Today, we continue our discussion of how Orchestra Kentucky prepares for a concert. Specifically, how much does a concert cost and how do we pay for it?
Concerts cost anywhere between $20,000 and $35,000, not including guest artists. Depending upon the guest artist, one can easily add another $10,000 to $30,000 to the total. Of course, this does not include renting the hall, advertising, and all the other costs associated with running a business. I am confident that patrons have no idea that it costs this much to produce a concert. Some think that a bunch of music lovers just get together for fun! As I explained yesterday, all Orchestra Kentucky musicians are professionals. They make a living playing their instruments. And they don't get rich doing it!
So, if a concert costs between $25,000 and as much as $50,000 to produce, how does the orchestra pay for it? Our income is a combination of ticket sales, sponsorships, sold services, donations, special events, grants, program advertising income, tuition, fees and interest. In 2009-2010, we had to generate $786,625. And Orchestra Kentucky is by no means a large organization. Many orchestras have budgets that run in the millions.
In 2009-2010, ticket sales paid for 37% of our budget. This is higher than the industry average of 30%. Some seasons, ticket sales are as high as 40% of our budget. We are very proud that we exceed what most orchestras are able to generate in ticket sales. By the way, our ticket prices are lower than most orchestras our size.
Sponsorships accounted for 26% of our budget in 2009-2010. Both individuals and businesses sponsor concerts. Title sponsors give anywhere between $5,000 and $15,000, depending upon the concert. Title sponsor means they are the primary sponsor. Their name is more prominent in advertising. Co-sponsors give between $3,500 and $5,000. The least we accept for a sponsorship is $2,500. Sponsors get all kinds of benefits: tickets to the concert they sponsor, their logo/name in all advertising, thank yous from the stage, etc. Despite all of this, most sponsors don't do it for the recognition. They believe that they should give back to the community in which they have built their business. It is a way to make the community a better place to live. After all, many people don't attend sporting events. Many are interested in the arts.
Orchestra Kentucky is fortunate. Most of our sponsors have been with us since our beginning in 2000. It is rare for sponsors to drop out. We are indeed blessed by their faithfulness.
Sold services represented 16% of our budget last season. A sold service means that someone "buys" the orchestra for a concert, wedding, reception, etc. We have played all over Kentucky. Orchestra Kentucky is able to do this because of a special grant program administered by the Kentucky Arts Council. The orchestra is on an approved list of orchestras. The venue or organization that wishes to present the orchestra applies to the arts council. If they are successful, the council pays up to 50% of the orchestra's fees. Unforunately, this program has been suspended due to the current economic climate.
Donations represent about 10% of our budget. At the top of the donor list are members of the Elm Street Society. Named after our orchestra's address on Elm Street, members pledge a minimum of $1,000 per year for five years (a total minimum pledge of $5,000). They receive discounts on tickets, invitations to parties, etc. Most of all, they have the satisfaction of supporting a worthwhile cause. While on the topic of donations, many people feel that because they can't give large amounts, they shouldn't give at all. It's a cliche, but every dime counts. If everyone in Warren County gave $1, we wouldn't have any worries!
Special events generate about 4% of our budget. Special events are parties or other functions where guests pay to participate. Special events are produced by the orchestra's volunteer arm, The Encore. They have raised more than $120,000 in their five years of existence!
Grants account for only 3% of our budget. Grants are monies given to us by governmental agencies. Currently, we only receive funding from the Kentucky Arts Council. The council gets its money to distribute from the National Endowment for the Arts. Orchestra Kentucky is the only orchestra in the commonwealth that receives NO money from city or county government. For example, the Owensboro Symphony (a good comparison because Owensboro is a similarly sized community and our orchestras have about the same budget size) receives over $100,000 in local governmental support. When will our local representatives realize that the orchestra is worth supporting?
Each season, we sell ads for our concert program. Over 10,000 people see our programs. This is a way for business who cannot afford a sponsorship to support the orchestra. This represents 2% of our budget.
Finally, about one percent of our budget is covered by tuition, fees, and other miscellaneous income. Many of you know that we run the Bowling Green String Academy, a place where children and adults may study orchestral string instruments. Teachers pay 10% of the lesson fees they collect for the privilege of using our rooms to teach. Talk about low overhead! We also run the Bowling Green Youth Orchestras. Parents pay $100 per semester for this instruction (it's less than $10 per week). We also get a minimal amount of income from money that is in the bank for a short amount of time. This year, we will soon be paying the bank to deposit money!
Hopefully, this has given the reader a sense of what Orchestra Kentucky must do to keep the music playing. I hope that all of you will consider a gift to keep the show on the road.
Tomorrow, we will talk about the people behind the scenes.
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