Surviving the crisis
As the economic news spirals down from grim to grimmer and heading for grimmest, Mu Performing Arts has been able to maintain a relative sense of equilibrium. Of course, in the world of nonprofit arts companies, the fallout from a general economic downturn often has a slightly delayed effect. In our case, most of our funding has already been secured for the 2008–09 season. Nonetheless, we are already feeling the pressure and making the adjustments to our earned income expectations: box office, outreach, and taiko classes as well as our individual donor support. Still, it’s the next round of cuts from foundations and government sources that has us making our lists (of expenses) and checking them twice.
In the face of this new reality, we have already pushed one major production from next season to the season following and cut a couple of our secondary performance programs like our New Directions Festival and our participation in the Minnesota Fringe Festival. We’re also looking at ways to revamp other existing programs; I can't think of a day that we don't think about the numbers and how we can improve our position.
But we are doing okay for several other reasons:
Due to the work of a series of exceptional managing directors (Laura Rawson, Stephanie Lein Walseth, Kathleen Hansen, and, currently, Don Eitel), Mu has never incurred any serious debt, has no outstanding loans, and no need for any in the near future.
We already have a pretty lean administrative operation and recently had one employee move to part-time contractor status, saving some expense.
We are fortunate to have a low-cost office and rehearsal space without the burden of maintaining an expensive performance space.
We have participated in the Kennedy Center’s monthly Internet chat and annual symposium for minority arts companies for the past three years. The knowledge and advice we have gained from both Michael Kaiser, the president of the Kennedy Center, and all the participants has been invaluable. His constant emphasis upon cultivating our board and individual donor support has been extremely important to the growth of our company.
We have been able to perform in major venues, like the Dowling Studio at the Guthrie and the McKnight Theater at the Ordway Center for the Performing Arts, along with other, high-quality midsize sites such as Mixed Blood Theater, Southern Theater, and Ritz Theater.
We recently received a grant from the Asian American/Pacific Islanders in Philanthropy organization for $75,000 a year for up to three years.
We have earned a reputation for fiscal and organizational responsibility along with artistic success and community leadership that have fortified our position in the face of what appears to be a long depressing economic siege.
At this point, we want to stay the course we have set, continuing to do artistic work with a focus on social concerns, while dealing responsibly with the growing fiscal pressures. We hope this strategy will prepare our company for the growth that will come if and when this economy rebounds. And we are even considering an expansion of our office and rehearsal space since expansion now, when rental prices are lower, could actually be the smart move. If we can remain fiscally stable and creatively productive through the recession, then we will be well-positioned for our next step up into official midsized existence. This would be a satisfying accomplishment for a company that has not only survived but also flourished and fed the growing diversity of Minnesota's cultural fabric. ❦
