Capacity Building InitiativePre-Incubator Program 7.2.14 Application Workshop

Apollo Chamber PlayersPre-Incubator ParticipantClass of 2014

To inform, impact, and invest inthe administrative capacity of arts organizations

toward artistic excellence.

Mission

Urban Souls Dance CompanyPre-Incubator ParticipantClass of 2014

INVESTProvide specialized support towards an organization’s infrastructure.

Money(Revenue/Expenses)

Management(Board & Staff)

Marketing / PRADMINISTRATIVE SYSTEMS

Sustainability

Accelerator

Incubator

Pre-Incubator

Nonprofit Lifecycles: Stage-Based Wisdom for NonProfit CapacityDr. Susan Kenny Stevens

PROGRAM: Pre-Incubator Incubator Accelerator Sustainability

Goal Develop orgs from idea to start-up

Incubate orgs from start-up to growth

Accelerate orgs from growth to maturity

Sustain mature orgs through decline & turnaround

Partnership Term 12 months 36 months 12 months 12 months

Investment Limited awards of $5000 - $7500

$15,000/yearfor three years

Up to $10,000 - $20,000

Up to$20,000

Services Management services & capacity funding

Client residency, management

services, & capacity funding

Capacity funding for multiyear strategic

planning or implementation

Capacity funding for multiyear strategic planning

or implementation

Client budget size $10K - $75K $75K - $200K $100K - $750K $750K+

Client staff size(Full Time Equivalent)

0 – 1 FTE 0.5 – 2 FTE 2 – 4 FTE Staff > 3 FTE

21Current

Participants

Class of 201414 Pews

Apollo Chamber PlayersFrame Dance ProductionsLanding Theater Company

Our Image Film & ArtsQ-Fest

Shunya TheatreUrban Souls Dance CompanyVOX – The Rob Seible Singers

Class of 2016Houston Boychoir

Karen Stokes Dance

Mildred’s Umbrella Theater Company

NobleMotion Dance

Stark Naked Theatre

Company

Class of 2014Ars Lyrica

Dance Source

Houston

Houston Chamber Choir

Houston Friends of

Chamber Music

Class of 2013Art League Houston

Houston Center for

Photography

Project Row Houses

The Initiative at-a-glance

• Org’s primary mission is the production or presentation of arts and cultural programming.

• Annual cash revenues (not including any HAA grants) are between $10,000 and $50,000.

• IRS tax-exempt status must have been granted at least one year prior to the grant application deadline.

• Org has produced or presented arts or cultural programming open to the general public for at least one year prior to the grant application deadline.

• Organizations operating under a local or national fiscal sponsorship at the time of deadline are eligible to apply.

General Eligibility

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Frame Dance ProductionsPre-Incubator ParticipantClass of 2014

• Letter of Inquiry & Business Model Template

– Deadline Friday, July 18, 2014

(5:30 p.m. - not a postmark deadline)

• Invitation for Full Application:– Invitations by Friday, August 15, 2014

– Deadline Monday, August 25, 2014

(5:00 p.m. - not a postmark deadline)

• Participants Announced September 2014

• Pre-Incubator Program Begins: – Wednesday, October 1, 2014

Important Dates

Shunya TheatrePre-Incubator Participant Class of 2014

• Use your organization letterhead

• List your board of directors (on margin) and board officer positions.

• No more than 2 pages total

• Be succinct with your narrative :

1.Describe the organization, its mission and accomplishments;

2.Organization’s artistic and programmatic goals/challenges over the next 12 months;

3.Organization’s infrastructure challenges over the next 12 months;

4.How Pre-Incubator Program will help Org confront challenges and achieve goals.

Tips on Letter of Inquiry

QFestPre-Incubator ParticipantClass of 2014

• Mission: Keep it succinct. If you can say it in one breathe, you have a mission statement.

• Market: Describe the who. Attendance records, age, zip code, etc.? Narrow the field. Do not make a broad statement (i.e. all of Houston).

• Programs: Describe the what. Identify programs created within last 12 months. Be brief & elaborate more in LOI. If possible, include est. # of attendees per program.

• Revenue: Distinguish contributions from program revenue.

• Expenses: Should be aligned with Programs within last 12 months.

• Outreach: Describe the how. Is it through advertising, collateral distribution, cross marketing, email marketing, snail mailing lists, newsletters, press releases, event marketing, radio interviews, print publications, social media, website, etc.?

• Other: Stay within the allotted 1 page format! Make it short & sweet. Elaborate in the LOI.

Tips on Business Model Template

Program Participation

Program Begins October 1, 2014

Six Month Review:Strengthen governance, management, financial

resources, and admin systems.

