The arts are a vital part of life, and music is the most widely used art of all. Rural areas sometimes lack the people or the funds for art and music programs, so locals fill in the gaps. This article presents a sound course of action for organizations interested in improving their fundraising.

By Mark D. Harris

The arts are shrinking in America. Schools are limiting or canceling art and music programs due to budget constraints. Ordinary men and women are visiting performances and art displays less and less.[1] Yet the arts have powerful positive effects on those who experience them. Arts organizations across America seek to reverse these trends, but they must have money and other resources to do it.

The foundation of fundraising in any organization is to be good at what you do. Just as an artist must make beautiful art and a musician beautiful sound, an organization must have its own kind of beauty. Top leadership in musical organizations must have a clear and compelling mission and vision and communicate well. Lower levels of leadership must direct their teams to recruit fine performers and produce excellent shows. Team members must perform their tasks, however large or small, with aplomb. Donors will not donate to, and concertgoers will not patronize, an organization unworthy of support. Administrative excellence is paramount to make the magic of music and other performing arts.

Pathway to Organizational Excellence

The first step is to devise an inspirational and obtainable mission and vision. The mission and vision should be developed by top leadership and socialized among stakeholders. The second step in reaching administrative excellence is to write a sound constitution and bylaws, and then know and comply with them. Policy and procedure manuals should be completed next. Approved policies and procedures must be carefully followed and updated regularly, but they do not have to be comprehensive. Teams should allow a little leeway to cope with unexpected circumstances. The third step is to review the pertinent documents that guide the operations of the organization. Every member of leadership and every member of the board should be familiar with the rules that make a group what it is.

Key Documents

1. Constitution and Bylaws
2. Policies and Procedures
3. Financial Health – balance sheet, income statement, and statement of cash flows
4. Financial Projections – expected sales, donations, and the like for the future.
5. History of and plans for future concerts, ballets, plays, or shows of whatever variety.
6. PowerPoint or other means to communicate administrative and financial information to stakeholders.

Should organizations apply for and obtain official 501c3 Charitable Nonprofit status from the US government? Consider the advantages and disadvantages.

Advantages of gaining 501c3 status:

1. Provides credibility in the eyes of donors and prospective donors, so groups should gain and maintain such status (Shaker et al., 2022).
2. Tax exemption and deduction.
3. Formal structure
4. Limited liability
5. Lower postal rates
6. Eligibility for public and private grants
7. Access to lobbying

Disadvantages of gaining 501c3 status:

1. Initial and ongoing costs
2. Shared control
3. Public scrutiny
4. Ongoing costs and paperwork.

Quality

Each concert will be evaluated by organizational members present and by the audience. Musicians sometimes put on a great show but are unkind to those who are helping them. Concert organizers sometimes miss key details, and unexpected events pop up. Performers and producers both need constructive feedback. Other quality metrics include audience and staff complaints and compliments. These should be included in any records that the organization keeps on each performer and in records that the organization keeps on itself. Substantive comments should be shared with the performer if the performer is open to them. Such comments should always be shared with staff.

Quality surveys can be online or on paper so audience members can complete them during intermission at a concert or afterward. Team members will gather survey forms as audience members depart. The response rate (# of responses/# of attendees) and the average score should be recorded. A scale of 1-5 (one is worst and five is best) is preferred. It is easy for people to understand, is simpler than a scale of 1-10, and provides more information than a scale with fewer options (like 1-3). A scale of 1-5 can be analyzed statistically with greater accuracy than a smaller scale can. Finally, a scale of 1-5 is supported by relevant literature (Elmore et al., 2020).

Key quality documents

1. Post-event survey form (paper and online) for the audience.
2. Post-event survey form (paper and online) for the staff.
3. Survey results spreadsheet.
4. PowerPoint or other means to communicate quality information to stakeholders.

Controls for handling money

Finances are top priority issues in any group, as poor financial practices can shut donors’ wallets and even land leadership in jail. The chief financial officer and the chief executive must ensure that sound money-handling procedures are in place and are followed. The following is an example of sound money-handling practices, but organizations may vary. The goals are security, accountability, and transparency in financial dealings.

Money intake

1. PayPal, Venmo, Square, and other means for electronic transfer of funds should be directly deposited into the organization’s bank (membership fees, ticket sales).
2. Direct paper ticket sales (at the event door).
3. Direct paper ticket sales (before the event).
4. Direct check or cash donations (individual and organizational.
5. Interest and investment income directly deposited into XXX bank.

