1 year, 10 months ago
Is there anyone out there that can help the Honolulu Symphony get back on its feet and become financially stable? How can donors be located?
As some of you know, the Honolulu Symphony Orchestra has been in bankruptcy court since last year. It is already deeply in debt and apparently its supporters are not able to find enough money to keep it going in its present form. Even season ticket holders, such as myself, are unlikely to be reimbursed by the bankruptcy court. Perhaps it is a shot in the dark, but I am posting this question to see if anyone at Mahalo has any viable ideas as to how to keep the Symphony going, Any information that addresses any of the following questions would be welcome. How do symphonies raise money? Are there consultants that specialize in Arts fundraising? What individuals or foundations can be approached for funding? What is the current state of charitable giving in our current economic climate? What are other orchestras doing? They say ticket sales only cover about one third of the actual cost of putting on a performance. Is this a viable model? Any information and insights would be welcome. Read my links and post any links that you think would be useful in helping resolve the current issues.
duenhsiyen
Duen Hsi Yen
Sources:
http://honolulusymphonymusicians.org/current.html
http://honolulusymphonymusicians.org/chronology.html
http://www.honolulusymphonymusicians.org/study.html
http://www.honolulusymphony.com/about_the_symphony/faq
http://pacific.bizjournals.com/pacific/stories/2009/12/14/daily52.html?q=Honolulu%20Symphony%20bankruptcy
http://www.livemusicbiz.com/local677.htm
http://blogs.hawaiinewsnow.com/howard/2010/03/music-post-more-from-the-honolulu-symphony-report.html
http://pacific.bizjournals.com/pacific/stories/2009/08/31/daily52.html
http://pacific.bizjournals.com/pacific/stories/2010/04/05/story3.html?b=1270440000%5E3136831
http://www.kitv.com/news/24449055/detail.html
http://www.causes.com/causes/168373
duenhsiyen
Duen Hsi Yen
Sources:
http://honolulusymphonymusicians.org/current.html
http://honolulusymphonymusicians.org/chronology.html
http://www.honolulusymphonymusicians.org/study.html
http://www.honolulusymphony.com/about_the_symphony/faq
http://pacific.bizjournals.com/pacific/stories/2009/12/14/daily52.html?q=Honolulu%20Symphony%20bankruptcy
http://www.livemusicbiz.com/local677.htm
http://blogs.hawaiinewsnow.com/howard/2010/03/music-post-more-from-the-honolulu-symphony-report.html
http://pacific.bizjournals.com/pacific/stories/2009/08/31/daily52.html
http://pacific.bizjournals.com/pacific/stories/2010/04/05/story3.html?b=1270440000%5E3136831
http://www.kitv.com/news/24449055/detail.html
http://www.causes.com/causes/168373
images:
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M$1 Answer
If the orchestra has already been in bankruptcy court for a year and does not yet have a viable plan for exiting, it may be too late to salvage the existing organization. Also, depending on the debt load, you might want to consider if you even should try salvaging the old organization or just starting a new one without the burden of the old debt. (Not nice for debt-holders, but in the present economic climate, and for symphonies in general this might be the best approach for a shot at long-term success.)
Every major orchestra I know of has a guild or angel branch of the organization that does the fundraising for them. The members of the guild are usually a cross section between wealthy and well-to-do (women - sad, but true) who are very dedicated and work tirelessly to keep the orchestras name front and center in the community and to raise money. They do this through galas, teas, contests, outright mailer solicitations, grant writing, co-ventures with other arts organizations, etc. Additionally, the orchestra should have a full-time development staff that actively pursues benefactors (individual and corporate), and oversees planned giving (bequests).
