Charleston arts organizations recharge after struggling through tough season, economy

For many arts organizations, the 2008-09 fiscal year was a nightmare. As the national economy fell into a profound recession, already-strained operating budgets became unmanageable. Something had to give, and it did.

Some groups trimmed staff. Others adjusted their programming or shuffled venues. Fundraising pushes had mixed results. Tourniquets were tightened. And plans for the 2009-10 season were overhauled.

But so far it seems everyone survived the emergency room interventions.

CSO

The Charleston Symphony Orchestra, which faced a cash shortage and came close to declaring bankruptcy last season, has made cautious progress toward revitalization, according to Interim Executive Director Kathleen Wilson.

She characterized the symphony's status as "OK. Not great. We're not out of money."

The bad economy put a scare into most arts organizations that realized failure was a real possibility, she said.

That understanding, along with what appears to be an economy at the start of a recovery, has caused

symphony staff, board members and musicians to work especially hard, Wilson said.

The symphony cut its budget from $2.9 million to $2.4 million last season. Its new season is "compact" with a local theme. The symphony will rely on core players and its own music library to avoid rental fees. "If it doesn't fit in the budget it can't happen," she said.

The trimmed-down budget does accommodate a new, badly needed development director and marketing director, she said. Those hires are imminent.

Promotional materials are only now being distributed, now that the organization knows it can carry on.

Charleston Ballet

The Charleston Ballet Theatre also is becoming more self-sufficient. Jill Eathorne Bahr, resident choreographer, said the ballet is opting not to purchase licenses for other productions. Rather, it will mount original works and premieres, and use the black box theater on King Street more.

Last season gave the group a real scare, prompting about $200,000 in budget cuts and adding repeat performances to generate more single-ticket sales, Bahr said. Dancers were let go. Productions were scaled back. Work weeks were shortened. The ballet ended the season $70,000 in the red.

"Nobody's out of the woods yet, including the ballet," she said.

But there is some reason for optimism. Though season subscription sales fell short of the goal last year, single-ticket sales soared, making 2008-09 the best year ever for overall ticket sales, Bahr said. Perhaps that's because people vacationed less and entertained themselves a little more at home, she speculated.

With encouragement from the Gaylord and Dorothy Donnelley Foundation, which provides grants to arts organizations in the Lowcountry and Chicago area, the ballet added 10 members to its board, for a total of 28, she said.

And the Alive and Kicking Children's Series, which featured Dr. Seuss-inspired performances along with a production of "Pinocchio," succeeded beyond expectations, she said.

This season, the company will take its "Nutcracker" production on the road, to North Carolina (it didn't tour at all last year).

And it will present the "Nutcracker" at both the Gaillard Auditorium, as usual, and North Charleston's Performing Arts Center, where young dancers from the Summerville area will participate, thanks to a new partnership with the Dorchester 2 school district, she said.

Though the ballet can remain in its King Street facility for up to three more years, the building is up for lease, and the ballet is working with the city of Charleston to find a new rehearsal and performance space, Bahr said.

Charleston Stage

Charleston Stage was hit hard, too, though, in a way, it was lucky.

Before the recession sunk in, the theater company already had to make significant financial adjustments to account for its temporary displacement while the Dock Street Theatre underwent renovations.

Performances at the Sottile Theatre were more costly, according to Julian Wiles, founding and producing artistic director. And the group had to relocate its offices, another expense.

To manage this, it cut its budget in July 2008 and again in October 2008, for a total of 30 percent, or about $300,000, Wiles said. Five people were let go. But the organization was on more sound footing when the national economy tanked.

The number of productions was not reduced (though one or two were downsized), and education programming, which reaches 20,000 children annually, was untouched, Wiles said.

This year, the budget was reduced again, from $1.7 million to $1.3 million, he said.

There are good signs: Season ticket sales are up 8 percent over a year ago and individual ticket sales are strong. But Charleston Stage can count on fewer fundraising dollars because of declines in government grants. North Charleston will not provide $5,000. Charleston County likely will not provide its usual $10,000. And the city of Charleston is cutting its $50,000 contribution by 15 percent, Wiles said.

Gifts, grants and sponsorships represent 53 percent of the organization's total income, he said.

