BOARD OF DIRECTORS FALL MEETING NOVEMBER 2-4, 2012 Rosewood Crescent Court Hotel 400 Crescent Court Dallas, Texas
MEETING SCHEDULE
Friday, November 2 • 12:00 noon-1:30 p.m. – Governance Committee (lunch will be served) • 1:30-3:00 p.m. – Membership Committee • 3:00-4:00 p.m. – Information and Learning Services Committee • 4:00–4:30 p.m. – New Board Member Orientation • 5:45 p.m. – Bus departs hotel for Fort Worth • 6:30 p.m. – Tour of Bass Hall • 7:00-9:30 p.m. – Reception and dinner at Grace Restaurant • 9:30 p.m. – Bus returns to the hotel Wednesday, June 13 • 9:00-10:30 a.m. – Finance Committee • 10:30 a.m.-12:00 noon – Artistic Services Committee • 12:00 noon-12:45 p.m. – Board of Directors Lunch • 12:45-3:30 p.m. – Board of Directors Meeting • 4:30 p.m. – Bus departs hotel for the Winspear Opera House • 4:45 p.m. – Backstage tour of the Winspear Opera House • 5:30 p.m. – Dinner at the Winspear Opera House • 7:30 p.m. – The Dallas Opera performance of Aida at Winspear Opera House Sunday, November 4 • 9:45 a.m. – Bus departs hotel for the Cerny home • 10:00 a.m. – Brunch at the home of Keith and Jennifer Cerny • 11:30 a.m. – Bus returns to the hotel Additional Information Opera Tickets: If you purchased tickets for Aida, they will be distributed Saturday evening at the Winspear Opera House Dinner. Meeting Attire: The dress for committee meetings, the board of directors meeting and Sunday brunch is business casual; dinners and performances are business attire.
Meeting Hotel: Meetings will take place in the Rosewood Crescent Court Hotel (400 Crescent Court, Dallas, TX 75201, t: 214-871-3200).
Next Meeting: The winter 2013 board meeting is scheduled for February 21-24, 2013 in New York City. Please mark your calendar.
OPERA AMERICA BOARD COMMITTEE ASSIGNMENTS (updated 9/2012)
Name Artistic Finance Governance Information & Membership Strategy Services Learning Services David Bennett X CHAIR X (Vice-Chairman) Daniel Biaggi X X X
J.A. Blanchard X X X
Gregory Carpenter X X
Keith Cerny CHAIR
Rena M. De Sisto X
David B. Devan X CHAIR X
James Feldman X
William Florescu X X
Allen R. Freedman X X
Anthony Freud X Christopher Hahn X X X
Jake Heggie X
Carol F. Henry X X
Barbara Leirvik X
Jay Lesenger X X
Frayda Lindemann EX EX EX EX EX EX (Chairman) OFFICIO OFFICIO OFFICIO OFFICIO OFFICIO OFFICIO W.R. (Bob) McPhee X X
Andreas Mitisek X
Susan Morris X X
Esther Nelson
Kevin Newbury X X
Timothy O’Leary CHAIR X (Treasurer) Kenneth G. Pigott X X
Norman Ryan X X
Marc A. Scorca EX EX EX EX EX EX (President/CEO) OFFICIO OFFICIO OFFICIO OFFICIO OFFICIO OFFICIO Gregory Swinehart X X X
Stephen Trampe X (Vice-Chairman) Alec Treuhaft X X
Frederica von Stade X X
Darren K. Woods CHAIR X X (Vice-Chairman) James Wright X CHAIR (Secretary) Francesca Zambello X
MEETING OF THE BOARD OF DIRECTORS Saturday, November 3, 2012 12:45 – 3:30 p.m. Rosewood Crescent Court Hotel Dallas, Texas
AGENDA
1. Welcome and Introductions
2. Approval of the Minutes of the Meeting of June 14, 2012 Tab 1
3. Report of the Chairman Report of the President
4. Finance Report Tab 2
5. Opera Center Report Tab 3
6. Governance Report Tab 4
7. Committee Reports Tab 5 A. Artistic Services B. Information and Learning Services • Information, Research and Technology • Learning Services and Community Engagement • Marketing and Communications C. Membership • Opera.ca • Opera Europa • Trustee Services • Development 8. Government Affairs Tab 6
9. Upcoming Meetings Tab 7
10. Other Business
11. Adjournment
MINUTES OF THE SPRING 2012 BOARD OF DIRECTORS MEETING DOUBLETREE CENTER CITY HOTEL PHILADELPHIA, PENNSYLVANIA JUNE 14, 2012 Board Members Present: David Bennett, J.A. (Gus) Blanchard, Keith Cerny, David Devan, Allen Freedman, Anthony Freud, Jay Lesenger, Frayda B. Lindemann, Charles MacKay, W.R. (Bob) McPhee, Ken Pigott, Norman Ryan, Steven Sharpe, Steve Trampe, Darren K. Woods, James Wright
Board Members Absent: Greg Carpenter, Rena De Sisto, Peter Gelb, David Gockley, Jake Heggie, Carol Henry, Andreas Mitisek, Kevin Newbury, Timothy O’Leary, Gregory Swinehart, Alec Treuhaft, Frederica von Stade
Staff Present: Marc A. Scorca, Larry Bomback, Laura Day Giarolo, Laura Lee Everett, Brandon Gryde, Stephanie Helms, Kevin Sobczyk
By Invitation: Larry Desrochers, Christina Loewen, Nicholas Payne
1. Welcome and Introductions Anthony Freud welcomed everyone to the meeting and thanked David B. Devan and Opera Company of Philadelphia for hosting the Board Dinner and the Opera Conference.
2. Approval of the Minutes of the Meeting of February 25, 2012 There were no corrections to the February 25 meeting minutes. A motion to approve the minutes was made, seconded and unanimously approved.
3. Report of the Chairman/Report of the President Report of the Chairman: Anthony reminded board members this meeting would be his last as chairman. He remarked on how different the world was when he was elected in Denver in 2008. Changes that began four years ago are not going away, and as civic institutions, opera companies cannot simply wait for the world to return to normal. The world has redefined normal, and OPERA America needs to respond to that redefinition. OPERA America’s Strategic Plan has led to the development of the National Opera Center, which created a new normal from which the organization can look forward, refine and redefine how best to be of service to members, the art form and the industry as a whole.
Anthony remarked that while the Opera Center is on everyone’s minds, the board reports demonstrate that OPERA America is much more than the Opera Center. It is extraordinary how much the OPERA America team has been able to accomplish, and he thanked Marc and the staff for their hard work as the organization moves toward the opening of its new facility.
Report of the President: Marc echoed Anthony’s thanks to the OPERA America staff. Marc said that it is a particularly pressured time at OPERA America. Following the conference, the focus will shift immediately to the Opera Center opening. The office move is scheduled for August 20. The staff is onsite in the Opera Center every day to review progress and is Tab 1 – June 14 2012 Meeting Minutes Page 1
fundraising intensively in advance of the opening weekend. It will be a very busy summer, and Marc is very appreciative of the OPERA America staff and for their good spirits.
Marc continued with a summary of the Strategy Committee meeting that took place in February in association with the winter board of directors meeting:
A. Coordinating Communications: Committee members felt that OPERA America could do more to change perceptions of opera, akin to the way some trade associations do for their industry’s products. OPERA America has coordinated National Opera Week for several years, and just received confirmation on Monday that the event will have its first-ever Honorary Chair in 2012, Aretha Franklin. Ms. Franklin will do interviews and her vocal competition will announce finalists during National Opera Week. Having someone like Ms. Franklin involved in the project will make it easier to get high-profile Honorary Chairs in the coming years. B. Research: Committee members asked OPERA America to continue to collect data and also conduct research projects in which members might participate as investors. OPERA America is looking to partner with academic institutions and members to determine what kinds of data would be helpful for further analysis. C. Innovation and Experimentation: Over the last decade, audience behavior has changed dramatically, and committee members expressed a need to test more strategies, evaluate and distribute best practices in audience development. OPERA America came out of the Strategy Committee meeting with a charge to look at how funds could be apportioned for such a project.
Serendipitously, at the end of April, Marc received notice of funding from the Ann and Gordon Getty Foundation for $1.5 million over three years in support of experimentation in Audience Development. The project will launch with the joint convening of the Marketing Forum and Education Forum at the National Opera Center and will include opportunities for member companies to apply for grants of $20,000 to $40,000 to test new audience development strategies. The Foundation has made a similar commitment to the League of American Orchestras, and OPERA America and the League are now looking into how far these programs can overlap so that both fields can learn from one another.
The project will be overseen by both the Education and Marketing departments, and a project manager will be hired to function as a general assistant for professional development programs and marketing and communications. In addition, audience development grants that are currently part of the Opera Fund will now be overseen by this project manager.
4. Finance Report Marc passed along greetings and best wishes for a good conference from Finance Committee Chair Timothy O’Leary, who was in production at Opera Theatre of Saint Louis. Marc reported that the committee meeting was spirited, and in spite of the revenue for the Annual Conference being $20,000 under goal, the review of FY12 showed a budget that is headed toward being balanced. OPERA America staff is pressing forward with Annual Fund and PCM dues renewals in the final weeks of the fiscal year.
Tab 1 – June 14 2012 Meeting Minutes Page 2
Marc noted some variances on the expense side in the FY13 core operations budget, but told Board members that the big unknown is the Opera Center operating budget. While models have been reviewed by the Board for the past few years, this is the first time one will be approved to actually go into the organizational budget. Staff has done their best to anticipate expenditures and revenues, but when the budget was approved by the Finance Committee for presentation to the Board, it was with the understanding that there is potential for significant variance in the figures. Marc said he is grateful that $500,000 of the Mellon Foundation’s $2 million Opera Center gift will be available to serve as a safety net.
Marc drew the board’s attention to projected membership revenues in the FY13 proposed budget. He mentioned that in the past, the Annual Fund and individual membership categories were kept separate; hundreds of members were renewed each year at $75, and were never asked to contribute to the Annual Fund. Going forward, all individual members will be part of the Annual Fund effort and encouraged to renew at higher levels.
Larry pointed out major variations in foundation funding, including the elimination of the NEA Opera Honors program, the addition of the Getty Audience Development Grant and projections for new grants.
Ken Piggott noted the increase in personnel costs. Marc reminded the board that due to a penalty clause in the lease for the Opera Center space, OPERA America will receive approximately $590,000 worth of free rent because of late delivery of the Opera Center space. Those savings have been invested into new staff positions for both OPERA America and the Opera Center, with the hope that it will be possible to capitalize fully on the membership and development opportunities associated with the new Opera Center.
A motion to approve the FY13 Budget and the Finance Report was made, seconded and received unanimous approval.
5. Governance Report Charles MacKay presented the report. The current board includes 15 general directors, 15 members at large, and one president and CEO. Carol Penterman has retired from Nashville Opera and Louise Gaylord has resigned for personal reasons. Peter Gelb, David Gockley, Steven Sharpe and Charles MacKay are all completing terms at the end of June. Anthony Freud is completing his two terms as chairman, but he will serve as a Board member as long as his successor is chairman. Greg Swinehart and Darren K. Woods are renewing their terms.
The proposed slate of new members includes: Daniel Biaggi, Bill Florescu, Esther Nelson, Francesca Zambello, James Feldman, Susan Morris and Barbara Leirvik. The proposed slate of new officers includes: Frayda Lindemann, chair; David Bennett, Darren K. Woods and Steve Trampe, vice-chairs; Timothy O’Leary, treasurer; and Jim Wright, secretary.
There were no comments or objections to the proposed re-elections, new candidates or nominations of officers. Charles made a motion to advance the slate of new members and officers to the Annual Business Meeting for approval, which was seconded and received unanimous approval.
Tab 1 – June 14 2012 Meeting Minutes Page 3
To conclude the Governance Report, Marc presented commemorative plaques to Steven Sharpe and Charles MacKay on completion of their terms of board service.
6. Opera Center Report Steve Trampe said construction has gone well considering the age of the building and that no surprises emerged during demolition. The project will be completed on schedule. Job descriptions for Opera Center staff have been posted, calls from potential customers are coming in, and specific details are being worked out.
Stephanie Helms said that vocal studios can now be booked online. Plans for the Grand Opening are moving forward and Mary Lou Falcone has helped garner interest for the facility among local and national press.
David Bennett asked how much non-OPERA America utilization was anticipated in the first year, and if the space is being marketed to outside groups. Stephanie Helms said that operating models were based on member usage only, although staff intends to target artists outside of the opera field. Marc said that Theater Communications Group has expressed interest in using the space for summer programs. The Performing Arts Alliance Board meeting in September will take place in the National Opera Center. Representatives from 17 arts organizations will be in attendance with the hope that they will encourage their members to use the Opera Center.
Marc gave an update on fundraising, remarking that nearly $9 million in firm gifts and pledges have been received, that there have been verbal commitments of over $1 million, and a number of important asks are in the pipeline including those to Mayor Bloomberg, for a naming opportunity in honor of Beverly Sills, and to Gordon Getty. Marc thanked OPERA America Board Member Jake Heggie for his help in securing Mr. Getty’s attention.
Marc explained that the proposals for Bloomberg and Getty both articulate a Phase 3 of the project that is yet to be announced. If phase 1 involved relocating to New York, and phase 2 includes the construction and endowment campaigns currently underway, then phase 3 would be aimed at endowing programmatic activity taking place in the Center.
Allen Freedman asked what other artists will be honored in the Opera Center. Marc replied that there will be spaces named for Sherrill Milnes, Julius Rudel, Richard Tucker and Marilyn Horne.
7. Committee Reports Artistic Services: Darren K. Woods presented the report. He noted that Laura Lee Everett became the full-time director of artistic services in May, and then gave an update on the Opera Fund, the Director-Designer Showcase, the 2012 New Works Forum and the Chamber Opera Focus and Artist Intensive activities taking place at the conference in Philadelphia.
Information and Learning Services: David B. Devan presented the report. He noted that Kevin Sobczyk was promoted to chief information officer, and then gave an update on OPERA America’s current data collection processes and proposed changes. He also spoke about the
Tab 1 – June 14 2012 Meeting Minutes Page 4
Leadership Intensive event taking place at the conference in Philadelphia and over the summer in New York.
Membership: Jim Wright presented the report. He reminded the board that at the last meeting the Membership Committee’s recommendation to allow for one of the five Professional Company Membership criteria to be waived at the Committee’s discretion was approved by the board.
He presented three PCM applications for approval: American Lyric Theater, which does not directly mount fully- or semi-staged work; Chelsea Opera, which does not have paid executive staff; and HERE Arts Center, which meets all five criteria.
The Membership Committee recommended all three companies for professional membership, electing to waive the criteria that would have prevented ALT and Chelsea Opera from joining the professional ranks in the past. Jim noted that all would be Level 4 companies. A motion to accept all three companies as Professional Company Members was requested, made and received unanimous approval.
Marc spoke about developments with the New York Opera Alliance. He said it was OPERA America’s intention to track similar clustering activity in other cities across the country, especially Washington, D.C., where there may be financial support for such an initiative, and San Francisco, where OPERA America’s 2014 conference will be taking place.
Christina Loewen updated the board on federal funding for the arts in Canada, and expressed Opera.ca’s excitement to be partnering with OPERA America and Vancouver Opera for Opera Conference 2013.
Nicholas Payne presented an update on how the current financial situation in Europe is affecting Opera Europa’s member companies.
8. Departmental Reports External Affairs: Marc presented the report, as Bill Higgins was involved in a conference seminar. He explained that while there would be an official announcement of Bill’s June 30 retirement and appropriate recognition of his service at the Annual Fund Reception, Bill will continue to work two days a week through the Opera Center Grand Opening.
Marc updated the Board on the progress of the Annual Fund campaign, recent grant activity, advertising, conference sponsorships and trustee activities at the conference.
Marketing and Public Relations: Marc presented the Marketing and Public Relations Report, highlighting the large number of interviews about the Opera Center that has been scheduled thanks to Mary Lou Falcone’s and Patricia Kiernan Johnson’s efforts. Marc also spoke about OPERA America’s Young Friends of Opera program, the Electronic Media Forum seminar at the conference and National Opera Week.
Government Affairs: Brandon Gryde presented the report, updating the board on NEA appropriations, the recent Performing Arts Alliance meeting, the new government affairs
Tab 1 – June 14 2012 Meeting Minutes Page 5
listerv, proposed caps on charitable dedications and changes to the Artists from Abroad website.
A motion to approve all the department reports was made, seconded and unanimously approved.
9. Upcoming Meetings The dates and locations for upcoming meetings are: • Fall 2012: November 2-3 in Dallas, hosted by The Dallas Opera and Fort Worth Opera • Winter 2013: February 21-23 in New York, concurrent with the meetings of the Strategy Committee and National Trustee Forum, and the National Opera Trustee Recognition Program • Spring 2013: May 7-8 in Vancouver
10. Other Business Marc thanked Anthony for his service as chairman, noting that today would be the first of several such expressions of gratitude during the conference. Marc said it had been a privilege and honor to work with him. Anthony responded that the honor has been his, and thanked Marc and the OPERA America staff for making his job as chairman an easy one.
11. Adjournment As there was no additional business, a motion to adjourn the meeting was requested, made, seconded and unanimously approved.
Tab 1 – June 14 2012 Meeting Minutes Page 6
FINANCE REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. FY12 Year-End Financials (Unaudited) With the opening of the Opera Center, OPERA America delayed its FY12 audit until the week of November 12. Audited statements will be sent to the Finance Committee as soon as they are made available, and will be reviewed and approved by the board of directors at the February board meeting.
Core Operations: OPERA America ended the 2012 fiscal year with a modest operating surplus of approximately $5,000. The originally budgeted surplus of nearly $50,000 had been eliminated very early on in the fiscal year because support from the American Express Foundation was less than projected and included additional unbudgeted expenses. As reported at the June board meeting, OPERA America was disappointed by the total registration revenue achieved at the Annual Conference in Philadelphia. Paid registration was nearly 10% under the goal and would have been lower had OPERA America not partnered with Opera Volunteers International for their annual conference. In addition, food and beverage expenses were notably higher than at past conferences.
Nevertheless, prudent management of revenues and expenses across all departments throughout the course of the year allowed OPERA America to maintain a positive operating margin at the bottom line.
Revenue Highlights • Overall membership dues increased slightly year-over-year, but were still under the budgeted goal for FY12. Professional Company Membership dues reversed a four-year declining trend as several new companies joined the Professional ranks and a few notable Level 2 companies that had formerly been on hiatus, established and adhered to payment plans. • The Annual Fund exceeded its budgeted goal by almost 3% and rose 12% against the FY11 total. Corporate and foundation philanthropy remained generally steady year-over-year, although OPERA America’s FY12 support from the American Express Foundation was less than anticipated, and its request for a $20,000 renewed conference grant from Wells Fargo was declined. While many new foundations were identified in FY12 and are now in the process of being cultivated, no new gifts were received last fiscal year. • Government support was nearly 20% more than the budgeted goal and increased 45% year-over-year due to a very generous final grant from the NEA for the Opera Honors project. FY13 government projections have been nearly halved as OPERA America does not expect resumption of the project under the Agency’s current leadership. Expense Highlights • Membership costs declined year-over-year as the organization opted not to produce a budgeted brochure last year. A brochure was produced in FY13, however.
Tab 2 – Finance Report Page 1 • Media relation expenses were higher than originally budgeted, owing to a larger than expected NEA Opera Honors grant. • Development costs were higher than in previous years because of additional travel by development staff to cultivate both Annual Fund and Opera Center donors. (An allocation of staff time was included in the Opera Center campaign budget to more accurately reflect these efforts). The Trustee Recognition Program and Ambassador Travel lines were also considerably higher, owing to increased participation at these events. The NOTRP in February was so successful, in fact, that OPERA America had to move into a larger room at the University Club. • Although up to $200,000 of Opera Fund grants were included in the FY12 budget, only $174,000 was awarded. The residual funds have been carried forward to increase the number of available grants in FY13. • General and administrative costs rose as well, due to the unbudgeted Strategy Committee meeting last February.
Please see the budget worksheet at the end of this report for more information.
II. FY13 Budget Projection A. Core Operations: At the June meeting, the board of directors approved a core operating budget for the fiscal year ending 2013 that projected a surplus of approximately $1,500.
Since the meeting, a small number of changes to revenue and expenses have taken place. Personnel costs will be higher than originally projected, because of various staff transitions. Current projections anticipate an operating deficit of approximately $30,000. Staff will work diligently to raise additional revenue, watch expenses closely and monitor the payroll line.
Revenue Highlights: Since the previous board meeting, OPERA America received word that the New York City Department of Cultural Affairs will provide a grant to the organization, after a two-year hiatus. The grant will be used to underwrite OPERA America’s support of the New York Opera Alliance. Please see the Membership Report for more information on the NYOA.
As discussed at the previous Board Meeting, The Getty Foundation has pledged $1.5 million over three years for re-granting purposes related to audience development initiatives. OPERA America has also received $220,000 from the NEA for programs and services to the field, the New Works Forum and National Opera Week.
In addition, at the June meeting, it was mentioned that a number of new foundations would be approached in FY13 (Please refer to the Development Report for more information). The Virginia B. Toulmin Foundation invited OPERA America to submit two applications — one for core operations and one for the Opera Center campaign. The grant to support core programs and services was declined; however, the Opera Center grant was funded at a higher level. Staff is still working with the Foundation in the hopes of securing an additional operating gift in 2013.
