$500K-$2 million

Break out session capitalization­ 500k to 2 million ­

(apologies from note taker­First, I’m not much of a typist; second, sometimes it was hard

to understand what people were saying; third, sometimes the talk got into discussions

beyond my accounting understanding, and I can’t summarize what I don’t get.)

Page Neumark from Shakespeare Western Australia­moderator

Page­this group has very different concerns from the other 2 groups­would like group to

be as honest as possible­move beyond boosterism of opening session­but good

opportunity to share with eachother­STA unique chance to be honest about

vulnerabilities­bottom line is about sharing best practices with similar budget groups­he

came away from capitalization discussion with a little bit of fear­ooh where does my group

stand on that scale

­for example, told marketing should be 25%­is that real­his data shows more of 4%

­ related personal experience with 2 shows one was an artistic success but poor seller

the other bad artistically but big seller ­learned that marketing is important and not

generally attached to quality

Approximate Breakdowns of theatre spending from casual survey of groups in the room

Groups with a facility spend 10% of budget on facility

groups with an outside rental 6%

wages­ 70­80% of budget

Round Robin of approximate company budgets

Shakespeare Notre Dame­ 1 mill

Chesapeake Shakespeare­ 1.3

San Francisco Shakespeare­ 1.2

Nevada Conservatory­ 500k

Montana shakespeare in the parks 900k

Prague Shakespeare­1 mill

Shakes Festival of St Louis 1.5

Atlanta Shakespeare 1.7

Boston Shakespear Project­1.7

New York Classical Theatre­300k

Santa Cruz Shakespeare­1.2

Shakespeare WA ­600k

Question­who puts soft (faculty staffed positions, in kind,etc.)funding in the budget?

responses from group­track but not completely-
Suggestion to track for several reasons­both for revenue enhancement and also for

secret costs (such as volunteer insurance)

Chesapeake Shakespeare­here is a great insurance agent­Bob Middleton­ Arts

Insurance program of Maury Donnelly

bob­middleton@mdpins.com

say Lesley Malin (managing director Chesapeake) sent you

Use of volunteers (in­kind)­can be useful for grants, but also restrictions for government

accounting

Question­how do you create demand when it’s not clear there is a demand

Answers from group­demand may already be there, but if it’s not marketing fills that gap

by telling people (like Apple, Inc does) what they will want­you do things in different

categories ­i.e. there is a demand for camps, shakes in park, and frame the rest as

introducing the demand.

­ also surveys and staff member interviews to re­discover what the demand is for­that is a

classic model of navigating demand

round robin about breakdown on earned income\gifts

(people did not reintroduce, so there is some missing info here)

Notre Dame­40 endowed\10 gifts\10 box office;remainder other earned income

Chesapeake­50\50

Santa Cruz­45 earned

?65 earned

?35 earned\65 contributed

?from survey of STA groups­ 35­50% earned

Western Australia­70% earned

Prague­20% earned

Sf Shakes 50% earned from tour

Susan arrived to answer questions

Question­ from Montana Shakes­how do you start from scratch to build strategic plan?

answer­create a kitchen cabinet­bring a a small group of advisors­if you are affiliated with

university than involve business department­tap those resources

Page has specific experience of help from the university

Follow up question­ Our university doesn’t necessarily have a view of the shakespeare

festival as a separate entity

Ques­ how do you transition from the use of sweat equity into paying salaries, etc.?

Susan­sometimes you have to bite the bullet and have a couple of flat years­but also take

that info to your funders as a way to get support.

Santa Cruz question­how do you tackle donors for significant gifts

Susan­make it a multi­year ask­also, artistic risk funds can be developed sometimes with

younger

donors who are used to risk.

question­how much do you share soft funding with donors?

Answer­can be useful as part of complete and honest conversation with donors-
ie ­ as a discussion of recurrent costs that now you get free but you might have to pay for

later

Question­ what is worth is in terms of a cost for a development department-
Susan­all about scale and size­in general, a development person should return 5x their

salary(some leeway) executive directors are about determining this­the ask to be donors

needs to be from artistic and executive director.

What about education director?

Susan­programming is different because of different goals on the return

(The rest of this discussion got a little complicated in figuring out how much rate of return

you can expect out of marketing, and I really couldn’t follow it­sorry!

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