Client Spotlight: Back from the Brink with the Shreveport Symphony Orchestra

2012 was a challenging year for the orchestra business with too little good news or much encouraging

progress. However, for the Shreveport Symphony Orchestra (SSO), 2012 proved to be the year of the turnaround.  Partnering with Robert Swaney Consulting (RSC) through a combination of a development assessment, interim staffing and ongoing counsel, the SSO began the process of rebuilding its annual fund, sponsorship program and peer-to-peer fundraising climate.

Shreveport’s arts and cultural scene is robust – from theatrical and visual arts offerings to family festivals and musical offerings, including the Shreveport Symphony.  Over the years, the arts in Shreveport have struggled financially, and the Symphony has not been immune.  While artistically valued, the SSO has grappled with fiscal challenges for the better part of two decades – becoming a fraction of its former self, with reduced programming, greatly reduced staff, and a budget of just over $1,000,000.  Having barely survived a musicians’ strike during the 2008-2009 and 2009-2010 seasons, a new fight for survival quickly developed.

In July 2011, Lois Robinson was appointed as the SSO’s new permanent Executive Director.  Ms. Robinson came equipped not only with arts management experience, but also prior to that she was a practicing attorney and a double bass player.  Considering the dire circumstances of the SSO, Ms. Robinson’s unique background was immediately put to use. 

As the SSO approached 2012, it faced a variety of challenges – including some startling news about the organization’s non-profit status.  Shortly after Ms. Robinson’s appointment, the Symphony received notification from the IRS, revoking the Orchestra’s 501(c)3 designation due to failure to submit IRS 990 tax forms for the previous three years.  Other tax-related issues followed – donations to the SSO were no longer tax deductible and the organization was ineligible to receive vital operating support grants from foundations.  

As 2011 drew to a close, it became clear that the donor base had eroded substantially from their pre-strike levels, though some generous individuals, corporations and foundations continued their steadfast support.  To further complicate this, the patron database had been neglected for years, making it extremely cumbersome to identify and solicit past supporters.  Finally, the Fiscal Sponsorship arrangement negotiated that fall with the local Arts Council (SRAC), while essential to saving the situation by allowing donors to make designated tax deductible gifts to SRAC in support of the SSO, made the communications and messaging challenges with donors immensely complicated and delicate. 

  

With these challenges, most organizations might have given up, but Lois Robinson and the SSO’s board of directors took bold steps to move forward.

Reinstating its 501(c)3 status and satisfying the IRS were chief “back office” priorities for the SSO.  Simultaneously, and against all odds, the SSO had to develop new approaches that would attract new sources of revenue to allow the Orchestra to continue to play.  

The SSO didn’t have the necessary fundraising expertise in place to meet these extraordinary challenges, nor did it have the luxury of time to search for and hire a new Development Director.  So in November 2011, the Orchestra engaged Robert Swaney Consulting (RSC) to provide an immediate fundraising architecture – including plans, strategies, coaching and support – all needed to quickly rebuild the SSO’s contributed revenue program. 

RSC’s priority was to quickly build an effective Annual Fund program, with a philanthropic, yet “cash now” mentality, with a case for support that would rise above the organizational challenges. RSC’s approach was multi-faceted but remained basic to accommodate an organization with few resources.  Our focus was to carefully but quickly redevelop the fundraising fundamentals at every gift level by developing a plan, case and timeline that offered a series of structured, yet intense and compressed activities that would provide immediate results.

Working with the SSO leadership, RSC began to leverage volunteer resources, target individual and corporate gifts of various sizes, create an environment of “positive urgency” via a challenge grant and a fully redeveloped case for support to address the challenges while emphasizing a bright future.

Board and staff were focused on rebuilding relationships with the local influential stakeholders.  Well-designed messages to the public became more intentional and more frequent. Local leaders took notice and began to recommit themselves to support the SSO’s efforts in a variety of ways.  The database issues were improved to expedite regular communications and gift asks to the SSO patrons.

The results have been overwhelmingly positive. Overall, the SSO’s Annual Fund surpassed both its Individual Gift goal of $265,000 and its Corporate Sponsorship goal of $140,000 – an astonishing achievement considering that for most of 2012 the organization was burdened with a suspended 501(c)3 status and didn’t launch its fundraising program until  almost halfway through the fiscal year.

