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ArtsManager > Blog > Posts > October 17, 2008
October 17, 2008

My last blog received a withering response from one reader. He said that my lack of specificity regarding concrete solutions to the current fiscal crisis was disappointing at least. (He also implied that my PR people write my blog which is totally untrue, but that is for another day.)

I am sure my writing lacked clarity so let me be more precise. None of us running arts organizations in the United States has experienced this level of economic meltdown. The experiences we had in more recent financial downturns do not prepare us adequately for what is happening now. And the full impact of the financial crisis has yet to be felt in many cities. I know I need to make changes to the operations of the Kennedy Center, I simply do not know how much to change and over what time frame.

I am making substantial cuts to the current budget, though I am trying to maintain the integrity of our most important artistic and educational programs. I know that if I do major surgery on them I will lose more support in the future.

I am also rethinking the entire program for the 09/10 season, trying to maintain highlights that can attract audiences and donors but eliminating some programming that feels more marginal.

At the same time as we are cutting budgets, we are working assiduously to overcome a softness in ticket sales – with discount offers, additional e-marketing, and a hard look at our paid advertising. I find our ticket buyers buying less and less off paid advertising and that may be one of the ways we trim expenses.

We are also working overtime to “lock in” our most loyal donors – I am convinced that if we can simply hold on to the majority of them we will weather this storm. So we are really working overtime communicating with donors about the work we are doing and the role they play.

This is what we are doing. I am sure others of you are doing creative things to overcome this environment.

I would love to hear about them.

Comments

Re: October 17, 2008

Hmmm.
Somehow withering, indeed, but maybe a little "drama" will drive more blog readers. But what bothers me is that someone else thought about defending Michael. Michael Kaiser can do it by himself.

I think this is the time when arts organizations might think about collaborating on their projects or build common projects, so they share costs, but also benefits and success ! In a culturally dense place like DC, any combination is possible: KC+WNOpera, KC+Shakespeare Theater, KC+Smithsonian, etc... 
Rares Trifan at 10/17/2008 6:06 PM

Re: October 17, 2008

Also, periodically, I would move the Millennium Stage outside KC, on the National Mall or on the West steps of the U.S. Capitol (where all summer long you get free military music). KC will get a huge crowd, more visibility and free marketing.
Rares Trifan at 10/17/2008 6:38 PM

Subsidy

Michael, do you think that this could also end up in a situation when it won´t be possible to sustain existing ecosystem of American arts organizations without huge subsidy from the American government? m.
Martin Cikanek at 10/19/2008 2:58 PM

Negotiating and staying in contact

We are staying in touch with our donors like never before. This is good for me as a recent hire in Devo, I am meeting people much faster. Calling them and making sure they can come to the plays. And negotiating with our events vendors, trading, bartering, whatever we can think of. I had a donor the other day from the financial industry say "after being in interviews all day with the BBC, NPR, New York Times, I would LOVE to come to a play." That said we're seeing few people increase, few decreases, everyone treading water and seeing what happens. Some donors just want to talk, so I let them talk it out. I'm on the phone a lot. Catherine Taylor-Williams
Catherine Taylor-Williams at 10/19/2008 9:38 PM

Re: October 17, 2008

I just want to say that the organization that I work at is effected by the meltdown of the US economy along with other factors. The method that we are planning to use as an organization is not only in getting the community to give back to the art but to find and hold on to the people that will become long term supporters/donors. This is one of the things I have learned during my fellowship at the KC and I am finding it very useful especially when living in a country where there is no support from the government and the international donors are in their “fazing out process”.  
Noora
El-Funoun Dance Troupe
Palestine
Noora Baker at 10/23/2008 6:43 PM

Who Knows?

What you said about not quite knowing how much to change and what time frame to use is the scariest part to all of this.  We're stuck having to play a guessing game - trying to guess how many donors will remain and how many will need to drop (regardless of how much they love a mission / programs).  So, for now, I'm stuck just obsessing over how to predict the future (which is impossible). 

