Patron demands SanFran Symphony open its books
OrchestrasAn angry op-ed in the San Francisco Standard urges transparency after the resignation of music director Esa-Pekka Salonen:
…The leadership’s failure to release financial documents has only added to our unease. Open dialogue and regular financial updates on operations and the endowment would go a long way to rebuilding confidence and ensuring that donors, patrons and leadership are aligned in our efforts to support the symphony.
With the institution now in a state of crisis, the administration and the board face a crucial test: They must stabilize the organization, reassure worried donors like me and set a clear, positive direction forward. It is incumbent upon them to reexamine these cuts and do whatever is necessary to both keep Salonen here in San Francisco and keep his transformative vision alive….
More here.
Every proposal in Cynthia Hershey’s article is intelligent. Moreover, every proposal is accomplished at annual general meetings.
Yeah, good luck with that.
Transparency is of course good, but a lot of what this writer argues is terribly uninformed.
They single out the cancelation of next year’s European tour and future touring. Touring is all about vanity. It’s a money loser (often subsidized by corporations that have their reps tag along so they can get access to foreign lawmakers at receptions). I challenge any orchestra administrator to point to data that shows that an international tour helped boost ticket sales at home as well as donations. Does the writer really think anyone living in the Bay Area makes decisions on ticket purchases and donations based on reviews in “Le Figaro”?
They also think the financial problem can be solved by taking money out of the endowment. Let’s put aside the fact that a lot of that money is restricted due to donor intent. If the endowment earns an average annual return that tracks the S&P 500, about 7.5 percent, the orchestra would never want to withdraw more than that in a year so that the endowment can keep growing without new donations, or at least remain flat. So if you say that the max they can pullout a year is 5 percent, that’s $16 million, which is what I believe the orchestra has been doing. (Why keep letting it grow? Inflation.)
I get that people are upset about Salonen leaving (fantastic conductor!), but let’s be honest about a few things: There are no draconian proposals to layoff musicians, cut salaries, slash the number of subscription concerts, or pack the season with Harry Potter and Star Wars film music nights which do tend to have stronger sales than Beethoven and Brahms (though maybe they should add a few more nights of movie music…); every nonprofit has seen a decline in donations over the last several years; and every performing arts organizations has struggled to get ticket sales back to pre-COVID numbers.
What does this writer really think — that this is all a manufactured crisis to push out Salonen because the CEO has an ax to grind with him? Or that there’s a magic bullet to boost donations and ticket sales that the CEO refuses to implement because they’re just too stupid?
Let’s open up the books, and then get ready for some disappointment.
With all due respect there is every reason to believe draconian proposals are being considered in the SFS board room right now. Salaries have been cut and positions have gone unfilled. The board is at war against the musicians. CEO Matt Spivey is their stooge and EPS the first casualty.
Actually, many of we San Franciscans do think THIS IS A MANUFACTURED CRISIS!!! SFS now has a board governors and a management that think like a bunch of provencial pencil pushers who lack the ability, understanding and energy for greatness!
Each year an organization such as the San Francisco Symphony is required to file a 990 Information Return with the Internal Revenue Service. Organizations must also make available a Public Inspection Copy of the form which includes a significant portion of the complete return. You can see a balance sheet, changes in financial position, expense details. income details and a profit/loss statement. This is public information.
Endowment income reporting will vary if there is a separate entity for managing the endowment and its disbursements. I think these organizations come under 509A-2 of the IRS Code. It’s been over 30 years since I managed an orchestra but I think my information is reliable.
990s are always released a few years behind and do not show the most recent data. They’re also a high level overview and don’t show detailed line item breakdowns.
Very well said. The important information is public via the 990 though it may be a year late due to the fiscal year ending in JUNE (most non profits end in JUNE).
To be clear, the management nor the BOD needs to disclose more than those documents contain nor should they.
If the general public wants more information, they should get on the BOD where they would be privy to those discussions.
https://www.sfsymphony.org/About-SFS/Impact-Financials
Okay, done. Pretty uninformed op-ed, but I guess it makes the writer and the musicians feel better.
Of course it makes the musicians feel better! You think a *patron* actually decided to write that unprompted?
An SFS principal musician ghostwrote it for her. Several musicians have been on a whirlwind effort for months to gaslight and manipulate patrons into believing the sky is falling.
This is, as it has been for years, about the balance between the paycheck and the price of cocaine.
Given Salonen’s track record since he left LA I’m beginning to think LA Phil’s management was even more impressive than their reputation suggested.
No, the LA Phil owns the Hollywood Bowl and enjoys endless financial health because of it.
According to Wikipedia, the County of Los Angeles owns the Hollywood Bowl. Arguably (the management of) LA Phil made the Hollywood Bowl what it is today. The place started as a picnic spot and LA Phil was there from the beginning.
…do whatever is necessary to both keep Salonen here in San Francisco and keep his transformative vision alive.”
Huh? Didn’t Salonen already quit?
Denial is a stage of the grieving the musicians are going through right now. Because they know if Esa-Pekka is expendable, they definitely are. Bargaining power has gone to zero.
Why does she want to see the books so much; so that she can continue to try to tell the administration and board what to do? How about instead of writing an OPINION piece; she try to set up a mtg with their CEO and let that person explain where things are….entitled donors are so frustrating. Looking at their CEO, this is someone who has tons of experience in the field – and is a musician himself. Just go on over to the office and try to sit down with him.
I don’t think Salonen will come back.
He probably has another year on his contract, but after??
You heard it here 1st.
or 2nd…
Better do an audit. 990 forms reveal very little, they are deliberately incomplete and delayed.
https://www.sfsymphony.org/About-SFS/Impact-Financials
10+ years of audited financial statements can be found at the above link.