“RSC’s work had to be fast, precise, yet nimble – especially in the early stages – because the SSO’s needs were great, and the dynamics changed daily,” said Bob Swaney, Founder and CEO of RSC.  Swaney continued, “It was apparent that, despite the dire situation, the board and the community clearly wanted its orchestra and the SSO’s leadership was ready to do the work necessary to quickly redevelop community interest.  They simply needed a strong partner like RSC to guide their fundraising efforts during a most difficult period.”

Staff, board and musicians were in sync and according to RSC Senior Consultant, Jeremy Hatch, “No one was dragging their feet. The community was enthusiastic as they saw a beloved organization turn itself around to play another day. While the budget didn’t quite balance in 2012, the SSO closed much of the gap, addressed some serious issues, and created an ‘environment of asking’ that will help them continue to grow.”

SSO Executive Director, Lois Robinson said, “I am grateful for the Board’s dedication – and tremendously appreciative of board chair Brian Hebert’s leadership since my arrival.  I’m also grateful for RSC’s partnership.  We had so many challenges, all needing to be addressed at the same time.  Jeremy and Bob kept us on track with fundraising and made sure we stayed focused on only those things that would give us immediate return.  RSC has been a huge part of our success!”

“That sentiment is mutual,” said Swaney.  “I had the pleasure of working with Lois while she was at the Louisiana Philharmonic Orchestra.  She was the perfect choice for Shreveport, and she’s doing an outstanding job to reenergize the SSO and to reengage the community.” 

Now celebrating its 65th season, Shreveport Symphony Orchestra, under the artistic leadership of Michael Butterman as Music Director, presents classical, pops, holiday and family offerings to an appreciative community.  The base of support is growing, and while struggles remain, the SSO has laid the groundwork for a brighter future.

Established in 2006, Robert Swaney Consulting, Inc. (RSC) is a national provider of contributed revenue growth strategies and hands-on interim management for arts and cultural institutions. The firm has offices in Indiana, Georgia, and Missouri, with clients across the country.

If you would like to learn more about how RSC has helped the Shreveport Symphony or how it successfully partners with arts and cultural organizations to reach fundraising goals, call us today at 317.300.4443 or visit our website.

The Double-Edged Sword of an Annual Fund

The term “Annual Fund” can be a double-edged sword. 

Arts organizations are perpetually in fundraising mode and Annual Funds are the primary vehicle to secure donations.  By comparison, membership campaigns are similar, but Annual Funds are, well, more edgy.  But because Annual Funds run for a full year we’re often lulled into putting off that work by the illusion that we have all year to do it.  Other urgent issues arise. One day goes by.  Then another…and that side of the sword can cut deeply into your performance.

Arts and cultural organizations cannot afford to measure each day of an annual campaign equally. Taking the goal and dividing it by 365 days to determine a daily goal as a benchmark is a losing approach. All Annual Fund days are not created equal. RSC believes that the success of your Annual Fund is determined in the first sixty days and getting out-of-the-gate with intensity is key to your success.  

Frontloading your activities is therefore a must.

Why frontloading?  Annual Funds don’t have obvious deadlines like performances or exhibit openings, but the timing within a campaign is similar with its own urgencies, deadlines and opportunities. RSC recommends tying together the planning, timing and goals – and then orchestrating the campaign with intense amounts of leverage, momentum and urgency – especially during the first six months of your efforts.  Frontloading gives your Annual Fund the energy it needs to be successful.

So how can you frontload your campaign? Here’s the basic structure to get the growth you need…

First, giving begins at home – starting with those who are most invested in the organization and who often require the least amount of cultivation.  Your board sets the pace for the campaign – giving first and giving generously.  Renewing and lapsed donors / sponsors come next – go for the upgraded gifts.  Non-donating subscribers / members and sponsors quickly follow. By using this hierarchy you can reach nearly all of the “family” and often reach a majority of your goal within the first six months of your fiscal year.

