1099s For Everybody!

by:

Joe Patti

I was idly skimming around Inc.com today when I came across a story which raised some concern for all the already overburdened arts organizations out there.

Apparently, a provision of the new health care law will require that any company making a purchase of more than $600 issue a 1099 form to the seller. Even for arts organizations who don’t generally have a lot of money, it is pretty easy to spend $600 with a single company in the course of a year. I can see a lot of arts organizations being driven to distraction trying to comply with this. Especially since arts organizations may also end up receiving as well as giving because of rentals or blocks of tickets people may have purchased for their business.

This law actually may provide a disincentive to shop around for the cheapest price. If it is easier to keep track of everything you spent on hardware at one store, you may avoid the other stores even though they often have good prices on certain items.

Non profits may be exempted for all I know, but there was no mention of that in the six different articles I read trying to get more information on the subject. There are a few amendments that have been proposed. One was voted down today because it tried to dismantle a couple other elements of the bill along the way.

This is supposed to go into effect in 2012 so more information may emerge as Congress tries to sort all the intended and unintended consequences out.

Gumbo With Your Show

by:

Joe Patti

I have only written about performances we have presented that transcended my expectations artistically (or things that we self-produced). The performance we presented this past weekend was just as excellent as I expected so it doesn’t necessarily fall into that category. However, the ancillary activities we conducted garnered us a lot of audience goodwill.

We were having a Louisiana group, Red Stick Ramblers, perform for us and noticed they did cooking demonstrations. Since their performance would be the first event of the season, it seemed like a good opening event to have the group cook for a small number of people. Theatres often offer the opportunity to have dinner with performers, but having the performers cook the dinner is a little more novel. They would be performing the same night so we didn’t want them to keel over in exhaustion. The chef/fiddler confirmed that cooking for nearly 200 people and doing a show nearly wiped him out once so I was pleased we limited the tickets to 50 people. We still have nice weather so we held it outside and billed it as a picnic. In addition to cooking, the band jammed a little off to the side while the meal was being prepared.

The people who attended were quite verbal with their appreciation for hosting the dinner and concert. They kept telling my boss how wonderful I was and what a great job I was doing at the theatre. (I should add, we weren’t serving any alcohol.) People got to listen and chat with the musicians. Others crowded around the pot and helped stir. If you have ever made a brown roux, for gumbo you know there is a lot of stirring to be done. A good number who attended the picnic knew each other from attending various music festivals in Louisiana so I was pleased there was some word of mouth in operation. I know the event added a couple people to our mailing list.

Of course, we had to expend quite a bit of effort to make a picnic happen in addition to a concert. There was a lot of food to be purchased and prepped prior to their arrival. Potatoes don’t peel themselves, nor do shrimp de-vein and lose their tails on command. Tables and chairs to be set up and broken down. Dishes had to be washed. By the end of the night, you begin to see the wisdom of having things catered.

But as people poured out of the theatre at intermission and the end of the show, still heaping praise on the experience, I realized we had earned a lot of good will with a number of people that evening. Caterers may have done all the clean up, but sometimes that can’t compare to a good home cooked meal. (Letting them in to the seating area earlier than everyone else probably didn’t hurt either.) By the time I got to the pot, everyone had fished all the big pieces of shrimp and other seafood out, but the liquid itself was pretty great tasting.

I am not particularly pushing these guys, though they are pretty easy going and fun. I think there are a few Louisiana/Southern US groups that do this sort of thing. A guy calling himself the Sauce Boss makes gumbo on stage while he performs and then gives a little to the audience. This can be a fun activity for a performing arts center. One of our partner venues in the state is having their cooking demo on a separate day from the concert so they can serve a larger group than we did. I think their dinner event was more fund raising focused.

Cherry Orchard? Check The Freezer Section

by:

Joe Patti

Given my brief foray into site specific theatre last Spring, I have been keeping my eyes open for other projects. Via the Fast Company website is a The Cherry Orchard inspired piece set in an empty department store in Brighton, England.

The Fast Company site has some images, but architectural photographer Jim Stephenson has an entire walk through of the building on his blog, talking about what an attendee experienced.

A lot of it sounds like fun–entering the freezer and finding yourself looking at a winter snowscape with a model of the Cherry Orchard house. You move to the next room and you find yourself in the house modeled in the snowscape. At other times you move from the 19th century Russian house to a more contemporary Russian department store.

Take a look. See if you are inspired.

Duelling Boards

by:

Joe Patti

A nod to Non-Profit Law Blog for their link to a very extreme situation addressing the question of who owns a non-profit. In a story that appeared in the Star-Tribune (MN) and Non-Profit Quarterly. The founder of a non-profit that works with former inmates was frustrated with what he saw as a lack of responsiveness from his board. He formed a second board with a former member of the first board. This second board voted to dissolve the first board and install themselves as the governing body. According to both articles, the founder ended up fired and being lead away by police in the presence of both board presidents, each claiming they were in charge.

The short answer about who is in charge is always the board. They bear the responsibility of the governance of the organization. But given that organizational founders are generally the ones who institute the formation of a board asking the initial members to serve, does a founder have an ability to choose his/her own board? There is a point where the ability to select board members passes from the founder’s hands. My suspicion is that absent a provision giving the founder or executive director the power to make appointments, this occurs once bylaws have been completed and properly filed.

The next logical question is, when a board is not living up to its responsibilities, what recourse do people have in replacing them? Presumably the board can be sued for not meeting their responsibilities and a court could dissolve the board and order the formation of a new one. I have never heard of this happening, though I am sure it has, so I can’t be certain. It may not be the board as a whole which is dissolved and only those whom have been proven to be remiss in their duties who are removed from the board. But basis of this would be whether members attended the required meetings and were diligent in their review and handling of organizational matters. If it were not essential or required that the members return calls or attend the organizational events, it might be difficult to have the board dismissed. If they were moving forward with the strategic plan and operating budget at a rate a court found reasonable, again it could be difficult to unseat them.

If the allegations of mismanagement originate from within the organization, as it did in this case, then there is also the stress of having the board and staff in a confrontational stance complicating the situation as well. As I mentioned, I am sure there have been times when boards have been dissolved because they failed in their duties, but I wonder how many of those instigated by staff. If anyone on staff is going to do it, it would be the founder given how much they have invested in the organization. Staff members may have provided materials to support the case against the board, but it has to take a lot of moxie for a staff to declare a company is ill-served by its board and initiate legal proceedings.