As promised in yesterday’s article, today’s post includes some direct support with helping U.S. orchestras improve institutional transparency. All that’s required to take a giant step forward in improving institutional transparency across the entire field is something that is “cut and paste” simple…
Finance
Examining Transparency Amidst The Economic Downturn
Regular readers know that institutional transparency is an important topic here at Adaptistration as it impacts nearly every aspect of a performing arts organization. Nonetheless, the majority of orchestral institutions don’t embrace institutional transparency as it applies to financial disclosure and up until a year ago, that didn’t have much impact on operations. But since the onset of the economic downturn and the resulting wave of corporate and non-profit scandals, that attitude is no longer an affordable luxury…
The Dirty Little Secrets Of Compensation
NPR published an article by Pam Fessler on 9/28/2009 that reports on an increase in nonprofit CEO compensation in 2008. Although the article doesn’t examine performing arts organizations in particular, it does observe some trends in nonprofit compensation that are quite apt to this field. Fessler’s article has generated a great deal of comment feedback from readers that covers the gambit from those who are appalled at the rate of increase and overall levels of nonprofit executive compensation to those who think it is entirely justified…
The Trouble With Balanced Budget Requirements
It is easy to see the benefits of adopting a balanced budget requirement; it helps ensure fiscal stability, promotes responsible spending, and under certain conditions it can even serve to motivate contributed revenue development. But when balanced budget requirements are crafted with too much rigidity, they can harm nonprofit performing arts organizations during periods when they are most vulnerable. Unfortunately, we’re beginning to see more and more examples as the 2009/10 season begins…
A Bible For The Symphony Business?
According to an article by Burl Burlingame in the 9/4/2009 edition of the Honolulu Star Bulletin, the Honolulu Symphony Orchestra (HSO) has received a $2.131 million influx of cash from the Honolulu Symphony Foundation with the caveat that the HSO “[appoints] a new executive director and development of a comprehensive balanced budget and a detailed business action plan.”