Shakespeare Santa Cruz Press Release Supplement #1: FAQs
December 14, 2008
On Giving to SSC:
I clicked through to your website and didn't find any special button to click to make a donation to this emergency fund. When I click on the Give to SSC button, it takes me to a UCSC giving page. Is the best (or only) way to donate to SSC's emergency fund to donate to UCSC, and designate Shakespeare Santa Cruz as the recipient? Yes. Please be assured that when you designate Shakespeare Santa Cruz as the recipient of your gift to UCSC, those funds will go to us. You must select us from the drop down menu on the Giving site (we are at the end of the list).
Right before I complete my transaction, the final page does not list SSC as the receiving organization. When I go back to the giving page to check on the details, the drop down menu reverts to "Select." I once again Select SSC but the final page does not change. Given this, how can I be certain that SSC is getting my money? We understand this is a concern and we assure you that as long as SSC is indicated in the drop down menu, we will get your funds.
GENERAL QUESTIONS:
1) Why has SSC not met projections for several seasons? SSC’s financial health relies on a combination of earned revenues (ticket and concession sales), contributed income (donations) and grants. Estimates for these three key revenue streams must be projected in advance of each season. SSC bases projections on historic revenue data and anticipated response to the upcoming season. Other financial factors include:
- Rising costs of materials, labor and resources: Example 1: the price of steel has doubled since 2003, while our budgets have contracted; Example 2: minimum wage at UCSC was adjusted from $8 to over $12 in June 2008, several months after the 2008 budget was approved, greatly impacting the fiscal needs for compensating hired seasonal staff)
- Overtime: SSC can only access UCSC shop facilities after the spring quarter ends. Due to limited access, and the challenge of building three or four shows at the same time on a deadline, workers must sometimes work overtime to open plays on schedule.
- Economic climate: three major downturns in the last eight years – the events of 9/11, the dot-com bust, and the current economic crisis.
- Significant changes in performing arts attendance since events of 9/11: SSC audiences plummeted 25% in 2002 and we have only partially recovered since then.
- Changing audience preferences/competition with digital entertainment
- Aging (or “graying”) of the core arts audience, and subsequent reduction of arts activities attended
- Santa Cruz County, our core market, is a limited market, and a difficult to reach destination, creating challenges in increasing our audience reach with ever-decreasing marketing budgets.
2) Why is anticipated response so unpredictable? How do other arts organizations survive under this aura of unpredictability?
Funding for the arts is always a challenge and an expectation that any arts organization can break even with tickets sales alone is unrealistic. We depend annually on grants, individual and business contributions, and other sources of funding to keep us operational. Many arts organizations have significant endowments or are underwritten by their host organizations. Other arts organizations survive in a variety of ways including taking on debt. Many simply close due to lack of sufficient funding.
3) How much support does SSC receive from the University? As a Friends group in the same category as the Seymour Center and the Arboretum, SSC’s fiscal objective is to be a self-contained financial entity in residence at UCSC. As such, SSC receives both cash and in-kind support from UCSC annually as follows:
UCSC Cash Contributions: $12,000 (< 1% of our operating budget)
UCSC in-kind donations of approximately $250K:
- Office and meeting space
- Use of the Glen during summer season
- Staff Human Resources services
- Payroll services
- Processing of donations
- Utilities
- IT Support
4) Is SSC a source of income to UCSC Arts Division and/or other departments? SSC contracts with UCSC for many services and resources needed to produce its season. Examples:
- Contracts with Ticket Office, processing fees collected ($83K)
- Rental of Mainstage from Theatre Arts ($40K)
- Rental of vehicles, on-campus housing for company ($30K for housing)
- TAPS income from patron parking ($20K)
- Indirect Costs on grants to the Office of Sponsored Projects ($10K)
5) What is SSC doing differently to meet its 2009 revenue goals? SSC has an exciting season planned for 2009 that will appeal to a broad audience of patrons, adults and families alike. And we are embracing a much more sales-oriented approach including:
- Working with one of the best arts telemarketers on a four-month campaign
- Early brochure distribution to lengthen our sales season
- Launching of a new group sales campaign
- Trimming a week off our summer season
- Putting our holiday show on hold for 2009
- Furloughed and reduced staff contracts for the fall
6) What are the chances of the 2009 proposed budget being accurate? The leadership at SSC is confident that the new directions we are implementing will result in positive financial changes. The staff and board are committed to keeping any potential loss to a minimum, with the goal of improving financial independence over the next few years.
7) What is SSC’s history of season profit and/or loss? In the past decade, SSC’s season losses have ranged from $90K to $550K. The greatest loss of $550K occurred in 2002. The average annual deficit from 1993 to 2001 is $138K.
8) What has happened to those accumulated losses? The Arts Division has been absorbing the annual losses and carrying the accumulated deficit on their books. The University has been working with SSC on plans to pay the deficit down over time.* SSC’s total estimated accrued deficit is currently at $1.91M, however the Arts Division has claimed responsibility for $760K due to accounting systems deficiencies resulting in unreliable data. This leaves SSC’s confirmed deficit at $1.15M according to the most recent accounting data available.
*Example: in 2007, the SSC Board, UCSC Arts Division and a major foundation supporter entered into discussions about a Memo of Understanding pursuant to which the Board agreed it would fundraise, for the benefit of the Division, to complete the Ex Theater, fund Glen improvements and create an endowment/reserve for SSC.
9) What will happen to SSC if it cannot reach its goal of $300K by December 22? This good faith campaign is designed to gauge both the interest and the ability of the community to financially support SSC in 2009 and beyond. If that ability is not demonstrated by raising the goal, the University will not be able to approve SSC’s 2009 season. SSC staff positions will be eliminated, resulting in job loss and SSC will go dark in 2009, and therefore permanently.
10) What can I do to help? The immediate need is to ensure that we can go forward with the 2009 season. There are several ways to support Shakespeare Santa Cruz with an immediate donation of any size by check or credit card:
What can I do to help?
The immediate need is to ensure that we can go forward with the 2009 season. There are several ways to support Shakespeare Santa Cruz with an immediate donation of any size by check or credit card:
Online: www.shakespearesantacruz.org/support
In Person: Call SSC Development Director Ann Gibb at (831) 459-5507 and she will arrange for checks to be picked up. Checks are payable to “SSC/UCSC Foundation”
By Phone: Call the UCSC Ticket Office. Hours: Monday - Friday, 12:00 noon - 4:00 PM. Phone: (831) 459-2159.
By Mail: Due to the pending deadline, we can no longer accept via mail.
What happens to my gift if SSC goes dark?
If SSC does not reach its goal of $300,000 by December 22, 2008, your gift will be refunded.
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