Tab 2 – Finance Report Page 2 To date, membership dues revenue across all categories is up year-over-year. Sponsorship and advertising revenues thus far have been strong, as well. Please refer to the Membership Report for a complete breakdown of earned revenue activities.
Expense Highlights: Changes in the forecast to the original budget include a slight increase in the retainer to OPERA America’s electronic media consultants, increases in artist fees and A/V costs for Artistic Services events in 2013, and a decrease of about $10,000 in projected conference expenses, as OPERA America will be thoughtful in monitoring food and beverage expenses in Vancouver. In addition, OPERA America will redeem a number of free flight credits earned over the past two years through points from the company credit cards.
As mentioned at the previous board meeting, the positive news on the foundation front combined with the elimination of rent for almost the entire year allowed OPERA America to invest in new program and development staff called for in the Strategic Plan; these were in addition to the facility staff hired to work in the Opera Center.
B. Opera Center Operations: Operating models had always projected deficits for the first few years of operation of the National Opera Center, as awareness built and user patterns emerged. The Board approved the FY13 Opera Center operating budget at the June board meeting with the understanding that there would be considerable variances throughout the year in terms of both revenues and expenses. Fortunately, the Mellon Foundation has generously provided OPERA America with a $500,000 cash reserve to weather operating deficits as capacity utilization and revenue goals are met, the endowment corpus is built and the Center’s operation becomes sustainable.
When approved, staff projected a shortfall of about $250,000 based on a nine-month room rental period at less than 25% capacity utilization and below-market introductory rental rates. Staff is still operating within that deficit range for FY13, although some line items are more firm now. Audition Recital Hall rentals are projected to be higher than budgeted based on current demand, although Vocal Studios revenue capacity utilization expectations are being lowered for FY13.
Staff anticipates that lost revenue can be made up through additional services. The use of OPERA America’s A/V systems — theatrical lighting, surround sound, HD projection and audio and video recording — is included frequently in rental requests for the Audition Recital Hall and Rehearsal Hall. Without systems in place and engineers on contract; however, services had been budgeted essentially at cost. Once all systems are installed, the capacity to deliver these unique services will be included in rental agreements for the largest spaces, with a material profit margin for OPERA America.
Custodial services are lower based on a nine-month, rather than twelve-month, operation period. Insurance premiums are less than anticipated, and OPERA America’s storage needs at present are met by the facility eliminating the need for additional storage space in FY13.
Please see the budget worksheet at the end of this report for more information.
Tab 2 – Finance Report Page 3 III. Opera Center Financials Update Project Budget: OPERA America is now working within a total project budget of $14.5 MM (a 3.6% increase), inclusive of planning and relocation and construction costs. Within the construction phrase portion of the campaign, board members will recall that the original $4 million hard costs goal had at one point been projected to be 25% higher ($1,000,000) and after several value engineering processes, the hard costs budget was brought down to $4.1 million (a .25% increase). OPERA America is pleased to report that, in the end, it will meet this revised hard cost budget.
The original soft costs budget included virtually no allocation for development staff other than a lobbyist to assist with asks to The City of New York (The City of New York has committed $470,000 to the project). Since then, three fundraising consultants have been engaged. Marilyn Shapiro has made many suggestions to OPERA America on how best to increase contributed revenue. Barbara Hocher was hired in a part-time capacity to coordinate mini-campaigns in recognition of select artists including Sherrill Milnes, James Ireland, John Adams, Julius Rudel and Marilyn Horne. To date, these mini-campaigns total over $500,000. Most recently, OPERA America has contracted Mary Powell for additional assistance in securing major gifts from donors in the San Francisco area, which has already resulted in a $200,000 contribution in honor of David Gockley.
The total project budget also includes additional expenses that were never envisioned in the original budget, including Opening Weekend festivities, the OPERA America Songbook and development/consultant costs associated with the endowment campaign.
Interest expenses, which could range from $50,000-$250,000 over the next five years, are excluded from the total. This range will be determined, in part, by whether OPERA America must access a bridge loan from the Nonprofit Finance Fund at a considerably higher interest rate than the bridge loan from Wells Fargo. In order to avoid the necessity of accessing the more expensive NFF loan, OPERA America will approach select donors to request prompt, or accelerated, pledge payments.
Please refer to the Campaign Budget worksheet at the end of this report for more details.
A. Customer Relationship Management (CRM) System With the opening of the National Opera Center, OPERA America has upgraded its physical, financial, human and technological resources. OPERA America’s member and donor database; however, remains the one truly antiquated system still in place. Staff is currently prevented from serving members in the most efficient manner possible because of the numbers of hours spent entering data multiple times into duplicative databases. OPERA America is considering strategies to address this, namely, the purchase of a new CRM System that would integrate various databases and third party applications into a single system that could be updated by staff and members alike. Staff recently attended demonstrations of and accepted proposals from CRM software vendors including YourMembership, Tessitura and Protech. In the end, staff recommends the Protech solution, which is built upon the Microsoft Dynamics CRM platform, is specifically designed for non-profit associations and most easily reconciles
Tab 2 – Finance Report Page 4 with OPERA America’s accounting software and many proprietary databases that were built using the same language. The start-up costs for the CRM in question were quoted to be around $165,000. The return on investment will come in the form of increased worker productivity that allows staff to refocus their energies from data input into new revenue generation. Staff will review strategies for covering this cost with members of the Finance Committee; a report will be made at the board meeting.
B. Cash Flow OPERA America has access to over $3.5 million of credit facilities, as follows: Wells Fargo • $600,000 letter of credit (1.5% annual fee, split as $350,000 for construction security deposit, which will be entirely released before the end of CY2012 and $250,000 as collateral for the Nonprofit Finance Fund bridge loan) • $1.85 million line of credit (2.5% annual fee, approximate)
Nonprofit Finance Fund • $150,000 one-year interest-free bridge loan (due April 2013) • $1 million bridge loan (6.5% annual fee + 2% origination fee, paid for by the proceeds of the loan)
Interest Payments: $1.5 MM of the Wells Fargo line of credit has been drawn upon, and interest charges to date are approximately $10,000. It is OPERA America’s desire to avoid having to draw on any of the Nonprofit Finance Fund loan. Based on the current pledge schedules of Opera Center gifts, OPERA America could avoid the higher-interest rate loan altogether if new cash gifts are secured and/or select current pledge payment schedules are accelerated before the end of 2012, when the largest remaining bills — the final requisitions from the general contractor and architect — are expected to arrive.
Strategic Debt Management Opportunity The terms of the Mellon Foundation’s endowment matching grant are as follows: • $500,000 spendable funds (received) • $500,000 matched on a 2:1 basis (must be completed by CY2016) • $1,000,000 matched on a 3:1 basis (must be completed by CY2016)
Matching outlays are made in increments of $250,000 outlays or more.
As monies from pledges received, these funds could be used to pay down the loans discussed above. Alternatively, these monies could be used to match the Mellon grant, and through the strategic management of debt in this favorable interest rate environment, it is possible to get a better return on the endowment than the interest paid on the loans.
Tab 2 – Finance Report Page 5 Assuming OPERA America accesses its financing sources in their collective entirety at $2.85 million, the maximum combined average interest rate would be $3.9%. In actuality, it probably would be much lower, because the $350,000 letter of credit will convert into additional value on the line of credit once it is released. Additionally, OPERA America would try to pay off the 6.5% loan first and leave just the 2.5% loan for the purposes of this strategy.
Wells Fargo, OPERA America’s investment manager, believes that based on normal market conditions, OPERA America’s “balanced” portfolio should return about 8% annually net of fees with a standard deviation of 10% in either direction in any given year. Whether the market has returned to normal conditions, of course, is very much up to interpretation. Bank of America is far more conservative, stating that it is unrealistic to expect returns of more than 4.5% to 5%, net of fees, on a balanced portfolio for the foreseeable future.
In either scenario, over the long term, a balanced portfolio under present conditions should yield a return that is greater than the interest rate paid on the loan and OPERA America could pocket the difference.
IV. Investment Management Investment Advisory Committee Meeting: As of October 11, 2012, the value of the Opera Fund endowment was over $6.5 MM, broken down as follows:
Encumbered Unencumbered Total Cash and Equivalents $319,094 $9,180 $328,274 Fixed Income $1,570,760 $1,223,432 $2,794,192 Equities $1,787,306 $1,203,515 $2,990,821 Real Assets $269,935 $188,999 $458,934 $3,947,095 $2,625,126 $6,572,221
The Investment Advisory Committee met with Suzanne Kline, OPERA America’s investment manager, on October 17, 2012. Suzanne reviewed the portfolio’s holdings, asset allocations and performance in the third quarter and provided a generally positive outlook on the economy and the stock market. Large cap stocks in the portfolio have outperformed lately, and the endowment will be rebalanced soon to bring those holdings more in line with target allocations. Underweighted asset classes, including international and emerging market equities, will be enhanced.
At the meeting, Suzanne introduced new reports, which provided more clarity in relation to performance metrics. Committee members requested some additional report changes for the next meeting including a top-level summary with history about The Opera Fund.
Tab 2 – Finance Report Page 6 VI. Finance and Administration Forum The Finance and Administration Forum will convene once again on November 12 at the National Opera Center. Sessions on endowment spending, financial dashboards and tracking marketing ROI will be featured. In addition, Jeff Couture of Minnesota Opera will present on how Minnesota Opera’s New Works Initiative has affected the CFO’s role there. There will be a tour of the Opera Center and open discussion time to formulate a current challenge for opera company CFOs that OA could address. Managing Directors, CFOs and Controllers from the following companies will be in attendance: New York City Opera, the Metropolitan Opera, San Francisco Opera, Los Angeles Opera, Lyric Opera of Chicago, Seattle Opera, Opera Theatre of Saint Louis, Portland Opera, Opera Company of Philadelphia, Minnesota Opera, Boston Lyric Opera, Pittsburgh Opera, Canadian Opera Company.
Submitted by: Larry Bomback, Director of Finance & Operations
Tab 2 – Finance Report Page 7 FISCAL YEAR 2012 FY12 ACTUAL Statement of Activities FY12 BUDGET (unaudited) VARIANCE
Membership Dues Company 570,000 574,048 4,048 Membership Dues International 10,000 8,000 (2,000) Opera.ca (all categories) 45,000 51,522 6,522 Membership Dues Business 19,800 16,425 (3,375) Membership Dues Associate Co. 17,600 14,750 (2,850) Career Services/Library Membership 7,700 6,750 (950) Education & Training Membership 23,650 17,500 (6,150) Membership Dues Individuals 37,000 29,591 (7,409) Artist Membership (Formerly Opera Source) 6,000 3,441 (2,559) Membership 736,750736,750736,750 722,027722,027722,027 (14,723)(14,723)(14,723)
Annual Fund 300,000 308,854 8,854 Bank of America provided an additional General Operating and Major Individuals 300,000300,000300,000 308,854308,854308,854 8,8548,8548,854 $10,000 gift in support of the Conference in Philadelphia. Bank of America - National Trustee Recognition 25,000 25,000 - Bank of America - General Operating 25,000 25,000 - Wells Fargo did not renew its sponsorship Bank of America - Conference - 10,000 10,000 commitment in FY12. Marc has since met with Deloitte - Trustee Programs 12,500 12,500 - the head of the Foundation. Wells Fargo - Annual Conference 20,000 - (20,000) Corporations 82,50082,500 82,500 72,50072,50072,500 (10,000)(10,000)(10,000) OA received a $50,000 grant from the Adams Family Foundation - General Ops 10,000 15,000 5,000 American Express Foundation for the American Express Foundation 100,000 41,000 (59,000) Leadership Intensive. A portion of the grant Amphion Foundation - Salon Series 3,000 2,000 (1,000) activities took place in FY13. The projection Aaron Copland Fund 3,000 3,000 - includes anticipation of a renewed grant as Fidelity Foundation - General Operations 50,000 50,000 - well. Getty Foundation - Audience Development 7,500 17,500 10,000 Mellon Foundation - Technology Program / New Works Forum 375,000 400,000 25,000 A small portion of the new Getty grant Mellon Foundation - Travel Grants 35,000 30,000 (5,000) ($1.5MM over three years) was applied to MetLife Foundation - M!W!O! 65,000 58,000 (7,000) FY12 to cover planning expenses. New Grants 10,000 31,325 21,325 Hearst Foundation - M!W!O! 35,000 23,500 (11,500) Reflects the complete drawn-down of the Heinz Endowment - Regional Workshop /philly music proj 7,500 - (7,500) National Music Leadership Coalition Fund. William Penn Foundation - Annual Conference 150,000 150,000 - Proceeds will be used to write off delinquent Foundations 851,000851,000851,000 821,325821,325821,325 (29,675)(29,675)(29,675) receivables.
NYC Department of Cultural Affairs / Gale Brewer 10,000 4,000 (6,000) The variances reflect the actual amounts NYSCA 10,000 8,500 (1,500) allocated to FY12 from these multi-year NEA Service 100,000 100,000 - NEA/Opera.ca Met HD Survey w/ Opera.ca 30,000 25,000 (5,000) grants. NEA Opera Honors 215,000 298,875 83,875 Government 365,000365,000365,000 436,375436,375436,375 71,37571,37571,375 The final grant in support of the NEA Opera Honors project was greater than anticipated. Shugoll Research - Opera Week evaluation - 3,848 3,848 This is offset by additional expenses. In-Kind Support --- 3,8483,8483,848 3,8483,8483,848
Opera Fund Draw 250,000 242,500 (7,500) Endowment Income 250,000250,000250,000 242,500242,500 242,500 (7,500)(7,500)(7,500) FISCAL YEAR 2012 FY12 ACTUAL Statement of Activities FY12 BUDGET (unaudited) VARIANCE
Conference Registration 200,000 181,076 (18,924) Paid conference registration was lower than Conference Sponsorships 25,000 25,000 - anticipated. In addition, more than 85% of Ambassadors Circle Travel 46,500 52,846 6,346 delegates registered by the Early Bird deadline, Opera Tickets 25,000 41,234 16,234 negatively impacting the average per-person Singer/TechProd Workshop Registration Fees 2,000 325 (1,675) income. Composer/Librettist Workshop Registration Fees - - - Making Connections Workshop Registration Fees 1,500 645 (855) Dozens of February weekend participants Trustee Forum Fees 10,000 13,435 3,435 attended The Metropolitan Opera productions. Distance Learning Fees 2,375 445 (1,930) This revenue has an offsetting expense line. Electronic Media Forum Fees 2,000 - (2,000) New Works Forum Fees - 1,380 1,380 M!W!O! and Learning Center Revenues 41,675 39,113 (2,562) The variation reflects the net revenue to OA Performing Arts Convention Administration - - - from consultations performed by Kevin Smith Field Consultation Fees (net) 51,500 17,083 (34,417) during FY12. Gross revenue was included in the Publications 1,500 1,008 (492) budget projection. Visa Letter Preparation - - - Label/List Sales - 341 341 Advertising 40,000 35,684 (4,316) Postage/Handling - 656 656 More dinner tickets to the National Opera Interest Unrestricted 6,000 885 (5,115) Trustee Recognition Program in February 2012 Miscellaneous Income 10,000 20,635 10,635 were sold than originally anticipated. Other Earned Income 465,050465,050465,050 431,791431,791431,791 (33,259)(33,259)(33,259)
TOTAL INCOME 3,050,3003,050,3003,050,300 3,039,2203,039,2203,039,220 (11,080)(11,080)(11,080)
Company Members, Canadian, International 17,500 14,865 (2,635) Indiv, Bus, Associate 14,775 9,383 (5,392) Membership 32,27532,27532,275 24,24824,24824,248 (8,027)(8,027)(8,027)
Government Affairs & Lobbying 62,500 60,330 (2,170) The project has been delayed as OA awaits final PR & Marketing 4,850 3,569 (1,281) approval by The Metropolitan Opera. FY12 Electronic Media Forum 24,570 18,500 (6,070) expenses included Shugoll Research's Met HD Survey 2011-12/National Opera Week 30,000 18,548 (11,452) consultant fees to date. NEA Opera Honors/Opera Week 150,000 210,417 60,417 Media Relations 271,920271,920271,920 311,364311,364311,364 39,44439,444 39,444
Ambassadors 46,500 64,513 18,013 Strong Ambassador participation at Resource Development 10,095 14,896 4,801 Glimmerglass, Chicago, New York and National Trustee Forum 14,085 12,954 (1,131) Philadelphia events in FY12. Trustee Recognition Program 22,750 27,835 5,085 Development 93,43093,43093,430 120,198120,198 120,198 26,76826,76826,768
Information, Research & Technology 4,000 5,506 1,506 Magazine 65,000 67,631 2,631 Publications 13,350 13,899 549 Network/LAN 15,000 14,220 (780) Cultural Data Project 8,500 12,247 3,747 Information Services 105,850105,850105,850 113,503113,503113,503 7,6537,653 7,653 FISCAL YEAR 2012 FY12 ACTUAL Statement of Activities FY12 BUDGET (unaudited) VARIANCE PCM Professional Development Activities and Leadership Intensive 4,950 13,792 8,842 Learning Center (Online and at the National Opera Center) 6,000 4,725 (1,275) Some M!W!O! workshops took place over the Education Programs and Civic Engagement/Project FIND 4,600 4,266 (334) summer and have been allocated to FY13. M!W!O! 116,000 103,912 (12,088) EducationEducationEducation 131,550131,550131,550 126,695126,695126,695 (4,855)(4,855)(4,855)
Technical Production 6,100 2,155 (3,945) Regional Workshops/Making Connections on Location 9,975 2,072 (7,903) Professional Development Seminars/Making Connections 5,400 3,990 (1,410) The variance reflects the actual amount Artistic Programs/Salon Series/Feedback Auditions 21,050 22,181 1,131 allocated to FY12 from this multi-year grant. New Works Forum and Exploration Grants (Mellon/NEA) 125,000 99,978 (25,022) Opera Fund 207,800 190,874 (16,926) ArtisticArtisticArtistic 375,325375,325375,325 321,250321,250321,250 (54,075)(54,075)(54,075) $174,000 of grants were awarded, although a Annual Conference (Prior, Current, Future) 115,000 141,027 26,027 larger amount was approved. The remainder Conference 115,000115,000115,000 141,027141,027141,027 26,02726,02726,027 has been carried forward to FY13.
Finance 28,000 33,369 5,369 Expenses for the keynote session at the Opera Tickets 25,000 48,495 23,495 Consultations 46,500 1,936 (44,564) Perelman Theatre, the Seminar lunch, and the Board (and Strategy Committee) 22,500 32,364 9,864 Closing Session Lunch were greater than General 18,500 26,958 8,458 anticipated. In addition, a number of Finance and General Operations 140,500140,500140,500 143,122143,122 143,122 2,6222,6222,622 networking events that included complimentary food and beverage were unbudgeted. SUBTOTAL DIRECT EXPENSES 1,265,8501,265,8501,265,850 1,301,4071,301,4071,301,407 35,55735,55735,557 Greater than anticipated participation at New Salaries and Benefits (net of Opera Center allocation) 1,452,000 1,409,920 (42,080) York performances by Ambassadors, VIPs and Office Supplies 12,000 16,261 4,261 staff. Telephone/Internet 20,000 22,313 2,313 Bank Charges & Bad Debt Expense 22,000 44,677 22,677 Rent, Utilities, Security, Custodial 196,000 204,265 8,265 The variation reflects the net expenses to OA. Insurance 5,000 5,670 670 Gross expenses were included in the budget Depreciation 17,500 11,737 (5,763) projection. Office Equipment 11,000 17,761 6,761 SUBTOTAL INDIRECT EXPENSES 1,735,5001,735,5001,735,500 1,732,6031,732,6031,732,603 (2,897)(2,897)(2,897) Includes an allocation to the Opera Center campaign to more accurately reflect the staff TOTAL EXPENSE 3,001,3503,001,3503,001,350 3,034,0113,034,0113,034,011 32,66132,66132,661 time spent dedicated to the project.
