Arts, Feel The Burn. Love the Burn!

by:

Joe Patti

Andrew Taylor has the video of Diane Ragsdale’s address on Arts Alliance Illinois 2010 Members’ Meeting on his blog today. Her speech was titled, “Surviving the Culture Change” and she tackled the general idea that expectations are changing and the arts need to change too. My favorite moment was when she likened the experience of attending the arts for someone who has never really done so to going to the gym. “You have to go on a regular basis before going feels better than not going.”

During her talk she references the fact that large churches often make sure newcomers are greeted and are integrated into a small group that becomes something of a social network for them so they don’t feel like a small fish in a really big pond. I made a similar observation in just the last month.

She also talked about attending performances and then wanting the arts organization to have posted some sort of downloadable material the next day that she could share with her friends. Perhaps she acknowledged the problem and I missed it, but the biggest difficulty with that is arranging for all the intellectual property clearances to pull that off. Doing what she suggests will either take a major shift in how protective IP holders are with their material..or the rise to prominence of people who don’t care to have it tightly guarded. Something that may just happen if people flock to them because they enable audiences to share clips the next day.

Ragsdale speaks on a number of topics over 45 minutes and there is a lot that is likely to interest you, so watch it below. The last thing that grabbed my attention was when she talked about saying you don’t have time to be involved with the arts is just an easy default answer. She points out that people devoted to the slow food movement/sustainable agriculture invest a great deal of time and money hunting down organic ingredients, learning to prepare meals and then engaging in the time consuming cooking process. There is a sense of satisfaction they get from this activity. Part of the trick then is to provide an opportunity to acquire a similar sense of satisfaction in the arts.

N.B. – For a shorter version of Diane’s comments and the text of the prepared remarks, see the links in Scarlett Swerdlow’s comments below. Thanks for the tip, Scarlett!

Diane Ragsdale on Surviving the Culture Change (Full Remarks) from Arts Alliance Illinois on Vimeo.

On Refunds and Exchanges

by:

Joe Patti

So I made a big mistake this week with a reception invite. There was actually a letter missing from the title of the show on the cover of the invite. Now in my defense, about five other people missed it to. I had originally assumed that I messed it up by accidentally brushing the space bar when I was reviewing the work on my computer yesterday. Then I went back and looked at the versions I emailed out to the various parties involved, including the show creator, over the course of two weeks. It was missing all that time and no one caught it. I suspect part of the reason is that the cover of the invite was inverted so that it would fold into the correct orientation on the finished product. (Also, I think the show might be cursed. The show creator made a mistake on his first run of invitations a year ago when he was inviting his donors to a preview of part of the work.)

In any case, I sent the corrected version back to the printer and told them if they were having a sense of deja vu, it was because I had made a mistake on the first run. I got a call from the print shop and they said if I brought all the flawed pieces back, they would only charge me 50% of the original cost on the reprint. This was happy news to me since I resigned myself to putting the reprint on my credit card as it was my fault. I think it is a great policy on the part of the shop because they earn good will from the customer and they can be sure the paper is recycled rather than tossed in a dumpster.

As I usually do when I encounter an example of good customer service, I wondered how this policy might be applied to the arts. My first thought was in regard to exchange fees for tickets. Many organizations either do not exchange, have a $2-$5 fee for exchanges or only allow subscribers to exchange. I don’t have any data on how well any of these policies are received by audience members who want to change the performances. I suspect it is largely a function of the communities and the dynamics of the relationship each organization has with its audience base. While I think no exchanges or a fee provides an incentive to make a firm decision, it can be difficult to discern if the ticket office made a mistake or to demand people pay it when an accident/emergency is going to prevent their attendance. Deciding to do an exchange or refund is so often a subjective judgment call that having a fee can exacerbate the frustration of those who feel they were unjustly denied.

Part of the problem is an empty seat is not a ream of paper. Yes, an empty seat is lost revenue once the show has started but that is a more abstract concept for people than the ream of paper now spoiled by a mistake the consumer has made. The whole concept of a performance as a perishable commodity which you are exchanging money for can be tough to grasp if there are many opportunities. My dentist can fine me for breaking my appointment because he knows I will have to come back sooner or later when my teeth start to hurt. (Just for the record, I am faithful to my 6 month appointments.) Occupying his chair is something I feel I need to do. Not always the case with some performances.