You now have a full six months to reach the balance of your goal through new gifts, second gifts, and so forth – and time is on your side.  You can now dedicate the latter half of your campaign to those prospects needing a longer cultivation process, plus, you’ve built tremendous momentum that will attract new donors. This part of the campaign is inherently more difficult but you’ve created ample time for the task of expanding your donor base.

Along with ramping up the campaign’s momentum, frontloading also acts as an insurance policy. If a long-time “big” donor suddenly underperforms, you’ll know about it in the earlier stages of the campaign and will have lots of time to find other sources of income to make up for the loss.

And what about pledges?  RSC says don’t just count on a repeat annual gift; commit it early. Even if the gift doesn’t immediately materialize, securing pledged commitments still helps build momentum for the balance of the campaign. RSC recommends pledges have no more than a three-month fulfillment date because anything longer jeopardizes the gift.

RSC has frontloaded dozens of annual funds because it is a tried and true method to build successful, growing campaigns.  We also know that if your organization isn’talready frontloading, it can be a tough transition – but we can help.

So don’t get cut by the double-edged sword of an Annual Fund.  Growth is important – and the urgency is now.

Rolling Up Your Sleeves and Tilling the Garden

Several years ago I had a particularly memorable conversation with a long-time volunteer of a regional symphony. Now, I can’t remember the circumstances of the conversation or how we got on the subject, but I remember her sweet, unassuming stature, passion and earnest when she reminded me that, “Back in the day we didn’t have paid staff to do everything. When something needed to be done, we just rolled up our sleeves and did it.” Pretty cliché statement, right? But there was something meaningful behind those words – and I was recently reminded just exactly what it was.

This woman had been a symphony volunteer for decades and had seen her symphony grow from its small beginnings to a full-time nationally respected institution. She sold tickets, she raised money, she wrote program notes and much more.  It’s amazing to think of the history and future she helped build – from moving into the orchestra’s permanent home, to building an endowment from scratch, and experiencing first-hand six out of the seven music directors leading from the podium. This woman was not only a volunteer who made a tremendous difference for her orchestra, but she was also a testament to the passion and dedication people have for their hometown arts organization.  We should cherish these people for what they’ve done -- and still do -- to grow and nurture our arts and cultural institutions.

In contrast, the Brooklyn Museum’s ousting of its volunteer Community Committee, as explained in the Wall Street Journal article on April 11, 2012, came as a crude reminder of how some organizations cast aside these stakeholders.  What a travesty to alienate such an important cadre of supporters, customers and family members. Granted, as organizations grow and change, so must their relationships with constituents. Staff is hired to accelerate results and the volunteer / staff relationships change quite often for the better.  However, the failure to manage these transitions and relationships carefully results in a loss of respect, trust, reputation, rich legacy and, let’s face it, capital. Not knowing the precise causes that led to the jolting dissolution of the Brooklyn Museum’s volunteer corps doesn’t prevent us from predicting the short-term outcome and loss of respect for, and trust in, the organization.

Transitions are tricky and growth can be difficult, but continually cultivating deep and abiding relationships is at the core of successful growth.  In the case of my orchestra volunteer, her relationship spanned some 70+ years.  Through her dedicated work she sold thousands of subscriptions, raised hundreds of thousands of dollars and was an ardent orchestra evangelist who cultivated the interest of many others who came, listened and loved the music. 

Working with volunteers can sometimes be tough – especially from those who feel, in part, a decades-long ownership of your organization.  I contend that they should be tough because quite often they planted the initial seeds of the organization, watched it flourish and then, when the tough times came, put their backs into it again to make sure the institution would survive.  So let’s not be too quick to dismiss these people simply because the needs of the organization have matured.

If you haven’t invested in your volunteers lately, do it today.  Cultivate the relationships to continually value and engage them deeply in your organization’s mission.  You’ve grown together over the decades and there is so much more good work ahead, if you take those steps together and make your garden grow.

We're neither pure nor wise nor good;
We'll do the best we know.
We'll build our house, and chop our wood,
And make our garden grow.

Make Our Garden Grow excerpt from Bernstein’s “Candide” 

Client Spotlight: The Detroit Symphony Orchestra and RSC Partner to Achieve Stellar Annual Fund Success.