Over the next year, I've at least decided that we're doing more work with education hoping that at least our public schools won't see cuts - they've got the steady stream of public funds available.  I don't see this changing even in the worst of times. 
Cathy Hernandez at 10/24/2008 7:38 AM

Onward...

The reminder to reinforce existing patron relationships is much appreciated.  What do you think about continuing to build a donor base in this economy?  Is it completely unrealistic to bring in new donors?
Christy Bolingbroke at 10/25/2008 9:36 AM

NY Times article

It looks like some performing arts organizations are cutting down costs, canceling programmed performances:

http://www.nytimes.com/export_html/common/new_article_post.html?url=http%3A%2F%2Fwww.nytimes.com%2F2008%2F10%2F28%2Farts%2Fmusic%2F28clas.html%3Fpartner%3Dpermalink%26exprod%3Dpermalink&title=Bracing%20for%20Bad%20Days%2C%20Operas%20and%20Orchestras%20Batten%20Down%20Hatches&summary=As%20it%20has%20everywhere%20else%20these%20days%2C%20the%20economic%20crisis%20has%20hit%20classical%20music%2C%20a%20particularly%20fragile%20corner%20of%20the%20nonprofit%20world%20that%20depends%20as%20much%20on%20donations%20as%20on%20ticket%20sales.§ion=Arts%20%2F%20Music&pubdate=October%2028%2C%202008&byline=By%20DANIEL%20J.%20WAKIN
Rares Trifan at 10/28/2008 2:43 AM

corect link

http://www.nytimes.com/2008/10/28/arts/music/28clas.html?partner=permalink&exprod=permalink
Rares Trifan at 10/28/2008 2:45 AM

Budget Cuts...program shuffle

I've been looking over my three year budget almost daily.  We've decided to move a major project back a year (it will still be a strong season...we just needed to scale this one back until more funding was dedicated to it).  We also cut a small festival we do every year...it's never highly attended and is more of a tool for us to develop work and talent.  We're only cutting it this season and it will hopefully be back next year.  I had to cut our outreach by $20k and our Individual giving by $10k based on preliminary conversations.  I've also gotten firm pledges from all of my board members this year...and booked them as receivables so that I know where we stand on that budget item.  We still have a few major grant decisions coming up in January.  We'll know more then...it will be after our donor letter campaign as well.
Don Eitel at 11/3/2008 5:25 PM

also...

We had a development director (who worked part time) wanted to take another opportunity and work on a contract basis for us on grant writing.  We're testing out this model for the next several months...it's saving us a lot on staffing.  We have someone for overhire to help out with coordinating mailings and such.
Don Eitel at 11/3/2008 5:36 PM

Social Media

Note: the process to comment on this blog is cumbersome. I've never been asked so many questions...then it took me back to the home page rather than the blog post I started on.

I heard about you on NPR today and am impressed with your work. Thank you for all that you've done and are doing. I volunteer with the Utah Symphony at Deer Valley and have been a fan of the arts for most of my life.

You wrote:
"I find our ticket buyers buying less and less off paid advertising and that may be one of the ways we trim expenses."

I'm impressed with the efforts of Funkified (I think that's what it's called). They have pre and post-concert activities and it's for 30-40somethings. They do a great job of educating and promoting events.

My question is: how many are doing email marketing? How about Facebook marketing? I see there's a Facebook Page but there doesn't seem to be a lot of interaction.

To me, audiences crave interaction. To not just passively watch but to participate and interact with others. Social media is a good place to start and join conversations.

I wrote job descriptions that resulted in about 20 interns from a local college. They love getting real world experience in social media.

I wish some of the expertise from my industry would go to help build the arts. I'd like to see examples of organizations who are effectively drawing audiences with social media.

- Janet
4017150 at 7/13/2009 4:57 PM

Email Marketing

I forgot to mention that email marketing is probably the most inexpensive form of marketing. I get regular email from a film society but not from the symphony or ballet. I'd like background and facts about the concert and/or performers. Almost everyone checks email and has an email address.

Just wondering if this has been effective and how much technology has helped the cause.

-Janet
4017150 at 7/13/2009 5:01 PM

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