Money handling

1. Checks and cash are counted by two people and the cash total and date are recorded into the ledger. The check totals and dates are also recorded in the ledger.
2. Each check is photocopied, and the photocopies are placed into a book for accountability and review.
3. Checks and cash are placed into a safe at XXX place for holding.
4. All cash and checks in the safe are taken to the bank and deposited no less than weekly.
5. Ledger records and bank reconciled are reconciled by the treasurer at least monthly.
6. Records are reviewed by the organizational financial committee annually.
7. The accountant handles financial recording and analysis.

Money disbursement

1. All regular disbursements are done by direct withdrawal, including rent, utilities, website operations, office expenses, phone, PayPal fees, and insurance.
2. Episodic disbursements are done by check, Venmo, Square, a credit card, or another electronic payment system. This includes artist payments, auditorium rental, and sound technician.
3. Disbursements under $500 may be authorized by one signature authority, such as the president or treasurer. Disbursements over $500 require two signatures.
4. Receipts are required for all disbursements, regardless of the amount.
5. Receipts are maintained for seven years.

 

Fundraising

Sample annual plan (1 April 20XX to 31 Mar 20XX)

Month	Event	Cost to individual	Benefits
January	Membership Drive – 1	Annual membership fees as below	See below
	Monthly newsletter (MN)		Publicly available information.
	Special Communications (SC)		Privately available information.
February	5th show, MN	Ticket price
March	6th show, MN	Ticket price
April	7th show, MN	Ticket price
May	8th show, MN Donor Appreciation Gala, local parade	Ticket price
June	Membership Drive 2, MN
July	Bonus show (patriotic), MN, local parade
August	1st show, MN	Ticket price
September	2nd show, MN, local parade	Ticket price
October	3rd show, MN	Ticket price
November	4th show, MN, local parade	Ticket price
December	Bonus show (Christmas), MN, local parade		Early in the season, and do not conflict with Nutcracker or other major events.

 

Bonus shows are free to attendees and should feature artists who will perform for free, such as school, local, or military bands. Organizations are not required to have one show per month. The schedule above is a guideline. Local parades (LP) are wonderful publicity, reaching lots of local people and supporting the community. Music is especially good in a parade, as generations of high school marching bands have shown.

Stakeholder Database (SD)

1. The SD is the primary source of information for all stakeholders. This includes all concert attendees, donors, and everyone else who has contacted the organization.
2. The organizational secretary (or other database manager) is primarily responsible for keeping the SD up to date.
3. SD includes contact information (name, address, phone number, email address, past and current membership status, and a list of all donations and contacts to date.
4. SD includes types of contacts, such as when a person attends a show, makes a donation, or calls with a concern.
5. A monthly newsletter is sent through SD to stakeholders.
6. Commercial SDs include Constant Contact, SendPulse, Campaign Monitor, GetResponse, ActiveCampaign, Mailchimp, and BenchMark.

Partners Membership

Level	Cost (18-64)	Cost (65+)	Cost (0-17)	Benefits
Bronze	50	45	0	Membership card, monthly newsletter, playbill mention, 10% off concert tickets
Silver	75	65	20	Membership card, monthly newsletter, playbill mention, 15% off concert tickets, Special Communications
Gold	100	85	35	Membership card, monthly newsletter, playbill mention, 20% off concert tickets, Special Communications, priority seating at concerts.

Some organizations allow members to have free admission to all concerts and other activities rather than a discount. This is a great deal for members since tickets might cost $20-30 per show and membership may cost $50 for the whole year. Sometimes groups have reciprocal agreements so that membership in one group allows free admission to all shows of another.  Such largess is not financially profitable for the organization.

Monthly Newsletter (MN) – publicly available

1. President’s remarks
2. Highlight something interesting but less well-known which is happening in the world of music.
3. Great reviews of past shows
4. Advertisements of future shows
5. Remarks from other board members (concert chairman, treasurer, etc.)
6. A request for donations, including a QR code link to the website, a link to PayPal or other types of payment, and an address to send checks.

