above three points truly assist people in understanding some of the financial issues in the operation of our organizations and help put into context some of the decision making that goes on routinely. It helps take some of the mystery out of the age-old question of why private and public support is required. In addition to the above, lately I have also discussed community service as an important element in this mix. Most of you have education programs as part of what you provide to your community. It could be master classes, pre-concert lectures, school performances, teaching classes on a regular basis outside your facility, and more. These community service type programs are not necessarily inexpensive. They take salaries, staff time, promotional material, teacher guides, and more. There are many generous individuals, corporations and businesses, as well as government agencies, that provide the annual support we need. After each speech explaining this need as described above, I always conclude with a warm and sincere thank you to those that provide the funds necessary for us to do our jobs effectively. Some or all of these methods might be useful to you in your community. If you’re not doing so, it might be worth your while to try them. Robert Freedman is president and chief executive officer of Ruth Eckerd Hall in Clearwater, FL.
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© 2002
International Association of Assembly Managers |