SCALE & REVENUE
Huffington Post’s article displays the Met’s flexibility and sensitivity to consumer feedback—after noticing ticket sales in the hall falling despite the growth of Live in HD, General Manager Peter Gelb decided to adjust the pricing accordingly.
This story from the Cleveland Orchestra stresses how their focus on getting students in the hall has contributed to their record ticket sales last season.
To scale or not to scale, that is the question… Building larger, more efficient systems comes with trade-offs.
Scale is a complex issue in the arts sector. Small organizations encourage aesthetic diversity, yet scale increases the reach of organizations.
The Federal Reserve Bank of Minneapolis posts an article on aspects nonprofit organizations should consider when building earned income vehicles with special attention paid to the creation of social enterprises that meet community needs.
As audiences have come to expect free culture and entertainment, old innovative models don’t work!
An Americans for the Arts study graphs the different revenue sources for arts organizations. Today, over half of nonprofit arts income comes from earned revenue, on average.
The arts may be in a precarious situation because of failures in arts education, professionalism, and leadership, as well as a failure to appeal to diverse audiences
Earned income at arts organizations has failed to keep pace with inflation and fundraising has suffered at many institutions. Growth in revenue must be the long-term answer with judicious cost cutting, aggressive marketing, and fundraising in the short-term
PLANNING YOUR EARNED REVENUE MODEL
This article examines 10 business models for nonprofit organizations.
A crude attempt to increase the earned income ratio can be damaging to an arts organization.
Before extending a successful run, nonprofits need to consider feasibility and costs to make an informed decision.
After a 2011 bankruptcy, the Syracuse Symphony Orchestra resurrected itself as a partnership in which all representatives share some of the financial risk