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HomeMy WebLinkAbout01 San Bernardino Symphony Orchestra1 SAN BERN SYMPHONY C f�CCE1vED-ClTY «* III, JAN 18 PM 4-P 43 January 13, 2016 FRANK PAUL FETTA Fine Arts Commission Music Director /Conductor Office of the City Clerk DR. JUDITH VALLES City of San Bernardino President, Board of Directors 300 North D Street, 2nd Floor San Bernardino, CA 92418 OFFICERS Dean McVay, Esq., Pres. Elect Scott Bonner, Esq., 1St VP Re: Fine Arts Grant 2017 Lisa Weldy, 2 "d VP Phillip Waller, CPA, Treasurer Dear Members of the Fine Arts Commission, Grace Baldwin, Secretary The San Bernardino Symphony Orchestra sincerely appreciates the opportunity to BOARD OF DIRECTORS submit this grant application related to your call for Fine Arts Grant applications. Jan Bell As a 501(c)3 non - profit organization (Tax ID Number 95- 6153923), we are keenly aware Donna Cooley of the growing shortage of arts - related grants in our region, so we truly appreciate the Earleen Ferguson - Dudley City's support of and commitment to local arts. Our mission is in line with that of the Judi Fettel Dr. Jay F t tel Fine Arts Affirmation and, we believe, the spirit of this granting effort. Specifically, we Lloyd Garrison strive "to foster a love of music, excite the spirit, and enrich our diverse community Hon. Gigi Hanna and region through live orchestral performances and music education." We endeavor Kathy A. Johnson, CPA to fulfill this mission as thoroughly and effectively as possible with each and every Marilyn Karnig performance and educational program we provide here in the community we share. Dr. Robert Knop Hon. Cynthia Ludvigsen Our Board Members — more than 50% of whom are City residents or employees - Hon. Gloria Macias - Harrison demonstrate their support of this mission as they work in concert with staff and the Rona Mamoor residential and business community to enhance the visibility of the arts... an integral Dr. Audrey Mathews thread in the colorful fabric that is San Bernardino. Millie McKim In previous presentation discussions, the Commission has consistently emphasized Donna Marie Minano Dan Murphy their desire for greater interaction with the community. In our proposal, you will read Judi Nowlin how we have taken that charge to heart both in the current fiscal year and in our plans Ronney Podskalan for the up- coming season covered by this grant application. Our proposed partnerships Dr. Victoria Seitz with local non - profit arts organizations will increase their visibility and raise public Judy Rodriguez - Watson perception regarding San Bernardino as a safe and healthy place for all types of arts. Michael Salazar Strengthened bonds with the San Bernardino City Unified School District will bring Lynda Savage more children and families to concerts than ever before. In addition, we plan to Mary Schnepp augment our long- standing partnerships with local businesses, utilizing 100% San Amy Wong, Esq. Bernardino -based business support thus strengthening our City's local economic base. Dr. Anne Viricel We have reviewed your materials in detail and believe we have addressed all required Executive Director aspects of the grant application in the attached; however, should you have any questions, we would welcome the chance to address them. Again, our sincere thanks 198 N. Arrowhead Ave. San Bernardino, CA 92408 for this wonderful opportunity. www.sanbernardinosvmahonv.or� T 909/381 -5388 F 909/889 -7954 R4Ane??Viric`eI,. fully, 501(c)3 95- 6153923 Established 1929 D Exec/iveDirector San Bernardino Symphony Orchestra VISUAL AND PERFORMING ARTS — GRANT APPLICATION FORM City of San Bernardino — Fine Arts Commission Applicant /Organization Name of Organization San Bernardino Symphony Orchestra Physical Address 198 N. Arrowhead Avenue San Bernardino, CA 92408 Mailing Address 198 N. Arrowhead Avenue San Bernardino, CA 92408 Telephone No.: (909) 381 -5388 Non - Profit I.D. No.: 95- 6153923 Website Address: www.sanbernardinosymphony.org No. of Years in Existence: 88 II. Contact Person: Title: Telephone No.: E -Mail Address: Dr. Anne L. Viricel Executive Director (909) 381 -5388 Cell No.: ( alviricel @sanbernardinosymphony.org III. Program Category Under which Support if Requested: Category 1 Music as defined by "Established producing organizations offering training, exposure, opportunities and /or creative resources for vocal and instrumental experiences." IV. Period of Support Requested: From July 1, 2017 Through June 30, 2018 Starting Ending Amount of Grant Requested $49,500 Total Organizational Budget for current fiscal year $649,885 references FY 2016/17 Total Organizational Budget for current fiscal year $644,950 estimated for FY 2017/18 Percent of total Organization Budget Requested 7.68% N V. Program Description /Need Statement: Program Summary The grant application addresses the on -going desire of the San Bernardino Symphony to continue to provide