'We have no backstop.' Elgin symphony's season finale uncertain after revenues fall short
The Elgin Symphony Orchestra is having financial difficulties, and the season finale concert in early May is up in the air, officials said.
Revenues have fallen short of expectations and the board of directors will meet Thursday to discuss an action plan, symphony CEO Dave Bearden said.
The Ainsworth Youth Concert Series scheduled April 10 through April 13 will take place as planned, he said.
Bearden declined to say what the projected loss is, adding he plans to disclose that publicly Friday after the board meeting.
ESO has a yearly budget of about $2.2 million, including about $700,000 in ticket sales and the rest from donations and grants, Bearden said. He initially had anticipated a small operating surplus of about $6,000, the same as last year, but things took a turn for the worse, he said.
“Unfortunately, this year we have just not met those fundraising goals” Bearden said. “It's a whole combination of things, not necessarily one large donor or two large donors (falling short). We were challenged in many ways.”
Board chairman Richard Resseguie said a few donors have changed the timing and amount of their contributions. That doesn't appear to be related to the 2017 federal tax reform legislation, he said.
Also, ticket sales are up but season ticket sales are down, which makes planning harder, he said.
“If we fall short, we have no endowment like we used to. We have no backstop,” he said. “If we don't have the money to produce a concert and pay everybody, we're not going to have a concert.”
As for the board meeting Thursday, “We have to talk about all scenarios and we have to talk about the sustainability of our model,” Resseguie said. “What's worked for the last 67 years might not work moving forward.”
Salary payment to musicians are up to date, but the union has been notified of the symphony's financial issues, said Diane K. Handler, senior director of marketing. “They have been absolutely fantastic and responsive in their support,” she said.
Music Director Andrew Grams made a financial appeal to audiences this past weekend.
He said the contributions from “angels” — including longtime donor and board member Stu Ainsworth, whom the youth concerts are named after — made the last three concerts possible.
The ESO performs at the Hemmens Cultural Center and pays rent to the city of Elgin.
The city council in September forgave nearly $162,000 in back rent from 2013 owed by the ESO. Bearden said that would help ESO be more competitive when applying for grants.
“We have to find as many revenue streams as we can find,” he said Tuesday.
Mayor David Kaptain said the ESO will have to figure out what to do to stay in business.
“I think we've done the best that we can for them,” he said.
As part of the debt forgiveness, the symphony also agreed to open up some rehearsals to the public.
The first open rehearsal in January “was hugely successful” and another one is scheduled May 4 before the season finale, Bearden said.