Ross School of Business

Community Consulting Club

ANN ARBOR OPERA THEATER

Situation and Task: AOT has sustained incremental growth and cash on hand in

the last two years of operations, but has yet to expand its performance offering, achieve return on event investments, and expand its presence in the Ann Arbor community.

Methodology and Action: Community Consulting Club team worked to understand the

operational structure and fundraising tactics necessary to achieve AOT’s growth objectives.

Value Proposition: By creating a sustainable operating model and a focused

fundraising strategy, AOT will be able to achieve growth in its performance offering.

EXECUTIVE SUMMARY

THE EXISTING BOARD AT AOT IS NOT POSITIONED AND STRUCTURED OPTIMALLY TO

MEET ITS STRATEGIC GROWTH OBJECTIVES

Executive Committee

Artistic Committee

Marketing Committee

Opera/Festival Operations

AOT Strategic Plans

Fundraising Committee

Playbills,Donors

Pricing, Promotion

s

Existing Board Structure Executive Board

Artistic Director/President Vice President Treasurer

Trustees Active members

Advisory Board Supporters

Committees Artistic Marketing

Key Challenges No clear divide between front of

house and back of house responsibi l i t ies

Many Board/Advisory Board members, low organized structure

Responsibi l i t ies of members are blurred

Supporter/donor fat igue

TrusteesAdvisory

Board

RECOMMENDATION IS TO CREATE WELL-DEFINED COMMITTEES THAT ARE RESPONSIBLE FOR KEY

STRATEGIC DECISIONS AND DELIVERABLES

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival

Operation

Cabaret Fundraiser

Benefi ts As AOT’s operation becomes more complex in order to grow a

Committee structure must be embraced Helps members better understand their strategic Role in the

organization Clearly divides the work needed to be done Provides volunteers with transparency to the required t ime

commitment

THE EXECUTIVE COMMITTEE WILL BE RESPONSIBLE FOR THE HIGH-LEVEL STRATEGY AND APPROVE THE

PROPOSED COMMITTEE TACTICS

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Structure President Vice President Treasurer Secretary Voting Board Members

Total voting members between 5 and 9

Voting Board member apart of each committee

Responsibilities Direct overall Strategy of AOT Nominate Committee Chairs Approve Committee Calendar Approve Committee Budget

THE FUNDRAISING COMMITTEE WILL DEVELOP FUNDRAISING STRATEGY, CALENDAR, AND BUDGET

FOR EXECUTIVE APPROVAL.

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Members President Board Liaison Chairmen (May Also Be

Board Liaison) General Fundraising Head Grant Writing Head Volunteers

Responsibil ities Develop overall Fundraising Strategy For

Executive Board Approval Present Fundraising Calendar for Executive

Board Approval Present Fundraising Budget for Executive

Board Approval Organize and Execute Fundraising

Operations

THE ARTISTIC COMMITTEE WILL DEVELOP THE ARTISTIC STRATEGY AND GOALS FOR EXECUTIVE

APPROVAL.

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Members Andy Kevin Dave Not PD

Responsibil ities Develop overall Fundraising Strategy For

Executive Board Approval Present Fundraising Calendar for Executive

Board Approval Present Fundraising Budget for Executive

Board Approval Organize and Execute Fundraising

Operations

THE MARKETING COMMITTEE WILL BE RESPONSIBLE FOR DEVELOPING STRATEGY, CALENDAR AND BUDGET

FOR EXECUTIVE COMMITTEE APPROVAL

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Members Board Liaison Chairmen (May Also Be

Board Liaison) Volunteers

Responsibilities Develop overall Marketing Strategy For

Executive Board Approval Present Marketing Calendar for

Executive Board Approval Present Marketing Budget for Executive

Board Approval Organize and Execute Fundraising

Operations

CURRENT STATE OF FUNDRAISING FOCUSES LESS ON MAJOR REVENUE STREAMS AND IS

SUPPORTED BY AN AD HOC COMMITTEE

Corporate Sponsorships Individual Giving Grants/Public Funds

Advertising• Playbills $2K

Special Events• Caberet Event $5-6K• Workshops $0

Sponsors/Donors• Varying Levels

Grants• Michigan Council

for Arts and Cultural Affairs (MCACA) $4K

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Executive Committee

Artistic Committee

Marketing Committe

e

Opera/Festival Operations

AOT Strategic Plans

Fundraising

Committee

Playbills,Donors

Pricing, Promotion

s

TrusteesAdvisory

Board

FUTURE OF FUNDRAISING SHOULD FOCUS ON CORPORATE SPONSORSHIPS AND TACTICAL

WAYS TO ENGAGE INDIVIDUAL GIVING

Artistic Committee

Fundraising Committee

Marketing Committee

AOT Strategic Planning

AOT Artistic Implementation

Committee Activities

Approvals

Executive Committee

Opera/Festival Operation

Cabaret Fundraiser

Executive Committee

Artistic Committee

Marketing Committe

e

Opera/Festival Operations

AOT Strategic Plans

Fundraising

Committee

Playbills,Donors

Pricing, Promotion

s

TrusteesAdvisory

Board

Corporate Sponsorships Individual Giving Grants/Public FundsAdvertising• Playbills