world class musical programming for both students and general audiences at the California Theatre in downtown San Bernardino. Program Detail /Statement of Needs 2017/18 will be our 88th consecutive season at the California Theatre and we have programmed some outstanding concerts which, we believe, will significantly increase interest in the Symphony, the venue, and, ultimately, the city of San Bernardino. As has been our on -going challenge, however, it is extremely difficult to meet the ever - increasing financial demands related to performing in downtown San Bernardino. Costs related to rental of the California Theatre of the Performing Arts and the required use of the Theatre's stage crew amount to nearly $10,000 per concert (this amount is greater than the amount raised for single tickets for any individual concert, so, it is clear additional funding is greatly needed). While we have a broad donor base, few initiatives address operating expenses such as these costs represent. Further, corporate contributions toward the arts in our region are difficult to come by, and only a small percentage of statewide foundation contributions ever go to the Inland Empire. Finally, the events of December 2, 2015 cast an additional shadow over the San Bernardino name, making it more difficult to engage new audience members from outside the area to come, purchase tickets, and begin to engage in local arts. In order to meet the objectives of our expanding community- centric mission, it is imperative to seek funds from additional sources to continue to meet the needs of our community. A City of San Bernardino Fine Arts grant would play a critical role in meeting these needs. In determining the highest and best use of potential funding, we considered a number of ways in which the City of San Bernardino Fine Arts Commission and our other community partners in this project might be most visibly promoted to our audience members who are already supporters of the arts. We also considered areas in which donation funding had been sorely needed, yet highly difficult to obtain. This led us to the conclusion that, as last year, a request toward production costs — specifically fees related to the rental of the City's own California Theatre of the Performing Arts — would allow the stated grant components to be met while serving the greatest number of individuals. The California Theatre is a jewel in our community. As a National Registry of Historic Places site, it attracts visitors from throughout the country; but further, its art, architecture, and the history of acts and actors who have graced its iconic stage stand as a symbol of what is unique and special about out City. However, rent of the California Theatre is extremely expensive and difficult to manage given the preponderance of other production costs the Symphony must bear to maintain our full season and provide our annual free student concerts. Further, as a renter of the Theatre, we are mandated to utilize the stage crew in place by the City's management contractor Theatrical Arts International; stage crew fees average $3,500 per concert and we were recently informed of a planned 3- percent per year non - negotiated raise for each of the next three years. This is more than $18,000 in additional fees we must pay simply to perform in downtown San Bernardino. All together, last season, the costs associated with performing at the California Theatre exceeded $46,000. This - coming season will be more, plus the additional charges we are seeing from Theatrical Arts International. Many other venues are less expensive, but are not in the City of San Bernardino where our performances would most benefit the community. 9 We recognize this is largely the same sponsorship we requested last year. But venue /operations funding is not included in most grants and represents our most pressing local financial concern. Further, this option provides the greatest opportunity for visibility for the City of San Bernardino Fine Arts Commission, and the Commission being publically identified as the sponsor of the venue communicates an extremely positive message to the public as to the commitment of the City to maintaining a significant arts presence. Continued sponsorship of the venue and related venue costs, therefore, would help ensure future programming stays local, would allow us to continue our promotion of other local businesses and organizations, and would extend the opportunity for our target population of students, seniors, children and their parents — as well as many others from the region - to continue to enjoy the arts in a venue they can be proud of close to home. We are incredibly thankful that the City of San Bernardino now provides an opportunity to uphold the integrity of its various arts organizations through annual Fine Arts Grants. We believe the Symphony represents the type of organization the Commission can entrust with this responsibility