Performing Arts –– Why is Marketing More Important than Fundraising?

Working with performing arts clients, I frequently observe a competitive tension between the marketing and development departments. Instead of an esprit de corps, I see yin and yang. If these two departments can’t play in the sandbox together, it will eventually show up at the board level–and even more disastrously, at the donor and patron level.

So what’s causing the rift? It’s largely due to the finite resources available in these

organizations, coupled with the sizeable growth goals each department is tasked to achieve. The problem with this “us versus them” attitude is that it hurts the organization, deeply, and it’s absolutely avoidable.

Many institutions choose the wrong course. To avoid the pain, they place marketing as the alpha and development second in command, sacrificing contributed revenue opportunities and strategies for a perceived increase in ticket sales. This eventually chokes off both efforts. But how can the relationship be synergistic when the goals for each department are so aggressive?

Step one: understand and accept the balance between the two departments and create a productive environment that helps both thrive.

The ticket buyer is not the primary customer; the other department is the primary customer. You’re both in the “acquire, retain, upgrade” business, right? The development office should keep in mind the large majority of donors are also ticket buyers, and should therefore greatly respect the marketing process.

Step two: acknowledge that marketing’s success is also development’s success.

Marketing has to be focused in the proper area – namely, subscriber growth.  If the marketing department successfully creates a pathway for patrons – from single ticket buyer, to a multi-ticket buyer, to a subscriber, then they are creating patrons. Patrons, who are not only good for frequent concert attendance, but also good for making philanthropic contributions. Once converted to a donor, we know that the value of a patron increases, as does their lifetime value. 

Step three: acknowledge that development’s success is also marketing’s success.

So, when do we convert a subscriber into a donor? While conventional wisdom says three years, RSC rejects that premise; we find it most effective to convert them almost immediately. Since a new subscriber has not fully defined their role, it becomes paramount to get an entry-level gift right away. This allows your organization to tell its story from the very beginning of the patron relationship and to reinforce it over time. By starting early, you’re able to share your mission and worth, and turn what would otherwise be purely an ‘entertainment option’ into a highly-valued, prized organization, worthy of support. 

If marketing and development want a harmonious relationship, they must look at each other as their single largest customer. Then, together, they can accomplish their larger mission: serving their community.

RSC can help integrate your organization’s development and marketing planning strategies to build a successful fundraising program. If you would like to learn more about how RSC successfully helps arts and cultural organizations reach their fundraising goals, call us at 317.300.4443 or visit our website.

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.

RSC Launches Fundraising Educational Video Series for Non-Profit Organizations

Scott Giffen, cfre

Indianapolis – Robert Swaney Consulting, Inc. (RSC) has released the video series, “RSC: Arts Fundraising / Engaging and Keeping Partners”, available to the public free of charge, and accessible via Youtube. Featuring RSC Senior Consultant (and certified fundraising executive) Scott Giffen, the series captures excerpts from a workshop generously sponsored by the Missouri Arts Council and presented to local arts leaders in Springfield, Missouri. Aimed to provide “best practices” related to non-profit fundraising, RSC’s seven-part video series focuses on various sub-topics ranging from the 'Components of the Right Ask', 'Ask Techniques' and 'Thanking Your Donors'.
 
“Scott did a terrific job with his presentation that reinforces some very basic but very important principles of fundraising,” states RSC Founder and CEO Robert Swaney, “and RSC is pleased to make these videos available to a global audience. RSC is committed to helping non-profit organizations improve their contributed revenue growth results and we therefore trust that this new video resource proves valuable to those organizations.”

“RSC: Arts Fundraising / Engaging and Keeping Partners” is available via Youtube.com and can be accessed by clicking here to begin the first video, or search “RSC Giffen” in the Youtube search bar.

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Established in 2006, Robert Swaney Consulting (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, Missouri and Georgia.

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Tasking Your Development Committee Without Pain or Panic

contributing writing by RSC Senior Consultant Jeremy Hatch, cfre

Your season is launched, your direct mail campaign is underway, sponsorship is at a post recession high and renewals are coming along. What’s next?

 

It’s time to task your development committee for year-end fundraising success.

Before we get ahead of ourselves and send our highly-valued board-level volunteers out into the community to promote our good work, let’s pause for a moment to help your organization avoid a lot of pain and panic by first examining a short list of what a Development Committee is not (or shouldn’t be) and what it is (or should be).

Your Development Committee...

IS NOT:

A group that meets monthly, forevermore, to throw around names, eat the bagels, and talk about things that have no immediate effect —“We can approach Mr. Smith after the divorce finalizes and once the leveraged buy-out is approved. In 2018.”  Too little.  Too late.

IS:

Focused on specific prospects for this year with the urgency of a fixed deadline (year-end, before Thanksgiving, in time for the school series) and aimed at prospects with whom volunteers personally know and can ask for support.

