Ask My Friends - Organizing Your Tax Portfolio

It is Ask My Friends again, and today is a great post. Something we should ALL pay attention too. I am the worst about this, and I think I could be missing out on saving money. Gary Castaneda and I worked together at Cedar Point several years ago, and he is one of the sweetest guys I know. He was asked back to teach workshops at Cedar Point, and one of his workshops when I was there was about Taxes. Gary has performed on cruise lines and toured the country with several productions (one of them Miss Saigon). With the year coming to an end soon, it is almost tax time and I thought it would be great to get tips on taxes so we as artist could save money. So I simply asked Gary to give us some tax tips.

"Doing taxes every year is about as much fun as having a colonoscopy. You can put it off as long as you can - but in the end you just have suck it up and get it where the sun doesn’t shine and move on to bigger and better things. Procrastination is a serious disease that can lead to the destruction of your economic health. I encourage you to face these tax fears & phobias head-on and get organized little by little. This is the key to make your April 15th Tax Day Deadline less painful so you can get out there and have more fun (or actually get a colonoscopy).

1. Invest in an Accordion File: This is a Tax-Time office supply staple. You can make fun decorative tabs where you can separate your receipts by category and include: Travel, Food, Make-up/Hair, Promotional Materials, Classes/Lessons, Equipment, Office Supplies, and Postage to name a few tab headings. Don’t go super-detailed or crazy. At the end of the year, add up the total, write it on an envelope and throw the receipts inside. This will prepare your line-item deductions for your tax preparer and they won’t kill you for handing them a shoebox full of random receipts.

2. Keep a Date Book/Journal: This is where you can list auditions attended, meetings with agents, casting directors, etc. You should be able to recall the circumstances for all your appointments to justify why you spent $40.00 to take out your vocal coach for drinks to get the inside scoop on an upcoming audition. You can also keep track of your mileage, out-of-town auditions & miscellaneous business expenses in this space as well. Furthermore, this “mini-scrapbook” is a great way to look back on your year to see your progress within your craft or to find out where you need more work.

3. Keep a File of Pay Stubs & Tax Forms from Employers: Most performers have several jobs within a year and keeping track of them is a task in itself. Hold on to all your Pay Stubs and use this as a checklist to ensure you have every tax form (W-2, 1099, etc.) from all your employers at the end of the year.

4. Find a Tax Preparer Experienced with the Arts: Theatre performers have special needs and it is essential to have a tax preparer you can trust and who can answer your questions in plain English. Asking friends for referrals or inquiring whom they employ to process their taxes is a great way to find a good candidate.

5. Safeguard your Information: Keep filed tax returns in a safe place for several years. It will help to have your last year’s tax return on hand to help with filing the following year’s paperwork (why invent the wheel twice). However, when you do decide to purge your mountain of paperwork (after the tax people say its okay) you should opt to shred the materials utilizing a paper shredder to safeguard your identity. It would really suck to find an identity bandit living it up in Mexico City on your dime.

Money is the easiest way to obtain the essential things in life: like food, shelter and tickets to see Patty Lupone in concert. Keeping it all straight and organized is one way to continue on the path of making it in a business where skins are tough, competition is high and the odds are never in your favor. However, keeping your eyes on some of the business essentials of money and finances will help extend your long and healthy performing arts careers. I wish you many “broken-legs” in your future!"

What I Learned at the Summit – Part 2

“They Call It A Job For A Reason.” This is what the Publisher of the Washington Blade said in a workshop as she referred to our generation and our attitude toward work. I was the youngest person in the room and I wanted to stand up and say, “Excuse me?” But I knew that she was partly- well maybe more than partly- right. I don’t think I am as lazy as some but I do think our generation expects to have things handed to them. They expect to have Facebook time at work. They expect to have weekends off and not stay late.