for a number of quantifiable reasons: • Positive regional public perception from being among a select few California jurisdictions offering a world class arts experience. • Economic benefits from increased tax revenue from audience members who dine, shop, and stay in our city. Over the past three years, our concerts have brought audiences from 47 discrete zip codes to downtown San Bernardino. • Our five - concert seasonal series contributes toward a more vibrant arts environment, providing a wide variety of both traditional and non - traditional orchestral music attractive to increasingly diverse audiences. • Special programming and initiatives geared toward the needs of students: o Our docent programs have introduced over 140,000 San Bernardino City Unified School District students to orchestral instruments, significantly increasing participation in school music programs which, studies indicate, increases academic achievement. o Our annual free concerts for the schools have brought tens of thousands of students to the California Theatre — 3,400 students attended last February! - creating greater pride of place and cultural literacy for the young people who represent our future. o Our annual Symphony Strings for Secondary Students workshops have provided free master classes for hundreds of up- coming middle and high school musicians. o Our student concert programs — now available at every concert — educate and inform young attendees in a manner geared to their interests while demonstrating to adult attendees that the San Bernardino Symphony not only invites but Expects young audience members. o Our Symphony Debs and Red Tie Associates ambassador program for local teens teaches job skills and teamwork through volunteerism. o Our partnership with San Bernardino Valley College has resulted in an increase in the number of college -aged audience members, created opportunities for student art exhibits at concerts, and provided the platform for the new Activity Book which is given to all young concert attendees (the book is being updated this year — through a grant to Valley College). o Our "Fine Arts Lunch Breaks" series has garnered regional attention and shed a positive light on the upward evolution of the City of San Bernardino. 4 Our relationships with the schools and with other local nonprofits have served to shine a spotlight on their offerings, creating greater visibility for them and for our region as a place of the arts. Over the past two seasons, our concert events have included artists, speakers, and /or performers from: o Sinfonia Mexicana o Symphonie Jeunesse o Inland Valley Repertory Theatre Company o Jack and Jill of America o Latino Art Association of San Bernardino o San Bernardino High School Baking Careers Class o San Bernardino Valley College 'Voci Soli' Performing Group We also support numerous local small businesses and non - profits: o We provide hundreds of donated concert seats for non - profit fund - raising activities. o Our "Music and Dining" initiative— which originated with a recommendation by a Fine Arts Commissioner at our application interview two years back — has provided a platform for partnership with five local restaurants: The Mexico, The Green Shack, Le Rendezvous, The Cutting Board at DoubleTree San Bernardino, and Porter's Steakhouse at DoubleTree Ontario. o We partner with the County's own arts hub, The Arts Connection, to utilize their artists in local performances. o We actively promote other local arts organizations through our own robust social media activities and in our concert program books. We believe all these efforts play a significant role in our city's future success, and we actualize this commitment by remaining ever mindful of our founder's goal for accessible music and music education for all. For this reason, we also maintain highly affordable ticket prices (student /military tickets are just $10; other tickets $25 - $60) and, as described below, actively work with local businesses to obtain student /family ticket scholarships to ensure no economic barriers exist for those who wish to attend. Partnerships The City of San Bernardino Fine Arts Commission has identified two programmatic requirements: education and business partnership. We address each below. Education. Each Symphony concert includes at least one educational component. Costumed actors from the Inland Empire Repertory Theatre provide an engaging and educational "Meet the Composers" talk before each concert. We have seen a 20% increase in attendance at these pre- concert events since adding the actors who very effectively "humanize" the composers and make the music more relevant, especially for those new to symphonic composition. On those occasions where there is no lecture, there is a replacement event with a different educational focus, such as when we arranged for her children's book to be read by local author June Durr at our December 12, 2015 "Home for the Holidays" concert, or this past December when students from San Bernardino High School's Baking Careers Class baked 12 dozen cookies and assisted young patrons to decorate them. • Pre- and post- concert arts experiences are often offered, such as the inclusion of an exhibit of original artwork created by members of the Latino Art Association at our 2015/16 season opener and by San Bernardino Valley College students at October and December concerts this season. 