Minnesota says it is back in the black (almost)

The Minnesota Orchestra, still bouncing back from a 15-month lockout, has released preliminary year-end figures.

In the fiscal year ended August 31, the orch spent $31.6 million. Fundraising brought in $14.8 million. Box-office achieved $8.1 million.

The gap – $7.7 million – was drawn down from investments.

Still a deficit, then.

musicians for minn

 

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  • According to the article (quoting management), the 7.7 mm was the result of a 5% draw on the endowment. That is the standard draw, and is exactly what is supposed to happen – the endowment generates income to offset operating expenses. It thus provides another source of revenue to supplement earned and contributed revenue. If the article is correct, then, there truly is no deficit.

  • In the first place, its expenses were $30.6 million. (Accuracy as important as ever here). The gap is not a deficit — the bills have all been paid.

    However, $7.7 is a significant “gap,” especially as earned revenues (subscriptions. etc.) were down. If their endowment and fundraising can be guaranteed to make it on 5% draw terms, and anticipated rise in fundraising (which is not usually sustained with a decline in subscribers) all well and good.

    But they may want to take a look at their admin costs, as artists can’ tighten their belts much more. Start with marketing, the money-hoover of all too many arts institutions.

  • I don’t want to hear it…blah blah blah, the MN Orchestra has the finest musicians and they deserve everything and more…blah blah blah, you can’t put a price on the arts…blah blah blah.
    Damn, does it ever get old listening to the talking heads on this bleeding state.

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