GALA Festival 2020 Financial Update and Impact Assessment
Learn about the financial implications of postponing GALA Festival 2020, the incurred costs, delegate registration details, projected cash flows, and the challenges faced due to the ongoing pandemic. Explore how the organization is managing its funds and planning for the future amidst uncertainties.
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Presentation Transcript
This past spring our Board President, Dwight Joyner, announced the delay of Festival 2020 to 2021 and asked that delegates leave their registrations in place if at all possible. Revenues Over Four Year Cycle Dues Individual Donations Festival Almost 90% of delegates have done so and we are extremely grateful for your support
GALAs performance hall and hotel contracts were all renegotiated to July 7-11, 2021. There are standard cancellation penalties in all of the contracts with penalties totaling over $200,000. The force majeure clauses protect us only if the GALA Festival is cancelled due to ongoing pandemic limitations on indoor gatherings.
While it seemed like the crisis would be over before July 2021 it now appears that a number of factors will prevent us from holding the festival in 2021: Ongoing health impacts of the pandemic Financial impacts on the choruses of having lost multiple concert seasons Financial impacts on the singers from the economic upheaval Inability of our choruses to rehearse and prepare a set to perform at Festival
Costs Incurred to Date for Festival 2020 Type Amount Staff festival planning costs $ 246,225 Building and equipment rental deposits 70,680 Professional services (design, production, commissions, arrangements) 60,180 Registration fees and credit card processing charges 60,280 Supplies and postage (mostly delegate badges) 12,815 Travel and lodging 9,148 Other 9,581 TOTAL 468,909
Festival 2020 Income and Expenses to Date Amount Delegate Registrations Collected $1,636,222 Expenses Incurred to Date 468,909 Refunds Processed to Date 170,305 Balance $997,008 GALA s cash + investments balance at November 30, 2020 is $1,212,000. This total includes the remaining proceeds from Festival registrations that have neither been spent on Festival production expenses nor refunded to delegates plus some additional funds in reserve. We could not, however, continue to exist were we to refund 100% of the remaining outstanding registrations. (1,636,222 170,305 = 1,465,917 > $1,212,000)
GALA Projected Cash Flows Amount Projected end of 2020 cash balance $1,200,000 Projected 2021 net income (208,770) Projected 2022 net income (including live leadership conference) (166,900) Projected first quarter 2023 net income (52,200) Projected cash balance at 3/31/23 prior to considering refunds 772,130 Festival 2024 cash flows would begin in the 2nd quarter of 2023. If requested refunds significantly exceed $772,130, GALA will be insolvent and will need to liquidate.
Expense Reductions for 2020 made in April Amount Percentage Salary Reductions $88,000 32% Travel primarily chorus anniversary visits & board meetings 9,200 100% High school and middle school chorus teacher mailing 10,000 100% Total $107,200 2020 Original Budget $330,615 32% GALA made significant cuts to the 2020 budget once it became apparent that Festival 2020 was at risk.
Virtual Activities Planned for 2021 1. A schedule of coffee concerts and blockbusters originally planned for Festival 2020 will be broadcast as a series throughout 2021. 2. Workshops focusing on challenges around the pandemic and racial justice will be offered as webinars. 3. Speakers and guest artists will join us for a variety of events designed to provide opportunities to engage with GALA colleagues.
We Will Sing Together Again! We appreciate your patience while we try to find solutions to this very difficult challenge We continue to need your support to assure GALA s survival The GALA Board and staff are doing everything possible to be transparent about the difficulties and creative in identifying solutions