Annual Appeal Sponsors• Season Sponsors• Varying Levels

Special Events• Caberet Event – consider

lining up with annual appeal

• Workshops - breakevenSponsors/Donors• Varying LevelsAnnual Appeal• Board talk at

performances• Donation envelopes in

playbill

Grants• Maintain MACACA

but move focus to corporate sponsorship and individual giving

AOT SHOULD PROVIDE NEWSLETTERS, ENGAGE PATRONS AT EVENTS, AND INTERNALLY PREPARE TO

ANSWER FREQUENTLY ASKED QUESTIONS

NEWSLETTER Brief History and Mission Alumni Success

Story/Feature Use of Funds: Investing in

local art ists and next year’s production

Tax Deduction Status: This matters!

Calendar of Events Fundraising Events Interactions with the

Artists Performance Schedule

The Big Ask Tiered Sponsorships:

Detailed outline of donor benefit by “package”

Be Aggressive: donors gravitate towards the middle

Corporate Sponsorships Individual Giving Grants/Public FundsCONNECT THE PATRONS Pre-performance:

Rehearsal Invitations Guided Tour of Venue Director’s Corner Update the Audience

Post-performance: After-Party/Celebration Direct-Mail to Sell Tickets for Next Year

and Donate

PREPARE FOR QUESTIONSThink about AOT’s Odyssey: donors wi l l want to hear a compell ing story.

Be able to explain AOT’s value to the community and its art ists succinctly

Alumni Art ist Success StoriesBusiness Performance of AOT

AOT SHOULD PRIORITIZE RESOURCES ALLOCATED TO GRANT APPLICATIONS BASED ON EXPECTED RETURNS

LOCAL GRANTS The Kresge Foundation

Headquarters: Troy, MI McGregor Fund

Headquarters: Detroit, MI Community Foundation (SE

Michigan) “Promotes and facilitates

community philanthropy in Wayne, Oakland, Macomb, Monroe, Washtenaw, Livingston, and St. Clair counties.”

Provide information and financial support

Ann Arbor Community Foundation Charles Stewart Mott Foundation Other examples:

DTE Energy Foundation Esperance Family Foundation Masco Corporation Foundation

Corporate Sponsorships Individual Giving Grants/Public FundsARTS SPECIFIC ArtServe

“Strengthening communities by positioning arts, culture and arts education as key contributors to the re-invention of Michigan’s economy.”

State-wide Other examples:

Association of Performing Arts Presenters

Doris Duke Charitable Foundation The Andrew W. Mellon Foundation National Endowment for the Arts Arts Midwest’s Performing Arts

Fund ADDITIONAL DONOR RESOURCES http: / /www.aaacf.org/about-aaacf /our- fu

nds http: / /www.ums.org/s_make_a_gi ft /dona

te_now.asp

LOCAL THEATRE EXAMPLES

Ann Arbor Civic Theatre Sponsorship brochure History, Projects, Theatre Community

Involvement, Why Donate? Sponsorship Amount: $1,000 - $6,000

University Music Society Restaurant, hotels, gifts and services

Michigan Theater

Donation Brochure: History & mission Where does money go

to? Tax deductible donationsAffi liations Past projects & activities What do you get? Reasons to donate

http://www.a2ct.org/media/a2ctSponsor07.pdf

EXAMPLE: ANN ARBOR CIVIC THEATRE

ENGAGING DONORS TO GIVE IS RELIANT ON ESTABLISHING AND NURTURING RELATIONSHIPS THAT CAN LEAD TO

ACHIEVING GROWTH GOALS FOR AOT

Corporate Sponsorships Individual Giving Grants/Public FundsWhy?

“The Science of Giving” studies: In an experiment, one group was given general information about

the need for donations, including statements like "Food shortages in Malawi are affecting more than 3 million children." A second group was shown the photo of a 7-year-old Malian girl named Rokia, and told that she is desperately poor, and that "her life will be changed for the better by your gift." People in the second group gave more.

Saving an additional $5k per year will allow AOT to: Launch an additional production in 5.8 years Double number of singers in 1 year Double the orchestra in 1.4 years

Think of each new donor at $5k level as 1/6 of a new production.

QUESTIONS AND COMMENTS

THANK YOU!

Andy, Dave, Kevin, and Yiqun