The model of tickets supporting only 1/3 the cost is very real. No one gets how hard it is to be a musician and how much it costs. They think it's a fun hobby. The reality is that musicians can't perform if they are not in top physical condition (i.e. pass-up a lot of "fun and partying" for sleep and good habits). Instruments cost thousands of dollars and need regular maintenance and repairs. No matter how long you have been playing or how good you are, even if you are a teacher, you continually need coaching (not free). Everyone can develop bad habits almost over night if they are not vigilant about technique. To sustain 100 of these dedicated individuals on an annual basis takes a tremendous amount of money. Thankfully, there is a significant portion of the population that recognizes the value of orchestras and their performers.
Every community is unique in what it is willing to pay for. Your symphony needs to have major fundraising events that will attract wealthy donors and the entertainment at those affairs needs to be relevant for your particular community. For example, the Augusta Symphony Guild (and other similar organizations around the country) sponsors a debutante ball (cotillion) to raise funds. Typically a debutante ball type fundraiser would have interested families make a $10,000 sponsorship "donation" and in exchange their daughter would be "presented" along with 10-20 other girls at a very exclusive and posh ball. In addition to the sponsorship "buy-in" these families would pay all other related fees, and guests of the ball would pay (or families would pay for them and they would truly be their "guests"). You can see how quickly this type of event could raise a lot of money, if the community embraced this kind of gala. Perhaps your community would find this a different and desired type of event. Maybe in HA, a surf contest would be of interest (or maybe it's cliche and wouldn't draw donors). Perhaps something that includes the Royal Family? I don't know enough about Hawaiian culture to know what is uniquely interesting for that community. Whatever you choose, you will need more than one event per year (3-4 is more like it) with one being particularly notable, but the rest just as important for fundraising.
This takes an army of enthusiastic, willing to work volunteers, no matter what the scope of the projects you hope to undertake to raise the funds. If you have a very committed heart, then you need to make appointments with movers and shakers in your community (Chairmen of Boards, CEOs, wealthy retirees, politicians, etc.) and make your case on behalf of the symphony, over and over, until they start to support the organization and get the ball rolling.
Of course, performers and conductors have a stake in the success of the organization. Enlist their help in doing private chamber concerts in major donors homes and other community outreach activities that will help relations and fundraising.
The real success of this lies in hiring (yes, paying for the best possible) development staff. It also helps to have a conductor with a lot of personality who is willing to actively mingle with potential donors.
One last precaution. If something as significant as the Honolulu Symphony is in financial difficulty with no-one stepping forward to lead the charge to success in a year, my guess is there are some pretty significant politics in play behind the scenes. Before getting too deeply involved, I would make some inquiries and try to really figure out what's going on, and what is the best strategy to get the organization back on track. On track is not just about finances, but requires a 5 year strategic plan. It requires a complete picture. You will need to know what this is before you can sell it to others.
Good luck. I'm a major believer in the arts and sincerely hope this has a dream-come-true ending.
Every major orchestra I know of has a guild or angel branch of the organization that does the fundraising for them. The members of the guild are usually a cross section between wealthy and well-to-do (women - sad, but true) who are very dedicated and work tirelessly to keep the orchestras name front and center in the community and to raise money. They do this through galas, teas, contests, outright mailer solicitations, grant writing, co-ventures with other arts organizations, etc. Additionally, the orchestra should have a full-time development staff that actively pursues benefactors (individual and corporate), and oversees planned giving (bequests).
The model of tickets supporting only 1/3 the cost is very real. No one gets how hard it is to be a musician and how much it costs. They think it's a fun hobby. The reality is that musicians can't perform if they are not in top physical condition (i.e. pass-up a lot of "fun and partying" for sleep and good habits). Instruments cost thousands of dollars and need regular maintenance and repairs. No matter how long you have been playing or how good you are, even if you are a teacher, you continually need coaching (not free). Everyone can develop bad habits almost over night if they are not vigilant about technique. To sustain 100 of these dedicated individuals on an annual basis takes a tremendous amount of money. Thankfully, there is a significant portion of the population that recognizes the value of orchestras and their performers.