5 • Complete, detailed concert notes are now offered on line so attendees can study the music before attending the pre- concert lecture or concert. This also saves considerably on program printing costs. • A special children's concert program — inclusive of information about the composers and the music, and with orchestra - centric puzzles and games - is provided to all of our youngest audience members at each subscription concert. • Full learning platforms — inclusive of information about the composers, the historical significance of the music, the venue, the Symphony, our Maestro, attendance etiquette, etc. - are created for the schools participating in our annual free student concerts. At the request of school principals, preparatory workshops are also provided. • For those students attending as part of our on -going "Classroom to Concert Hall" scholarship initiative, our Executive Director and /or Maestro meets with the participating schools to provide a pre- concert workshop. • We also provide pre- concert educational discussions with the San Bernardino Chamber of Commerce, various service clubs, and other groups who have booked blocks of tickets as we recognize that people who have not attended the Symphony may have questions about the experience and wish to arrive prepared; we also realize that those who are prepared have a more enriching overall concert experience. • And, of course, we actively participate in the City's own Night of the Arts events which educate and enlighten art lovers of all ages. Business Partnerships. The San Bernardino Fine Arts Commission desires significant business partnerships with grantees. • Music and Dining. As introduced above, our Music and Dining initiative is a cross - promotional vehicle with five local restaurants: The Mexico, The Green Shack, Le Rendezvous, The Cutting Board at DoubleTree San Bernardino, and Porter's Steakhouse at DoubleTree Ontario. Restaurant patrons need only show their dining receipt at our box office on ticket night to receive an upgrade or discount to their ticket purchase. • Classroom to Concert Hall. As presented to the Fine Arts Commission in previous grant applications, our Classroom to Concert Hall initiative offers a vehicle for local businesses to support economically challenged families in the San Bernardino City Unified School District through their donations toward concert attendance. Through the initiative, concert tickets are provided for students and parents in the District, as well as through Big Brothers /Big Sisters of the Inland Empire, CASA, and San Bernardino -based Girl Scouts of America San Gorgonio Chapter troops, through local businesses wishing to both benefit our youth and increase their visibility in front of our significant audience base. This season, these businesses include Wells Fargo Bank, Security Bank, The Gas Company, US Bank, Southern California Edison, RAMSCPA, and a number of others. Each business donor receives recognition and visibility in our concert program books, scrolling donor presentation, on our website, and in our social media postings via Facebook, Twitter, and Instagram. During our 2015 -16 season, over 900 concert seats were sponsored through our "Classroom to Concert Hall" scholarship initiative, and in the current season, more than 550 seats have already been sponsored... we see this as a testament to the business community's growing recognition of the importance of the arts as a pathway toward economic recovery, and we believe the 2017/18 programming we have planned will further pique their interest and engender a greater number of strong, long lasting relationships. 6 Direct Support to Local Businesses. The Symphony maintains our business office in San Bernardino (Audrey Patrick Building, 198 N. Arrowhead Avenue). The majority of the Symphony's considerable marketing and printing needs are handled by Sunwest Printing. The majority of our print advertising is with local news outlets. Our presentation flowers are purchased from San Bernardino -based florists. Office and event supplies are purchased from San Bernardino retailers. Other local businesses have partnered with the Symphony as Presenting Sponsors receiving an elevated level of public recognition. These include the San Bernardino Community College District, Bertrand's Music, Dignity Health, Penske Honda, UBS Financial Services, Fairview Ford, Holmes Financial Centers, Vacuums etc., and Loma Linda University Children's