In these days when people are making and changing their plans at the last minute, do no refund/exchange policies or fees make sense? Do they provide a disincentive to attendance in the first place? There are a number of organizations who experiment with flex passes, some of which allow you a set number of tickets to any performance you want to see. You can come once with 6 friends, come 6 times to the same show yourself or go to 6 different shows yourself. Seattle Rep has a package like this called Player Pass. They even have a Today’s Pass where you call the day of the show to get the best seats. Of course, if the show is sold out, you can’t get in.

If you only have one night performances and many of these shows don’t have similar ticket prices, then it can be difficult to institute a program like this. What I like about these flexible programs is that it puts a little more of the responsibility back on the ticket buyer. I am good at my job because I excel at advance planning. In the face of indecision and vacillation over weekend plans, I want to grumble, “geez, make a decision already!” With these flexible passes, if a person waits too long and the show they want to see is sold out and they don’t value the remaining shows in the season as much, then their subscriptions have lost a little of that intangible value I spoke of earlier.

Of course, the annoyance factor for me would be about the same whether they were wheedling and begging to get into a sold out show or vacillating about going to a show in advance. I may feel a little smug about having a sold out show, but I always hate having to turn people away from great shows for reasons that have nothing to do with ticket revenue. Flex passes don’t alleviate your worry on Wednesday about whether people will come to see the show on Friday because few have committed to any weekend plans yet. Well sure, with the flex passes you have already collected some money, and that is comforting. But performances were meant to be seen, the more the better.

Will Taxes Be Known As Manadatory Donations?

by:

Joe Patti

While non-profit arts organizations are looking into alternative structures under which to organize themselves like the L3C, it seems at least one municipality is looking to the non-profit model for their government structure.

Back in July, I came across an article about how Hopewell Borough in NJ is considering the non-profit model as a way to avoid state mandates. Mayor Paul Anzano posted a letter on the borough website in December:

“This would not be about seceding from the state, abandoning our responsibilities or failing to maintain the highest goals,” he wrote. “But it would most certainly involve exploring new options for delivering services based on the unique character of our borough. … Let the discussion begin.”

He was motivated by frustration he felt when the state mandated services but forbade raising taxes.

According to the newspaper article, “Under Mayor Anzano’s plan, the community would be run on a corporate model, and a board of directors, rather than a borough council, would hold residents responsible for municipal fees much like those in a co-op.”

The government wouldn’t be organized under 501 c 3 like arts organizations are so there wouldn’t be an opportunity to write off your property taxes as a deductible donation. There are a few non-profit categories under which you can organize which supporting would not be tax deductible (neighborhood associations or condo co-opts, for example).

The mention of co-opt association raised a momentary red flag for me as I recalled a recent story about how Texas Homeowner Associations can foreclose on your property without a judicial proceeding. This is the case in 33 states. I wondered if NJ were one and if Hopewell Borough might end up structured in such a way that they were exempt from any eminent domain prohibitions that usually face governments.

I was waiting to see if there might be any more development on the story, but other than the borough meeting a few days later to discuss this, I haven’t been able to find much more news on the matter.

So at this point, there is no sign that this will ever come to fruition. But if a borough of 2000 people can get a discussion started on the topic among various state government units and the associations to which they belong, maybe the charitable non-profits should get together, the hospitals, social service agencies, arts organizations, etc, and push for an alternative structure–either a new one or a new hybrid non-profit category that provides more options for operation.

Be A Broadway Producer!

by:

Joe Patti

Broadway Producer Ken Davenport is offering the first crowd funded investment opportunity in a Broadway show. For $100/unit, ten unit minimum, you can invest in Davenport’s Broadway revival of Godspell.

Davenport had to pass an exam to become a securities agent in order to offer this opportunity.

From Davenport’s blog-

“Each investor in Godspell shall receive a limited liability company interest in The Godspell, LLC, per our Offering Circular as qualified with the Securities and Exchange Commission of the United States.*

In addition, every single investor, no matter how much he or she invests, will have his or her name listed on a poster outside of our Broadway theater.

Yep, you’re going to get billing.

And every single investor will also have their name listed on a new website created exclusively for this community, PeopleofGodspell.com, as well as his or her photo, hometown, a quote, and links to their Facebook and Twitter profiles.

What do you think? Fun, right?

There may even be opportunities for opening night performance and gala tickets, complimentary tickets to previews, invitations to private cast functions and more.”

Bad news for many of you, including me, you have to live in one of the following states to directly invest – CA, CT, GA, IL, MA, MI, MN, NJ and NY. If you really want to participate, maybe you can have friends/relatives who live there and are interested in investing themselves pool your money with theirs. Not sure if you can get credit on the poster though.