IS NOT:

Responsible for direct mail solicitation copy. Give ten earnest volunteers the opportunity to edit your solicitation letter and you will have yourself ten rounds of edits and a month long delay getting our the renewals...and still no peer-to-peer follow-up calls.

IS:

Coached by staff to articulate in a personal way the mission of your organization. Not everyone is a natural salesperson but all volunteers can open doors and facilitate relationships -- which is a highly-valued and irreplaceable asset.

IS NOT:

A reactive group evaluating and / or criticizing the Development staff’s efforts and plans, after the fact.

IS:

In partnership with staff to make specific financial asks to prospects. This is a challenge for volunteers everywhere. Too often our volunteers want to send an email or plan to chat up their prospects in a casual setting.  The "partnership" approach is well-planned, more thoughtful, more focused and more personal.

As a successful board-level volunteer who is focused on fundraising results, you need to:

• Be Prepared:  Know your prospect (don't just "take a name") and then study what you can about   him / her.  What this giving history?  What's this year's target?  Does s/he give to other places?  Does s/he make gifts through a family foundation?  Is there a special affinity for giving, such as education and outreach?  Let the staff help you by preparing you with as much background information as they have available and then prepare for your call.

• Be Comfortable and Confident:  You are representing a dynamic organization worthy of investment.  Your organization is likely a great "sell".

• Be Yourself:  Tell the organization’s story in your own words. Make the prospect comfortable. Tell a funny story about your first opera experience or the time you tried to lead the audience in wild applause between movements Mahler's Symphony No. 3.  You don't have to be an expert in the arts field, you just have to be yourself -- one person talking to another about why supporting a community treasure is important.

• Be Engaging:  Don’t make the meeting about the written proposal or pledge card. Instead, engage in a personal conversation about an organization that is important to you.  Ask good questions and listen carefully to what the prospect is saying.  Why don't we simply send a direct mail piece?  Because we want you to have a real conversation.

• Be Specific: in your request for the gift and with any related points and / or follow-ups.

• Be Purposeful:  It is most important that a volunteer approach this work as seriously as you would your own business.  The meeting can have lighthearted moments, but always remember that securing contributed revenue is most often the lifeblood of the organization you are representing.  Your success is therefore vital to the organization.

Asking for money is serious business -- but it shouldn't incite panic or induce pain.  If your organization believes in the power of peer-to-peer, relationship-based, leadership fundraising, but struggles with fully engaging your volunteers, click here to contact RSC for information about how we can support your important work.  We would be happy to help you – and your volunteers – achieve Fundraising Growth Now!

The Subtext of Strategic Planning

 “Shakespeare doesn’t really write subtext, you play subtext.”

~ Gary Oldman, English stage and film actor

Strategic planning requires deep organizational examination by key staff, boards of directors, and a variety of internal / external shareholders.  Who are we? What are we trying to achieve? What are our challenges and opportunities? Who do we want to be in five years? Questions about “thriving” are more difficult to answer when your organization is more focused on “surviving”, but strategic planning should move your organization forward, no matter where you are.

What's the subtext of your Strategic Plan?

In monologue workshops, theater instructors often direct young artists to have a vision for their scene and press the students with the same questions over and over – What is your objective in this scene? What are your obstacles and your tactics for overcoming? Some artists answer without hesitation while others pause, having no premeditated answer. Good instructors don’t provide the students with the answer, only more questions. Layer by layer, subtext is formed and the actor can create a deeper, more compelling performance. 

An award-winning playwright can produce a play full of words and stage direction, but that’s not yet “theater”. The work is handed over to the performer to bring the work to life through interpretation, depth and delivery. Through text analysis, collaborative input and careful exploration, the work becomes alive.  Continuing questions – What’s your objective? What are your obstacles and what are your tactics for overcoming those obstacles? – breathe life into the story.

Creating and implementing strategic plans are not much different. Although important, the plan is more than just dreams. Ideas come together as plans are forged and left for key players to exercise and interpret, to act upon and assess.  As arts & cultural management consultants, RSC has witnessed this process and its rhythms many times as we’ve partnered with clients to develop strategic plans and funding growth initiatives. When done well, the plan evolves from being a simple document to becoming a deep, maturing interpretation of the organization’s aspirations, goals and pathways to success.

Is your strategic plan a plan full of words and numbers or is it alive and moving your organization forward?  RSC recommends a strategic planning and implementation process that is structured yet fluid and flexible, where roles are refined and matured with tactics that propel the arts organization forward. 

If you want to understand the subtext of your strategic plan, RSC can help through our proven methods of step-by-step counsel and expertise, exploration and direction. Together we can put into action an invigorated, deeper and more compelling effort for your organization.

If you would like to learn more about how RSC successfully helps arts and cultural organizations reach their fundraising goals, call us today at 317.300.4443 or visit our website.