OPERATING SURPLUS / (DEFICIT) BEFORE FACILITY EXPENSES 48,95048,95048,950 5,2095,2095,209 (43,741)(43,741)(43,741) See National Music Leadership Coalition revenue note above. STATEMENT OF As of June 30, FINANCIAL POSITION (unaudited) As of June 30, 2011 2012 Notes
Assets Current Assets Cash & Cash Equivalents Cash and cash equivalents $ 1,842,650 $ 1,931,888 Cash held on Behalf of Others $ 107,415 $ 51,068 NPAC account continues to be drawn down Investments $ 7,380,108 $ 6,156,136 Opera Center funds, which had been invested in FY11, were fully expended in FY12 Total Cash & Cash Equivalents $ 9,330,173 $ 8,139,092 Acccounts Receivable Accounts receivable, net $ 266,482 $ 289,005 Grants and pledges receivable $ 1,990,561 $ 3,419,163 Includes pledges to the Opera Center campaign Prepaid expenses and other ass $ 124,625 $ 128,764 Total Acccounts Receivable $ 2,381,668 $ 3,836,932 Total Current Assets $ 11,711,841 $ 11,976,024 Other Assets Property and Equipment, net $ 379,338 $ 3,094,776 Includes leasehold improvements to date Security Deposit $ 131,670 $ 131,670 Total Other Assets $ 511,008 $ 3,226,446 Total Assets $ 12,222,849 $ 15,202,470
Liabilities AP and accrued expenses $ 183,540 $ 250,667 Includes accrued expenses related to the Opera Center Grants payable $ 202,237 $ 239,781 Deferred revenue $ 45,825 $ 31,588 Includes Opera Center reservations Funds held on behalf of others $ 107,415 $ 51,068 See asset note above Line of credit $ - $ 1,150,000 $1MM Wells Fargo bridge loan and $150,000 interest-free NFF bridge loan Total Liabilities $ 539,017 $ 1,723,105
Net Assets Unrestricted $ 1,131,282 $ 3,346,860 Retained Earnings, Leasehold Improvements, Fixed Assets Temporarily Restricted $ 5,163,518 $ 4,743,472 Temporarily Restricted Grants, Opera Center Gifts, Capital Gains on Endowment Permanently Restricted $ 5,389,032 $ 5,389,033 Opera Fund Endowment Corpus Total Net Assets $ 11,683,832 $ 13,479,365
Total Liabilities and Net Assets $ 12,222,849 $ 15,202,470 Variance FISCAL YEAR 2013 FY12 Actual FY13 FY13 (Forecast to Statement of Activities (unaudited) Budget Forecast Budget)
CORE OPERATING REVENUES
Membership Dues Company 574,048 573,000 579,500 6,500 Membership Dues International 8,000 8,000 8,000 - Opera.ca (all categories) 51,522 45,000 45,000 - Membership Dues Business 16,425 21,000 21,000 - Membership Dues Associate Co. 14,750 18,000 18,000 - Career Services/Library Membership 6,750 6,125 7,000 875 All individual members are now included as Education & Training Membership 17,500 21,000 21,000 - part of the Annual Fund. Former Artist Membership Dues Individuals 29,591 - - - Artist Membership (Formerly Opera Source) 3,441 - - - Members ($30) now have free online access Membership 722,027722,027722,027 692,125692,125692,125 699,500699,500699,500 7,3757,3757,375 to the Career Guide for Opera. Artist Account subscribers are solicited to upgrade to full Annual Fund 308,854 375,000 375,000 --- individual membership in order to receive General Operating and Major Individuals 308,854308,854308,854 375,000375,000375,000 375,000375,000375,000 --- Opera Center benefits, the magazine and discounts on OA programs (virtual and in- Boosey & Hawkes - General Ops - 5,000 5,000 - person). Bank of America - National Trustee Recognition 25,000 25,000 25,000 - Bank of America - General Operating 25,000 25,000 25,000 - Bank of America - Conference 10,000 10,000 10,000 - Deloitte - Trustee Programs 12,500 12,500 12,500 - Corporations 72,50072,50072,500 77,50077,50077,500 77,50077,50077,500 -
Adams Family Foundation - General Ops 15,000 20,000 20,000 - A smaller than anticipated allocation from American Express Foundation 41,000 75,000 59,000 (16,000) the previous grant was carried forward into Amphion Foundation - Salon Series 2,000 2,000 2,000 - FY13. OA recently applied for a renewed Aaron Copland Fund 3,000 3,000 3,000 - $50,000 grant for the Leadership Intensive Fidelity Foundation - General Operations 50,000 - - - program. Getty Foundation - Audience Development 17,500 490,000 490,000 - Mellon Foundation - Technology Program / New Works Forum 400,000 322,500 337,500 15,000 $307,500, rather than $322,500 at last Mellon Foundation - Travel Grants 30,000 30,000 - (30,000) forecast, was carried forward into FY13. MetLife Foundation - M!W!O! 58,000 50,000 50,000 - $30,000 of travel grants is included in the New Grants 31,325 160,000 160,000 - total Mellon New Works Forum grant Hearst Foundation - M!W!O! 23,500 - - - amount shown here. Tobin Theater Arts Fund - Director/Designer Showcase - 32,000 32,000 - William Penn Foundation - Annual Conference 150,000 25,000 25,000 - Foundations 821,325821,325821,325 1,209,5001,209,5001,209,500 1,178,5001,178,5001,178,500 (31,000)(31,000)(31,000) OA received a $15,720 grant from the DCA to help support OA's service to the New York NYC Department of Cultural Affairs / Gale Brewer 4,000 4,000 19,220 15,220 Opera Alliance and $3,500 from NYSCA 8,500 10,000 10,000 --- Councilmember Gale Brewer in support of NEA Collaboration - 100,000 100,000 --- creative aging initiatives. NEA Service 100,000 120,000 120,000 --- NEA/Opera.ca Met HD Survey w/ Opera.ca 25,000 10,000 - (10,000) OA continues to work with The Met to NEA Opera Honors 298,875 - - --- administer this survey. All consultant costs Government 436,375436,375436,375 244,000244,000244,000 249,220249,220249,220 5,2205,2205,220 were incurred in the previous fiscal year, and Shugoll Research - Opera Week evaluation 3,848 - - --- only minimal expenses remain in FY13. In-Kind Support 3,8483,8483,848 ------
Opera Fund Draw 242,500 257,500 257,500 --- Endowment Income 242,500242,500242,500 257,500257,500257,500 257,500257,500257,500 ---
Conference Registration 181,076 175,000 175,000 --- Conference Sponsorships 25,000 50,000 50,000 --- Ambassadors Circle Travel 52,846 60,500 60,500 --- Variance FISCAL YEAR 2013 FY12 Actual FY13 FY13 (Forecast to Statement of Activities (unaudited) Budget Forecast Budget) Opera Tickets 41,234 40,000 40,000 --- Singer/TechProd Workshop Registration Fees 325 2,000 2,000 --- Making Connections Workshop Registration Fees 645 1,500 1,500 --- Trustee Forum Fees 13,435 13,000 13,000 --- Distance Learning Fees 445 1,500 1,500 --- New Works Forum Fees 1,380 - - --- M!W!O! and Learning Center Revenues 39,113 43,902 44,000 989898 Field Consultation Fees (net) 17,083 10,000 10,000 --- Publications 1,008 500 500 --- Label/List Sales 341 - - --- Advertising 35,684 38,500 38,500 --- Postage/Handling 656 - - --- Interest Unrestricted 885 6,000 6,000 --- Miscellaneous Income 20,635 8,000 8,000 --- Other Earned Income 431,791431,791431,791 450,402450,402450,402 450,500450,500450,500 989898
TOTAL INCOME 3,039,2203,039,2203,039,220 3,306,0273,306,027 3,306,027 3,287,7203,287,7203,287,720 (18,307)(18,307)(18,307)
Company Members, Canadian, International 14,865 11,900 11,900 --- Indiv, Bus, Associate 9,383 6,500 6,500 --- Membership 24,24824,24824,248 18,40018,40018,400 18,40018,40018,400 ---
Government Affairs & Lobbying 60,330 68,000 68,000 --- PR & Marketing 3,569 18,700 18,700 --- Electronic Media Forum 18,500 42,000 43,600 1,600 Met HD Survey 2011-12/National Opera Week 18,548 25,000 25,000 --- NEA Opera Honors/Opera Week 210,417 - 3,000 3,000 Media Relations 311,364311,364311,364 153,700153,700153,700 158,300158,300158,300 4,6004,6004,600
Ambassadors 64,513 54,000 54,000 --- Resource Development 14,896 28,350 28,350 --- National Trustee Forum 12,954 12,115 12,115 --- Trustee Recognition Program 27,835 32,000 32,000 --- Development 120,198120,198120,198 126,465126,465126,465 126,465126,465126,465 ---
Information, Research & Technology 5,506 40,185 40,185 --- Magazine 67,631 70,700 70,700 --- Publications 13,899 31,015 31,015 --- Network/LAN 14,220 - - --- Philadelphia Research Project ------Cultural Data Project 12,247 10,000 10,000 --- Information Services 113,503113,503113,503 151,900151,900151,900 151,900151,900151,900 ---
PCM Professional Development Activities and Leadership Intensive 13,792 53,480 44,480 (9,000) Learning Center (Online and at the National Opera Center) 4,725 16,950 16,950 --- Education Programs and Civic Engagement/Project FIND 4,266 7,125 7,125 --- Getty Audience Development - 343,850 343,850 --- M!W!O! 103,912 45,270 45,270 --- EducationEducationEducation 126,695126,695126,695 466,675466,675466,675 457,675457,675457,675 (9,000)(9,000)(9,000)
Technical Production 2,155 - - --- Regional Workshops/Making Connections on Location 2,072 10,300 10,300 --- Professional Development Seminars/Making Connections 3,990 6,000 6,000 --- Artistic Programs/Salon Series/Feedback Auditions 22,181 17,400 22,400 5,000 New Works Forum and Exploration Grants (Mellon/NEA) 99,978 131,900 131,900 --- Director-Designer Showcase (Tobin) - 22,000 22,000 --- Variance FISCAL YEAR 2013 FY12 Actual FY13 FY13 (Forecast to Statement of Activities (unaudited) Budget Forecast Budget) Opera Fund 190,874 234,750 234,750 --- ArtisticArtisticArtistic 321,250321,250321,250 422,350422,350422,350 427,350427,350427,350 5,0005,0005,000
Annual Conference (Prior, Current, Future) 141,027 160,050 150,000 (10,050) OA will use flight credits to send staff to Conference 141,027141,027141,027 160,050160,050160,050 150,000150,000150,000 (10,050)(10,050)(10,050) Vancouver. In addition, this reflects a projected decrease in food and beverage Finance 33,369 28,000 28,000 --- costs. Opera Tickets 48,495 43,000 43,000 --- Consultations 1,936 2,000 2,000 --- Board (and Strategy Committee) 32,364 22,500 22,500 --- General 26,958 18,500 18,500 --- Finance and General Operations 143,122143,122143,122 114,000114,000114,000 114,000114,000 114,000 ---
SUBTOTAL DIRECT EXPENSES 1,301,4071,301,407 1,301,407 1,613,5401,613,5401,613,540 1,604,0901,604,0901,604,090 (9,450)(9,450)(9,450) Overlapping staff during transitional Salaries and Benefits (net of Opera Center allocation) 1,409,920 1,607,135 1,632,000 24,865 periods has resulted in an increase to Office Supplies 16,261 12,000 12,000 --- the payroll forecast. Telephone/Internet 22,313 20,000 20,000 --- Bank Charges & Bad Debt Expense 44,677 22,000 22,000 --- Rent, Utilities, Security, Custodial 204,265 30,000 30,000 --- Insurance 5,670 - - --- Depreciation 11,737 - - --- Office Equipment 17,761 - - --- SUBTOTAL INDIRECT EXPENSES 1,732,6031,732,6031,732,603 1,691,1351,691,1351,691,135 1,716,0001,716,0001,716,000 24,86524,865 24,865
TOTAL EXPENSE 3,034,0113,034,0113,034,011 3,304,6753,304,6753,304,675 3,320,0903,320,0903,320,090 15,41515,41515,415
OPERATING SURPLUS / (DEFICIT) BEFORE FACILITY EXPENSES 5,2095,2095,209 1,3521,3521,352 (32,370)(32,370)(32,370) (33,722)(33,722)(33,722)
OPERA CENTER REVENUES Nearly $20,000 has been received in cash for Opera Center Audition Hall Rental - 64,800 89,800 25,000 events that have already taken place in the Opera Center Rehearsal Hall Rental - 52,650 52,650 - Center. Future room rentals, as of October Opera Center Vocal Studio Rental - 208,170 158,170 (50,000) 25, total over $60,000. Opera Center Board/Learning Ctr - 1,200 1,200 - Opera Center Services - 269,987 275,000 5,013 Given current demand, staff project that the Opera Center Mellon Cash Reserve Draw - 241,096 257,150 16,053 Audition Recital Hall's revenue goal may TOTAL OPERA CENTER REVENUES - 837,904837,904837,904 833,970833,970833,970 (3,934)(3,934)(3,934) exceed expectations. However, Vocal Studio rentals will continue to be a challenge until OPERA CENTER OPERATING EXPENSES the Center is more well-known outside of the Rent, Utilities, Security, Custodial - 140,214 125,000 (15,214) OA family. Insurance - 20,200 10,000 (10,200) Staffing - 317,200 317,200 - OA is grateful to the Mellon Foundation for a Opera Center Services Expenses - 250,528 250,000 (528) $500,000 cash reserve to cover shortfalls in Storage - 12,000 - (12,000) the first few years of the Center's operations. Promotions - 15,000 15,000 - Printing, Supplies - 6,000 6,000 - Library expenses - 10,000 10,000 - Custodial costs and insurance premiums will Room scheduling software and fees - 10,649 10,000 (649) be lower than anticipated. OA's current Telecom Allocation - 7,465 8,400 935 storage needs are being met by the facility. Reserve Fund Deposit - 50,000 50,000 - No additional space is required at this time. TOTAL OPERA CENTER EXPENSES - 839,256839,256839,256 801,600801,600801,600 (37,656)(37,656)(37,656)
OPERATING SURPLUS/(DEFICIT) AFTER FACILITY EXPENSES 5,2095,2095,209 000 000 000 NATIONAL OPERA CENTER CAMPAIGN BUDGET - PROGRESS REPORT Notes provided for variations over $10,000 SeptSeptSept BudgetBudgetBudget Additional fees to Structural MayMayMay 2012 tototo Engineer, MEP Engineer, 201220122012 (actual)(actual)(actual)ExpectedExpectedExpected TotalTotalTotal ForecastForecastForecast Theatrical Consultant and Relocation from Washington, D.C. to New York City $1,800,000 $1,800,000 $0$1,800,000 $0 Architectural Lighting Designer for change orders that resulted from the final value engineering Design, Construction, Equipment and Operating Endowment process. Hard Costs (including contigencies) $4,116,577$4,116,577$4,116,577 $3,403,583 $720,000$4,123,583$4,123,583$4,123,583 ($7,006) Architecture & Engineering $605,620$605,620$605,620$605,620 $574,948 $80,000$654,948$654,948$654,948 ($49,328) Fees and reimburseables for an additional fundraising Consultants & Professional Fees $498,000$498,000$498,000$498,000 $524,098 $30,000$554,098$554,098$554,098 ($56,098) consultant, and reimburseables Furniture, Fixtures & Equipment $886,000$886,000$886,000$886,000 $322,499 $500,000$822,499$822,499$822,499 $63,501 and retainer extensions for Other Costs (including administrative allocations and soft cost contigencies) $315,285$315,285$315,285 $305,100 $90,000$395,100$395,100$395,100 ($79,815) existing fundraising consultants.
Songbook Project $100,000$100,000$100,000 $97,910 $0$97,910$97,910$97,910 $2,090 Opening Weekend (net) $34,000$34,000$34,000 $52,909 $0$52,909$52,909$52,909 ($18,909) Savings from final design of theatrical lighting system. Endowment Campaign $6,000,000 $0 $6,000,000$6,000,000 $0 Increased staff allocation to the Campaign budget to $14,355,482 $7,081,045$7,081,045$7,081,045 $7,420,000 $14,501,045 ($145,563)($145,563)($145,563) appropriately reflect the amount of time devoted to the project. Additional Expenses Interest Payments $0$0$0 $10,714 TBDTBDTBDTBD A large number of VIPs were comped to various events over the course of the weekend. OPERA CENTER REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. Construction Update Staff relocated to the new offices on August 27, and the Opera Center opened to its first renters on September 4. Although renters utilized the space throughout the month of September, staff worked closely with Alcon Builders Group to complete the necessary work in preparation for the Center’s official opening on September 28.
As of October 15, construction of the Opera Center was substantially complete with only punch list items still being attended to. In collaboration with OPERA America staff, Andrew Berman Architects have issued to Alcon Builders Group a comprehensive punch list addressing all outstanding items to be completed. Alcon is scheduling this remaining work around the operating schedule in order to allow the Opera Center to continue to function.
As part of the value engineering process, the number of acoustic panels in the Opera Center was cut in half. All panels that were ultimately specified have been installed, although it is expected that additional panels will be required to bring some of the spaces to their maximum potential. The staff is closely monitoring the performance of the rooms, and will order additional panels before the end of the calendar year.
In addition, all but two vocal studios are performing at an acceptable level of sound isolation, meaning that one cannot hear singing from a vocal studio while in an adjacent vocal studio. The two rooms in question are currently taken out of circulation when an adjacent room is rented. This impacts the maximum capacity utilization, and staff is working with the project team to determine how best to address this issue.
One outstanding item of concern is the performance of the acoustically rated doors on most of the vocal spaces. When tested by the acoustician in early September, these doors were not performing at the expected level. The entire construction team is working to correct this issue.
The equipment systems that are being provided by the New York City Department of Cultural Affairs, including audio/video recording, surround sound and video projection, have been approved and are currently in the procurement process from the vendors. Once the systems arrive, OPERA America will begin to coordinate times for them to be installed based around rentals in the Audition Recital Hall. The surround sound system, in particular, will involve removing some of the blue perforated MDF facade. Staff will likely need to close the hall for a few days in order to expedite the installation and minimize disruptions.
OPERA America’s relationship with the building’s management staff has improved. While the building has accepted the approximately 19-month free rent period in principle, there are a few outstanding items that have prevented a final sign-off on the actual completion date, which is required in order to calculate the exact amount of rent savings. There is approximately $35,000 of freight and labor charges from the construction period that the building believes OPERA America should pay. Per the lease, however, these charges, which include non-business hour use of the freight elevators, were permitted during construction. While OPERA America could stand firm and insist on not paying these charges, it must
Tab 3 – Opera Center Report Page 1 negotiate delicately in light of the building’s dissatisfaction at having to pay the free rent, OPERA America’s future relationship with the management company, and the building owner’s historic philanthropy to the arts in New York City.
II. Fundraising Update The Opera Center Campaign continues to move closer to its $14 million goal and with the successful opening of the Center, interest and awareness continues to grow. Staff has worked to solicit large gifts through the Center’s naming opportunities and smaller gifts through the tribute panels showcased throughout the facility. To date, the Center features 23 named spaces totaling over $6 million and 44 panels totaling $222,500. Multiple naming opportunities are still available including the Audition Recital Hall and the Center itself. The remaining tribute panel opportunities throughout the Center total nearly $1 million. Staff and Opera Center consultants are also working on several mini-campaigns for mid-level gifts and tribute panels.
As a consultant for OPERA America, Marilyn Shapiro has made many suggestions to increase contributed revenue. Barbara Hocher continues to work part-time with staff on mini- campaigns associated with naming opportunities for select artists including Sherrill Milnes, Julius Rudel, James Ireland, John Adams and Marilyn Horne. OPERA America has contracted Mary Powell for additional assistance in securing major gifts from donors in the San Francisco area, already resulting in a $200,000 contribution in honor of David Gockley. Consultant contracts are coterminous on October 31, 2012. OPERA America may elect to continue the retainers of one or more consultants to complete mini-campaigns in progress
Goal (Phases 1 and 2): $14,000,000 As of October 1, 2012 Total Confirmed Gifts and Pledges: $10,686,685 Verbal Pledges and Commitments: $397,925 In Discussion: $28,000 TOTAL: $11,112,610 23 Founders (5 Board Members) 64% Board participation
III. Opening Weekend, September 27 – 30, 2012 On the morning of Friday, September 28, 2012, a Ribbon Cutting Ceremony for Opera Center donors included a performance by Elizabeth Futral and remarks by OPERA America Board Chair Frayda Lindemann and New York City Department of Cultural Affairs Commissioner, Kate Levin. The Ceremony was followed in the afternoon by an Industry Open House, sponsored by Denham Wolf, that included tours of the Opera Center, presentation of The Making of the Opera Center video and performances of eight of OPERA America Songbook songs in the Audition Recital Hall.
Saturday, September 29, 2012 featured A Day in the Life of the National Opera Center, sponsored by Wells Fargo. It included a full day of ongoing activities showcasing many of the possible uses of the Opera Center. Activities ran from 9:30 a.m. to 3:30 p.m. and included yoga for singers, Alexander Technique, stage combat, voice lessons and vocal coaching, master
Tab 3 – Opera Center Report Page 2 classes, a presentation on Carmen by John Conklin, feedback auditions with Sherrill Milnes, HD film presentation, and instructional classes and interviews.
More than 300 people attended events over the course of the weekend. The festivities were also streamed live on OPERA America’s website and on Soundque’s OperaMusicBroadcast.com. The broadcast reached just under 9,000 people for the Ribbon Cutting Ceremony, and the feedback auditions with Sherrill Milnes had 16,212 live viewers across the globe.
IV. Operations A. Bookings Within the first month of operations, the National Opera Center held a workshop of a new work, Doubt, for Minnesota Opera, several days of auditions for Opera Theatre of Saint Louis, meetings of the New York Opera Alliance and the Performing Arts Alliance, staging rehearsals for Gotham Chamber Opera, as well as recording and coaching sessions for individual artists.
Initial response to the space has been overwhelmingly positive from individual and organizational users alike. Young singers auditioning have expressed time and again an appreciation for finally having a space that makes them feel welcome. Administrators from companies and young artist programs have also expressed their delight in having a home base in New York.
