Capacity Building Initiative Pre-Incubator Program

NobleMotion Dance Pre-Incubator Class of 2013

To invest, impact, and inform

the administrative capacity of arts organizations

toward artistic excellence.

Houston Blues Museum Pre-Incubator Class of 2013

INVEST

Provide specialized support towards an organization’s infrastructure.

FINANCIAL RESOURCES

BOARD

GOVERNANCE

STAFF

MANAGEMENT

ADMINISTRATIVE SYSTEMS

Sustainability

Accelerator

Incubator

Pre-Incubator

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

• Part 1: Letter of Inquiry & Business Model Template

– Deadline Friday, November 30, 2012 (5:00 p.m. - not a postmark deadline)

• Part 2: Invitation for Full Application:

– Invitations by Friday, December 7, 2012

– Deadline Friday, December 21, 2012 (5:00 p.m. - not a postmark deadline)

• Participants Announced January 2013

• Pre-Incubator Program Begins:

– February 1, 2013 through January 31, 2014

Important Dates

BooTown Pre-Incubator Class of 2013

• 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 $75,000.

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

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

• Individual artists who are structured through a local or national fiscal sponsorship at the time of deadline are eligible to apply.

General Eligibility

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Stark Naked Theatre Company Pre-Incubator Class of 2013

• Use your organization letterhead

• List your board of directors (on margin)

• No more than 2 pages total

• Be succinct with your narrative regarding: 1. the organization, its mission and accomplishments;

2. specific challenges it is facing and its artistic goals and organizational infrastructure over the next 12 months; and

3. how the Pre-Incubator Program will help you achieve those goals.

Tips on Letter of Inquiry

Korean American Society of Houston Pre-Incubator Class of 2013

• 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 February 1, 2013

Six Month Review: Strengthen governance, management, financial

resources, and admin systems.

February 2012 – July 2013

180 days 30+ action items

Panel Review for Capacity Funds August 2013

Capacity Fund Award Notifications

October 2013

Focus on marketing & HAA funding

October 2013 – January 2014

Program Ends January 31, 2014 WindSync Pre-Incubator Class of 2013

Pre-Incubator Benefits

Pre-Incubator

Management Services

Capacity Funding

(up to $7.5K)

• Organizational Assessment • Attend12 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.

• High performing Participants are funded

(Year 1 = 6 awards out of 11 Participants)

• Unrestricted grant award up to $7,500

• Grant is distributed in 2 installments:

– 80% by October 2013 upon signed agreement

– 20% by early Spring 2014 pending Final report Approval

Capacity Building Grant

Mildred’s Umbrella Theater Company Pre-Incubator Class of 2013

Nonprofit Lifecycles: Stage-Based Wisdom for NonProfit Capacity Dr. 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/year for three years

Up to $10,000 - $20,000

Up to $20,000

Services Management services &

capacity funding

Client residency, management

services, & capacity funding

Caapcity 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

26 Current

Participants

Class of 2013 Art Cars of Houston

Aperio BooTown

The Back Porch Players Houston Blues Museum

KASH Lone Star Lyric Theatre Festival

Mildred’s Umbrella NobleMotion Dance

Stark Naked Theatre Company WindSync

Class of 2013 Brazilian Arts Foundation

Classical Theatre

Company

Dance Source Houston

Freneticore

InterActive Theatre

Company

Class of 2012 Hope Stone Inc.

Class of 2013

Aurora Picture Show

Buffalo Soldiers National Museum

FrenetiCore

Musiqa Inc.

River Oaks Chamber Orchestra

Class of 2012

HITS Theatre

MECA

Class of 2013 Mercury

The Rothko Chapel

Accepting new Applications

November 30, 2012 May 2013 May 2013 May 2013

The Initiative at-a-glance

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 faces is 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 on Feb 2012

Participant Profile:

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,0002

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0

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11

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Total Revenues (TR) Total Expenses (TE) Earned IncomeLinear (Total Revenues (TR)) Linear (Total Expenses (TE)) 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.

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,0002

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0

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11

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

HAA IMPACT Pre-Incubator Grant: Towards program related expenses

and staff management

$7,500

Arts Project Grant (APG) $2,500

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

Incubator Class of 2013 Current Incubator profile: • 4 to 11 years in existence • $100K to $300K budgets • 1.5 to 2.5 staff members

From left to right: JJ Johnston (Classical Theatre Company), Angela Foster (InterActive Theatre Company), Rebecca French (FrentiCore), Mollie Miller (Dance Source Houston/ FrentiCore), Mauricio Campos (Brazilian Arts Foundation), Stephanie Wong (Dance Source Houston)

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 Arts Incubator Program on Sept 2010

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

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Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)

Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))

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 IMPACT 3 Year Incubator Program

APG

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

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Organizational Budget Profile (2008-2012)

Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)

Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))

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

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

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07

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Organizational Budget Profile (2008-2012)

Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)

Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))

“Without question, one of our most supportive funders has been the Houston Arts Alliance. Whether it is through Project Grants, General Operating Support grants or the CBI programs, CTC would certainly 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

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$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

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Financial History Profile (2003 – 2011)

Total Revenues(TR)

Total Expenses(TE)

Ending Net Assets

Earned Income(EI)

Ending CashBalances (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 Arts Incubator Program in 2003

Participant Profile:

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

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Total Revenues(TR)

Total Expenses(TE)

Ending Net Assets

Earned Income(EI)

Ending CashBalances (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.

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

20

03

20

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20

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20

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Total Revenues(TR)

Total Expenses(TE)

Ending Net Assets

Earned Income(EI)

Ending CashBalances (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 Capacity 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.

INFORM

End of Grant Presentations | Learning Sessions | Workshops

strengthen our

beneficiaries

Capacity Building Initiative

Business Volunteers for the Arts

Arts Database Program

Patron Manager

CRM

Power2Give.org

Grants Program

Photo courtesy of Voices Breaking Boundaries Incubator Class of 2011

Questions?

Please contact:

Jerome Vielman

Programs & Services Manager

Houston Arts Alliance 3201 Allen Parkway, Suite 250

Houston, Texas, 77019

Direct: 713.581.6122

Email: jerome@haatx.com

www.houstonartsalliance.com