INTRODUCTION
As everyone is aware, the entertainment dollar expended on live theater is dwindling nationwide as people find more enjoyment in the electronic media. However, you will be pleased to note that the Regional Theater has been able to maintain a balanced spreadsheet. It is with great pride that we enter the year 2016 with a balanced if not strong bank balance.
Show 1 2015
The first performance of the year yielded very good box office draws but the second Spring show was marred by poor weather and kept many theater goers home. The second performance could most likely be presented again next spring so as to recoup the cost of the rights and the specific props.
The fall shows proceeded along the same pattern as the first performance did better than projected and second show found competition in the Curtain Up season openers in the larger venues and so there was a problem of conflicts in attendance. Again the net of the Fall season was at a little above the breakeven point.
GALA
The main fundraiser, the Annual Gala, was of moderate success this year as again the weather offered poor attendance options. However the majority of the tickets were prepaid so that all the costs were covered and about $3000 was made to supplement the funding. This is an average amount that has been made in the past and so we were grateful for the prepaid tickets so that the attendance did not matter quite so much. Some at the door tickets were sold but not as many as hoped.
Changes from 2015
There are some significant changes to the budge from last year that the Regional Theater would like to highlight to its financial advisors from the year 2015 to the year 2016. The Regional Theater is so sorry to announce the death of one of its Board Members. You will remember him as a significant contributor to the Regional Theater in both time and money. His donation of $10,000 per year will be greatly missed. In order to make up for this shortfall I am recommending that the Regional Theater develop a Summer Camp that will give young students a chance to be on the stage and learn some basic skills of theater. The charge of $100 for the week for each child will require that 200 students register. So to accommodate the group, classes will place for one week, from 9-12 or 1-4 options. Teachers will be paid for the two weeks at a stipend of $500. Miscellaneous expenses and other salaries will involve about $2000 so that the Summer Camp should be able to make up the shortfall from the deceased Board Members contribution.
Grants and Funding Opportunities
The good news from the Foundation grant is that we are receiving $25,000 this year. In the past we had received $50,000 so that is a lost to the group. In an effort to make up this shortfall it will be necessary to research the availability of other community resources to make up the shortfall.
My research indicates that on staff grant writers has the best chance to secure grant funding opportunities so it is my intention to seek approval to hire a professional grant writer. The individual that we hire will be paid on a performance basis. In other words they are paid one third of the grant funds that they secure for the organization. There are no other costs to the Regional Theater Group. The group does loose one third of the funding though.
Grant writers in the past have looked at the propositions of writing grants for our group. However we do not have audited financial statements. Most funding requires three years audited financial statements. So with this issue we are actively seeking an accounting firm that is looking to do pro bono work to produce the audit. This is a project for all of our members to ask the community for anyone who does this service.
Debt Service
The bank that holds the note against the Regional Theater has asked for an increase in the payments. The increase is small but will add to the monthly payments that we are making at this point. The increase is manageable in our current operating budget no additional steps will be taken. A conversation with the bank has lead to them giving us a few months to begin the increased payments. Thoughts going forward might lead to looking for some additional funding sources to replace this one if the funds get too low.
Rental space
The Regional Theater rental space is going to be available this year for rent at the holiday time as the organization that uses to rent it has gone bankrupt. This is being looked at by the members of the theater group as an opportunity for growth. The Regional Theater has not produced a Christmas Play in many years. This year since the space will be available, and the children's theater will have taught some budding performers, a Holiday pageant will be presented. In the rental space can accommodate the additional show and the students will be used to showcase the talent that they gained in the summer camp. Auditions can be held and a director selected. The Regional Theater has the rights and the props that are needed as the holiday show is a low budget performance. The performances should be able to make up a significant portion of the lost revenue from the rental space and will serve as an alternative to the landlord use of the space.
Conclusion
In conclusion, the nest year offers many advantages and some challenges for the Regional Theater. All in all the realization is made that significant changes must be made to the operation of only four productions in a year to remain viable. These changes have to rely on the volunteers to be willing to give more of their time. This is a problem because many volunteers are very committed and do an amazing job and some never fulfill their commitments.
The net effect of the accounting report this year is encouraging. In an effort to keep the Regional Theater going strong so additional changes need to be made. The Regional Theater group, and especially Board members, is committed to keeping live theater as a viable option to electronic media entertainment. There are many community actors that perform as volunteers and are looking for an opportunity to remain a part of the theater group. As long as the Board remains as committed to the projects that we have proposed a community effort to keep the theater viable is going to create a successful cultural offerings in our town.