Special Communications (SC) – privately available

1. The purpose is to continue the transition for members from outsider to insider. We want to bring them deeper into the spirit and operations of the organization.
2. SCs will come out at least every other month.
3. Timely notification of events of interest to members. For example, collaborations with local arts venues. In Beckley WV, this may include the Beckley Dance Theater, Rhythms of Grace, TriCity Town Band, Country Roads Bands, and local school and community bands.
4. Calls to action on issues that impact music in the local area. For example, a proposed cut in music funding at local schools might make members aware of the issue. Charitable organizations are not allowed to lobby and should not do so as it would detract from their core mission and put their non-profit status at risk. However, they can let their members know what is happening. Those members may choose independently to let their voices be heard.
5. Other information that the president feels is appropriate.
6. A request for donations, including a QR code link to the website, a link to PayPal or other types of payment, and an address to send checks should be on no more than half of SCs. Donors need to feel and be partners, not just money sources.

Small-dollar donations

1. The backbone of any fundraising campaign. Small-dollar donors may not give as much as large-dollar donors, but there are many more of them, so they can help with word of mouth and volunteering. Small-dollar donors will often be concertgoers, filling out the performance venue.
2. Every newsletter will have an invitation to contribute with a suggested amount (often ranging from $20 to $500 but specifying that donors of any size are appreciated).
3. Every person who donates receives a standard thank you card, even if the cost to mail is more than they donated. Small donations often result in bigger donations over time.

Large-dollar (major) donations

1. Twenty percent of donors provide 80% of the money. It is hard for charitable organizations to survive without major donations.
2. For small organizations, the threshold for major donations is typically over $500 per year.
3. The primary job of the president is to contact and build relationships with large-dollar donors. This includes restoring relationships with previous donors and engaging people and organizations who could donate even if they have never donated.
4. The Donor Appreciation Gala is an annual event hosted by the organization’s president, for major donors, typically in the spring. The event should feel exclusive, and a speaker who will attract attendees is important. The event allows the organization to highlight past successes, which is what the donor’s money paid for. It also demonstrates the exciting future, and what their continued donations will pay for.
5. The organization needs to educate stakeholders in Legacy Giving, such as bequests.

Some organizations do not differentiate between donors and members. For example, a person who gives $50 would be a bronze member and a “basic” donor. Other organizations differentiate between the two, so an adult who wanted to give $50 would have to choose between being a bronze member or a basic donor. He or she would have to give more to be a member and a donor.

Donation levels

Level	Range (low)	Range (high)	Benefits
Basic	0	99	Thank you note
Associate	100	199	Thank you note, playbill mention
Friend	200	499	Thank you note, playbill mention
Sponsor	500	999	Invitation to Donor Gala, playbill mention
Patron	1000	2999	Invitation to Donor Gala, playbill mention
Benefactor	3000	5999	Invitation to Donor Gala, playbill mention
Loyalty	6000	9999	Front table seating at the Donor Gala, playbill mention
Legacy	10,000	Higher	Seating with the president and guest of honor at the Donor Gala, playbill mention

 

People who donate but are not members receive only donor, not member, benefits unless otherwise specified. Those who are members but do donate receive only member, not donor, benefits unless otherwise specified. The goal is to make every donor a member and every member a donor.

Eight mechanisms that drive charitable giving (Bekkers & Wiepking, 2011)

1. Awareness of need – prospective donors need to be aware of an organization’s need.
2. Solicitation – prospective donors need to be asked, and asked in the right way, often by peers.
3. Costs and benefits – donating must be easy and conform to the donor’s schedule.
4. Altruism – people with a sense of altruism are more likely to donate.
5. Reputation – prospective donors want to give to organizations that will enhance their reputation.
6. Psychological benefits – people expect to feel good before, during, and after their donation.
7. Values – prospective donors are more likely to donate to people and organizations who share their values.
8. Efficacy – prospective donors want to know that the money that they give will be well handled and be effective for the giving purpose.

Conclusion

Performing arts organizations provide a critical service in areas underserved by governments and businesses. Organizational excellence is a prerequisite, from administration to financial measures and quality. This article is intended to help such people do the noble work of bringing art and music to underserved people.

References

Bekkers, R., & Wiepking, P. (2011). A Literature Review of Empirical Studies of Philanthropy. Nonprofit and Voluntary Sector Quarterly, 40(5), 924–973. https://doi.org/10.1177/0899764010380927

Elmore, J. G., Wild, D. M., Nelson, H. D., & Katz, D. L. (2020). Jekel’s Epidemiology, Biostatistics, Preventive Medicine, and Public Health (5th ed.). Elsevier – Health Science.

Shaker, G. G., Tempel, E. R., Nathan, S. K., & Stanczykiewicz, B. (2022). Achieving Excellence in Fundraising. John Wiley & Sons.

[1] https://www.arts.gov/sites/default/files/2008-SPPA-ArtsLearning.pdf.