Charleston Concert Association

The Charleston Concert Association, which has a $1 million annual budget, 60 percent of which is revenue derived from subscription and single-ticket sales, got a jump-start on its 2010 fundraising by securing a $50,000 "stimulus" grant from the National Endowment for the Arts and a gift of $125,000 from its planned giving program, according to President Jason Nichols.

"We really worked hard on that stimulus grant," he said.

The organization, which books international performance ensembles and soloists, is not taking any chances during these tough times. It let go two staff members, leaving three full-time employees and one part-time worker to run the office, work with the board of directors and program its season, Nichols said.

It's launching a new Internet marketing campaign and it continues to cultivate partnerships for its education programming.

"We've developed one of the strongest boards we've ever had," Nichols said. And the organization was able to procure street-front office space on King Street. The windows will be used to advertise concerts, he said.

George Stevens, president and CEO of the Coastal Community Foundation, which manages endowments and grant applications for many arts organizations, said that in hard times donors tend to shift their giving from the arts to human services. Hungry people are seen as more worthy of limited donation dollars.

Yet the arts can help in a recessionary economy by stimulating discretionary spending, Stevens says, providing otherwise preoccupied people with distractions and keeping local economies balanced.

"That charitable giving is down means (arts organizations) are not making the case about how valuable the arts are during these difficult times," Stevens said.

Overall, charitable giving is up in Charleston, probably because of the recession, not in spite of it, he said.

The Donnelley Foundation, which works closely with the Coastal Community Foundation, is committed to supporting joint marketing initiatives and other efforts to improve the long-term viability of local arts groups, Stevens said.

And already some signs of collaboration are visible. Local organizations are discussing ways to share their patron lists with a neutral third party that can analyze donation habits and isolate those more likely to provide support, thus helping groups become more efficient in their fundraising efforts, he said.

Office of Cultural Affairs

The city of Charleston's Office of Cultural Affairs, which produces the Piccolo Spoleto Festival, the MOJA Festival, holiday events and more, also must raise money and garner sponsorships each year to fund its enterprise.

Ellen Dressler Moryl, executive director of Cultural Affairs, said her office has been evaluating all of its programs, looking for ways to cut costs.

"We're expecting more modest budgets next year, so we had to develop more efficiencies," she said. "But we're doing OK."

The operating budget for 2010, which pays all office expenses and salaries, is $544,000, the same as 2009. But festival budgets have been significantly trimmed, Moryl said. The Piccolo Spoleto budget was reduced in the spring from $1.2 million to $830,000.

The MOJA budget dropped to $280,000 from $330,000. Moryl said she is anticipating a 10 percent across-the-board cut in 2010.

Though the economy could improve during 2010, there is typically a lag before arts organizations realize any benefit, she said.

Gibbes Museum

Performing arts organizations are not the only ones feeling the pinch. Promoters of the visual arts also have revised projections to prepare for a difficult year.

The Gibbes Museum, which adjusted its budget downward midyear to $1.7 million, ended its fiscal year $240,000 in the red, according to Angela Mack, who became executive director in May 2008. But it could have been worse. The museum reduced expenditures significantly through attrition and staff consolidation.

While contributions fell short of goal, attendance and sales at the museum shop met or exceeded expectations, Mack said.

The budget for the current fiscal year is smaller still: $1.46 million. It takes into account more expense reductions and some revenue increases, "but not a whole lot."

"This is about the tightest budget we've had since ... this is certainly a pre-21st century budget," Mack said.

Redux

One arts organization, Redux Contemporary Art Center, seems to have benefited from a bad economy.

Its small budget of $176,000 is relatively easy to manage, its events are free, and its classrooms are full, said Executive Director Karen Ann Myers.

Redux has doubled the number of art classes it offers to about 20, and enrollment numbers are up as a result. More exhibitions bring in more people, and all 15 artist studios are rented, Myers said.

"When times get tough, people look to local sources for entertainment or to enrich their lives," she said, echoing George Stevens of the Coastal Community Foundation.

The challenge for Charleston's arts organizations, Stevens said, is to convince more people of their social and economic value.

Reach Adam Parker at 937-5902 or aparker@postand courier.com.