October 2014 – March 2015

180 days30+ action items

Panel Review for Capacity Funds April 2015

Capacity Fund Award Notifications May/June 2015

Focus on workshops, professional development &

HAA fundingMay 2015– September 2015

Program Ends September, 2015

Urban Souls Dance CompanyPre-Incubator ParticipantClass of 2014

Pre-Incubator Benefits

Pre-Incubator

Management Services

Capacity Funding (up to $7.5K)

• Organizational Assessment• Attend 6 Monthly Incubator Meetings

on Governance, Financial Resources, Management, & Marketing• Access to Incubator Organizational

Learning Database

Administrative Expenses:rental fees, administrative salaries, financial management systems, website development, strategic consultancy, etc.Program Expenses:artistic fees, production expenses, marketing & public relations expenses, etc.

Output Schedule – By Month Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 March 2015Strengthen Administrative Systems (11 action items)

1. Confirm adoption of Quickbooks. 2. Submit monthly financial statements.

1. Submit monthly financial statements.2. Survey response: Internal Controls.

1. Submit monthly financial statements.2. Submit Financial and Admin Activities Schedule.

1. Submit monthly financial statements.2. Submit Internal Controls Process Flow Chart.

1. Submit monthly financial statements.2. Submit proposed annual/midyear budget for board review.

1. Submit monthly financial statements.2. Institute a board approved budget process and timeline for next fiscal year.

Strengthen Governance (8 action items)

3. Submit qualified board candidates’ matrix.4. Survey response: Board Fiduciary Duties.

3. Submit board job descriptions based on bylaws. Determine need for bylaw revision and implement.4. Draft org policy on board evaluation, recruitment, and rotation.

3. Create committee descriptions for executive, nominations, and finance.4. Submit timeline for board nominations, election, and orientation.

3. Revise and refine Board President, Secretary, and Treasurer job descriptions.4. Outline the distinction of roles between Board Treasurer and ED.

*Attend Best Boards Conference.

Strengthen Management (11 action items)

5. Attend 10/2014 Orientation.

5. Attend monthly one-on-one staff meeting.*Attend Power Tools Conference.

5. Attend monthly one-on-one staff meeting.6. Complete quarterly workshop by arts services partners. Post a completed workshop report to Basecamp.

5. Attend monthly one-on-one staff meeting.

3. Attend monthly one-on-one staff meeting.4. Revise and refine executive and/or artistic director job descriptions.*Attend HAA Learning Session #11

3. Attend monthly one-on-one staff meeting.4. ED drafts salary rate schedule by position for executive committee review.5. Present final draft of personnel handbook.6. Complete quarterly workshop by arts services partners.*Attend HAA Learning Session #12

Strengthen Financial Resources (3 action items)

6. Report on donor management software research.

5. LT submits a list of qualified donors to initiate cultivation process (min 1 person per LT member). *Attend Ask the Experts Conference.

7. Review and update profile page in Guidestar and update all 990 filing and org info.

• High performing Participants are funded(Year 1 = 6/11 Participants received awards; Year 2 = 5/9 Participants received awards)

• Unrestricted grant award up to $7,500

• Grant is distributed in 2 installments:– 80% by May 2015 upon signed agreement– 20% by early November 2015 pending

Final report Approval

Capacity Building Grant

Frame Dance ProductionsPre-Incubator ParticipantClass of 2014

participant profile

Participant Profile:

“The mission of NobleMotion Dance is to make work that is emotionally daring and honest; inspires discourse and understanding amongst diverse communities; and integrates dance, theater, and technology in unique ways.”

• Incorporated in 2009• 2011 operating budget = $20,000• Main challenge NMD faced was raising enough funds to

keep up with the company’s growing artistic demands:• Increase pay for NMD dancers• Expand the board of NMD• Increase organizational support by compensating staff• Increase visibility through marketing of NMD’s performances & services• Move NMD performances to a larger venue

Enters the Pre-Incubator Program Feb 2012

Participant Profile:

2010

2011

2012

2013

2014

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Total Revenues (TR) Linear (Total Revenues (TR)) Total Expenses (TE) Linear (Total Expenses (TE))Earned Income Linear (Earned Income)

Through Pre-Incubator:

“… [it] has served as a crash course on how to manage a non-profit arts organization. This invaluable experience has introduced us to new accounting, management and fundraising practices that have transformed the way we operate as a functioning organization.”- Andy Noble, Executive Director

Source: Unaudited financial statements 2011 – 2012 & projected budget submitted by Participant through Pre-Incubator Program.

