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April 11, 2008
On recession and expression
Yesterday I was a guest on WNYC's Soundcheck (about 15 minutes into the audio file), to discuss the challenges nonprofit arts organizations face during economic hard times. The lead-in to the conversation was this article by Daniel Wakin in the New York Times. The Swiss bank behemoth, UBS, had decided to pull its $10-million annual promotional spending and financial support from the UBS Verbier Orchestra, and refocus its giving on the International Music Festival of Lucerne.
The question was whether the decision was tied to UBS' disastrous financial status.
From the little information available, it seems that the shift is more an issue of fit than financing for UBS, but such re-evaluations of all resource allocations are certainly expected in tougher economic times. The conversation on WNYC focused on whether this shift should be a warning for other arts organizations relying on corporate sponsorship, and what they should do to prepare.
Big-ticket corporate sponsors are wonderful means of support and promotion, but of course they carry a risk. As American Ballet Theater discovered in their kerfuffle with Movado back in 2003, or as the [insert merger-and-acquisition corporate name here] Celebrity Series of Boston discovered in their same sponsor/many-names history (Bank of Boston, BankBoston, FleetBoston Financial, Bank of America, then nothing), high-profile corporations can be fickle friends problematic.
As with most other forms of revenue, major corporate sponsorship is a matter of continual risk assessment, and thoughtful contingency planning (how boring does that sound?). There are a few things you can do to prepare for tough economic times. But nothing beats a voracious awareness of your environment, a continual eye on the health and happiness of your biggest supporters, and an iron stomach for the roller coaster of economic fate.
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Comments
Jack,
Great points. Sorry that I was a bit glib in my entry, and appeared be equating the Movado debacle at ABT with the change-in-name-only sponsorship afforded the Celebrity Series of Boston. That wasn't my intent.
A sixteen-season corporate commitment, especially in the face of such radical merger-and-acquisition activity in the banking world, is certainly anything but ''fickle.''
You'll notice that I edited my post accordingly.
Andrew Taylor on April 11, 2008 1:48 PM
Andrew, thanks for the post and the fine use of "kerfuffle". You score points with that one!
You noted the Chronicle article "Bracing for Tough Times". The big dollar stories are the ones that get the press but it is the smaller gifts that really take it on the chin at times like these.
It is vital, in my estimation, for organizations to keep their eye on the long-term (while also keeping the ship afloat in the near term) by maintaining their donor and patron communication and cultivation practices. It can be easy to not include a lapsed donor or season ticket holder in the next newsletter or brochure mailing. In the long-term view, including them now, when they aren't giving or participating, is as important as when they are. Keep your organization and mission in front of your patrons. When things do turn around, you will be at the top of the organizations they again support.
Todd Fogdall on April 28, 2008 4:33 PM
Dear Mr. Taylor,
The majority of your points in this post are well taken. There is, however, one point you make in which the inclusion of the Celebrity Series is a bit misleading.
Our title sponsor relationship with Bank of Boston began in 1989 and continued through the name changes that you list, however those name changes were neccessitated by mergers, not changed relationships or contracts. Throughout, we kept a single sponsor whose name happened to change. While the resulting changes to our name admittedly presented us with challenges, our contacts at the bank and their commitment to our relationship remained the same for 16 seasons, a remarkably long time for such a relationship to last. It is our feeling that the bank and our contacts there were anything but "fickle friends."
-Jack Wright, Director of Marketing and Communications, Celebrity Series of Boston
Jack Wright on April 11, 2008 12:23 PM