With the official opening of the Opera Center at the end of September, demand for the facilities has increased. Over 2,200 people have visited the Opera Center since September 4. Opera Center staff continues to accept reservations for the Audition Recital Hall and the Rehearsal Hall from members and the public. In addition, reservations for the Vocal Studios are being accepted through OPERA America’s website and NYCPASpaces.org. As of October 15, $24,000 of rentals has taken place, and over $80,000, or 25%, of the Opera Center’s projected income target for FY12 has been achieved, inclusive of reservations through June 2013. Since these future reservations are subject to changes and cancellations, they are not booked as formal receivables.
To date, with very little promotion, the response from OPERA America’s closest constituents has been encouraging:
September 2012: • American Lyric Theater • New York Opera Alliance • Gotham Chamber Opera • Opera Theatre of Saint Louis • Guy Barzilay Artists • Performing Arts Alliance • Independent Filmmakers Project • Sarasota Opera • Minnesota Opera • Voices of Gotham
October 2012: • ADA Artists Management • Leora Chamber Orchestra • American Lyric Theater • Lyric Opera of Chicago • Atlanta Opera • Music Theater Group • Canadian Opera Company • New York Opera Alliance • Empire Opera • North Carolina Opera • Houston Grand Opera/HGOco • Opera Theatre of Saint Louis Tab 3 – Opera Center Report Page 3 • The Santa Fe Opera • VOX Festival • Schubert & Co. • Wolf Trap Opera
November 2012: • American Lyric Opera • Light Opera New York • Boston Lyric Opera • Pacific Opera Victoria • Chautauqua Opera • San Francisco Opera • Colorado Opera • William Matheus Sullivan Musical • Florentine Opera Company Foundation • Fort Worth Opera • Utah Opera • Gotham Chamber Opera
December 2012: • American Lyric Theater • Marcello Giordani Foundation • Aspen Opera • Martin Hennessy • BBC Cardiff Singer of the World • Music Academy of the West • Chautauqua Opera • Music Theater Group • Florida Grand Opera • Pittsburgh Opera • Houston Grand Opera Studio
January 2013: • Music Theater Group • Martina Arroyo Foundation • SongFest • Westminster Choir College • Chorus America • Prototype Festival • American Lyric Theater
B. Capacity Utilization September’s capacity utilization was 5%. Construction was still very much ongoing during the first month of operation, especially in the vocal studios, several of which were not operable during that month. The Audition Recital Hall was at 20% capacity and the Rehearsal Hall was at 19%.
As of October 22, capacity utilization for the month of October is 10%. Staff has had little trouble obtaining bookings for the Audition Recital Hall, which is already at 49% capacity utilization for the whole month.
The business model for the Opera Center is reliant on the steady usage of the many Vocal Studios in the facility. Indeed, the Vocal Studios account for nearly two-thirds of the rental revenue goal for the year. So far, OPERA America has had little trouble obtaining bookings and generating interest for the Center’s largest spaces – the Audition Recital Hall and Rehearsal Hall – however, the Vocal Studios will require additional promotion, likely to users outside of OPERA America’s core constituency. OPERA America and Opera Center staff have been meeting regularly to formulate the best methods to attract individual artists and teachers to the Center’s Vocal Studios. Staff will approach local universities and conservatories and other service organizations to help spread the word about the new facility. In addition, targeted
Tab 3 – Opera Center Report Page 4 advertisements will be introduced over the next few months. Opera Center staff is currently testing promotions for studios via twitter. These include $10/hour studio rentals in the last week of October and half-hour booking slots for auditioning singers.
Please refer to the Finance Report for an update on the Opera Center campaign’s budget-to-actual, cash flow and financing, and FY13 operating forecast.
C. Staffing The staffing of the Opera Center is now complete. New hires include Ian Kagey, Opera Center Technical Manager; Alex Canovas, Opera Center Coordinator; and Sarah Fraser, Katie Greene and Mariah Wakefield, Customer Service Associates. An additional operations assistant will be hired in November to staff the building’s main lobby on weekday evenings and assist the Technical Manager with general maintenance tasks. A cleaning service comes in twice a day, seven days a week, and a piano tuner is in the Opera Center on a weekly basis to ensure that all pianos are performing optimally.
Submitted by: Stephanie Helms, Opera Center Manager
Tab 3 – Opera Center Report Page 5 GOVERNANCE REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. Current Status OPERA America’s by-laws permit as many as 35 members, including the president/CEO as a voting ex-officio member. A majority of board members must be general directors of Professional Company Members. • Currently, the board of directors currently includes 33 members, 16 of whom are general directors and 16 of whom are members-at-large, plus the president/CEO.
II. Required Rotations The by-laws stipulate that a member must rotate off the board for at least one year after serving two complete three-year terms. • Jay Lesenger is the only member required to rotate off the board of directors.
III. Eligible for Re-election The following board members have completed one three-year term and are eligible for re- election to a second term: • Gus Blanchard • Greg Carpenter • Rena DeSisto • David Devan • Allen Freedman • Jake Heggie • Andreas Mitisek Member of the Governance Committee will communicate with each board member eligible for re-election to review his/her interest in continuing to serve on the board.
IV. Candidates Considered for Election Members of the Governance Committee will review potential candidates for election in order to create a preliminary list for review at the winter 2013 board meeting. The list of potential candidates includes both general directors and members-at-large
V. Officers • Chairman o Frayda Lindemann, in the first year of a two-year term • Vice Chairman o Darren Woods, in the second year of a two-year term • Vice Chairman o Steven Trampe, one-year term • Vice Chairman o David Bennett, one-year term
Tab 4 – Governance Report Page 1 • Treasurer o Timothy O’Leary, one year term • Secretary o James W. Wright, one-year term Members of the Governance Committee will review the slate of officers and provide recommendations for review at the spring 2013 board of directors meeting.
VI. Opera Center Board of Overseers Members of the Governance Committee will consider a proposal for the establishment of an Opera Center Board of Overseers in order to expand the base of support for the new facility. Such Overseers would have a required annual financial commitment, and would be nominated from select national opera patrons. They would gain active involvement in the services offered by the Opera Center without the responsibility of OPERA America governance. A list of responsibilities and potential Overseers will be shared at the committee meeting. A report on this discussion will be presented at the board meeting.
Tab 4 – Governance Report Page 2 ARTISTIC SERVICES REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. The National Opera Center OPERA America Songbook Believing that the creation of art should mark every special occasion, OPERA America commissioned the OPERA America Songbook in celebration of the opening of the National Opera Center in September 2012. Composers with strong ties to the organization were invited to write a song for voice and piano on the theme of opening a new home, the joy of singing or the excitement of new beginnings. This collection of 47 songs represents the distinctive voices of some of today’s most important established and emerging opera composers. Composers on the recording vary in style as well as age. The youngest composer participating is in her twenties, while Robert Ward recently turned 95.
OPERA America extends sincere thanks to board member Norman Ryan of Schott European Music and his colleagues Scott Wollschleger, Juan Pablo Contreras and Christopher Cerrone, without whom the Songbook would never have been realized.
Vocal Score: The printed Songbook, distributed by Schott, is now available for purchase at halleonard.com and at the National Opera Center for the retail price of $39.99; composers, librettists, singers and pianists involved in the recording of the Songbook may purchase the printed book at cost.
Recording: The OPERA America Songbook three-CD disc set was recorded and mixed at Gurari Studios over the summer. Jeremy Gerard, of Gurari studios, served as engineer and William Hobbs served as music director for the recording. Nearly 100 artists were coordinated to record in a two-week period. Some of the composers requested specific singers and pianists for the recording of their songs, while other composers asked OPERA America to contract suitable artists. Each song was allotted one hour in the studio for a total of 47 hours of recording time. Most composers were able to participate in the recording session for their song, either in person or via Skype, and provided valuable feedback during the recording and editing process. The recording features 32 singers and 16 pianists at varying levels in their careers, including established artists such as soprano Lauren Flanigan, baritone Robert Orth and soprano Elizabeth Futral.
Following the recording period, staff gathered materials for the 32-page CD booklet, designed by Katherine L. Ehle. Discmakers produced and duplicated the three-CD disc set. The OPERA America Songbook CD set was distributed during the opening week as a gift for the press and the attendees of the ribbon cutting ceremony.
The Songbook recording has been listed with CDBaby.com. CD Baby distributes to nearly 50 other digital sales outlets including iTunes and Amazon, as well as retail outlets for the sale of the physical three-disc set. Individual songs, each disc and the three-disc set are available for purchase and digital download. The set is also available for purchase at the National Opera Center for the retail price of $29.95.
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Ten CD sets and five scores were purchased at the National Opera Center since the Opening Weekend. OPERA America does not collect any fees for the sales of vocal scores online, but may purchase scores at cost and resell on-site. OPERA America does collect fees for sales of the recording through CD Baby, which will remit payment in $50 increments. To date, OPERA America has not received a payment through CD Baby.
For more information about the Songbook project, including a complete listing of composers, lyricists, singers and pianists featured on the recording, please visit: operaamerica.org/songbook
II. Grant Administration The Opera Fund: Repertoire Development OPERA America is offering a round of Repertoire Development grants in FY2013 to Professional Company Members and their partners to support the special costs incurred by developing and producing new North American opera and music-theater. Grants may be used to offset creative fees, recording expenditures for evaluation and archival purposes, or other costs associated with the development of a new opera/music-theater work, including but not limited to lab productions, workshops, readings, and revisions. PCMs may apply as a sole applicant, requesting up to $35,000 in support, or as part of a consortium, for up to $65,000. The Intent to Apply deadline was August 29, 2012 and the application deadline was October 17, 2012. OPERA America has budgeted up to $225,000 for the panel to award to compelling projects. The panel will meet at the Opera Center from November 28-29 to select grant recipients.
Letters of intent received: 50 Applicants eligible to move forward: 39 Final applications received: 32 (FY2011 Opera Fund applications received: 26) Total amount request: $919,000
The Robert L.B. Tobin Director-Designer Showcase OPERA America is administering the bi-annual Director-Designer Showcase programs to introduce new creative teams to the operatic field. Repertoire for design teams to choose was selected from the list of contemporary American operas being presented by member companies based on the Future Season Survey. The repertoire choices for the 2013 Design Projects are Elmer Gantry (Aldridge / Garfein); The Bonesetter’s Daughter (Wallace / Tan); Ghosts of Versailles (Corigliano / Hoffman); Later the Same Evening (Musto/Campbell); Lysistrata (Mark Adamo); Rise and Fall of the City of Mahagonny (Weill / Brecht); Silent Night (Puts / Campbell); Susannah (Floyd).
The preliminary design submission deadline for approved teams was October 10 and a five- person grant review panel will meet November 14-15 at the National Opera Center to select the four finalist teams. The finalist teams will be awarded $2,000each to produce a more complete design presentation, including renderings, models, budgets and production presentations. Finalist teams attend Opera Conference 2013 in Vancouver, where they will present their designs to general directors and production managers.
Letter of intent to apply: 25 teams Tab 5A – Artistic Services Report Page 2
Final applications received: 25 teams (FY2010 Director-Designer Showcase applications received: 32)
New Works Exploration Grants OPERA America launched the 2012-2013 cycle of New Works Exploration Grants on July 1, 2012. The grants provide support to representatives of professional company members who wish to travel to another city to attend a performance or workshop of a new American work and meet with the creative artists and administrators who are responsible for the piece’s creation. The goals of the program are to broaden awareness of new North American opera and music- theater works across the field and create relationships among opera companies interested in pursuing the creation and production of new works. Grants cover the cost of transportation and lodging. There is no limit to the number of these grants a company may receive during FY2013; however, the total amount granted to a single company cannot exceed $2,000.
III. Forums A. New Works Forum – November 2012 The 2012 New Works Forum is scheduled for November 8-10 at the National Opera Center. A full schedule of activities is included in the addendum. The Forum will further explore topics that were raised during the 2011 November meeting in New York City and 2012 June meeting in Philadelphia.
Staff representatives of professional company, associate producing, educational producing and publisher members were invited to attend the Forum. Registration is limited to 75 participants; spaces will be filled on a first-come, first-served basis. While there is no registration charge for the New Works Forum, each registrant is asked to pay a fee that will cover the cost of performance tickets and meals. OPERA America members in good standing may request a travel subsidy of up to 50% of travel and lodging expenses, not to exceed a total of $1,000. Stipends will be awarded in the order in which requests are received until funds allocated for the Forum are expended. No more than two stipends will be awarded per organization. Payment will be made after the conclusion of the Forum and upon receipt of documentation of expenses and a one-page summary report of the salient points of learning.
Summary of Events Thursday, November 8: Participants will explore the ways that individuals listen to music and the vocabulary used to describe that music. Through four 15-minute presentations, a panel discussion and conversation café, participants explore the process of listening and describing music. Then, the group will work to identify the specific aspects within music to which they identify and positively respond. The overall goal of these sessions is for attendees to move beyond identifying with a particular composer’s work, to identifying the specific qualities that they enjoy and look for as they explore new works.
Friday, November 9: The group will discuss fundraising and board buy-in for support of new works. This panel discussion, moderated by Marc A. Scorca, will explore the steps that general directors have taken to educate their board members about the unique process of developing new works, as well as tactics used to inspire passion and support for new projects. On Friday afternoon, two representatives from Dance Exchange, Inc. will lead a workshop on Liz
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Lehrman’s Critical Response Process. This workshop is presented as a follow-up to the session held at Opera Conference 2012 in Philadelphia. Two concurrent workshops will be held: a beginner level workshop, for attendees who are new to the process; and an intermediate level workshop, for attendees who already completed beginner training in Philadelphia.
Saturday, November 10: Mark Adamo will lead the group through a libretto outline workshop. This class is part of the training offered to librettists enrolled in American Lyric Theater’s Composer Librettist Development Program. The workshop will culminate with specific examples of works that have moved from outline form to fully executed libretti.
Throughout the Forum, attendees will also attend a variety of performances including New York City Opera’s VOX program, a staged reading of the family opera The Scarlet Ibis by Stefan Weisman and David Cote, and four showcase performances presented by OPERA America in the Audition Recital Hall of the National Opera Center: • All Wounds Bleed by Christopher Cerrone & Tony Asaro, produced by American Lyric Theater. • Heart of Darkness by Tarik O’Regan & Tom Phillips, represented by G. Schirmer and produced by Gotham Chamber Opera. • Dr. Sun Yat-sen by Huang Ruo, represented by Latitude 45 Arts and produced by Gotham Chamber Opera. • The Golden Gate by Conrad Cummings, produced by American Opera Projects.
Activities on Saturday will conclude in time for registrants to attend the matinee performance of The Tempest at the Metropolitan Opera. In addition, attendees may attend a matinee or evening performance of The Mark of Cain by Matthew Harris, produced by Chelsea Opera.
B. Technical/Production Forum The fall meeting of the Technical/Production Forum will take place at the National Opera Center on Saturday, October 27. Planned discussion topics include: • Smoke, fog and use of atmospherics on stage: What is and is not approved by most CBA requirements; • Expanding diversity in technical and theater staffing; • Beta test of new cultural arts co-production website (a presentation by Martin Shur of Culturebase.com); • Changing the strategic thinking and planning of the Technical/Production Forum; and • Planning content for 2013 annual conference.
C. Singer Training Forum The next Singer Training Forum meeting is scheduled for Saturday, January 12, 2013 at the National Opera Center. Planned discussion topics include: • Pursuing collaboration with NATS in presenting professional development programs for artists in career transition;
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• How to create standards and expectations between academic programs and young artist training programs; • Discussion of summer festivals roundtable; and • Planning content for 2013 annual conference.
IV. 2012-2013 Season of Events A. Making Connections The first Making Connections event held in the National Opera Center took place on September 19, 2012 in the Rehearsal Hall. The session, “Vocal Competitions: Strategy and Presentation,” featured a panel discussion with soprano Angela Meade, manager Bill Palant and pianist/conductor Thomas Muraco. Dramaturg Cori Ellison moderated the panel. The event drew 54 live attendees and 78 virtual attendees, making it the most well-attended Making Connections event ever. Upcoming Making Connections sessions include: • Costumes: Designing, Building and Altering for Opera - October 10, 2012 Panel includes Costume Director Marsha LeBoeuf; NYU and FIT professor and costume designer Daniel James Cole; FIT and Montclair professor and costume designer David Roberts (Archival video may be viewed at this link: http://www.youtube.com/watch?v=YJF4Rv69e04) • Keeping Fit and Staying Sane: Artist Health and Wellness - January 23, 2013 • Cultivating a Business: Advice for Accompanists, Coaches and Conductors - February 20, 2013 • Song, Opera, Musical: Preparing and Performing in Multiple Genres - April 24, 2013
B. Making Connections on Location On Tuesday November 13, OPERA America will host a Making Connections professional development seminar at Tri-Cities Opera in Binghamton, NY, in partnership with Ithaca College and Syracuse Opera. The evening will consist of a panel discussion about the arc of a young singer's career once educational training is completed. Panelists for this event are Richard Leech, Isabel Wolf, Barbara Dever, Judy Berry, Reed Smith and Brian DeMaris. It will be followed by three panels of feedback auditions for up to 21 young artists and resume review for participants.
C. Salon Series This season's continuing presentation of American composers and librettists will be presented in the Audition Recital Hall at the National Opera Center. All Salon evenings will be free to the public and will be streamed live on the OPERA America website and YouTube channel, where they will also be archived. Salon evenings consist of performance presentations of the featured artist's work and an interview with the artist, followed by Q&A with the audience. This season's artists are: • Anthony Davis - Tuesday, October 16, 2012 7:00 p.m. (Archival video may be viewed at this link: http://www.youtube.com/watch?v=JY- MniKGHtQ). LIVE ATTENDANCE: 27; VIRTUAL ATTENDANCE: 131 • Kevin Puts - Tuesday, January 15, 2013 7:00 p.m. • Missy Mazzoli - Tuesday, February 5, 2013 7:00 p.m.
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• Douglas Cuomo - March 5, 2013 7:00 p.m. • Gene Scheer - April 9, 2013 7:00 p.m.
D. Conversations OPERA America's Conversations feature one-on-one discussions with some of the field's most influential artists and producers, conducted by President/CEO Marc A. Scorca. These will be followed by Q&A with the audience and an informal reception. All will be held at the National Opera Center and streamed live to the OPERA America website and archived to the YouTube channel. This season's Conversations include: • Lotfi Mansouri - Thursday, October 18, 2012 7:00 p.m. (included book signing) • (Archival video can be viewed at this link: http://www.youtube.com/watch?v=qplqDJo27O4) • Carlisle Floyd - Thursday, January 10, 2013 7:00 p.m. (will include book signing) • Bartlett Sher - Wednesday, March 13, 2013 7:00 p.m. • Eric Owens - Tuesday, April 16, 2013 7:00 p.m.
E. Feedback Auditions OPERA America’s Feedback Auditions will provide singers a safe environment to sing and gain valuable feedback from arts professionals. At each Feedback Auditions six singers will be granted a 20-minute slot to present two arias to the panel. The first aria will be the singer’s choice and the panel will choose the second aria. After the singer leaves the room, the panel, as a group, will provide feedback about the singer. An OPERA America staff member will transcribe the feedback from the panel. The singer’s performance will be videotaped and the singer will receive a copy of this video recording by mail, along with the written feedback from the panel.
Upcoming Feedback Auditions are scheduled as follows: • Saturday October 27, 2012, 2-4:00 p.m. Panelists: Jay Lesenger and Angela Meade Pianist: Thomas Muraco • Tuesday November 13, 2012 7-9:00 p.m. Panelists: Jay Lesenger and Patricia Scimeca Pianist: Djordje Nesic • Tuesday December 4, 2012 7-9:00 p.m. Panelists: Cori Ellison and Charles Jarden Pianist: Djordje Nesic
F. Songbook Evenings All 47 songs will be performed live in the National Opera Center during its first year of operation. During the opening week festivities, 17 songs were performed, and many composers and lyricists attended the performances of their songs. Two Songbook concerts are currently scheduled for October 30, 2012 and March 19, 2012 and will each feature 12 songs from the collection.
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V. Opera Conference 2013: Vancouver Artistic Services will host Forum meetings for the New Works Forum, Technical/Production Forum and Singer Training Forum, as well as two open sessions for Artistic Administration track and three for the Technical/Production track. There will also be roundtables for artistic administration and technical/production professionals. The Director-Designer Showcase featuring the winning teams from the granting program will be held on Thursday, May 9. The New Works Sampler will be held on Friday, May 10, and will feature an hour retrospective of pieces funded over the last 10 years by the Canadian Opera Creation Fund and an hour of new works excerpts selected by an independent panel. The department is also considering hosting a third Artist Intensive in Vancouver on Saturday, May 11.
VI. Legal Affairs Rights and Clearances for Events at the National Opera Center OPERA America has acquired the appropriate ASCAP/BMI Blanket License Agreement for Concerts and Recitals that is required for the National Opera Center as a formal performance venue. The license will require OPERA America to produce quarterly reports on the number of public performances taking place at the Center, as well as public events presented by Artistic Services. OPERA America retained legal counsel from Alter & Kendrick, LLP to create a series of necessary releases and licenses to cover performers and publishers for live performances, sync licensing for streaming content, video licensing for archival footage and New Media Licensing for all transmitted content.
Visa Support Providing letters of support for visa petitions continues to be an important service for OPERA America members. These letters continue to strengthen companies’ applications for international opera artists. Since the last board meeting, OPERA America has written 43 letters of support. This service is a vital part of bringing the opera world’s top artists to American audiences.
