Ask My Frends - Development Today

We are doing a repeat today but if you missed it the first time this is one of the best posts and it comes from Lara Smith. Lara is the Development Director at Dad’s Garage, and I have to say I keep getting more and more impressed with my friends. Lara is not only a fellow Webster University Grad but a fellow Missourian. I asked Lara, “With all the talk about the economy, how are small companies doing in the Devo area? What trends are you seeing, and how are you changing your plan to deal with the changing trends?”

"In order to give you a context for my answers, let me tell you a little about the incredible theatre where I work. Dad’s Garage Theatre Company is located in Atlanta, GA, and we like to refer to ourselves as the gateway drug to theatre. What we mean by that is we’re introducing new and nontraditional audiences in an age where many theatres are struggling with building this very audience. Not only that, but we’re cultivating new and established talent. We produce improv year-round (every Thursday, Friday, and Saturday) as well as a full season of shows in our two spaces. This translates to roughly three-hundred performances of twenty some odd scripted works and improv formats, twenty-five classes, private workshops and performances, as well as numerous special events. Dad’s Garage has been operating in the black and will finish this fiscal year (ending July 31st) that way as well.

First off, I would venture to say that the organizations most affected by the economy are the big guys. Most small to mid-sized organizations didn’t lose any money in the crash and were already operating with lean budgets. That isn’t to say that some aren’t feeling the crunch, but it’s more of a trickle down. Many are predicting that the same will happen with foundations. While foundation giving wasn’t hugely impacted this year, the idea is that they’ll have less money during their next budget cycle.

Small to mid-size theatres across the country have been experiencing success with special events as long as they are being made worthwhile. Theatres are getting smarter about the events they throw, what the ticket price includes, and what they’re spending. Our biggest annual fundraiser is BaconFest—250 pounds of bacon, 5 kegs of beer, a silent auction, an improv performance, bands, carnival games...well, you get the picture. Theatres are getting to know their audiences and throwing parties that people want to attend. Nobody wants to hang out on a sinking ship. They want to go to the biggest, most awesome, ridiculous party you can throw. Whatever that means for you.

The biggest impact of the economy has been on individual contributions. Regardless of the economy, people give to people. Therefore, more and more theatres are spending time making sure they’re keeping their friends, fans, and families close. This means honesty, transparency, and a willingness to over-communicate. Donors want to know how the places they are passionate about are coping and what their plans are for sustainability.

Just as organizations are reacting to the changing times, so too are granting organizations. The Community Foundation for Greater Atlanta and the Metropolitan Atlanta Arts Fund recently reworked their funding priorities. In the past, the two had been more focused on project support. They recognized the need in the community, and both turned around to offer general operating support grants for the current fiscal year to nonprofit organizations. They awarded these grants to organizations that had built up the infrastructure to not only survive, but thrive in this economy with additional capital.

Each organization is reacting differently to changing trends. We’re interacting with our audience online instead of via mail. As an organization anchored in improv, we’re making everything more interactive with our patrons. We’re building deeper relationships and creating audiences that are truly invested in our product. In my mind, being in development just means selling someone on an idea. If you have an individual in love with your idea, who understands its necessity and the impact it has on the world, then the economy won’t stop them from giving. It all begins with the product.

People want a definite answer of what is working right now, and the truth is there are a lot of things. The biggest question someone in development has to be able to answer is, "What would the world be missing if my organization ceased to exist?” If you can answer that question and answer it well, you will always have donors. There are a lot of answers to that question, and organizations have donors who give for every one of those reasons.

The name of the game is mass customization. Personalization. But this has nothing to do with the economy and everything to do with the changing face of the world. Investment Philanthropy. Donors want to know exactly what impact their money is having and are probably giving for a very specific reason. (This logic is the same reason that traditional subscription packages are falling to the wayside for flex passes. People don’t want to see a whole season—they want to see very specific shows for personal reasons.)

So: how are small to mid-sized theatres doing? Depends on who you talk to. Surely you’ve seen one of the many “give us money or we can’t survive” emails that have gone out over the past few months. But our ticket sales are actually up. Our contributed income is projected to come in at goal. Every organization is facing different waters.

What are the trends? Keep your friends and fans closer and more informed than you ever have before. One of the big successes we’ve seen this year is letting people know exactly what we can get with their money. Yup--$53 buys us bathroom supplies for one month. We have a younger audience, so we’re utilizing a lot more technology than anything else, but this won’t work for every organization. It’s all about the audience. Social media (Facebook, Twitter, etc.) is great for building a deeper relationship with patrons, but only if they’re using it.

How are my plans changing? Every day. Truly. That’s the great thing about working at a small organization and one of the reasons we are weathering this economy so well. We’re nimble enough to react to the environment but stable enough to make decisions with sustainability in mind. You have to keep an open mind, know when to take risks, and take responsibility for your actions. In those ways (and a lot of others), nonprofit management is improv in practice."