WHAT IS FORWARD FUNDING?
Santa Cruz Shakespeare has a unique forward funding budget model begun as part of our inaugural year. Under the fiscal sponsorship of Arts Council Santa Cruz County, individuals and family foundations donated over $1 million to support the 2014 performance season. As a result, all expenses for the 2014 fiscal year (January through December 2014) were fully funded by March 1, 2014.
This was done intentionally, as donors were informed that unless we were able to secure the necessary funding to produce the Festival, we would not move forward with any productions. It was and remains our belief that relying on current season’s ticket sales and ongoing donations in the hopes of arriving at a balanced budget by the end of the fiscal year is not a reliable method for maintaining financial security; rather, we are committed to being fully capitalized prior to production so that we can carry out each season with financial confidence.
I’M CONFUSED? IF I DONATE NOW, WHAT SEASON AM I SUPPORTING?
The idea of “Forward Funding” may be confusing, but that’s probably because no other arts organizations that we know of are doing it! However, what’s most important to understand is that each year’s production income (that is, ticket sales and donations received after production has begun) is reserved for the following year’s operating and production costs. This way, we are able to build each year’s budget based on actual funds available. In other words, Santa Cruz Shakespeare has decided to throw away the credit card and institute a policy of delivering great theater based on available resources.
OUR FORWARD-FUNDING DEADLINE FOR THE 2015 SEASON ENDS JUNE 30
Currently, all membership donations and foundation grant monies received from March 1, 2014 through June 30, 2015 go towards covering expenses for the 2015 Season (and operating expenses through December 31). Any funds received after June 30 go towards supporting 2016. Currently, we’re 81% forward-funded, and unless we meet our goal, any money from tickets sales this summer will have to cover 2015 expenses, which means less money towards 2016.
CONSIDER MAKING A DONATION BEFORE JUNE 30
With your support before June 30, we’ll continue on this innovation funding path, creating not only sustainable development for our company in the coming years, but also enabling other non-profits to learn from our careful implementation of this unique fiscal plan. With a donation of $50 or more, you will become a Santa Cruz Shakespeare Member, and receive exclusive benefits including early entry into the Glen, ticket discounts, and more.