After coming out of well-publicized financial and labor difficulties in 2011, the Detroit Symphony Orchestra's (DSO) Annual Fund is now on pace to grow at a rate not seen in over a decade.  

In mid-2010 the DSO engaged Robert Swaney Consulting (RSC) to create and implement the strategies and tactics needed to significantly grow the individual giving base.  Despite the extreme challenges facing the organization at the time, DSO and RSC staff worked together to produce a 32% increase in dollars and an 18% increase in the number of donors over the previous year.  Together, we not only reversed a decade-long negative trend in less than one year, but we also greatly surpassed the budgeted goal for the fiscal year.

How did we do it?  In short, we re-engaged the fundamentals of annual fundraising and combined them with some innovative approaches.  First, we developed an aggressive Action Plan and Timeline to guide our work. Then we created a new, highly-leveraged and positive message (even in light of an extremely dark moment in the organization’s history).  Third, we frontloaded our activities to both create a sense of urgency and to fully optimize all twelve months of the campaign.  Finally, we partnered with an awesome team of audience development, direct mail and telefunding experts to help us reach out to virtually anyone who had made a gift or purchased a DSO ticket in the past decade.  Of course, there’s more to it than outlined above, but combining fundamentals with a fresh approach was key to breathing new life back into the DSO’s Annual Fund.

Now in its second year with the DSO, RSC is deepening its role to broaden the donor base even further.  As you can see from the article in Crain’s Detroit Business, the results continue to be impressive.  The Detroit Symphony Orchestra has an impressive and dedicated staff and RSC is proud to be a part of the organization’s success.

Although we continue to see remarkable growth for the DSO, Annual Fund growth is a common and predictable theme for Robert Swaney Consulting clients.  By using a fully-replicable system of RSC plans, strategies and techniques, nearly every one of our clients over the past five years has experienced significant contributed revenue growth. 

If you would like to learn more about how RSC is successfully working with the Detroit Symphony Orchestra and how we can help your organization have similar results, call us today at 317-797-8924 or visit our website.

The Fat Lady Sings at Opera Boston...

...well somebody had to say it.

If you haven't heard the news, Opera Boston will cease operations on January 1, 2012.  They cited "lackluster fundraising in a tough economic climate" as the primary factor that lead to a $500,000 "insurmountable" budget deficit.

I'll admit, I don't know much about Opera Boston's organization or the circumstances that led to the decision to close their doors, but I do know that many arts organizations -- even some around the Opera's $3M annual budget mark -- would dance a jig if their deficit totaled only $500k!  It just doesn't strike me as an insurmountable number....but who knows?

Perhaps the closing boiled down to a cash flow issue.  However, it certainly seems that in a town like Boston, a mere $500,000 shouldn't be an organization-killer, right?  But after hopping on to OB's web page I caught a few possible clues.  They list a total of eight foundation and corporate partners.    Their annual membership levels for individual donations are uninspired and are aimed specifically at those buying the cheap tickets.  So, unless the organization had a tremendous base of high-level donors (i.e., total giving of $1.5M or more) I think we begin to see the picture.

Lackluster fundraising in a tough economic climate?  Maybe.  But I think we can blame a portion of OB's failure on having a weak business model.  They sold tickets on the cheap, didn't create the necessary financial base from sponsors and large donors, and aimed their broad-based appeals at patrons who were accustomed to 'not paying much' for tickets.  I also wonder how engaged their Board was with fundraising.  If a $500,000 need killed the place, I have some doubts.  As I said, I'm not familiar with their situation to understand all of the "whys" but there certainly are enough clues available to at least piece together some worthy assumptions.

So here's the crux of my message:  Build the right model and be willing to work it.  If an arts organization is going to promote "affordable tickets" terrific, but it must have the fundraising machine in place ahead of time to sustain the operation.  The Board must be fully-committed to raising the big bucks and have  the properly-leveraged relationships necessary to accomplish the task.  Broad-based giving must hinder on a belief in the organization's mission and contribution to the community -- not in perks and benefits.

Arts and cultural organizations really can thrive, even in a tough economic climate, but they must create their own conditions for success that go well beyond "the art".  Mission.  Leadership.  Structure.  Growth.  That's a pretty good start.