Showcase December 2014 - page 48

Symphony Ball 2013: Overture and Crash
the Ball drew loyal supporters and, with
inspiring leadership from Ball Chair Trudy
Wilgers, raised $1,019,000 to support the
Orchestra and its education programs.
John and Trudy Wilgers hosted a table
for dinner in the new Target Atrium, as did
honorary chairs Virginia and Ron Lund,
celebrating with
Glen and Marilyn
Nelson, Luella
and Stanley
Goldberg, Karen Baker, Beverly Grossman and
Louise and Douglas Leatherdale.
48
MINNESOTA ORCHESTRA SHOWCASE
Financial Report 2014
A Letter from the Treasurer
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Fiscal 2014 saw the return of more normalized operations for
the Minnesota Orchestral Association when a new three-year
musicians’ contract began on February 1, 2014. The contract
marked the end of the organization’s 16-month lockout, which
affected nearly all of Fiscal 2013 and the first five months of
Fiscal 2014. The new agreement resulted in a 15 percent
reduction in musician salaries for the first year of the contract,
followed by two and three percent increases in the second and
third years of the agreement, respectively. We offer our thanks
to the musicians for the concessions they accepted to support
the institution in its efforts to achieve long-term financial
sustainability.
Upon agreement of the new contract, the Association swiftly
mounted an abbreviated season of 83 concerts over six months.
By comparison, the 2011-12 season—the Orchestra’s most
recent full season of performances—included 147 concerts
from September through July.
The Minnesota Orchestral Association’s Fiscal 2014 net
operating results for the abbreviated concert season show a
deficit of $650,000, compared to a $1.1 million deficit in 2013
and $6 million deficit in 2012.
Total revenue, gains and other support for the year totaled
nearly $21 million. Operating revenue of $5.8 million, which
reflects
strong income from both concerts and rental of the
newly renovated Hall, exceeded budget by $375,000.
Classical concerts achieved 78 percent of paid capacity,
essentially holding steady—in an unpredictable year—
with per-concert paid attendance for the Orchestra’s last
full season in Orchestra Hall in 2011-12.
Total contributions, including the annual Guaranty Fund,
Symphony Ball, Oakleaf distribution and gifts released from
restrictions, reached $10.5 million for Fiscal 2014, exceeding
the $8.3 million total of Fiscal 2013;
in all donor segments,
2014 gifts increased over 2013 levels.
Total annual
expenses reached $21.5 million, significantly more
than the prior year’s $13.1 million, reflecting the organization’s
return to operations. The Association paid musicians for seven
months of performances and incurred typical concert-related
expenses, including marketing costs to promote the concerts.
Board-designated draws from investments for operating support
totaled $4.5 million and were based on a 5 percent draw for
operations across all investments, endowments and trusts.
The Association’s total invested assets for Fiscal 2014 increased
from $146.9 million to $164 million, due to strong investment
returns averaging more than 12 percent, as well as to new
contributions of $8.6 million donated to the Building for the
Future Endowment.
Looking forward, the Orchestra will need to control expenses
carefully and continue its efforts to expand revenue generation,
especially through significant fundraising, to be able
to address
financial challenges ahead. Community support is critical to the
success of these measures—and we offer profound thanks to our
dedicated donors and concertgoers for the support they have
shown the Minnesota Orchestra during this season of resurgence.
Patrick E. Bowe
Treasurer
Photos: Noah Wolf Photography
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Symphony Ball 2013
Minnesota Orchestra
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