Every community is unique in what it is willing to pay for. Your symphony needs to have major fundraising events that will attract wealthy donors and the entertainment at those affairs needs to be relevant for your particular community. For example, the Augusta Symphony Guild (and other similar organizations around the country) sponsors a debutante ball (cotillion) to raise funds. Typically a debutante ball type fundraiser would have interested families make a $10,000 sponsorship "donation" and in exchange their daughter would be "presented" along with 10-20 other girls at a very exclusive and posh ball. In addition to the sponsorship "buy-in" these families would pay all other related fees, and guests of the ball would pay (or families would pay for them and they would truly be their "guests"). You can see how quickly this type of event could raise a lot of money, if the community embraced this kind of gala. Perhaps your community would find this a different and desired type of event. Maybe in HA, a surf contest would be of interest (or maybe it's cliche and wouldn't draw donors). Perhaps something that includes the Royal Family? I don't know enough about Hawaiian culture to know what is uniquely interesting for that community. Whatever you choose, you will need more than one event per year (3-4 is more like it) with one being particularly notable, but the rest just as important for fundraising.
This takes an army of enthusiastic, willing to work volunteers, no matter what the scope of the projects you hope to undertake to raise the funds. If you have a very committed heart, then you need to make appointments with movers and shakers in your community (Chairmen of Boards, CEOs, wealthy retirees, politicians, etc.) and make your case on behalf of the symphony, over and over, until they start to support the organization and get the ball rolling.
Of course, performers and conductors have a stake in the success of the organization. Enlist their help in doing private chamber concerts in major donors homes and other community outreach activities that will help relations and fundraising.
The real success of this lies in hiring (yes, paying for the best possible) development staff. It also helps to have a conductor with a lot of personality who is willing to actively mingle with potential donors.
One last precaution. If something as significant as the Honolulu Symphony is in financial difficulty with no-one stepping forward to lead the charge to success in a year, my guess is there are some pretty significant politics in play behind the scenes. Before getting too deeply involved, I would make some inquiries and try to really figure out what's going on, and what is the best strategy to get the organization back on track. On track is not just about finances, but requires a 5 year strategic plan. It requires a complete picture. You will need to know what this is before you can sell it to others.
Good luck. I'm a major believer in the arts and sincerely hope this has a dream-come-true ending.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
I notice that on July 1st, 2010, Linda Lingle, the Governor of Hawaii, vetoed House Bill H.B. 1907 that would have capped itemized deductions for higher income individuals including charitable contributions. This bill would have become law if she did not veto it. The press release stated:
"The non-profit community expressed concerns to Governor Lingle that this measure would discourage donations and contributions from individuals and small businesses since they would no longer be able to deduct these contributions on their State income tax returns."
Lingle noted in her Statement of Objection, “Our community is still feeling the impacts of the recession and this is the time when we want to encourage donations to charitable organizations, not enact laws that hinder them.”"
Don't just let things happen, make your views known, talk to your legislators, and submit testimony. Even an individual can submit testimony. If you follow the links and read the bill and the submitted testimony, you will discover who your supporters are and who needs more convincing.