VII. Personnel Update Cara Consilvio joined the Artistic Services Department from the External Affairs Department in July. She recently decided to pursue her performance career full-time and will leave OPERA America in January 2013. Cara has transitioned to part-time status through January. OPERA America wishes her the very best as she embarks on her next endeavor.
Artistic Services welcomed intern Christopher Newcomer over the summer. Chris, a counter tenor, received his M.M. in opera performance from the Maryland Opera Studio, currently lives in NY and has recently been performing as a swing in Chicago on Broadway.
Submitted by: Laura Lee Everett, Director of Artistic Services Lyndsay Werking, Artistic Services Manager Cara Consilvio, Artistic Services Manager
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INFORMATION, RESEARCH AND TECHNOLOGY REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. IRT and the National Opera Center The move from the 18th floor to the 8th floor was completed on August 24. Libraries, archives, workstations, and Internet and telephone systems were available to the OPERA America staff on Monday, August 27. A. Opera Center Vocal Studio Reservations: In early March, Katie Baltrush began assisting Opera Center Manager Stephanie Helms to launch online bookings for reservations at the National Opera Center, using Fractured Atlas’ New York City Performing Arts Spaces (NYCPAS) database. Phase one, completed in April, launched the National Opera Center’s profile, making all Opera Center spaces visible to the public for marketing purposes. This included learning and suggesting improvements to Fractured Atlas’ software, crafting copy and planning future procedures and reporting needs. Phase two, completed in June, saw the launch of online reservations via NYCPAS. Both members and non-members are able to search Opera Center spaces, check availability, request reservations and pay for space in the Opera Center’s Vocal Studios all online. This system also allows for reporting and trend analysis, affording the Opera Center staff the tools they need to adjust marketing practices such that usage of and revenue from the Opera Center can be optimized. B. Opera Center Libraries: While current library holdings are cataloged using separate services, Kevin and Alexa are working on exporting the lists and making all materials (books, scores, librettos, scholarly works, videos, digital music, CDs and LPs) searchable from a central database, which will be built in-house. A standard Deed of Gift has been approved and will be used as gifts are offered for the libraries. Collection development and donation parameters have been approved and are being handed out upon request at the 7th and 8th floor reception desks. To date, Jeannie Williams of the Wagner Society of New York donated Carmen by Prosper Mérimée (1915) and John Conklin will donate 13 linear feet of books; Julius Rudel will donate his personal (annotated) scores; Carolyn Weber of the Kurt Weill Foundation will donate some of Weill’s papers, scores and recordings; and Patrick J. Smith will donate some recordings from his collection. 1. Ardis Krainik Research and Reference Library: A “wish list” of items to purchase for the library has been compiled by the Artistic Services department and others. Purchasing is taking place in batches so the items can be accessioned into the library. 2. Elebash Score and Recording Library: Kevin Sobczyk and Alexa Antopol met with Norman Ryan of Schott on October 17 to work out the details of making digital piano- vocal scores of North American works available from the Elebash Library. After an initial testing phase, other publishers will be invited and encouraged to join Schott in building the collection through electronic access to scores.
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Alexa will be working with Lyndsay Werking to contact publisher members to request donations of physical scores and to discuss access to online materials. A vinyl-to-MP3 converter has been purchased and LPs will be converted upon request and as staff availability allows. Clark Rahman, a general intern, is cataloging the LPs. C. Listening Stations: Two computers have been set up that connect to a central playlist with over 11,000+ tracks. Guests may arrange a time to come in and listen to any of the tracks during Opera Center business hours. D. Visitors Business Center: Two machines have been set up with Microsoft Office, internet and printing capabilities for use by members that need an “office away from home.” E. The Charles MacKay Learning Center: A digital SMART Board has been installed. Audrey Saccone has significant experience using SMART Boards and is training OPERA America staff to optimize the functionality of this powerful presentation and learning tool. F. Sherrill Milnes Honors Gallery: Over 160 NEA Opera Honors tribute videos and supporting interviews have been transferred to OPERA America’s new storage server. As soon as a digital asset management solution has been identified, the videos will be incorporated into it, enabling research and retrieval from the listening stations and Honors Gallery. In the meantime, a hand selected group of videos are rotated throughout the day on a large monitor in the Sherrill Milnes Honors Gallery. G. Digital Signage: A new software package called Visix was purchased and installed as signage for daily room assignments and times. The software runs on a virtualized server and behaves the same way airport departure and arrival screens do. There are two TVs (one in the 7th floor lobby and one in the 8th) that display the time, room and name of the renters. This software connects directly to the local Exchange calendar that keeps track of all rentals.
II. Print and Digital Content A. Print Content Opera America Magazine: The September issue of Opera America Magazine, which begins the sixth volume of the magazine, incorporated the new OPERA America/ National Opera Center logo, as well as a new magazine design template created by OPERA America’s graphic designer, Andy Simons of Emphas!s Design, who had been brought on as a consultant for the Opera Center campaign. The basic composition of the magazine remains the same, with two to three large features and a number of shorter articles reflecting interesting trends and challenges in the field; however, the look and feel has been improved and is consistent with OPERA America’s new graphic standards. In addition to celebrating the opening of the Opera Center, the September issue included a focus on education, broadly defined. Articles explored professional development for aspiring general directors and vocal instruction for high school students. The winter issue, which has a production focus, will include a feature on opera companies that have undertaken recording projects. The spring issue will focus on the Vancouver conference and will be followed by a summer issue dedicated to the creation of new works. Year in Review: The Annual Field Report (AFR) section of the Year in Review is already underway. Data from Professional Opera Survey Reports is gathered to tabulate the charts and graphs of this invaluable five-year study. Larry Bomback will author the AFR, which will once again be included within the Year in Review publication.
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Brochures: Since the last board meeting, three brochures have been created and are currently available. Resources for Organizational Members, Programs for Artists and a National Opera Center brochure all have a similar look and feel that incorporates OPERA America’s new graphic and design standards. Copies of these three brochures will be available at the meeting. B. Digital Content OPERA America YouTube Channel: Through a partnership with Google’s non-profit department, OPERA America has been granted a full YouTube channel (found at http://www.youtube.com/operaamerica) on a pro bono basis. At the moment, this channel houses all Opera Center events, Making Connections, Conversations and Salon Series. It streams live events and archives past events. Plans are already underway to catalogue member videos on YouTube to create an American opera station. Board members should expect to hear more about this in the coming months.
III. Research Projects A. Cultural Data Project/Professional Opera Survey: Despite the delay caused by the recent departure of OPERA America’s former information and research manager, the FY11 Professional Opera Survey Report will be issued to the general directors and CFOs of participating member companies in October. This report is the product of a new reporting tool, developed by Katie Baltrush in partnership with an independent contractor, which has resulted in more accurate reporting and shorter data retrieval times. The nature of OPERA America’s future relationship with the Cultural Data Project as a partner in the Professional Opera Survey is yet to be determined. While a plan is in place to create a new online survey tool in partnership with Fractured Atlas — a project that would take six to nine months to implement — an appropriate funding opportunity through which this project could be financed has yet to be found. The timing of when this funding becomes available will determine when OPERA America could reasonably expect to create and launch a new Professional Opera Survey mechanism. OPERA America anticipates remaining in partnership with the Cultural Data Project for the FY12 Survey, which is set to launch this coming spring.
IV. Technology Projects A. Hardware: The majority of time since the last board meeting has been spent implementing the new network and server topography in the National Opera Center. OPERA America has gone from a traditional phone system to a VOIP (Voice Over IP) solution. All communications in and out of the Center are done over the internet. Currently there are two “bonded” 50Mbs circuits from Time Warner giving 100Mbs down and 10Mbs up through a load balancing device. Facility security is also handled internally. Access cards and security cameras are wired back to the Filstrup IT Center and server room and are under OPERA America control. There is limited third party monitoring for forced entry and fire services. To give a basic idea of the scope of change and how much of a technological increase OPERA America has experiencing as a result of its move, before and after pictures of the wiring in the two server rooms are embedded below:
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Before: After:
B. New York Opera Alliance (NYOA): Kevin has been working with a subcommittee from the New York Opera Alliance to create a website for the group. The primary focus of the site is to act as a public opera arts calendar. Other features such as member profiles, individualized blogs, and a miniature Schedule of Performances are being created to round out the site. This site is being built with portability in mind so that its basic architecture can be transferred easily to other locales that might form similar alliances in the future. The site will launch near National Opera Week. Please see the Membership Report for more information. C. Site Makeover: On July 1, the OPERA America website was modified to reflect branding changes. The main banner was replaced with the new logo and rotating production images from member companies. The navigation has been changed on every page to be more in line with the new look and all traces of the old logo have been removed from the site. A new Opera Center-specific section of the site has been created and can be found at operaamerica.org/operacenter. Rooms can be booked directly from this weblet. Starting in January 2013, staff will begin a larger redesign of the entire website. This new site will place a larger onus on OPERA America members to keep their own information up to date, consistent with current online trends. D. Customer Relationship Management (CRM) Software: OPERA America has begun the search for an all-encompassing CRM. Given the unique business model, an off-the-shelf solution is not feasible. Staff hopes to engage a vendor that leverages Microsoft’s Dynamics CRM, which is written in the same language as the website, uses the same database and is highly customizable. Dynamics CRM is also a cloud based
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solution, moving the majority of the maintenance, backup and upgrades duties on to the vendor and away from OPERA America. The software will eliminate many of the manual processes that currently occupy a large amount of staff time as well as ensure cleaner data. This is an expensive and time consuming project, but an entirely necessary one if OPERA America is to continue to serve its members and the general public in an efficient manner. Please see the Finance Report for more information.
V. Personnel Update Since the last board meeting there have been a number of changes in the IRT department. Two employees have moved on to pursue other opportunities: Katie Baltrush has left OPERA America to become a production manager at Julliard and, after 14 years at OPERA America in a variety of roles, Kelley Rourke has stepped down as editor-in-chief of Opera America Magazine. Working remotely on the magazine had become unsustainable given the growth and pace of change at OPERA America. While the position does not require a full-time employee on site at the OPERA America offices, more frequent contact will be needed in order to keep current with new OPERA America projects, strategies and priorities. OPERA America has begun interviewing for both positions and hopes to announce at least one hire in November. At the last board meeting it was reported that OPERA America was looking to hire a full-time systems administrator. Unfortunately, the candidates with the required skill set were not affordable within the current budget. To help rectify this, OPERA America has shifted responsibilities and created a new position that focuses on the day-to-day upkeep of the website, social media offerings, e-newsletters and, eventually, application development. Audrey Saccone will be joining the team full-time December 1, 2012 in the newly created position of digital and social media manager. Audrey has been working at OPERA America as a marketing intern, but has quickly proven to be highly competent digitally. Her duties will bridge the work that overlaps the marketing and IRT departments. In addition to Audrey, OPERA America will be increasing usage of IT Consultant HLP & Associates for network and hardware maintenance specific tasks.
VI. Statistics Total number of website visits is up again by an impressive 20.34% for the time period of Jun 5, 2012 to Oct 25, 2012 (the comparison time span is Jan 12, 2012, to Jun 4, 2012). Unique visits are up 29.50% and new visits are up 9.58%. The jobs board continues to be the most popular page with the Opera Center page coming in second. There has not been an increase of this magnitude in the past five years (data does not exist prior to 2007).
Submitted by: Kevin Sobczyk, Director of Research/CIO Alexa B. Antopol, Reference and Research Librarian Katherine L. Ehle, Art Director
Tab 5B – Information and Learning Services Information, Research and Technology - Page 5 LEARNING SERVICES AND COMMUNITY ENGAGEMENT REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. Personnel Update Laura Day Giarolo left OPERA America in August to move to Massachusetts and is now in the alumni relations department of her alma mater, Williams College. After a three-month search, OPERA America is pleased to announce that Leah D. Wilson is the new director of learning and community engagement.
Leah is currently the program assistant, performing arts program at the Andrew W. Mellon Foundation. In addition to knowing OPERA America very well from the vantage point of the Mellon Foundation, she has been a frequent audience member at Making Connections and Salon Series events. She was present for the opening of the Opera Center and is a good friend of the organization and many of the staff on a personal level. OPERA America is tremendously fortunate to be able to welcome her to the company at this important transitional moment in its organizational development and service to the field. Leah begins work on November 1, 2012 and will be in attendance at the fall board meeting in Dallas.
II. American Express Leadership Intensive Ten participants were selected from among the nearly 50 applications received for the Leadership Intensive, generously funded by American Express. They were joined by two participants from Opera.Ca and two from Opera Europa for the Leadership Advance conference seminar (June 13-16) and a week-long Leadership Intensive in New York, June 23-27, 2012.
The 2012 Leadership Intensive class included: Dottie Allen, Director of Adult Learning and Community Engagement, The Metropolitan Opera Guild Daniel Anderson, Multimedia Director, Opus.Technica Cristina Barbulescu, Public Relations Director, Bucharest National Opera (Opera Europa participant) Annie Burridge, Director of Development, Opera Company of Philadelphia James Byrne, Liaison to the Office of the General Director, Houston Grand Opera Nathan DePoint, Company Manager, Fort Worth Opera Claire Friday, Production Administrator, Boston Lyric Opera Scott Guzielek, Artistic Administrator, Washington National Opera Brian Hotchkin, Company Manager, Opera Santa Barbara Emmalee Iden, Director of Education, The Atlanta Opera Lee Anne Myslewski, Administrative Director, Wolf Trap Opera Ian Rye, Director of Artistic Administration, Pacific Opera Victoria (Opera.Ca participant) Lena Vizy, Marketing Manager, De Nederlandse Opera (Opera Europa participant) Tom Wright, Director of Artistic Planning, Vancouver Opera (Opera.Ca participant)
Tab 5B/Information and Learning Services Learning Services and Community Engagement - Page 1 The Leadership Advance seminar at the conference, co-facilitated by Kevin Smith and Jane Hill, included sessions on involving the entire organization (all departments and all levels) in marketing and communications, strategic financial planning and the fundraising process. Participants also took part in a negotiation seminar with Vicky Peterson from Collaborative Action.
The Summer Intensive featured sessions on nearly two dozen topics covered over the course of five days. Highlights included roundtable discussions about leading effective meetings, the fine art of the business lunch, information technology, human resources, electronic media, governance, volunteers, major gifts fundraising, work/life balance and establishing personal leadership styles. Guest lecturers were brought in to lead breakouts sessions on public speaking, working with artists, listening effectively to auditions, staying within budget, identifying changes in audience behavior, an opera company’s civic responsibility and career development.
Feedback from the Intensive participants was overwhelmingly positive. Kevin Smith, David Bennett, Cathy French and Bruce Thibodeau were noted as being particularly helpful to participants.
OPERA America has been invited to submit a proposal to the American Express Foundation for continued support for a second year of the Leadership Intensive for FY13.
III. Annual Conference Opera Conference 2012: Creative Resurgence The 2012 annual conference had 385 paid attendees. This total was higher than at the Boston conference (May 2011, 351 paid delegates) but lower than in Los Angeles (June 2010, 410 paid delegates). Many returning delegates commented that this was the smoothest Conference they had ever attended. Opera Company of Philadelphia was a tremendous partner and put on a wonderful reception at the Academy of Music. Sessions were broadcast live and watched by thousands of online viewers across the world thanks to Soundque, the conference’s A/V provider and content distributor.
Reviews of session content were positive. Delegates singled out Douglas McClennan, Michael Kaiser, Richard Evans and Jennifer Higdon as excellent speakers. A stunning production of Dark Sisters at the Perelman Theater in the Kimmel Center was sold out. (The new work, a co- production with Opera Company of Philadelphia, Gotham Chamber Opera and Music Theater Group received support from The Opera Fund.) The New Works Sampler at Lenfest Hall was the best Sampler ever in terms of artistic quality and production value.
The conference also featured a renewed partnership with Opera Volunteers International, which held its annual conference concurrently at the Doubletree. OVI sent over 30 delegates to Philadelphia and will partner with OPERA America once again in Vancouver.
Opera Conference 2013: Opera Out of Bounds From May 7- 11, 2013, Vancouver Opera will host Opera Conference 2013: Opera Out of Bounds — the first OPERA America conference in Canada since 2002. The annual gathering of opera stakeholders from around the world, presented in collaboration with Opera.ca and
Tab 5B/Information and Learning Services Learning Services and Community Engagement - Page 2 Opera Volunteers International, will challenge the traditional assumptions of the art form and the limitations of the opera business model itself. Successful (and not-so-successful) case studies of bold, unconventional and even taboo initiatives that have been recently undertaken by opera companies across the U.S. and Canada will be featured. Other highlights of the conference include a welcome reception on a cruise around Vancouver Harbor, the bi- annual Robert L.B. Tobin Director-Designer Showcase, the Canadian premier of Tan Dun's Tea: A Mirror of Soul and a combined Canadian Opera Creation Fund retrospective and New Works Sampler at the intimate Vancouver Playhouse, plus network dinners at downtown Vancouver’s best restaurants, plenary sessions, breakout sessions on pressing issues in finance, marketing, development, volunteerism, governance, education, artistic administration and technical/production, and roundtables for various affinity groups.
IV. Education Forum The Education Forum met in October over two days. In Laura Day’s absence, the network chairs, Emmalee Iden and Ruth Nott, of The Atlanta Opera and San Francisco Opera, respectively, crafted the agenda and helped facilitate the meeting alongside Marc A. Scorca. OPERA America’s new director of learning and community engagement, Leah D. Wilson, was also in attendance.
Representatives from the following companies were present at the Forum: The Atlanta Opera: Emmalee Iden, Director of Community Engagement Center City Opera Theater: Joy Kurtz, Director of Education and Community Engagement Houston Grand Opera: Kade Smith, Touring and Ensembles Manager Kentucky Opera: Deanna Hoying, Director of Education Lyric Opera of Chicago: Mark Riggleman, Director of Education Metropolitan Opera Guild: Dottie Allen, Director of Adult Learning and Community Engagement Minnesota Opera: Jamie Andrews, Education Director New York City Opera: Erika Rauer, Director of Education; Melissa Wozniak, School Programs Administrator Opera Carolina: Ashley Johnson Lam, Assistant Director of Education Opera Memphis: Sarah Squire, Director of Education and Outreach Opera Theatre of Saint Louis: Allison Felter, Director of Education and Community Engagement San Francisco Opera: Ruth Nott, Director of Education (Education Network Co-Chair) The Santa Fe Opera: Andrea Fellows Walters, Director of Education and Community Programs Seattle Opera: Sue Elliott, Director of Education
Discussion topics included new adult engagement activities, best practices for K-12 programming and how to measure education and community engagement success. Electronic media, government affairs and budgeting were all discussed in relation to the education department of an opera company. The group also brainstormed session content for future OA webinars and the Conference in Vancouver.
Tab 5B/Information and Learning Services Learning Services and Community Engagement - Page 3 Members of the Education Forum met with members of the Marketing Forum on October 15 and 16 to discuss audience development. Please refer to the Marketing Report for more information on the joint sessions.
V. Audience Development Granting Project Thanks to the generous funding of the Getty Foundation, OPERA America plans to offer a new granting opportunity for member companies. The new program will include joint meetings of the Education Forum and a new Marketing/PR Forum to address issues of mutual concern and generate ideas for new audience development programs.
Members will be invited to apply for grants from OPERA America for as much as $40,000 in two categories: Current Model Projects and Experimental Projects. Current model project grants of up to $20,000 will support existing projects that are thought to offer the potential for success and replication across the field, with emphasis on project assessment and documentation. Experimental Program grants will support new initiatives that are untested, but are deemed worthy of exploration, assessment and documentation.
Audience development grant guidelines will be drafted after the Board meeting. The Information and Learning Services Committee will be convened via telephone conference call.
Regular project updates and reports of findings will be presented at each fall Marketing/PR Forum and to a broader audience at each annual conference. Findings will also be shared through OPERA America Magazine, on operaamerica.org and through an online exchange where members can share successful projects that have the potential for adaptation and adoption by the field at large. Members will be able to create profiles for each initiative, track progress in real-time and solicit feedback from other members.
VI. National Opera Center and New York City Programs Emerging Pictures OPERA America hosted its first Opera in Cinema event at the National Opera Center to close out the Opening Weekend’s festivities. Opera Australia’s La traviata live from Syndey Harbour, directed by OPERA America board member Francesca Zambello, was presented free to a small audience of members. Before the opera, Marc A. Scorca gave some brief remarks about the history of the opera and shared his personal insights into Verdi’s masterwork. During intermission, Marc interviewed one of today’s leading Violettas, Elizabeth Futral, about the challenges of this demanding role. After the opera, Marc opened up the discussion to the audience in order to gauge their reactions to not only watching a canonic opera on screen, but also one that was staged outside of a traditional opera house.
OPERA America’s next Emerging Pictures event at the National Opera Center will take place on December 16, with a Cenerentola from Barcelona. A full series of operas on film with engagement activities before, during and after is being scheduled, starting in January.
