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Are You Getting Your 24 Cents Worth?

October 4, 2010

by:

Joe Patti

Daniel Pink had an entry this weekend where he presents a taxpayer receipt created as part of a policy paper by some gentlemen at Third Way. David Kendall and Jim Kessler who wrote the piece for Third Way start their paper by pointing out that we know the breakdown in the nutritional value of the food we buy, but we haven’t the faintest idea what sort of value we are getting for our taxes.

Given that so many politicians promise to control spending without touching Social Security and Medicare, they wanted to create an easy to understand listing of where all that money was going and what would likely need to be cut to make good on those promises. Since the median taxpayer in the U.S. earns $34,140 and assuming all that income is taxable, they created a graphic breakdown of where the $5,400 in taxes paid in 2009 went.

Of course, I gravitated directly to arts spending – 24 cents. Now remember, this isn’t the amount spent on arts per person, just what the median tax payer’s share is. Those with higher incomes are paying more and those with lower incomes are paying less. The amount per person is probably closer to the usual rule of thumb of the cost of a postage stamp. I was a little surprised to see that benefits and salaries for Congress fell below the arts at 19 cents until I remembered there are only 535 of them compared to all the arts organizations that seek funding.

If you visit Pink’s site, you will see that Social Security, Medicare and Medicaid top the list at $1,040.70, $625.51 and $385.28, respectively. Next down on the list is interest on the national debt and military operations. Cutting spending on the arts isn’t going to vastly improve the lot of any other area. Above arts spending is the Smithsonian Museum at $1.12. Giving all the arts money to the museum doesn’t improve their budget by a quarter.

When people complain that they don’t want their tax dollars going to support degenerate art, the truth is more money was likely spent powering their computer while emailing those sentiments and then paying a Congressional staffer to read and perhaps print it out than is spent on the arts. If a person mails their complaint, well they have already spent more on the stamp than they probably paid in taxes to the arts.

General Musings, Government Relations, State of the Arts

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Info You Can Use: So You Wanna Join A Board?

September 29, 2010

by:

Joe Patti

I believe I have covered the subject of considerations to make when joining a non-profit board before, but Emily Chan did a terrific entry on the topic on Non-Profit Law Blog this week. She links to the BoardSource page on this topic at the end, but she reminds us of additional things to think about.

Among her suggestions are to research on the organization you have been asked to join by reviewing the financials, bylaws, ensuring they have board liability and evaluating the personality dynamics on the board and their work process. Chan also mentions one of the areas I think is often overlooked–education. People who are familiar with boards on a basic level will know there are fiduciary and legal responsibilities to attend but may not really push to receive a thorough education in these areas and about the organization in general.

Education: Will you have the tools necessary to succeed at this organization?

Incoming directors at an organization may have different educational needs for creating the right environment to thrive on the board. Factors such as past board experience or work experience in the nonprofit sector can be useful in quickly adapting to a director role and executing those responsibilities. Likewise, an organization’s investment in or opportunity for board development and mentorship may be an important factor of an ideal work environment for individuals who are first-time directors or new to the nonprofit sector. For those seeking board education, a few topics to consider are:

* Orientation: What information will be covered? What are you expected to take away? What type of resources will be provided? Will you need more help or information after this?
* Training programs: Are they offered? If so, do they address the skills and areas you need the most help with? Are they pre-scheduled or provided as needed? Will you need more training and education down the road?
* Job description: What is being asked of you? Are your responsibilities and duties understandable and realistic? Can you fulfill this role?

I also really like Chan’s comments on how to evaluate the personality dynamics of the board, but I didn’t feel I could copy that much of her entry and offer so little original insight of my own. Obviously, the article can also serve as a guide for the materials, information and education non profits should be prepared to present to a potential board member so that a well informed decision is made.

Boards, Info You Can Use, Leadership

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Prices So Low, It Might Be Insane!

September 29, 2010

by:

Joe Patti

There was a fair bit of discussion on Adaptistration two weeks ago about the Joffrey Ballet’s success in gaining over 2000 subscribers in a single day using the GroupOn discounting site. As a theatre manager, I get caught in the debate between making 25% of my ticket price vs. having an empty seat against possibly training people to wait for the deep discount in the future.