Hospital. Smith, Marion & Co., LLP, Cothran Insurance Agency, BCM Group, and others. Further, we have established a symbiotic business relationship with local retailer The Tire Guys whereby customers are incentivized to purchase a set of four tires with an offer of two free Symphony tickets. The Tire Guys then assists us with the collection of non- perishable food as part of the Orchestras Feeding America program, and each Winter they collect toys on behalf of the Symphony for distribution to San Bernardino children in need. We also donate over 200 concert tickets each year to the San Bernardino Chamber of Commerce and to local businesses and non - profits holding charitable fundraisers. The sum of all donated tickets have an average annual sales value exceeding $10,000; but we recognize the benefit to the community these donations represent and budget accordingly. Finally, we have made a concerted effort to recruit Symphony Board of Directors members from local businesses thereby ensuring a greater level of representativeness and inspiring the type of cooperative partnerships we believe the City desires from its Fine Arts grantees. We are also establishing a Local Business Board to ensure we are informed and receptive to all new possibilities to benefit the business community. VI. Realistic number of persons expected to benefit from this program (a) Number of persons paid by attendance: 1,400 x 5 concerts = 7,000 persons (b) Number of persons admitted by no fee: 325 x 5 concerts + 3,450 at student concerts = 5,075 persons (c) Number of classes and /or performances scheduled /length of display: 7 concerts at the Theatre (d) Total attending classes /performances /displays /exhibits 12,075 persons VII. Intended Results: Target Group(s) Children, ages Middle /HS Families Students Seniors 5-12 Students Time Frame 2/10/17 2/10/17 7/1/17— 7/1/17— 7/1/17— 6/30/18 6/30/18 6/30/18 Number of 2 school 2 school 5 season 5 season 5 season performances /classes/ performances performances performances performances performances exhibits Anticipated maximum 1,725 1,725 3,500 2,325 2,800 audience, participants, etc. 7 VIII. Project Budget What are the project expenses, and how much is requested from the Fine Arts Commission (FAQ? As our request relates solely to use of the City's performance venue, the following expense detail is related solely to the production of the seven annual concerts held therein. Costs are estimated as the full content of out 2017/18 concert season is not yet known. However, a complete organizational line item budget covering the entire FY 2017/18 annual budget will be readily available upon completion. Line Item Expenses Brief Description of each line item Total Total Budget per amount line -item for requested this project from FAC Salary /Wages Staff Salary related specifically to the production of concerts and $ 100,000 $ 0 preparation of audiences Performers /Librarian Anticipated Concert payroll for 2017/18 season (includes wages, 245,000 0 taxes, and required benefits) Maestro Contracted wages only 35,000 0 Special Performers Contracted wages only 30,000 0 Stage Crew Mandated use of California Theatre's crew. Amount shown 20,000 20,000 includes wages, taxes, and required benefits and the raise they self- assigned in 2016 Stage Manager Contracted wages only 3,000 0 Graphic Designer Contracted wages only 10,200 0 Web Master Contracted wages only 2,500 0 Supplies & Materials Rental of music not available in Guthrie Library 2,000 0 Travel Mileage for Maestro 350 0 Rentals or Leases Rental of California Theatre (5 concerts at $5,000 each, includes 25,000 25,000 security and house staff) Rental of California Theatre (5 Thursday rehearsals at $500 each) 2,500 2,500 Rental of California Theatre (2 student concerts at $500 each plus 1,350 1,350 additional security) Rental of Union Hall for Tuesday Rehearsals 1,500 0 Piano Rental /Tuning 1,500 0 Rental of Music Stand Space at the California Theatre 600 650 Fees and Other Season Brochures 3,000 0 Media /newspapers (most is through ticket exchange for ad space) 1,000 0 Season /concert posters /postcards /flyers 1,500 0 General Audience Program Books (note 50% lower price than in 4,000 0 years past due to going to a single book for the entire season) Children's Program Books 625 0 Pre - Printed Concert Tickets 1,000 0 Required Archive CDs and Photos 1,350 0 Performer Presentation Flowers 250 0 Merchant Fees (credit card fees for ticket sales) 3,000 0 General Liability Insurance 1,000 0 TOTAL EXPENSES AND AMOUNT REQUESTED $ 474,725 $ 49,500 9 What are other sources of funding for this project? (Grants, Contributions, Revenue (such as ticket sales, etc.) As our request relates solely to use of the City's downtown performance venue, the following sources of funding /amounts designated relate solely to the production of the seven annual concerts held therein (versus funds we anticipate receiving for other operations, non - concert - related labor, etc.) We recognize the total amount does not cover the full anticipated revenue need for our 2017 -18 season, but additional initiatives — for which donation amount is not yet known — will be managed, and additional grant applications — several of which are currently under donor consideration - will become a part of the budget for the time period covered by this grant application request. Based upon our 88 -year history, we are confident in our ability to meet annual revenue requirements and we do not anticipate any decrease in the quantity or quality of scheduled performances. Name of known funding source Amount committed to this project Grants* $ 70,000 City of San Bernardino Fine Arts Commission* San Manuel Band of Mission Indians ** $ 70,000 Bank of America $ 10,000 5,000 Getty Foundation 4.000 BNSF 2,500 Children's Fund 2,500 Edison International 2,500 Wells Fargo 2,500 Business and Individual Donations * ** $ 175,000 Ticket Sales (season tickets and individual concert tickets) * * ** $ 97,000 SB Symphony Guild Donation (fundraising events) * * * ** $ 30,000 TOTAL AMOUNT: $ 391,000 * Grants listed are anticipated based on grantor history of at least three past annual contributions for the same or a greater amount. ** Total amount from this grantor; funds are to be distributed to two 2017/18 concert for which they are named Presenting Sponsor * ** Business and Individual Donations as shown are average yearly donations. * * ** Ticket Sales as shown are average ticket sales. * * * ** SB Symphony Guild Donation is based on anticipated budgeted amount from this arm of the Symphony. IX. Income of the Organization. List grant awards received by the organization in the past 12 months, if any. Do not include pending requests. List other income for this project such as ticket sales, other sales, contributions, fundraisers, etc. The grants listed below cover the current fiscal year to date (FY 7/1/16- 6/30/17). Additional funds are pending to complete this fiscal year. None of the items listed below are specifically for application to the proposed 2017/18 project (although many covered the project in the last fiscal year). We have indicated with an asterisk those grants which were designated for the 2016/17 season concerts. Some of the other funding shown contributed to the provision of the operational aspects of concert services, but was not given directly for this use. Name of funding source Amount committed to this project San Manual Band of Mission Indians* $ 70,000 City of San Bernardino Fine Arts Commission* $ 46,000 James Irvine Foundation $ 33,000 (an additional $33K is pledges for 2017/18) David B. Gold Foundation $ 10,000 0 Southern California Edison Foundation* $ 5,000 Ann and Gordon Getty Foundation* $ 4,000 Bank of America Charitable Foundation* $ 2,500 Burlington Northern Santa Fe Railroad (BNSF)* $ 2,500 Children's Fund $ 2,500 Wells Fargo Foundation* $ 1,500 Association of California Symphony Orchestras (ACSO) $ 1,000 Inland Empire Community Collaborative (IECC) $ 500 Ticket Sales* $ 82,000 Contributions $135,000 Trios, Ensembles, and Contracted Concerts $ 64,856 Guthrie Music Library Revenue $ 13,000 Fundraisers $ 30,775 Investment Interest $ 34,500 Miscellaneous Income $ 372 TOTAL AMOUNT 1 $539,003 X. Future Objectives Through new and expanded partnerships with local businesses and non - profits, we are building a strong framework for continued success. We know our work with the schools is resulting in young people who are more culturally literate and, therefore, better prepared to take on the careers of tomorrow. We also know that our partnerships with local businesses are resulting in the largest number of audience members we have seen in many years. Our future objectives, therefore, are to continue along the same strategic track with an eye to even greater efficiency and growth. In addition to season and individual concert ticket sales, the following fundraising initiatives are currently in place, and during the 2017 -18 fiscal year will help to sustain the organization: • Classroom to Concert Hall — This program (previously mentioned) provides concert tickets to students and their families through the generous donations of individuals and businesses. Our goal — at the breakeven rate of $15 /ticket, is >300 seats per concert or approximately $22,500 in annual sponsored tickets. • Adopt -A- Musician — This is a donor engagement opportunity for those individuals interested in getting to know more about our musicians. Participants pay a minimum of $150 to "adopt" a musician of their choice and are provided with a Musician Trading Card and lanyard to wear to concerts, invitations to special Adopt -A- Musician events, and generally meet with their musician at our post- concert receptions. So far this fiscal year, this initiative has raised $11,000. • Annual Campaigns — the Symphony runs several annual campaigns geared at fundraising