Tab 5B/Information and Learning Services Learning Services and Community Engagement - Page 4 VII. Learning Through Opera Music! Words! Opera! Summer Workshops Since the last board meeting, six workshops were held. Three sites, denoted with asterisks, received a second round of teacher training support from the MetLife Foundation:
Summer 2012 Workshops Host Company Dates Opera Theatre of Saint Louis June 13-15 Fargo-Moorhead Opera* June 18-22 Utah Symphony | Utah Opera June 25-29 Central City Opera July 9-13 The Atlanta Opera* July 9-13 Boston Lyric Opera* August 13-17
Submitted by: Larry Bomback Director of Finance and Operations
Tab 5B/Information and Learning Services Learning Services and Community Engagement - Page 5 MARKETING AND COMMUNICATIONS REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. The National Opera Center A major rebranding effort was connected to the launch of the Opera Center. OPERA America engaged an outside firm, Emphas!s Design, to lead the organization through this process. As part of this rebranding, OPERA America has a new logo, an Opera Center website section and many updated and redesigned offerings, including the organization’s website, the OperaLink e-newsletter and Opera America Magazine.
As part of the National Opera Center opening week events, OPERA America held a press conference on Monday, September 24 in the Audition Recital Hall. More than three dozen members of the media attending the event, including: Martha Bonta and Brian Wise (WQXR), Pia Catton (The Wall Street Journal), Clark Sedgwick (Musical America), Jed Distler and Leslie Kandell (Gramophone), F. Paul Driscoll (Opera News), Ben Finane (LISTEN magazine), George Loomis (Financial Times), Fred Plotkin (freelance) and Anthony Tommasini (The New York Times). During the press conference, Frayda Lindemann, Marc A. Scorca and Stephanie Helms delivered remarks; Marc interviewed the architect, Andrew Berman; selections from the OPERA America Songbook were performed and the Making of the Opera Center video was shown. Tours of the facility were offered after the press conference, followed by a luncheon in the Rehearsal Hall.
In the weeks and months leading up to the opening of the National Opera Center, OPERA America handled numerous press requests for photos, interviews, tours and general information.
OPERA America engaged consultant Mary Lou Falcone to maximize media attention, resulting in the feature articles below:
Espace Musique/CBC Radio Canada By Sylvia L’Ecuyer October 13, 2012
BBC Music “National Pride” By Katrine Ames October 2012
The New York Times “An Opera Center for Practicing as Well as Performing” By Daniel J. Wakin September 14, 2012
Opera (U.K.) “A Home From Home” By David Shengold September 2012
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LISTEN: Life with Classical Music “A Hub of Ideas” By Brian Wise Fall 2012
Opera News “Moving to the Center” By Jennifer Melick August 2012
Crain’s New York (online edition) “Nonprofit Proclaims: The Fat Lady Sings Here” By Miriam Kreinin Souccar August 15, 2012
MusicalAmerica.com “Opera Center Nearing the Finish Line” By Susan Elliott June 28, 2012
MusicalAmerica.com “New Opera ‘Center’ Planned for Manhattan” By Susan Elliott June 7, 2012
Individual press tours have also been given to the following journalists: Bill Littler (Toronto Star), Zachary Woolfe (The Observer and The New York Times), Clemency Burton-Hill (BBC Radio and Television), Heidi Waleson (The Wall Street Journal), Andrew Patner (WFMT and the Chicago Sun-Times) and John von Rhein (The Chicago Tribune).
OPERA America created a special press page on the National Opera Center section of the OPERA America website (operaamerica.org/nocpress), to provide the media with easy access to high-resolution photos, fact sheets, and other necessary items. To access this page, board members may use the following login credentials: Username: Press Password: OPERAAmericaNOC
Information about the OPERA America Songbook was distributed to OPERA America’s press list, as well as Mary Lou Falcone’s contacts. Selections from the Songbook were played on American Public Media’s Performance Today radio program in September and made available on public radio stations throughout the country, including WQXR in New York City. Copies of the CD were distributed to journalists attending the Opera Center press conference and have so far also been sent to The Journal of Singing (National Association of Teachers of Singing), The Times-Picayune (New Orleans), WDPR/WDPG (Dayton), KUSC (Los Angeles), WGBH (Boston), American Public Media, NPR Music, WQXR (New York), KWMU (St. Louis) and American Record Guide.
Tab 5B – Information and Learning Services Marketing and Communications - Page 2 II. National Opera Week With the help of David DiChiera, OPERA America engaged Aretha Franklin as the Honorary Chairman of National Opera Week 2012, taking place from Friday, October 26 – Sunday, November 4. OPERA America worked with Michigan Opera Theatre to arrange a video shoot with Ms. Franklin and Patricia travelled to Detroit in September for this purpose. The resulting one-minute welcome video may be viewed at http://bit.ly/OperaWeekVideo. The video and photos may also be found on OPERA America’s Facebook page at facebook.com/operaamerica.
Approximately 100 organizations are planning fun, free activities for the public in an effort to engage new opera audiences and celebrate the art form. National Opera Week events are listed on the OPERA America website at operaamerica.org/operaweek. Conversation about the program also takes place on Twitter with the hashtag #OperaWeek and on Facebook at facebook.com/nationaloperaweek. New for 2012, OPERA America has invited Canadian opera organizations to participate in National Opera Week to expand the program’s impact. OPERA America also convened special meetings in New York City and Washington, D.C., to encourage additional activity among clusters of independent opera producers in these areas. Highlights include:
The Dallas Opera (Dallas, TX) Opening Night Plazacast: Community members are invited to picnic on the lawn of Sammons Park and watch the live broadcast of The Dallas Opera’s Aida from the Winspear Opera House.
Palm Beach Opera (West Palm Beach, FL) OPERA Deconstructed: A behind-the-scenes look at how an opera is created, from building the sets to the final product. Attendees will also participate in a dramatic reading of an opera libretto.
Sarasota Opera (Sarasota, FL) First Friday Art Walk on Palm Avenue: Sarasota Opera singers perform several short sets of opera arias and duets throughout the evening, while galleries and shops along South Palm Avenue remain open late for shoppers and browsers and merchants offer refreshments.
The University of Alabama Opera Theatre (Tuscaloosa, AL) Opera Workshop for Everyone: The University of Alabama Opera Theatre offers opera classes to residents of Capstone Village Retirement Community on the campus of the university. Participants who are normally in the audience get a first-hand opportunity to experience the workshop training and skill sets which opera singers study to hone their craft as opera actors. Opera students and faculty lead residents in mini-classes in improvisation, movement, acting, opera history and other topics, and the residents serve as mock audition panelists.
A complete list of activities will be distributed at the Board Meeting.
Tab 5B – Information and Learning Services Marketing and Communications - Page 3 III. Forums As called for in the organization’s 2010 strategic plan, OPERA America launched a Marketing/PR Forum to better serve members in the marketing and PR network. The inaugural meeting of this Forum took place on October 15-16 at the National Opera Center, in conjunction with the Education Forum. Over the two-day Forum, attendees participated in separate marketing and education meetings, as well as joint sessions that addressed the topic of audience development. OPERA America also hosted a casual reception prior to the start of the Forums for all attendees, which included a tour of the National Opera Center. Reimbursements covering 50% of travel expenses up to $500, were offered to one attendee per company, for each of the Marketing and Education Forum attendees, thanks to the generous support of the Ann and Gordon Getty Foundation.
Seventeen marketing/PR staff from 16 professional companies attended the Marketing Forum: Boston Lyric Opera Opéra de Montréal Central City Opera (2) Opera Memphis Chautauqua Opera Opera Theater of Pittsburgh Florentine Opera Opera Theatre of Saint Louis Fort Worth Opera Palm Beach Opera Indianapolis Opera San Diego Opera Minnesota Opera Seattle Opera Opera Carolina Vancouver Opera
Topics covered in the Marketing Forum included: dynamic pricing and detailed discussion of the Marketing Benchmarking Survey results; new and social media; young professionals groups and the results of the spring 2012 Young Friends of Opera Benchmarking Survey; concrete ideas that are producing results for companies; and Opera Conference 2013 session planning.
Fourteen additional education staff from 13 professional companies attended the Audience Development Forum: The Atlanta Opera Opera Carolina Houston Grand Opera Opera Memphis Kentucky Opera Opera Theatre of Saint Louis Lyric Opera of Chicago San Francisco Opera Metropolitan Opera Guild The Santa Fe Opera Minnesota Opera Seattle Opera New York City Opera (2)
Please see the Learning Services and Community Engagement Report for information on the Education Forum.
For a half day each day of the meeting, the Marketing and Education Forums joined to discuss the new Audience Development granting project, funded by the Getty Foundation. Forum attendees described the state of opera audience and community engagement, identified issues surrounding national and local audience engagement, strategized goals and brainstormed activity ideas aimed at addressing these issues.
Tab 5B – Information and Learning Services Marketing and Communications - Page 4 Grant guidelines are being prepared by OPERA America and will be distributed to PCMs in December. In mid-January, PCMs may apply for funds from the Getty Audience Development Project to fund activities beginning in spring 2013. Projects will fall into one of two categories: new projects (eligible for up to $40,000 in funding) and existing projects (eligible for up to $20,000). One application per company will be accepted. Projects in both categories will be documented so that they may be replicated in other cities. OPERA America will convene an outside granting panel to review applications and make recommendations for awards. Awards will be announced in early May and funded project concepts will be presented at Opera Conference 2013 in Vancouver.
OPERA America is in the process of hiring an audience development project coordinator, who will organize the grant application process and provide support to the Education and Marketing departments. 120 applications were received for the position and interviews are in process.
IV. Marketing Benchmarking Survey OPERA America launched a new PCM Marketing Benchmarking survey for FY12 in late August. The marketing department analyzed the data and initial results were provided at the Marketing Forum. Survey respondents are receiving a full analysis of the results and non- responders will receive a brief summary. A total of 34 companies responded to the survey: Amarillo Opera New York City Opera Annapolis Opera North Carolina Opera Ash Lawn Opera Opera Atelier The Atlanta Opera Opera Carolina Central City Opera Opera San José Chelsea Opera Opera Theatre of Saint Louis Fargo-Moorhead Opera Opera in the Heights Festival Opera Opéra de Montréal Florentine Opera Company Palm Beach Opera Florida Grand Opera Queen of Puddings Music Theatre Fort Worth Opera San Diego Opera Houston Grand Opera San Francisco Opera Lyric Opera of Kansas City The Santa Fe Opera Manitoba Opera Seattle Opera Michigan Opera Theatre Utah Opera Mobile Opera, Inc. Vancouver Opera Musical Traditions, Inc. Virginia Opera Association
V. Media Relations Since the June board report, the following press inquiries were addressed, in addition to those relating to the National Opera Center, mentioned earlier: • WQXR’s Conducting Business: Laura Lee Everett represented OPERA America on a panel moderated by Naomi Lewin on “The Dangerous Business of Being an Opera Singer.” • The Midtown Gazette (Columbia School of Journalism): E-mail interview with Gregory Moomjy about the National Opera Center.
Tab 5B – Information and Learning Services Marketing and Communications - Page 5 • Miami Herald: Interview with Hannah Sampson on Florida Grand Opera’s appointment of Susan Danis as general director. • Houston Chronicle: Information request from Colin Eatock about Tweet Seats. • Art Times: Data request from Mary Burress on opera company openings and closures in recent years. • WWFM Public Radio (New Jersey): Interview with Rachel Katz at Opera Conference 2012. Ms. Katz also interviewed a number of general director conference attendees. • Los Angeles Times: Interview with David Ng on Los Angeles Opera and the Los Angeles Philharmonic. • Metro (Philadelphia): Interview with Laura Goldman about Opera Conference 2012.
Since the June board meeting, the following press releases were issued, copies of which are on the OPERA America website: • September 18, 2012: OPERA America to Release the OPERA America Songbook • August 15, 2012: OPERA America to Open the National Opera Center • August 13, 2012: Frayda B. Lindemann, Ph.D. Begins Term as Chairman of OPERA America’s Board of Directors
Social Media: OPERA America’s Twitter account (twitter.com/operaamerica), begun in June 2009, has 5,529 followers as of October 9, an increase of 939 since the June Board Report. OPERA America also has 5,607 Facebook fans as of October 9, an increase of 403 since the June Board Report. The relatively large increase in both Facebook and Twitter followers is reflective of the increased activity relating to the National Opera Center and promotion by National Opera Week Honorary Chairman Aretha Franklin.
With the opening of the National Opera Center, OPERA America has launched a separate Twitter account (twitter.com/natoperacenter), to communicate about special rental deals and other Opera Center specific communications. This Twitter account will be operated by National Opera Center staff. OPERA America will include all Opera Center related posts on its current Facebook page and does not plan to create a separate page for the Opera Center.
OPERA America has recently created a YouTube page (youtube.com/operaamerica) to showcase the range of videos created by and for the organization. Since OPERA America began uploading content on September 17, the videos have been viewed a total of 1,946 times. Available videos include: • A Message From Aretha Franklin (National Opera Week 2012) • The Making of the National Opera Center • National Opera Center Ribbon Cutting Ceremony (livestream recording) • OPERA America Songbook performances • Making Connections livestream recordings • Salon Series livestream recordings
Tab 5B – Information and Learning Services Marketing and Communications - Page 6 VI. Electronic Media Forum OPERA America renewed its contract with consultants Michael Bronson and Joseph Kluger to serve the organization and its members through August 31, 2013. Bronson and Kluger conduct monthly conference calls with OPERA America staff to keep them apprised of developments in the field, respond to member inquiries, update the EMF resources on the OA website and support necessary advocacy efforts. OPERA America, with the assistance of Bronson and Kluger, publishes a monthly e-newsletter to the EMF listserv.
Bronson and Kluger are currently advising OPERA America and member companies about possibly joining symphony orchestras and dance companies in multi-employer bargaining with the American Federation of Musicians (AFM) to negotiate a new national electronic media agreement.
For Opera Conference 2013, Bronson and Kluger will work with OPERA America staff on a seminar and other activities, including individual consultations.
VII. Additional Marketing Activities Opera Conference 2013: The marketing department is working on a comprehensive communications and marketing strategy for Opera Conference 2013, as well as content for the marketing and public relations network. Throughout the year, OPERA America meets regularly with the other National Service Organizations to share conference strategies and best practices.
Marketing Support: The marketing department is responsible for marketing events and programs offered by the organization and by each department. Among the many activities promoted by the marketing department since the June Board Meeting are the Director- Designer Showcase Awards, Repertoire Development Grants, Making Connections, Salon Series, Conversations, Feedback Auditions, Artist Accounts and other activities.
Nonprofit Sponsorship Network: In early July, OPERA America ended its relationship with the Nonprofit Sponsorship Network, due to diminishing financial benefits and lack of organization on the Network’s part.
Digital Camera: The marketing department invested in an excellent digital SLR camera and lenses in early September. This enables the organization to take high-resolution photos on an instant’s notice for marketing and press purposes.
VIII. E-mail Statistics OPERA America sends a variety of e-mail blasts via its newsletter provider, PatronMail, including the organization’s e-newsletter, OperaLink, and targeted messages on topics such as Making Connections events, Online Learning programs and Opera Center announcements. (A full list of all e-blast topics and open and click-through rates is available from OPERA America upon request.)
On average, the open rate for all e-blasts sent between April 30 and October 2 was 27.74% and click-through rates for that time were 3.38%. As one might expect, the open rates for targeted e-mails are higher than OPERA America’s e-newsletter, OperaLink.
Tab 5B – Information and Learning Services Marketing and Communications - Page 7 OPERA America is making a concerted effort to obtain e-mail addresses from all visitors to the National Opera Center. These e-mail addresses will be added to the mailing list to receive notices of OPERA America programs.
E-blasts with the highest open rates between April 30 and October 2 were: • Know Before You Go to Opera Conference 2012 (51.4%) • FREE Screening of La traviata to be presented at the National Opera Center (47.8%) • FREE Making Connections Event: Vocal Competitions: Strategy and Presentation (43.8%) E-blasts with the highest click-through rates during this period were: • Know Before You Go to Opera Conference 2012 (40.6%) • Grants for Repertoire Development Now Available (7.3%) • Grants Available for Directors & Designers Available (6.2%) E-blasts with the lowest open rates during this period were: • Make your gift to OPERA America today! (15.0%) • Every Gift Counts (16.1%) • Time is running out – make your gift to OPERA America today (16.1%) E-blasts with the lowest click-through rates during this period were: • Make your gift to OPERA America today! (0.2%) • Every Gift Counts (0.2%) • Time is running out – make your gift to OPERA America today (0.2%) Benchmarking Statistics from PatronMail Total Number of E-mails sent from November 2, 2011 – April 30, 2012: 271,192
Average Open Rate Average Bounce Rate All PatronMail Clients: 18.99% All PatronMail Clients: 0.36% OPERA America: 19.42% OPERA America: 0.28%
Average Click-through Rate Average Opt-out Rate All PatronMail Clients: 1.94% All PatronMail Clients: 0.20% OPERA America: 3.82% OPERA America: 0.11%
OPERA America’s newsletters and e-blasts continue to have stronger open, click-through, bounce and opt-out rates compared to other PatronMail clients.
IX. Personnel Update Patricia Kiernan Johnson was promoted to the position of director of marketing and communications in July. The department also engaged an intern, Audrey Saccone, who will join the staff full-time at the conclusion of her internship in a shared position between the IRT and Marketing departments. Please see the IRT report for more information.
Submitted by: Patricia Kiernan Johnson, Director of Marketing and Communications
Tab 5B – Information and Learning Services Marketing and Communications - Page 8
MEMBERSHIP REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
I. PROFESSIONAL COMPANY MEMBERS As of October 19, 2012, OPERA America listed 141 PCMs among its membership, including: • 119 U.S. Company Members • 18 Opera.ca Members • 4 International Members (2 Australia, 1 Chile, 1 Japan)
FY12 Dues Report U.S. Professional Company Member Dues Total: $574,048.23 U.S. Professional Company Member Dues FY12 Goal: $570,000.00 Accounts Receivable as of 6/30/12: $88,594.17 Accounts Receivable collected 6/30/12 to 10/15/12: $76,677.81 Accounts Receivable outstanding: $11,916.36
Anchorage Opera $3,000.00 Arizona Opera $4,500.00 Eugene Opera $1,871.80 Opera Columbus $751.20 Opera Roanoke $1,200.00 Syracuse Opera $593.36
Arizona, Eugene, Columbus and Syracuse have been making regular payments. Anchorage Opera will pay FY12 dues later this calendar year. Opera Roanoke has not been responsive to staff calls and e-mails and will likely be going on hiatus.
PCMs with receivables on OPERA America’s books from prior years include: El Paso Opera: $2109 (FY11) Townsend Opera: $2562 (FY11)
International Professional Company Member Dues (Total): $8,000.00 Accounts Receivable as of 6/30/12: $6,000.00
Teatro Municipal de Santiago: $2,000.00 Opera Australia: $2,000.00 Opera Queensland: $2,000.00
Tab 5C – Membership Report Page 1
FY13 Dues Report U.S. Professional Company Member Dues FY13Goal: $573,000.00 U.S. PCM Dues as of 10/25/12 (paid in full): $107,735.07 (2o companies) U.S PCM Dues as of 10/25/12 (payment plans): $108,077.90 (19 companies) TOTAL as of 10/25/12 $215,812.97 (39 companies)
Staff will contact all companies before October 31 to arrange for payment schedules. Updated numbers will be presented at the Membership Committee Meeting
Membership has identified several new international professional company member prospects in Asia and Latin America, and will encourage these companies to join OPERA America in 2013 with a special offer of complimentary registration to attend the conference in Vancouver.
Top International Prospects • Opera Hong Kong • Macau Opera • Saito Kinen Festival • Teatro Colon • Royal Opera House Muscat Oman
Application for Professional Company Membership Of the 20 companies actively solicited for Professional Company Membership (PCM) over the summer, one company has submitted an application: Opera Coeur d’Alene. Riverside Lyric Opera is still interested in becoming a PCM, but due to budget cuts and the cancelation of their spring production last year, they have not been able to get a current member to see one of their productions and write a letter on their behalf. Steven Sharpe, general director of Opera Santa Barbara, will likely attend an upcoming production of A Flowering Tree in November. RLO plans to submit an application at the February meeting. Juventas New Music, Inc. and Empire Opera also plan to submit a PCM application at the February meeting. The Membership Committee will review the full PCM prospect list at the board meeting in Dallas.
To qualify for Professional Company Membership, an organization must: 1. Be an independent 501(c)3 corporation or part of a larger 501(c)3 whose repertory includes opera-music theater and whose primary mission is the enrichment of the community through the production and performance of opera/music-theater. 2. Produce and perform at least one staged or semi-staged work each season, before a paying audience, during the current season and each of the immediately preceding two seasons. 3. Employ paid management of at least one full-time equivalent. FTE: 40hrs/week. 4. Engage and pay professional performers and other artists. 5. Provide audited financial statements, a financial review and/or a completed IRS Form 990. One of the criteria may be waived at the discretion of the Membership Committee.
Tab 5C – Membership Report Page 2
About Opera Coeur d’Alene Opera Coeur d’Alene, located in Coeur d’Alene, Idaho, was incorporated in 2001, and performs at two venues: Schuler Hall at North Idaho College in Coeur d’Alene which seats 1,100, and Settler’s Creek in Coeur d’Alene, which has flexible seating from 500-1,000.
