Funding Your Dreams: Let's Make a Plan
by Tad Gray. February 25, 2020.
“But I just can’t get the money to do this!”
Disappointment sets in. Alison had designed a great program; she found an ideal venue and great musicians to work with. But, the money.
The program, “Hidden Brilliance,” celebrates chamber works by women who are, or were, related to famous men. Works by sisters, daughters, and wives clamoring for a chance to be heard.
But now, thinking about the money she needs to realize her project overwhelms her. She dreads having to ask for help. Maybe this brilliance she loves so much will remain hidden.
Thinking about money like this frustrates creativity. It overwhelms us and we resent having to deal with it. Or we’re just uncomfortable talking about money.
How about you? Feel the same? Sometimes?
Let’s shift our perspective by bringing money into the creative process, instead of treating it as an afterthought. Much like the structure of a building, proactive money conversations support successful ventures. Contracts, budgets, marketing plans, and appeals for financial help all create the foundation on which the artistic vision is built.
Alison Needs A Budget
“If you don’t know where you are going, you might wind up someplace else.” – Yogi Berra
Bouncing back and forth between what we plan to spend and how to pay for it, budgeting is an iterative process. Thinking through the give and take confirms what’s crucial and what’s not. Balancing income and expenses tells us the project can work.
To begin, we must be specific and realistic about spending. What exactly is this going to cost? No guessing - no assuming: do the research. Consider artist fees, production costs, venue rental, and marketing costs. Artist fees might be your largest expense so be very precise about expectations (preparation, number of rehearsals, timing, attire, etc.).
Build a spreadsheet and track the numbers. Brainstorm the expenses to ensure completeness. Don’t assume free stuff for now (we’ll come to “in-kind” contributions). Be thoughtful about what items have an ideal versus acceptable option. For example, Alison wants to produce a substantial program booklet, but a less expensive photocopy might be acceptable.
Many artists think budgeting is the worst part of the job. However, working within constraints reveals what brings valuable to the overall production. How does every element contribute to the overall vision and audience experience? Budgeting also helps us frame our fundraising strategy by highlighting the “why” of every expenditure.
Include Alison’s (and your!) time and energy in the spending plan as well. When you’re creating something valuable, you deserve to be compensated appropriately. Realistically, a producer like Alison accepts some financial risk (e.g. bad weather dampens walk-up ticket sales). Therefore, to be fair, she should retain a reasonable amount of the upside.
Alison builds a detailed budget and can articulate how each element contributes to the desired concert experience.
Let’s Make A Plan
“A goal without a plan is just a wish.” ~ Antoine de Saint-Exupery
Alison has developed a thorough and realistic spending plan that sums to $5,000. That amount overwhelms her until we help her break it down.
First, let’s use an audience of 125 for the base case. The per-person cost is $40 ($5,000 divided by 125). We’re done if that many people are willing and able to pay this. However, let’s say that standard pricing for a concert like this is $20. Additionally, Alison intends set aside 15 tickets at $10 and 15 tickets at no cost. Expected ticket revenue is $2,050 (95 x $20 + 15 x $10).
Alison needs help raising $2,950 ($5,000 minus $2,050) to balance the budget and considers a variety of ways to ask for the help she needs.
Cultivating a Growth Mindset
Asking for money is something many of us dread. It makes us feel needy, and even question our career choices. But if we want to create something uniquely great, we have to figure out how to pay for it. Keep in mind that we’re not asking for personal favors — we’re asking on behalf of those we serve. We also need to come to grips with our own feelings about wealth and money. Everyone has baggage around money- it’s ok, just face it.
A fixed mindset has us think: “I need money, you have money, can I have some?” That’s uninspiring. A growth mindset, on the other hand, focuses our conversations on creating value. An appeal for financial help is an invitation to co-create something meaningful.
What makes “Hidden Brilliance” meaningful? What is its value proposition? Or, bluntly, who cares? What kind of people want to see this project become a reality? Who are our co-creators – our investors?
Things that people care about include women composers, chamber music, women’s rights, music at the venue, discrimination, diversity and inclusion, unknown music, the performers, stories, family dynamics, of course – Alison herself.
Alison makes a list of people and organizations who also care about these things. She asks for help meeting those she doesn’t know herself.
Strategy
Here are some building blocks for creating a marketing and fundraising plan:
Ticket sales: Align marketing and fundraising strategies. The value proposition is the same.
Full cost tickets: If asked, some people (say 25) would be willing to pay “full” $40. This would generate $500.
Buy-two-give-one: Recall, Alison is committed to setting aside 30 reduced and free tickets. If those who believe in this project help with these tickets, it would generate $450 (15 x $20 + 15 x $10).
Underwriting: Some people want to see their money go to tangible things like the hall rental or paying the piano tuner.
In-kind contributions: While it’s nice to get free stuff (equipment, materials, venue, etc.), look for mutually beneficial exchanges. Be clear and specific about conditions of satisfaction for both parties.
Sponsorship: Some people simply want to help with money. Ask how they want to be thanked, and recognize everyone appropriately.
Alison arranges these building blocks to create a strategy. She sets specific goals and a timeline to keep on track.
The Ask
Effective fundraisers don’t simply tell people that they want money. They describe a compelling future and ask others to help make it happen. They know specifically how to ask when someone expresses a willingness to help.
We tend to make two mistakes when asking for money: we either don’t actually ask, or we blurt out something prematurely. To overcome this, design conversations that build relationships and momentum.
Seek permission to share your vision:
“May I tell you about a project I’m working on?”
Paint a picture of the impact the project will have on the audience. Bring out common interests and values. Don’t get stuck in details and challenges.
Extend an invitation to get involved:
“Would you be willing to join me bringing this to life?”
Be mindful of what aspects of the project resonate with the other person. You can describe relevant ways you need help.
Request help in a specific way:
"Would you consider a contribution of $300 which would cover 15 free tickets?"
“Would you consider a contribution of $75 to cover the cost of the piano technician?”
“Do you know someone in our community who would appreciate knowing about this project?”
The would-you-consider approach keeps the conversation open to possibilities. Don’t presume what people can or can’t contribute. If the conversation allows, feel free to share high-level budget information. People can also help by extending your network of conversations beyond people you know well. In the spirit of “who cares?” invite people to introduce you to others who care about what you’re doing.
Coda
“The real voyage of discovery consists not in seeking new landscapes, but in having new eyes.” ~ Marcel Proust
Alison listens to Samantha Gregg describe her career and how she rose to a division president of a national bank. Samantha’s effort to be recognized moves her. Alison describes how “Hidden Brilliance” recognizes and celebrates women composers in a way they deserve.
Samantha asks how she can help. Alison asks if she would consider underwriting the free tickets for $300. Samantha rounds this up to $500 and offers to invite some of her friends to the performance. Emboldened, Alison asks, “do you know anyone else who would value knowing about this project?”
“I sure do,” replies Samantha. “I’ll be in touch. By the way, will you take it on the road?”
“Funding Your Dreams” is the first in a series of posts about the financial side of music and concert production. Stay tuned to hear more from Tad about this seemingly tricky, but actually manageable, subject matter.