As if I could have planned yet another distress call in the arts when I posted my previous article on problems in the arts, there’s more sad news from the Syracuse Symphony Orchestra, NY. They announced an emergency campaign to raise $1.75 million by the end of the 2010-2011 season, with the first $375,000 needed by the end of this week for emergency cash flow, or they will be forced to end their current season four months early. Read the full announcement here:
This comes in the midst of its 50th anniversary season, which includes a scheduled performance by cellist Yo-Yo Ma in April.
Ouch. The SSO has performed in Carnegie Hall numerous times with great success. Music Director Daniel Hege is a gifted conductor, whom I’ve had the pleasure of meeting at my former post in Annapolis.
This is a respected regional orchestra in the midst of a a celebratory, golden jubilee season, complete with a performance scheduled with Yo-Yo Ma. (Mr. Ma is well known for being a cash cow for orchestras, usually selling out the hall at a premium ticket price, which I’m certain has been factored into the current tally). I note that the $1.75 million they need by August 1 is 25% of the orchestra’s 2010-2011 budget of $6.9 million. This is serious.
He [board chair, Mr. Mangano] acknowledged the orchestra has been running deficit budgets for the last three years.
A structural deficit is really where the rubber meets the road in terms of capitalization. An orchestra with no available cash reserve or long-term invested capital is forced to weather “a perfect economic storm” without a safety net. Eventually, sizable annual shortfalls add up to the point that cash flow can’t keep pace.
I also note that this is not this organization’s first time at the dangerous rodeo:
The SSO was forced to shutter its operation in 1992 and ended its season four months early. In August, the SSO board conducted several fundraising campaigns. A $500,000 campaign was initiated for this season and $156,000 has been raised.
The SSO is roughly in the middle of its season, and has only raised 31% of its $500,000 goal. I really hope that this community will step forward and help this orchestra.
The SSO board raised $900,000 from its personal accounts over three years and $1.4 million in donations to cover the gap in expenses and revenues for the last three seasons. Donations for 2009 totaled $1.92 million and $1.93 million for 2010.
If board members increased their donations in 2010 by an extra $100,000 over 2009, this board is definitely leading by example. If I calculate correctly, according to the article, the board has given 64% of the $156,000 raised to date in 2010, as previously cited. Most boards give at or around 20% of the annual fund.
SSO leaders are citing very common concerns: donor fatigue, the economy, declining attendance, evolving cultural tastes, and the Collective Bargaining Agreement with its musicians, all as influential factors contributing to this crisis. Cuts have been made. Hiring is frozen (though interestingly, open positions include a permanent Executive Director and directors for advancement and patron development positions. Those sound like pretty important key positions for an orchestra that needs to fundraise aggressively.) No doubt, this orchestra is in crisis.
There’s more. There are some interesting ideas on the Syracuse Post-Standard’s companion article on Ideas to Save the Syracuse Symphony, including heartfelt ideas from community members.
The article does not mention whether the orchestra has an endowment fund. But with the orchestra providing over $20 million in economic impact to Syracuse, New York, a community investment of only $6.9 million generates a phenomenal return.
I’m including the video that SSO leaders posted on YouTube. If anyone out there is able and so moved, help this orchestra keep the music playing!