Opera Coeur d’Alene’s mission is to “enrich the cultural life of the Inland Northwest by introducing high-quality opera to a broad audience while promoting the development of established and emerging artists.” The company’s vision is to “become nationally recognized as a vibrant organization that develops community appreciation for opera through its quality productions.”
Opera Coeur d’Alene employs the equivalent of three full-time staff: Aaron S. Nicholson, artistic and general director; Brooke Nicholson, director of e-commerce marketing; and Florine Dooley, secretary. Musicians and artists in leading and supporting roles are paid.
In the 2012-2013 season, Opera Coeur d’Alene will produce, perform and tour Carmen. The company will have two mainstage performances followed by 25 performances of the touring production. In the 2013-2014 season, the company hopes to produce, perform and tour a double bill of Carmina Burana/I Pagliacci, as well as Rigoletto with two performances of each and then 30performances of the touring productions.
The organization is a registered 501(c)3. Two years of Form 990s, reviews, publicity materials and a letter of recommendation from Valerian Ruminksi, artistic director of Nickel City Opera, summarizing Opera Coeur d’Alene’s Professional Company Membership goals have been provided to OPERA America.
From the General Director: “Opera Coeur d’Alene hopes to gain connections and support from the OPERA America community as well as contribute to the opera community on the whole. We feel our vision is in keeping with OPERA America and that now we are in a position to both gain and give in a national conversation about opera as an art form and a business.”
Opera Coeur d’Alene’s FY12 budget was $125,000 and would thus qualify the organization as a Level 4 company. The company hopes to increase its budget to $147,000 in the 2012-2013 season and then to $277,000 for 2013-2014 season, due to projected new revenues from private and government sources.
Opera Coeur d’Alene meets all five Professional Company Membership application criteria.
II. ASSOCIATE AND BUSINESS MEMBERS As of October 19, 2012, OPERA America listed 238 additional organizations among its membership, including: 72 Associate Members (opera companies, guilds and other nonprofit organizations that do not meet Professional Company Membership eligibility requirements: $250), of which • 61 are U.S. Associate Members (45 Producing/Presenting Organizations, 16 Foundations/Guilds) • 8 are Opera.ca Members (7 Producing/Presenting Organization, 1 Foundation)
Tab 5C – Membership Report Page 3
• 3 are International (UK, Argentina, Australia)
53 Educational Producing Associates (educational institutions and training programs that produce opera: $350), of which
• 51 are U.S. • 2 are Opera.ca
49 Career Services Subscribers (libraries, career service centers and schools: $125), of which • 46 are U.S. • 2 are Opera.ca • 1 is International (Japan)
64 Business Members ($300), of which • 57 are U.S. Business Members (20 Artist Managers, 7 Administrative Service Providers, 8 Production Service Providers, 8 Artistic Service Providers, 6 Publishers, 8 Consultants) • 6 are Opera.ca Business Members • 1 is International (Germany)
New Organizational Members Since the October 2011 board report, 37 U.S. companies have joined OPERA America as Associate and Business Members: New Associate Members • ArtsDeco San Francisco, San Francisco, CA • Blue Lake Fine Arts Camp, Twin Lakes, MI • Buffalo Opera Unlimited, Buffalo, NY • Cimmaron Opera, Norman, OK • Greenville Light Opera Works, Greenville, NC • Jensen Foundation, Davidson, NC • Light Opera of New York, New York, NY • Marigyn Opera House, New Orleans, LA • Microscopic Opera Company, Pittsburgh, PA • National Opera Association, Canyon, TX • New Triad for Collaborative Arts, New York, NY • Old Deerfield Productions, Deerfield, MA • Opera Company of Brooklyn, Brooklyn, NY • Opera Lively, Chapel Hill, NC • Opera North, Inc., Fort Washington, PA • Opera Tampa, Tampa, FL • Professional Women Singers Association, Medford, NY • Riverside Lyric Opera, Riverside, CA • The Art Song Preservation Society of New York, Inc., New York, NY • The Motor City Lyric Opera, Detroit, MI
Tab 5C – Membership Report Page 4
• Washington Concert Opera, Washington, D.C. (returned from lapsed) • WDAV 89.9 Classical Public Radio, Davidson, NC • William Mattheus Sullivan Music Foundation, Kent, CT • WomenArts, Berkeley, CA
New Business Members • Act 1 Tours, New York, NY; fine arts tour provider (returned from lapsed) • ACME Scenic & Display, Portland, OR; scenery builders • American Guild of Musical Artists; New York, NY; operatic union (returned from lapsed) • C.F. Peters Corporation, Glendale, NY; publishers • Catherine French Group, Washington, D.C.; consultant • Cauldron Artists, Petaluma, CA; artist management agency • Federal Arts Public Relations, Washington, D.C.; fine arts PR • Figaro Systems, Inc., Santa Fe, NM; text delivery system company • Fletcher Artist Management, New York, NY; artist management agency • Michael Schweppe Recording, Alexandria, VA; recording specialist (returned from lapsed) • Schuler Shook, Chicago, IL; consultant • Rooster Productions, Oakland, CA; scenery builders • Trillos/Ballerini Law Firm, PC, Houston, TX; immigration specialist law firm
Since the October 2011 board report, 31 U.S. Associate and Business Members have left OPERA America: Lapsed Associate Members • Boston Early Music Festival • Cape Cod Opera • Connecticut Concert Opera • Connecticut Lyric Opera • FBD Productions, Inc. OPERA FOR KIDS • The Fisher Center for the Performing Arts • Intimate Opera Company (company closed) • Juventus Lyrica • Little Opera Theatre of NY (company closed) • Lyric Opera Virginia • Millennial Arts Productions, Inc. (company closed) • Muddy River Opera Company • Music on Argyle (no longer producing opera) • New Hampshire Classical Music (company closed) • North Bay Opera • Opera Naples (plans to join as PCM in FY14) • Pinchgut Opera Limited
Tab 5C – Membership Report Page 5
• Topeka Opera Society and Concert Association
Lapsed Business Members • Acentech, Inc. • Carl Fischer, LLC • Corporation for International Business • Cullinan Law • Law Office of Cyrus Meshki, APC • Law Office of Fabian Lima • Management Consultants for the Arts • McClure Productions, Inc. • Proscenium • TAYLAR Development LLC • TDF Costume Collection • Vivace Digital
A solicitation mailer was sent to former Associate, Business, Educational Producing Associate and Career Service members in the middle of September. The renewal focused on the opening of the National Opera Center and the new benefits associated with it. To date, three companies have reactivated their memberships with OPERA America through this solicitation. Staff continues to follow-up with lapsed members by contacting them and asking for feedback regarding their reasons for leaving OPERA America membership.
III. INDIVIDUAL MEMBERS OA counts 1,176 Individual Members among its ranks.
To solicit potential members that are in the National Opera Center for auditions, rehearsals and other activities, OA created a one-sheet highlighting the benefits of an Individual Membership. These have been placed strategically throughout the Opera Center. Since these sheets were placed in early September, approximately 25 new individuals have joined, bringing in $1,875 of new revenue. Dozens of forms have been taken by prospective members and the expectation is that many individuals will join OA as audition season approaches and singers seek high-quality warm-up and rehearsal space.
As a reminder, the Artist Membership category was eliminated at the end of June. A promotion to ‘bump’ Artist Members up to Individual Members at a 33% savings brought in 90 new members. Since then, no special offers have been made, but membership is planning a special offer for the Audition and holiday season. 83 former Artist Members have chosen to sign up for the new Artist Account which provides free online access to the Career Guide for Opera.
Over 2,200 visitors have come to the Opera Center since it opened in early September, for auditions, rehearsals and events hosted by the Artistic Services department and outside users. Membership is working with the Opera Center, Marketing and Program staff to capture these names and email addresses, as the majority of these visitors are currently not members and represent fertile ground for membership cultivation.
Tab 5C – Membership Report Page 6
FIVE-YEAR COMPARATIVE SUMMARY REPORT (U.S., Canada, International)
CHANGE Membership October October October October October Category 2012 2011 2010 2009 2008 Professional Company 141* 142 141 140 136 Members ($350 - $15,000) Associate Members 72 61 61 52 68 ($250) Business Members 64 58 63 61 78 ($300) Career Service Center 49 47 45 46 48 Subscribers ($125) Educational Producing 53 53 53 51 53 Associates ($350) Individual Members 896 828 904 859 933 ($75+) Artist Members 282 372 329 379 380 Total 1,557 1,562 1,596 1,588 1,696 * New Orleans Opera is now on hiatus.
VII. OTHER DEPARTMENT ACTIVITIES Advertising: Response to advertising in the Fall 2012 issue of Opera America Magazine was impressive. Seventeen organizations took out ads with sales totaling $11,595, the second highest issue total on record. For the upcoming Winter issue, $4,766 has been reserved, with a week to go. The final total for last year’s Winter issue was $4,420. Advertisers have been solicited for online advertising opportunities, but the response has not been encouraging. OPERA America hopes that once statistics are available for the Opera Center website, advertisers will be more interested in posting banner ads on those pages.
2013 Opera Conference Sponsorship: A special “early bird” offer was sent to past exhibitors and sponsors, offering a double upgrade if they were to pledge their sponsorship of the Vancouver conference by October 31, 2012. With this early bird offer having been out for almost a month, combined with three-year sponsorship contracts with Infintech and Arts Insurance Group, $17,000 of the $25,000 goal has been secured; other 2013 sponsors include Tessitura Network, Inc., Emerging Pictures and Schuler Shook. Additionally, the “Premium Exhibitor” category has been removed and past exhibitors are being encouraged to upgrade to sponsors in order to retain the valuable e-mail list of conference registrants.
New York Opera Alliance: The New York Opera Alliance is a consortium of 19 independent opera producers in the five boroughs that has been meeting regularly at OPERA America since August 2011. Constituents pay $75 to join the Alliance and do not need to be members of OPERA America, although more than half are, in fact, PCMs.
Tab 5C – Membership Report Page 7
The Alliance continues to work with Kevin Sobczyk on the creation of a website that will respond to their needs for a centralized calendar and desires for stronger local and national recognition. OPERA America acts as the group’s fiscal sponsor and provides complimentary monthly meeting space for the group at the Opera Center.
NYOA constituents that are also members of OPERA America receive the full suite of OPERA America services for the respective membership level, including member rates for all spaces in the National Opera Center and opportunities to apply for OPERA America grants (Professional Company Members only). NYOA constituents that are not members of OPERA America do not receive member benefits.
With OPERA America having identified additional clusters of independent opera entities in various metropolitan areas across the country, Larry Bomback recently met with the group to determine the parameters of a more formal arrangement with OPERA America that could serve as a national model. In the event the success of the NYOA extends beyond New York to other cities, and future consortiums hope to take advantage of services that only a national organization with OPERA America’s expertise can provide, OPERA America would be equipped with precedent. To be fair, the situation in New York is unique with the presence of the National Opera Center facility. Furthermore, the NYOA came together on its own accord, with OA more an auditor rather than a facilitator. In other cities, OPERA America would likely present the NYOA model to independent opera companies through a top-down approach with greater OPERA America involvement.
The Membership Committee will review a draft sheet of partnership terms that OPERA America and the NYOA have agreed to, in principle.
VII. PERSONNEL UPDATE Sam Snook joined OPERA America in July as membership manager, succeeding Anne Earnheart. Sam comes to OPERA America from IMG Artists. He was also a member of the Opera Center planning committee throughout the construction phase, advising OPERA America staff on how best to serve auditioning singers and artist management companies.
Submitted by: Larry Bomback, Director of Finance and Operations Sam Snook, Membership Manager
Tab 5C – Membership Report Page 8
Activity Report for the OPERA America Board of Directors November 2012
Highlights: • Opera.ca Board appointments • Showcase: A decade of New Canadian Opera
Arts Day on the Hill, Ottawa The Canadian Arts Coalition held its fifth Arts Day on the Hill on Tuesday, October 23 in Ottawa. Meetings with over 70 Members of Parliament were held with over 100 representatives of the arts and cultural sector. Representing Opera.ca on the Hill was Christina Loewen and Board member Susan Worthington.
Annual General Meeting in Montreal Opera.ca is pleased to announce that Patrick Corrigan, Executive Director of Pacific Opera Victoria is the new Chair of Opera.ca’s Board of Directors. Patrick was elected at Opera.ca’s Annual General Meeting held in Montreal on the 15 September 2012. He takes over from Larry Desrochers, General Director, Manitoba Opera, who continues on the board in the role of past-Chair.
Also elected at the meeting were Pierre Dufour, General Director l’Opera de Montreal, as vice-chair, and new board member Chris Lorway, Executive Director, Soundstreams. Opera.ca bid adieu and thanks to director Sandra Gavinchuk, Music Administrator, COC who completed her second three year term.
At the Annual General Meeting, Opera.ca announced an operating surplus on the year ending June 30, 2012 of $6,356. The surplus is the association’s 11th consecutive surplus for every year of its operations.
The meeting also featured a stand-alone meeting of the Audience Development Network and keynote presentations by Susan Nelson, of TDC Boston on the importance of being capitalized for change, and Claude Legrand on organizational innovation.
Membership To date, we have received dues of around $75,000 representing 10 out of our 15 professional company members. The board will consider a new application for Professional company status from Opera on the Avalon from Newfoundland at its next meeting.
174 Spadina Avenue, Suite 410, Toronto, Ontario, M5T 2C2, Tel. (416) 591-7222 www.opera.ca
Charitable no./No. d’organisme bienfaisance 86151 4321 RR0002 Programs & Activities
Showcase: A Decade of New Canadian Opera Our Canada Council supplementary request to support a Showcase of New Canadian Opera during the OPERA America conference in Vancouver was successful. We plan to co-present the showcase in partnership with OPERA America’s New Works Sampler on Friday, May 13, at the Vancouver Playhouse. A call for submissions will go out mid-November, with selections made by the end of January 2013.
Vancouver Co-Production Colloquium at OPERA Conference 2013 In order to capitalize on Canadians traveling to Vancouver for Opera Conference 2013, Opera.ca will be holding a pre-conference for Opera.ca members, the Vancouver Co-Production Colloquium May 6-7, 2013. The Colloquium will be an opportunity to explore challenges and opportunities for co-producing both new works and works of existing repertoire in partnership with other companies in Canada.
Opera.ca National Opera Directors Recognition Program In conjunction with OPERA America’s National Trustee Award, Opera.ca will select one honouree this year to be recognized at an Opera.ca recognition event in 2013 and at the OPERA America National Trustee Award Dinner in New York City in February 2013. The award in Canada is made possible through the support of BMO Financial Group who renewed their three year sponsorship of the award in September 2011.
Christina Loewen November 2012
174 Spadina Avenue, Suite 410, Toronto, Ontario, M5T 2C2, Tel. (416) 591-7222 www.opera.ca
Charitable no./No. d’organisme bienfaisance 86151 4321 RR0002
At our General Assembly this month, we are reporting a record total of 127 company members for 2012 and we anticipate further recruits for 2013. One of the reasons for the increase is an influx of new Italian members, following a successful day for Italian theatres in Turin last June. I shall participate in a conference in Florence early November on the organization, management and funding of opera houses.
For recessionary pressures continue to affect the financial health of opera companies in Europe, especially so in the southern European lands. Spain’s economic problems have reversed the expansion of opera in that country of the last decade. It is our task to try to help companies find alternative sources of revenue and practical economies of expenditure. We are also engaged with Deloitte on a return-on-investment study of the economic impact of opera across up to fifteen companies in different European countries. Employment is a big issue and our active Human Resources forum will gather for two days in Stockholm at the end of November.
Meanwhile, the relationship between Russia and the rest of Europe is the subject of this month’s conference in Moscow, the much anticipated first event promoted by Opera Europa in the Russian Federation.
In the spring, we return to more familiar territory when Vienna hosts our conference on Citizenship between 4 and 7 April 2013. It was in Vienna twenty-two years earlier that Opera America held the meeting which led to the launch of the European Opera Network, the precursor of Opera Europa.
We remember that debt to Opera America as we rejoice with you over the successful launch of the National Opera Center, a magnificently ambitious but practical initiative for our times. Colleagues have given me admiring reports of the opening weekend. Having missed that, I am looking to seeing it for myself, perhaps at the time of your Board meeting in New York next February.
Nicholas Payne Director 19 October 2012
DEVELOPMENT REPORT TO THE BOARD OF DIRECTORS OCTOBER 2012
I. Annual Fund A. FY2012: OPERA America receives a majority of its Annual Fund gifts at the end of the fiscal year (June 30). In order to encourage continued support and meet the FY13 goal, the development staff has created a consistent schedule of solicitations through in-person meetings, phone calls, e-mails and letters. Approximately 700 personalized letters were mailed prior to and following the conference in varying versions tailored to renewing and lapsed donors, trustee designees, national trustee forum members, prospects and board members. The timing of renewal requests was based on anniversary dates of previous Annual Fund contributions. FY12 Annual Fund: • Goal: $300,000 • Final: $308,855 373 gifts: 97 increases (26%) 19 decreases (5%) 172 same (46%) 85 new (23%) Renewal rate: 82% Board participation rate: 91%
B. FY2012: As mentioned at the June board meeting, the Individual Membership category has now become the entry level of the Annual Fund. Following the close of FY12, all Individual Memberships are now allocated to the Annual Fund, which in part accounts for the significant increase in the FY13 goal against the FY12 total. In addition, the development staff anticipates new and increased gifts in relation to the opening and operation of the Opera Center. This year, OPERA America will conduct quarterly Annual Fund solicitations based on the date of the gift in the previous year. The second and fourth quarters will be the most active as they correspond with the end of the calendar year and the end of the fiscal year. For the first quarter, nearly 130 renewal letters have been sent to standard Annual Fund donors and to Individual Members. FY13 Annual Fund: • Goal: $375,000
o As of 10/24/12: $22,139 (includes $9,740 in $75 Individual Memberships) o As of 10/24/11: $13,469 (includes $7,440 in $75 Individual Memberships)
Tab 5C – Membership Development Report, Page 1 II. Grant Activity Summary: FY12 OPERATING GOAL: $1,298,500 FY12 OPERATING ACTUAL: $1,330,200 FY13 OPERATING GOAL: $1,531,000 FY13 CONFIRMED TO DATE: $1,090,220 Since the June 2012 board meeting: A. CORE OPERATING GRANTS Received: • New York Department of Cultural Affairs – $15,720 in support of the New York Opera Alliance for marketing and development assistance, professional development sessions and coordination of Opera Week activities; and $3,500 in member-item funding for senior programming through Project FIND. Pending: • American Express – $50,000 in support of the FY13 Leadership Intensive program at the annual Opera Conference in Vancouver and for a one-week intensive in New York City. • National Endowment for the Arts – $150,000 in the Art Works category in support of professional development programs, artistic and administrative Forums, and National Opera Week. • National Endowment for the Arts – $50,000 in the Arts in Media category in support of an Opera in Cinema program at the National Opera Center produced in partnership with Emerging Pictures. • The Tobin Theatre Arts Fund – $32,000 to support the Robert L.B. Tobin Director- Designer Showcase at Opera Conference 2013 in Vancouver. Reports: • American Express – Final narrative and financial report for $50,000 in support of the FY12 Leadership Intensive program at Opera Conference 2012 in Philadelphia and for a one-week intensive in New York City. • Amphion Foundation – Final report for $2,000 in support of the 2012 season of the Salon Series. • The Andrew W. Mellon Foundation – Interim financial and narrative report for $845,000 in support of the New Works Forum over two years. • The Andrew W. Mellon Foundation – Final narrative and financial report for $60,000 in support of the New Works Exploration Program. • MetLife Foundation – Final report for $100,000 in support of teacher training workshops for the Music! Words! Opera! program. • National Endowment for the Arts – Final narrative and financial report for $125,000 “Access Grant” for enhancements to OPERA America’s professional development activities, multimedia tools and research capabilities, and to conduct a study on the impact of live opera HD transmissions on the field. Tab 5C – Membership Development Report, Page 2 • New York State Council on the Arts – Final narrative and financial report for $8,500 for Regional Workshops for emerging professionals in Upstate New York. • William Penn Foundation – Final narrative and financial report for $287,294 in support of travel stipends for Philadelphia-based companies to attend Opera Conference 2011 in Boston and the planning and programming costs of Opera Conference 2012 in Philadelphia.
B. OPERA CENTER GRANTS CONSTRUCTION & ENDOWMENT PHASE Received: • The Filstrup Foundation – $50,000 to name the Information Technology Center in the National Opera Center. • Virginia B. Toulmin Foundation – $200,000 to name a vocal studio in the National Opera Center. Declined: • The Booth Ferris Foundation – $250,000 over 2 years in support of building OPERA America’s capacity to fully realize the potential of the National Opera Center. • The Lenfest Foundation – $50,000 for the National Opera Center Campaign. Pending: • Bank of America/U.S. Trust – $500,000 over as many as five years to name the main stage in the Audition Recital Hall at the National Opera Center. • Tobin Endowment - $250,000 over as many as five years to name the Production Gallery. Reports: • The Andrew W. Mellon Foundation – Interim narrative and financial report for $2,000,000 in support of the National Opera Center. OPENING WEEKEND Received: • Arts Insurance – $2,500 to so-sponsor the Founders and Donors Lunch at the Opening of the National Opera Center. • Denham Wolf – $10,000 in support of the Industry Open House during the Opening of the National Opera Center. • Eisner Amper – $1,000 to co-sponsor the Founders and Donors Lunch at the Opening of the National Opera Center. • Wells Fargo – $10,000 to sponsor “A Day in the Life” of the National Opera Center during the Opening Weekend.