duenhsiyen
Sources:
http://hawaii.gov/gov/news/releases/2010-news-releases/governor-lingle-vetoes-bills-that-discourage-investments-charitable-contributions
http://acreform.com/article/hawaiian_governor_vetoes_cap_on_charitable_deduction/
http://hawaii.gov/gov/leg/2010-legislative-session/bills/vetoes/HB1907%20SOBJ.pdf
http://www.capitol.hawaii.gov/session2010/bills/HB1907_CD1_.htm
http://www.capitol.hawaii.gov/session2010/lists/measure_indiv.aspx?billtype=HB&billnumber=1907
http://www.capitol.hawaii.gov/session2010/getstatus.asp?query=HB1907&showtestimony=on&currpage=1
http://www.capitol.hawaii.gov/session2010/Testimony/HB1907_TESTIMONY_FIN_02-10-10_2_.pdf
http://www.capitol.hawaii.gov/session2010/Testimony/HB1907_HD1_TESTIMONY_WAM_03-16-10.pdf
http://acreform.com/article/a_canary_in_the_coal_mine_capping_the_charitable_deduction/
http://www.hillsdale.edu/images/userImages/mvanderwei/Page_4221/ImprimisJan10.pdf
http://www.nptrust.org/philanthropy/philanthropy_stats.asp
nancyke11y I'm excited and touched by your supportive comments. I've now had a chance to do a little more research and found that quite a bit of analysis has already been undertaken. In particular, Mark Wong, who is the President of the Honolulu Symphony Foundation, used the resources of his privately owned company, Commercial Data Systems, Hawaii's largest information technology firm, to compile a 283 page analysis for the Honolulu Symphony (.pdf file attached). I am just reading it now, and it does give me much more insight into the problems facing the orchestra. The statistics indicate that Hawaii spends disproportionally more on its orchestra than other cities of similar metrics. It even seems that ticket sales have covered only one fifth of the actual operating costs of the symphony, the rest covered through charitable donations and State support. As for its strategic plan, my understanding is that one does not exist for the current milieu but that this report was generated as a first step to formulating one. So I want to thank you for your links, which has led to some possible approaches to consider....in particular, the one titled "Integrated Development Plan" which includes example plans and even Word templates! Also in our discussion on another thread regarding the Bush tax cuts, you provided a link to the National Philanthropic Trust which pointed out that Americans are a charitable people. I have been studying the links provided below to educate myself, and to see if I can contribute usefully in any way. I would like to remark also that my present question is somewhat of an experiment, of testing whether or not Mahalo can be used as an agent for cooperation or social change.
duenhsiyen
Sources:
http://pacific.bizjournals.com/pacific/stories/2010/04/05/story3.html?b=1270440000%5E3136831
http://www.honolulusymphony.com/about_the_symphony/press_room/2009-2010/2010_organizational_analysis
http://www.honolulusymphony.com/files/content/about_the_symphony/press_room/2009-2010/2010_organizational_analysis/hss_org_analysis_2010_04_21.pdf
http://www.majorgivingnow.org/design/integrated.html
"Honolulu businessman and eBay founder Pierre Omidyar's name is on the list of 40 billionaires pledging to donate at least half their wealth to charity." How does one approach him for help?
http://www.hawaiinewsnow.com/global/story.asp?s=12931076
Read this...
http://news.yahoo.com/s/nm/us_wealth_philanthropy_billionaires
Hey @nancyke11y - great answer and commentary with @duenhsiyen! I sent an extra M$3 your way to say thanks for your contribution :-)
Just posted another question related to the above:
Would anyone care to share their views about what is happening with the Honolulu Symphony? A set of links to important news articles and/or your personal views are welcome.
http://www.mahalo.com/answers/would-anyone-care-to-share-their-views-about-what-is-happening-with-the-honolulu-symphony-a-set-of-links-to-important-news-articles-and-or
@duenhsiyen. Thank you for the kind words earlier. I'm glad you feel you got something from my answer. I can see that you are dedicated to the Honolulu Symphony cause. I hope you are posting to your newspaper blogs and other media blogs on a local basis where you will likely have a more targeted audience. Your passion will move them if they see your words.
Re Pierre Omidyar: That's a tough question. The fact that you have identified something that he and the symphony have in common (both from HI) is a good start. Read as much as you can about this gentleman in the social section of newspapers and magazines like Town and Country or your local high-end magazine publication. What events does he attend? What other charities does he support? Who else knows him? Do you, or anyone else you know who is trying to support the symphony, have any friends or associates in common with him? If you can find a common link, try to get an introduction. Perhaps Mark Wong knows him.