One of the best points that I think is made in the comments on the Adaptistration entry is that while you may be making 25% of the ticket revenue, you don’t have the marketing costs usually associated with promoting the show when you work with GroupOn. My assumption is that most arts organizations marketing costs aren’t 75% of the ticket price so there is still a danger of not meeting the other overhead costs you have by using GroupOn, but if the discount is structured correctly, you could end up doing marginally better than you might have and have a fuller house. Looking like you are successful is half the battle in convincing donors and granting organizations to support you.

Still, I was pleased to see Chad Bauman, the Director of Communications at Arena Stage take the subject on. In addition to suggesting that you are rewarding the wrong kind of behavior with these discounts and risk alienating the person who paid full price months ago, he notes that paying less than full price seems to translate into less than full commitment in both renewing and attendance.

“We must always remember that discount buyers behave differently and you must budget for that. Full season subscribers at most organizations renew at a rate between 85% to 90%. However, I have found that full season subscribers that purchase their subscriptions at a drastic discount renew at a much lower rate (around 60%). Additionally, because they spent significantly less amount of money per ticket, the no show rates are also substantially higher, sometimes leaving large empty holes in your house.”

As an alternative, Bauman suggests a slightly more work intensive process of acquiring mailing lists, sorting out your current subscribers and ticket buyers and-

5. Using the exact same deep discount offer you were going to give to Groupon, develop a cheap, but effective mailer and send to your list. Make sure it is an offer that is impossible to pass up, and that the offer leads in design and has a deadline. (note: if you don’t have a large box office staff, then make sure the offer is online only, or you will be swamped). The key is to keep production and mailing costs low–send using non-profit postage and use a discount printer/mail house.

By doing this, you get to keep the entire purchase price of the discounted subscription, and you minimize the possibility that your dedicated and loyal patrons will see that you are heavily discounting late into your campaign after thousands have already purchased.

Taken together, the Adaptistration entry and comments and Chad Bauman’s take, give a pretty good picture of the factors to consider and some alternative approaches to take.

I haven’t used GroupOn yet for personal consumption. In fact, it appears it might not have a lot of traction locally because there is no listing of past deals for my city. Though that could just be a technical matter. I wonder if you can effect the timing of the offer. That way, you can use it in a manner closer to that used by airlines. Not everyone in the plane is paying the same for their seats, but generally it is recognized that those who purchased earlier got a better deal. If you can arrange things so that people need to commit to the performance a couple months out, then at least you emphasize the need to plan ahead. Only problem is that if people don’t show up because their investment is as low as the price they paid for the ticket, you may judge it something of a mixed blessing.

Arts in an Age of Technology, Audience Relations, Marketing/PR

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Entranced by Gorey’s Details

September 27, 2010

by:

Joe Patti

This weekend I attended an opening of an exhibit of the works of Edward Gorey. I honestly had no idea he was as prolific an illustrator and writer as he was. I had grown up seeing the openings he created for PBS’ Mystery and a college roommate had a poster of his Gashleycrumb Tinies. I had nearly forgotten that he did the set and costume design (as well as playbill cover) for the Broadway performance of Dracula back in the 70s.

But there are scads more that he produced, so much of it so very wickedly clever. I loved his pop up books. There was this one book that expanded like an accordion. You peered into one end and apparently as you expanded and contracted the book, the different figures would emerge and retreat from your field of vision changing your perspective about the details of the scene. (I wish I could find a picture of it online to show you!)

As I looked around, it occurred to me that technology is no substitute for talent. Gorey used paper and ink of various qualities and grades to express himself in ways that can’t be replicated or remixed by someone on a computer who lacks Gorey’s vision. He had a series of story cards with images and short phrases that could be shuffled and laid out in myriad ways to create alternative stories. The ones on display in the case had a mystery theme and depending on the order you gazed upon them could have people sneaking around possible as a cause of what came later or as a reaction to what happened earlier. There were books with the pages sliced into about ten stacks of slips that could be used the same way. Flip to the 3rd slip of the top pile, the 8th slip of the fourth pile, the 3 slip of the 9th pile and you had a one variation of a thousand stories. I liked the cards a little better because I could see them being easier to use on a long car ride and the illustrations contributed to my imagination. In one variation, those on the card looked around furtively. In another, they just looked bored.

In most theatre classes, students are often reminded that the fancy lights and effects and detailed costumes are not the performance, but merely enhance the experience. All you need is a good performer with a good story. The rest is superfluous. Gorey brings a lot to his work. Even though you experience the art and text on a static medium, as the speaker said yesterday, you have to interact with his work to get something out of it. He requires imagination, intelligence and thought.

Arts in an Age of Technology, General Musings

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