I'm not saying that I have never been guilty of wanting to skip out early. But then again, I think of all the times we put so much time and energy into a company to just be let down. Take Arena Stage for instance; I worked so many hours and put in so much extra time because I loved the job but more importantly because I truly cared about the company and my work there. Was it life or death if I didn’t finish the budget reports on time? No. But I personally just couldn’t let them sit undone. And then the company hit on hard times and I was laid off. I was even more heartbreaking because I had tried so hard while I was there. Many days when I was sick I would come in only so I would not let the team down.

My point is that while we should care about our work and try our best, there is a point that you have to reach a work-life balance. Don’t expect your boss to make your job easy. Expect him to challenge you, test you and most importantly, make you a better employee and person. Put in the hours without sacrificing your sanity.

Lynne Brown, the Publisher of the Blade, said she could host a whole panel on “our generation” and our work ethic. When I sat next to her later in the day I asked her about that and said I would love to be a part of that panel. Are we lazy? Or are we just smarter about work / life balance? I am really curious to hear your thoughts.

What I Learned at the Summit – Part 1

This weekend was the 3rd Annual GLBT Economic Summit in Washington, DC. This was my second year in attendance and I learned so much again I thought I would share the big points in a couple of blog posts. The Summit is put on by the Office of GLBT Affairs, the Office of the Deputy Mayor of Planning and Economic Development for Washington DC, the Washington Economic Partnership and PEN- Metro DC’s LGBT Chamber of Commerce. As you can see, this Summit was no joke.

One of the Keynote Speakers was Harriet Tregoning the Director of the Office of Planning. Right away I sat there and thought, I will probably learn some business stuff but tying this into theatre is going to be tough. Then she delivered her keynote and she spoke about how DC should and can grow highlighting three ways to do so, Green Jobs, Retail and the Arts. Yes, the Arts took on a pretty big role in her speech. In fact she mentioned my company by name twice and she didn’t just talk about the big theatres but addressed smaller ones like the Fringe Festival and the Atlas Theatre.

She highlighted that in DC there are over 75,000 “creative” jobs. Which are everything from museums to media to theatre. She also said that of those jobs about 5,200 were in the performing arts. Most of the jobs were in media and communications in DC. In fact almost half of the creative jobs were in media.

Tregoning spoke about how we need the arts everywhere and how important they were to a thriving community. She said that the arts brought business to areas and helped with restaurants and retail. She encouraged us to think of creative ways to use empty space in the city and talked about having a rehearsal in a store front or even someone painting portraits and how that was more interesting than just an abandoned store front.

Why was I so excited about her speech? Because this room was full of business men and women, most of whom had nothing to do with the arts. Yet here stood someone from the planning office taking one third of her speech to discuss how the arts impact and should be thought of when planning the city.

Bonus – Tree Tweeting – She also was asked about trees in the city and she mentioned that you are responsible for watering any trees in front of your house even if it is not directly on your property. She went on to say that they are working on having your trees tweet you. This way you are reminded if the tree has not gotten rain in a while that you should water it. I just thought that was neat and had to share. More from the summit tomorrow.

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."

Ask My Frends - Development Today

I was going through Facebook to find my next “Ask My Friends” blogger, and I came across 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 won’t go on because this is a really long post, but it is well worth the read. 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."

“They say there is a recession.”

Last night I was speaking with a big Broadway General Manager. We were talking about the economy and the arts and how it was affecting area theatres. I asked how the economy was affecting him. “They say there is a recession, but we don’t see it.”

He told the story of how he has a new show he wants to bring into Broadway in the fall and he was looking into theaters and the owners said that the fall will be a busy time and theatres are pretty full then. He went on to say the economy has not hurt them much if at all.

I remembered reading the Broadway grosses earlier in the day and I was a little shocked by the numbers. Keeping in mind we had the Tonys and the Obama visit that boosted the numbers a little, but last week 8 shows were over 100% capacity. Amazing. 29% of the shows open are over 100%. Look at the rest of the numbers, the same percent (8 shows or 29%) are under 80% capacity. Not one show this week is under 50% and even then only one is under 60% capacity.

The other thing to keep in mind is after the Tonys we lost a couple of shows. But all in all I would love to be open on Broadway now. The summer is supposed to be a bad time for Broadway. I just don’t see it. Not this year.