Successful people tend to be down-to-earth and very generous. If you do not find a common acquaitance to make an introduction of appeal on your behalf, write him a personal letter. @duenhsiyen, you have much compassion in your endeavor on behalf of the symphony and it may very well touch him the way it has me. Be very specific about what you would like him to do to support the symphony. Don't waste his time with a general sob-type story. Ask him to be an *honorary* chairman of a gala fundraiser (and be sure it is worthy of his name being associated with it), or ask him to pledge to be a platinum (or whatever the highest level is) donor for 5 consecutive years, or ask him to commission a private performance for 500 of his closest friends. Word the letter in such a way that he realizes that your commitment is strong and you are asking him to step up, and even though he may not be comfortable with as steep a commitment as the above ideas, the symphony is genuinely asking for his support in some meaningful way. Perhaps he would be willing to write an appeal letter to his circle of friends.
Obviously if you can find a common acquaintance, that makes it much easier. If not, don't stalk the guy, but do do your homework and find out what his personal interests are and try to tie the symphony into those somehow. (Perhaps propose a joint fundraiser where the symphony is the entertainment for a gala that likewise supports one of his favorite charities.)
I hope you have success with this.
http://www.gazette.com/entertainment/philharmonic-106103-season-colorado.html
This article suggested something new:
"The curtain call changed a bit this year. Instead of just the musicians and conductor taking a bow after the season-opening concerts of the Colorado Springs Philharmonic, season ticket holders were asked to stand and be recognized with applause."
I paid for two season passes but I did not apply for a refund. Management mailed me a letter instructing me to go to http://www.hib.uscourts.gov and download a form, fill it out, and submit it to the appropriate place. I wonder how many people did not submit a claim? It would have been more efficient if someone in management filed on behalf of all the subscribers a single claim to reimburse them all, instead of every subscriber having to file piecemeal. After all, they have the subscription lists. Instead, the subscribers got shortchanged by management. As a subscriber. I did not feel very valued by this action.
This book is worth investigating: Michael Kaiser: "The Art of the Turnaround, Creating and Maintaining Healthy Arts Organizations"
Michael Kaiser, president of the John F. Kennedy Center for the Performing Arts in Washington, D.C. Before joining the Kennedy Center, Kaiser had saved the Alvin Ailey American Dance Theater, the American Ballet Theater and London's Royal Opera House -- all in crisis. His book summarizes what he learned in restoring their financial health. His recipe for success: "Great art, well marketed."
Sources:
http://www.staradvertiser.com/editorials/20110113_Honolulu_can_sustain_a_successful_symphony.html
http://books.google.com/books?id=7PR7GAW7HYAC&printsec=frontcover&dq=Art+of+the+Turnaround+Kaiser
http://artbeat.seattle.gov/2009/10/19/kaiser-talks-‘art-of-the-turnaround’/
Musicians say they have heard reports the symphony board may give up on a reorganization plan, and will instead dissolve the institution and liquidate ALL the assets.
http://www.youtube.com/watch?v=WPiKJLOaf7g@nancyke11y">@nancyke11y Thank you for that last link! After reading it, I just posted this question: "How to I apply to a philanthropic charity for money." I also wanted to share with you that I feel strangely encouraged by your interest in my question. After all, I actually don't know anything about you, and you are probably half way around the world. Yet, just one supporter out there in the ether can make a difference. If no one had expressed any interest in my question, I probably would not have thought about the problem as much as I have had so far.
duenhsiyen
PS: I assume there are probably other "lurkers" out there reading this, so I do invite you to jump in and make a contribution to this thread, or any others on Mahalo.com. This information exchange is completely open to the rest of the world, and I am sure you or someone else has faced exactly the same problem. So why reinvent the wheel? Share your knowledge. It is fun and rewarding to help others.
Sources:
http://www.mahalo.com/answers/how-do-i-apply-to-a-philanthropic-charity-for-money-how-do-i-determine-which-ones-to-approach