All Entries in the "Finance" Category
Let The Thieving Begin!
Thank goodness it has been awhile since the dirty little secret of just how easy it is for someone inside a nonprofit performing arts organization to misappropriate organizational funds has made headlines. And by misappropriate, I mean embezzle and by embezzle, I mean steal. Nonetheless, from across the Atlantic comes a report that the former Financial Director for the London Philharmonic Orchestra “siphoned off” just under US$1,000,000 over a period of four years. The indiscretion was brought to light after the organization executed an external audit… (more…)
There Will Be No Further Reductions In The Ranks
Amidst all the buzz this week about new business models sparked by an article from Michael Kaiser for the 11/9/2009 edition of The Huffington Post (no worries, we’ll be examining that in more detail after Mad Men week) I thought it would be fun to look at one of the major plot points from this year’s season of Mad Men and how it relates to this field… (more…)
When High Standards Collide With Low Expectations
Last week’s poll asking readers “how many orchestras will take advantage of having the direct link to their respective financial reports page at GuideStar.org and post it on their webpage by the end of November” and if “institutional transparency in the form of posting financial and annual reports matter” generated just over 100 responses. The results, at the time this article was written, can be summed up by saying that stakeholders have high standards but low expectations… (more…)
The Transparency Two-Step
As promised in yesterday’s article, today’s post includes some direct support with helping U.S. orchestras improve institutional transparency. All that’s required to take a giant step forward in improving institutional transparency across the entire field is something that is “cut and paste” simple… (more…)
Examining Transparency Amidst The Economic Downturn
Regular readers know that institutional transparency is an important topic here at Adaptistration as it impacts nearly every aspect of a performing arts organization. Nonetheless, the majority of orchestral institutions don’t embrace institutional transparency as it applies to financial disclosure and up until a year ago, that didn’t have much impact on operations. But since the onset of the economic downturn and the resulting wave of corporate and non-profit scandals, that attitude is no longer an affordable luxury… (more…)
The Dirty Little Secrets Of Compensation
NPR published an article by Pam Fessler on 9/28/2009 that reports on an increase in nonprofit CEO compensation in 2008. Although the article doesn’t examine performing arts organizations in particular, it does observe some trends in nonprofit compensation that are quite apt to this field. Fessler’s article has generated a great deal of comment feedback from readers that covers the gambit from those who are appalled at the rate of increase and overall levels of nonprofit executive compensation to those who think it is entirely justified… (more…)
The Trouble With Balanced Budget Requirements
It is easy to see the benefits of adopting a balanced budget requirement; it helps ensure fiscal stability, promotes responsible spending, and under certain conditions it can even serve to motivate contributed revenue development. But when balanced budget requirements are crafted with too much rigidity, they can harm nonprofit performing arts organizations during periods when they are most vulnerable. Unfortunately, we’re beginning to see more and more examples as the 2009/10 season begins… (more…)
A Bible For The Symphony Business?
According to an article by Burl Burlingame in the 9/4/2009 edition of the Honolulu Star Bulletin, the Honolulu Symphony Orchestra (HSO) has received a $2.131 million influx of cash from the Honolulu Symphony Foundation with the caveat that the HSO “[appoints] a new executive director and development of a comprehensive balanced budget and a detailed business action plan.” (more…)
What’s Old Is New Again
The latest issue of Senza Sordino, the International Conference of Symphony and Opera Musicians (ICSOM) newsletter, included an article from ICSOM chair, Bruce Ridge that I found intriguing. Ridge’s article, The New Apocalypticism, examines the impact of the economic downturn and how the orchestra business has responded. Written from his perspective as an orchestra musician and governance activist, Ridge refutes the notion (and subsequent buzz words) that we’re in a “new economy” and uses detailed historical perspective to support his position… (more…)
Raising Money When The Concerts Are Done
Hello all! I’d like to start by thanking Drew for inviting me to participate. I’ve known Drew online for many years, going back to a series of animated but friendly discussions about Executive Director compensation right here at Adaptistration. I was happy to meet Drew in person for the first time recently at the League of American Orchestras’ conference in Chicago. (more…)
Jargon Ahoy!
One of the more interesting byproducts of the League convention last week was the level of frustration among some managers over whether or not recent rounds of reductions in expenditures were temporary or fixed. According to most attendees I spoke with, there was a strong aversion to words like “restoration” and “temporary;” in fact, serious efforts were underway to begin crafting new jargon to avoid those terms… (more…)
Giving It All Up For Just A Little Bit More
The 5/17/2009 edition of the Chicago Tribune published an article by John von Rhein that takes a much broader look at orchestra employee expenses than most traditional media articles on the topic. Instead of focusing primarily on expense reduction initiatives focused squarely on orchestra musician salary cuts and those from administrators and staffers, he takes a closer look music directors and guest artists (conductors and soloists)… (more…)
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Adaptistration is authored by orchestra consultant Drew McManus and since its launch in 2003, the blog has become standard reading for arts administrators and arts administration programs throughout the world.