2010

2011

2012

2013

2014

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Total Revenues (TR) Linear (Total Revenues (TR)) Total Expenses (TE) Linear (Total Expenses (TE))Earned Income Linear (Earned Income)

HAA IMPACT Pre-Incubator Grant:Towards program related expenses

and staff management$7,500

Arts Project Grant (APG) $2,500

50% actual increase

50% projected increase

Source: Unaudited financial statements 2011 – 2012 & projected budget submitted by Participant through Pre-Incubator Program.

participant profile

Participant Profile: “CTC is dedicated to boldly re-envisioning classical drama on stage, in the community, and in the classroom through engaging and enlightening plays – brining them new life and relevance while maintaining the integrity that the works deserve.”- Mission Statement

• Founded in 2007• 1st Year operating budget = $8,000• 2 full productions in the Inaugural season• Office space in board members home• 4 founding board members• 1 volunteer unpaid Executive Artistic Director

Enters the Residency Incubator Program Sept 2010

2007

2008

2009

2010

2011

2012

2013

2014

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Total Revenues (TR) Linear (Total Revenues (TR)) Total Expenses (TE) Linear (Total Expenses (TE)) Ending Net AssetsEarned Income (EI) Ending Cash Balances

From 2008 to 2012:

• 10 full productions totaling 118 performances• 2400% budget growth ($8,000 to $200,000)• New performance venue - Studio 101• 12 CTC Board of Directors• 3 Full Time Paid Staff

Participant Profile:

Source: IRS Form 990 from 2007 – 2011.

HAA IMPACT3 Year Incubator Program

APG

2007

2008

2009

2010

2011

2012

2013

2014

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Organizational Budget Profile (2008-2012)

Total Revenues (TR) Linear (Total Revenues (TR)) Total Expenses (TE) Linear (Total Expenses (TE)) Ending Net AssetsEarned Income (EI) Ending Cash Balances

GOS

BVA Program Patron Manager

Arts Marketing Grants

$45,000

$42,900

Arts Database

Participant Profile:

Source: IRS Form 990 from 2007 – 2011.

HAA IMPACT

2007

2008

2009

2010

2011

2012

2013

2014

$-

$50,000

$100,000

$150,000

$200,000

$250,000

Organizational Budget Profile (2008-2012)

Total Revenues (TR) Linear (Total Revenues (TR)) Total Expenses (TE) Linear (Total Expenses (TE)) Ending Net AssetsEarned Income (EI) Ending Cash Balances

“Without question, one of our most supportive funders has been the Houston Arts Alliance. Whether it is through Project Grants, Gen-eral Operating Support grants or the CBI programs, CTC would cer-tainly not be where it is today without the support of HAA.” – JJ Johnston, Executive Artistic Director

Participant Profile:

Source: IRS Form 990 from 2007 – 2011.

participant profile

2003

2004

2005

2006

2007

2008

2009

2010

2011

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Financial History Profile (2003 – 2011)

Total Revenues (TR)

Total Expenses (TE)

Ending Net Assets

Earned Income (EI)

Ending Cash Balances (ECB)

“Mercury serves the community by celebrating the power of music, Baroque and beyond, teaching sharing and performing with passion, intimacy, and excellence.”

• Founded in 2000• Performed 3 public concerts 1st year• 3 founding members• Ensemble managed from home office• 1st Year operating budget = $15,000• Hired 1st PT Executive Director in 2005

Enters the Residency Incubator Program in 2003

Participant Profile:

2003

2004

2005

2006

2007

2008

2009

2010

2011

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Total Revenues (TR)

Total Expenses (TE)

Ending Net Assets

Earned Income (EI)

Ending Cash Balances (ECB)

Incubator (‘03-’06)

Accelerator(2005)

• Part time Executive

Director Hire

Accelerator(2007)

• Part time Marketing

Director Hire

Accelerator(2009)

• Part time Development Director Hire

Accelerator(2011)

• Earned Income Generation

Sustainability(2013)

Capacity Building Investments

Create a Multi-Year Strategic

Plan

Participant Profile:

Source: IRS Form 990 from 2003– 2011.

2003

2004

2005

2006

2007

2008

2009

2010

2011

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

Total Revenues (TR)

Total Expenses (TE)

Ending Net Assets

Earned Income (EI)

Ending Cash Balances (ECB)

Incubator (‘03-’06)

Accelerator(2005)

• Part time Executive

Director Hire

Accelerator(2007)

• Part time Marketing

Director Hire

Accelerator(2009)

• Part time Development Director Hire

Accelerator(2011)

• Earned Income Generation

SustainabilityCapacity Building Investments

• 436% revenue growth in 7 years• Performing over 50 concerts a season• 27 board members• 6 staff members (4 added through HAA’s

Capacity Building Initiative)

Participant Profile:

Source: IRS Form 990 from 2003 – 2011.

INFORMEnd of Grant Presentations | Learning Sessions | Workshops

Strengthen Participants

Capacity Building Initiative

Business Volunteers for the Arts

Arts Database

Mgmt Program

Patron Manager

CRM

Power2Give.org

Grants Program

APG/O | GOS/E | TNAP| CI | AMG

MercurySustainability Phase I Participant

Class of 2013

Questions?

Please contact:

Giuseppe TaurinoManager, Capacity Building Initiatives

Houston Arts Alliance3201 Allen Parkway, Suite 250

Houston, Texas, 77019Direct: 713.581.6122

Email: giuseppe@haatx.comwww.houstonartsalliance.com