The Development Department is working toward maintaining an active prospect calendar with the goal of pursuing two to three new prospects per month including the Annenberg Foundation, Con Ed Foundation, The Fan Fox & Leslie R. Samuels Foundation, Inc., The Gladys
Tab 5C – Membership Development Report, Page 3 Krieble Delmas Foundation, Dyson Foundation, Goelet Charitable Lead Trusts, Hewlett Foundation, Irvine Foundation, Knight Foundation, New York Community Trust and the New York Foundation. These organizations will be approached about funding for a variety of projects including the 2013 conference in Vancouver, the 2014 conference in San Francisco, professional development for artists and capacity building at the new National Opera Center.
III. Ambassador Travel A. Santa Fe: From August 14 – 18, 2012, OPERA America Ambassadors returned to beautiful Santa Fe and the acclaimed Santa Fe Opera. The itinerary included sightseeing, museum visits and fine dining in some of Santa Fe’s best restaurants. In addition, travelers attended three operas: Maometto II (Rossini), King Roger (Szymanowski) and Arabella (R. Strauss). Fourteen Ambassador Circle Members participated in the complete itinerary and six joined the group for various events throughout the week. B. The National Opera Center Opening Weekend: OPERA America invited Ambassador Circle Members to participate in a complete schedule of special events during the opening of the National Opera Center. OPERA America was thrilled to have 24 Ambassadors attend the Opening Weekend events, which began with a special reception on the 51st floor of the Time Warner Center hosted by Opera Center Founders Bill and Jill Steinberg. This was followed by a performance of L’Elisir d’Amore at the Met. The group was also invited to attend a private tour and an appreciation lunch in the Center, all events and performances offered throughout the weekend, the celebratory reception and dinner at the Lotos Club, the Met’s production of Turandot, and a farewell brunch at the Helmsely Park Lane Hotel. Founders were also invited to a private reception at the home of Frayda and George Lindemann. C. Trustee Weekend in New York: February 21-24, 2013: An Ambassador itinerary will be planned in conjunction with the National Opera Trustee Recognition Awards Program. OPERA America will invite Ambassador Circle and National Trustee Forum members to participate in a weekend of activities including receptions and performances at the National Opera Center, backstage tours and museum visits, a performance of Rigoletto at the Met and New York City Opera’s The Turn of the Screw at Brooklyn Academy of Music. The weekend highlight will be the presentation of the 2013 National Opera Trustee Recognition Awards at the University Club on Fifth Avenue. In its sixth year, the Trustee Recognition Program celebrates exemplary trustees from across the country for their outstanding leadership, generosity and audience-building efforts on behalf of their respective opera companies. D. An Opera Week in Berlin, June 4-11, 2013: OPERA America staff will lead Ambassadors on a tour of one of Europe’s most exciting cities. The itinerary will include the Staatsoper performances of La traviata and Le vin herbé (a staged oratorio) and at the Komischer Oper, The Marriage of Figaro and The Magic Flute. The trip will also visits to some of Berlin’s extraordinary museums (including the Pergamon Museum), dining in exciting restaurants and other specially arranged activities including an excursion to Dresden.
Tab 5C – Membership Development Report, Page 4 IV. Trustee Activities National Trustee Forum The next meeting of the National Trustee Forum will take place in New York during the National Trustee Recognition weekend from February 21 to 23, 2012. The meeting has been designed to provide presentations and discussion about issues that are central to improving the effectiveness of opera company boards. National Trustee Forum participants will be invited to join the annual Opera Weekend’s activities including the presentation of the 2013 National Opera Trustee Recognition Awards.
The companies represented by the full membership of the National Trustee Forum are: Austin Lyric Opera Opera Company of Philadelphia Calgary Opera Opera Cleveland Cedar Rapids Opera Theatre Opera Colorado Center City Opera Theater Opera Idaho Central City Opera Opera Omaha Cincinnati Opera Opera Providence Festival Opera Opera Roanoke Florentine Opera Company Opera Saratoga Florida Grand Opera Pensacola Opera Fort Worth Opera Pittsburgh Opera The Glimmerglass Festival Portland Opera Houston Grand Opera PORTopera Indianapolis Opera San Francisco Opera Knoxville Opera The Santa Fe Opera Long Beach Opera Sarasota Opera Los Angeles Opera Syracuse Opera Madison Opera Tri-Cities Opera Minnesota Opera Tulsa Opera Mobile Opera Utah Opera Nashville Opera Vancouver Opera North Carolina Opera Virginia Opera Opera Atelier Opera Boston
Trustee Designees Trustee Designees are active board members nominated by their general directors to receive a one-year complimentary Individual Membership with OPERA America. This membership provides board members from member companies of all sizes with a closer connection to the field, offering access to OPERA America’s governance resources while keeping them abreast of the latest news in opera. The memberships for trustee designees extend from March 2012 through March 2013. In December, OPERA America will invite general and artistic directors to select new trustee designees to participate in the program.
OPERA America offers general directors the opportunity to invite their full board to participate. For 2012-2013, a total of 306 Trustee Designees were designated to participate by the following 44 Professional Member Companies:
Tab 5C – Membership Development Report, Page 5 Amarillo Opera Opera Company of Philadelphia American Opera Projects Opera Colorado Ash Lawn Opera Opera for the Young The Atlanta Opera Opera Idaho Austin Lyric Opera Opera in the Heights Calgary Opera Opera North Central City Opera Opera on the James Cincinnati Opera Opera Parallèle City Center Opera Theater Opera Saratoga Festival Opera Opera Southwest Florentine Opera Company Opera Theater Summerfest (Pittsburgh) Florida Grand Opera Pensacola Opera The Glimmerglass Festival Pittsburgh Opera, Inc Golden Gate Opera Portland Opera Gotham Chamber Opera PORTopera Green Mountain Opera Festival San Francisco Opera Houston Grand Opera The Santa Fe Opera Long Beach Opera Sarasota Opera Lyric Opera of Chicago Tri-Cities Opera Madison Opera Tulsa Opera Mississippi Opera Vancouver Opera Nashville Opera Washington National Opera
V. Personnel Update OPERA America restructured the External Affairs Department to create separate departments for development, membership and marketing upon the retirement of Bill Higgins. Bill moved from full-time capacity to a two day/ week schedule on July 1 that ended September 30. Jane M. Gullong joined the OPERA America staff as the new director of development in August of 2012, succeeding Bill Higgins, who has retired. Jane is a veteran fundraiser and arts manager with 15 years of experience as the development director and then executive director of New York City Opera. She has also held leadership positions with the Brooklyn Academy of Music, Brooklyn Philharmonic, Arts International, the Municipal Arts Society, the New York Shakespeare Festival and Lincoln Center. Kirsten Teasdale joined the development staff in August in the new position of grants manager. Kirsten previously served as a program associate at Jaffe Management, a nonprofit management company where she directed the day-to-day operations of several small nonprofit organizations, including the New York Professional Advisors for Community Entrepreneurs (NYPACE), the New York Hedge Fund Roundtable, Choral Chameleon and the National Association of Travel Healthcare Organizations (NATHO). Amanda Parker has been promoted to associate director of development with focus on the Opera Center campaign, Annual Fund and special events.
Submitted by: Jane Gullong, Director of Development Amanda Parker, Associate Director of Development Kirsten Teasdale, Grants Manager
Tab 5C – Membership Development Report, Page 6 GOVERNMENT AFFAIRS REPORT TO THE BOARD OF DIRECTORS NOVEMBER 2012
LEGISLATIVE UPDATE
I. INTRODUCTION: THE FISCAL CLIFF AND SEQUESTRATION The United States is approaching a so-called “fiscal cliff.” This cliff is the result of the expiration of the Bush tax cuts (for every tax bracket), 2% cut in payroll taxes from the stimulus package and sequestration — automatic spending cuts, signed into law through the Budget Control Act of 2011, that will cut funding to domestic and some military spending effective January 2. The nonpartisan Congressional Budget Office has predicted that, left as is, the United States could fall into another recession. Congress has been in a deadlock looking for ways to increase revenue and decrease spending. A bipartisan group of senators sent an open letter to Senate leaders urging them to lead Congress toward a resolution. While some members of congress are looking at ways to delay the cuts, the Administration has informed federal agencies that they should not take any measures to address sequestration.
II. NATIONAL ENDOWMENT FOR THE ARTS NEA Appropriations In February the President requested $154.255 million for the National Endowment for the Arts (NEA) for FY13, an $8 million increase which would restore the decrease he recommended last year; arts advocates had requested $155 million. Included in the President’s request is $3 million for expenses to move the NEA offices and a $5 million increase to the Our Town program. (It was confirmed that the NEA would move from the Old Post Office, recently purchased by Donald Trump, to the L’Enfant Plaza area in D.C.) In June, the U.S. House Interior Appropriations Subcommittee voted to cut NEA funding by $14 million for FY13 from the current level of $146 million. This decrease of nearly 10% is in addition to the $9 million decrease the NEA suffered last year. The full House Appropriations Committee approved the recommendation from the Subcommittee. In late September, the Senate Committee on Appropriations released an Interior budget that proposes a funding level equal to the President’s request. Meanwhile, the House, the Senate and the President approved a six-month continuing resolution (CR) that would fund the government at $500 billion, a level aligned with the amount set by the Budget Control Act that capped spending at $1.047 trillion. While it is understood that the CR would result in NEA funding level with the FY12 budget, an implemented sequestration would result in an automatic 8.2%, or $12 million, cut. Both political parties were asked to include the arts in their respective party platforms. The Republican Party declined to include an arts statement while the Democratic Party included the following statement: Arts and Culture. Democrats are proud of our support for arts funding and education. We are committed to continuing the policies and programs that have already done so much for our creative arts industry and economy. Investment in the arts strengthens our communities and contributes to our nation’s rich cultural heritage. We will continue to support public funding for the National Endowment for the Arts, for the
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National Endowment for the Humanities, and for programs providing art and music education in primary and secondary schools. The entire nation prospers when we protect and promote the unique and original artistic and cultural contributions of the women and men who create and preserve our nation’s heritage. Governor Mitt Romney has been repeatedly quoted saying that he would eliminate funding for the NEA, NEH, and PBS — his PBS comments were widely publicized after the first Presidential debate on October 3. As previously reported, House Committee Chairman Paul Ryan (R-WI) and vice-presidential candidate released his FY 2013 Budget Resolution Blueprint titled “The Path to Prosperity,” which called for privatization of the cultural agencies. Members of the Cultural Advocacy Group, primarily spearheaded by the Performing Arts Alliance, visited Republican House and Senate members who voted against the Walberg Amendments in an effort to shore up future NEA support. Our Town Grants The guidelines and application materials for Our Town, the creative placemaking grants program, are now available online. Pending availability of funding, grants will range from $25,000 to $200,000. The NEA will host webinars in November. The application deadline is January 14, 2013 at 11:59 pm. Application guidelines are available at: arts.gov/grants/apply/OurTown/index.html.
III. TAX ISSUES Charitable Deduction Reduction The House and Senate had a busy summer, passing competing tax cut extension proposals. The Senate legislation (S.3412) would extend for one year the 2001 and 2003 Bush tax cuts for families earning less than $250,000 a year and allow marginal rates for the top two income brackets to rise to 36 and 39.6 percent, respectively. The measure includes the reinstatement of the personal exemption phase-out and the Pease limitation on all itemized deductions, including the charitable deduction. This limitation, which has been phased out by the Bush tax cuts, would reduce itemized deductions by 3% of the amount by which adjusted gross income exceeds a specific threshold, up to a maximum reduction of 80% of itemized deductions. The House, meanwhile, passed legislation (H.R. 8) that would provide, among other things, a one-year extension of the Bush tax cuts for all taxpayers and a one-year extension to current estate tax rates. On October 1, Republican presidential candidate Mitt Romney suggested that a cumulative cap on itemized deductions might be one way to pay for his plan to lower tax rates. He suggested a $17,000 deduction cap on the charitable deduction, home mortgage deduction, and others, but also stated this was only one policy under consideration. This is a concern for the nonprofit community as analysis by the National Association of Home Builders found that the average joint-filing taxpayer paid just over $20,000 in itemized deductions, $17,000 of which was consumed by deductions for home mortgage interest, state and local income taxes, and real estate taxes, leaving nothing left for the charitable deduction under Romney’s proposal. Given the financial pressures of the Budget Control Act, which mandates discretionary spending cuts to take place beginning January 2, the threat to the charitable deduction may be even more significant than last year as Congress considers spending and revenue options.
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An array of possible modifications to the charitable deduction could likely remain on the table as Congress weighs potential legislative options for sidestepping sequestration. The House convened several hearings about tax exemption and unrelated business income tax (UBIT), prompting discussions about community health benefit and further examination of the charitable purposes of tax-exempt organizations. OPERA America continues to work in nonprofit coalitions convened by Independent Sector and the Charitable Giving Coalition. It is believed that the voice of cultural organizations is much stronger when joined by the voices of education, direct service and social service organizations. The Charitable Giving Coalition is coordinating a Hill Fly-In event for December 4 and 5 to targeted offices on Capitol Hill. If OPERA America members plan on being in the D.C. area and would like to participate, please contact the OPERA America government affairs office ([email protected] or 202-375-7523). IRA Charitable Rollover Provision The IRA Charitable Rollover expired once again at the end of 2011. On August 2, the Senate Finance Committee approved the Family and Business Tax Cut Certainty Act of 2012, an extenders package that includes the IRA Charitable Rollover for the current year and for 2013. The IRA Charitable Rollover permits tax-free distributions to charity from an IRA held by someone 70 or older of up to $100,000 per taxpayer, per year. This bipartisan proposal allows almost 25% of the current tax provisions to expire and estimates of the two-year extension of the IRA Rollover show a cost of $1.3 billion over ten years. The package will not likely receive full Senate considerations before the elections. The House Ways and Means Select Revenue Measures Subcommittee held a June 8 meeting on tax extenders, where subcommittee Chair Pat Tiberi (R-OH) expressed that Congress may be able to take up an extenders package before the lame duck session, however since then the House Republican leaders have indicated that they will not take up an extenders package before the November elections. Estate Tax Beginning January 1, 2011, the estate tax was reinstated for two years with a $5 million individual exemption and 35% rate. Independent Sector supports the President’s FY13 budget proposal to permanently restore the estate tax at 2009 levels — a $3.5 million exemption and 45% rate — once the current reinstatement expires at the end of 2012. If no legislative action is taken by the end of 2012, however, the estate tax will revert back to pre-2001 era levels ($1 million exemption; 55% rate). Views on how to handle the estate tax vary widely and not necessarily along party lines. House Democrats introduced a plan in late July similar to the President’s proposal, while Senate Democrats decided at the last minute not to include estate tax in the Bush tax-cut extension bill passed in July, fearing it would prevent passage. The House Republican tax bill, passed in late July, included a plan to maintain the current 45% top rate on estates over $5 million. (Governor Mitt Romney proposed repealing the estate tax and replacing it with a 35% gift tax. The lack of an estate tax de-incentivizes individuals from making donations, particularly if there is only a $1 million exemption.)
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IV. ARTS EDUCATION Arts in Education Appropriations The U.S. Department of Education’s Arts in Education (AIE) funding program continues in FY12. During the prolonged budget negotiations of FY11, the AIE program was at one point eliminated, along with many other smaller programs, and was the only program of its kind to be reinstated in the final FY11 Congressional budget. In FY12, the AIE program survived another round of program eliminations to receive near-level funding. The President’s FY13 budget once again requests consolidating the AIE program into a new, broader funding pool entitled “Effective Teaching and Learning for a Well-Rounded Education.” The consolidation would merge funding for a wide range of subjects of learning and the pool of total available funds for all subjects has diminished to just $90 million under this proposal. The Senate Appropriations committee approved an FY13 bill in mid-June that includes $26.5 million for the U.S. Department of Education’s AIE program, an increase of $1.5 million. This level of funding would allow the department to continue funding multi-year arts education grants currently in progress. However, in July the House Appropriations Subcommittee approved its FY13 bill that includes a call for elimination of the AIE program
V. FOREIGN ARTISTS Visa Issues United States Citizenship and Immigration Services (USCIS) released a long-awaited memo confirming P1-B classification eligibility for individuals performing with U.S.-based groups, as opposed to only those traveling with foreign groups. This change in eligibility is a boon to dance companies and orchestras who can now hire foreign artists of high caliber, even if not meant for solo or principal roles. For opera companies, this may be significant for bringing guest artists to participate in a rostered chorus. OPERA America is communicating with GG Arts Law to stay abreast of any attempts to bring in any foreign artists under this update. The IRS announced that as of January 1, 2013, Central Withholding Agreements requests must be received at least 45 days prior to the first event to be covered by the agreement. The IRS will not process any request it receives less than 45 days before the event, and the event(s) will be subject to 30% withholding of the gross income. Effective October 1, 2012, all requests for Central Withholding Agreements (CWAs) must be sent to the following address/fax number: Central Withholding Agreement Program Mail Stop: 1441 2001 Butterfield road Downers Grove, IL 60515-1050 Fax: 603-493-5906
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VI. INTERNATIONAL CULTURAL EXCHANGE Staffing Update Liz Murphy, cultural affairs outreach officer, left her position at the Bureau of Educational and Cultural Affairs (ECA) to take a position at MIT’s Center for the Arts, Science, and Technology. The OPERA America Government Affairs office has been in conversation with ECA to coordinate a fall meeting for the Cultural Exchange Working Group to meet new staff. Foreign Service Institute Instructors for the Public Diplomacy Training Division at the Foreign Service Institute (FSI) reached out to the national service organizations for expertise for their students abroad. Seeking an overview on trends in American dance and classical music, Dance/USA and the League of American Orchestras offered workshops, via Skype, to students in Bangkok and Vienna respectively. In July, OPERA America Director of Artistic Services Laura Lee Everett, and Bob Wood, executive and artistic director of OPERA America member Urban Arias, offered an on-site presentation on trends in American opera to students at the Virginia-based facility. American Music Abroad The State Department, in partnership with the Association of American Voices, is now accepting applications for American Music Abroad, a program designed to communicate America’s rich musical contributions to the global music scene as it fosters cross-cultural communication and people to people connection to global audiences. The deadline to apply is January 18, 2013. Both ECA and AAV staff confirmed last year that groups in the opera discipline are eligible. To learn more about the program, visit amvoices.org/ama. Cultural Programs Division, Appropriations Department of State’s educational and cultural exchange programs received $598.8 million for FY12 in the “megabus” spending package passed in December, level with FY11 funding. The President’s budget request for FY13 was $586.957 million for educational and cultural programs, a decrease of $11.843 million (approximately 2%) from the final FY12 appropriations. To date, ECA has not provided information on how much was allocated to cultural programs in the FY11 budget. In June, the House Foreign Affairs committee approved the FY13 Foreign Relations Authorization Act, which authorizes $598 million for Department of State educational and cultural exchange programs. This figure, level with current funding, is just above the FY13 House appropriation of $587 million and below the Senate appropriation of $625 million. On July 17, the bill passed the full House by 333-61 vote. Others interested in the Exchanges program are seeking level funding to FY12 at $598.8 million. Rep. Hank Johnson (D-GA) sponsored a dear colleague letter requesting level funding that garnered 51 signers (all Democrats). Arts advocates continue to ask Congress to urge ECA to increase dollars allocated toward cultural exchange programs.
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VII. WHITE SPACE To provide interference protection for wireless microphones, the Federal Communications Commission (FCC) spent the last two years developing a national geo-location database in which, under certain circumstances, venues may register frequency usage. The database will then instruct any white space device within 400 meters to refrain from operating on those frequencies. Registration has been launched on the east coast and is currently limited to the following states: New York, New Jersey, Pennsylvania, Delaware, Maryland, Washington, D.C, Virginia and North Carolina. Spectrum will, however, expand to the rest of the country over time. White space devices, or TV band devices, are not expected to reach the market for at least six months, but since the FCC launched the geo-location database it is important to be aware of new procedures and register intended spectrum use. The FCC’s release of this information makes a distinction between those large venues that should register and those small and medium venues that have no need to register. The Government Affairs office is working with the FCC Working Group to seek clarification on this issue.
VIII. PERFORMING ARTS ALLIANCE The position of General Manager for the Performing Arts Alliance (PAA) is currently vacant. Townley Clardy, who held this position for the last few years, recently moved to Texas to pursue other opportunities. As a founding member of the PAA, OPERA America is working with the PAA board to re-envision what the PAA could look like. In addition to searching for a candidate, the PAA, a C4 nonprofit, will move toward chartering a C3 to focus on advocacy in a broader sense, delving into issues that impact the performing arts fields such as diversity and equity, technology, impact on state funding, etc. The PAA general manager position description is located on the websites of both OPERA America and the Performing Arts Alliance.
Submitted by: Brandon Gryde, Government Affairs Director
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UPCOMING MEETINGS:
WINTER 2013 BOARD MEETING FEBRUARY 21-23, 2013 NEW YORK CITY
SPRING 2013 BOARD MEETING MAY 7-8, 2013 AT OPERA CONFERENCE 2013 (MAY 8-11, 2013) VANCOUVER, BC, CANADA