for a particular cause. Each December, we seek funding for our annual student concert, each Spring, we seek to cover remaining expenses for the soon -to -end fiscal year, etc. For these campaigns, letters are sent to past donors and concert attendees. • Concert Sponsorships — In addition to the concert sponsorships received through the grant application process, the Symphony offers the opportunity for individuals and businesses to make a donation toward all or part of the concert(s) of their choice. • Endowment Interest —the Symphony maintains several investments and endowments (both restricted and unrestricted). Because of the volatility of the current market, this year we have budgeted for a 2% withdrawal, but our Endowment Policy allows for up to 5 %. • Continuo Society —The Symphony maintains a planned giving program to allow those who love the arts lend their support well into the future through charitable estate gifts. A fund is in place 10 at San Bernardino's Community Foundation and new Continuo Society donations are placed there to increase the value of overall earnings. Grant Funding — The Symphony prepares grant applications year round. While arts funding is limited in our region, consistent efforts have yielded positive results. Grants are written to sponsor performers, student concerts, full concerts, student workforce development opportunities, and various special needs. Currently, there are $79,000 in outstanding applications and four major grant applications (including this one) are currently in process. Our average annual "win" rate is 67 %. Annual Guild Donation — The San Bernardino Symphony Guild presents two fundraising events each year for an average annual donation of $35,000. Their primary fundraiser is "Bach to Boots," a western - themed dinner gala held at the Burlingame Ranch in Lytle Creek (use of the location is donated by the owners). One other event is held with varying themes from "Golden Baton" galas recognizing a significant longtime contributor, as well as other creative options. XI. Provide a brief history /background of your organization /school project (s). (What you have done before in this category of the arts.) The San Bernardino Symphony has provided tens of thousands of residents in our community and region with concert programming and music education programs since our founding by James Kelly Guthrie in 1929. Guthrie believed communities with their own arts organizations were stronger and more desirable places to live than those without such resources. In line with this goal, then, we offer a relevant and affordable five - concert subscription season inclusive of a variety of music designed to appeal to a wide audience. We also offer two free student concerts to the San Bernardino City Unified School District and, on February 10, 2017, we are scheduled to serve more than 3,400 young people. These concerts are designed to support in -class study and the Symphony provides grade - level- specific coordinating learning platforms to prepare the young attendees, as well as in -class workshops for interested schools. In addition, our Symphony Docents meet with every local third grade class to introduce ocehstral instruments to each year (in fact, we have introduced over 140,000 children to orchestral instruments resulting in an annual 5% or greater increase in school music program participation!) This is particularly important because research indicates that early exposure to the arts results in greater levels of cultural literacy life long, and this is especially true in regions in populations facing socio- economic challenges. And, our certificated Symphony Debs and Red Tie Associates program for local teens teaches job skills and teamwork through volunteerism. So that no people group is omitted from opportunities for voluntary participation in the arts, we also perform in nontraditional venues, generally without charge to attendees. Through a grant from the James Irvine Foundation, this season, we began "Fine Arts Lunch Breaks," which are thrice - monthly 11:30 a.m. to 1:30 p.m. free musical ensemble performances at well - travelled venues in downtown San Bernardino. Further, as discussed, Funding has traditionally come from a number of sources, most prominently, grants and private donors. Over the past three years, we have expanded our donor database extensively and also added to the number of annual grant applications submitted... an important step toward meeting increasing costs and our desire to provide more free community concert events. However, several of our most significant major donors have passed on in the last few years, effectively negating the gains we had made. 11 Community support for these initiatives has come through an increased breadth of donations and ticket sales which indicate a broader regional reach. We are pleased to also note an upturn in audience age - diversity (as measured by the increased number of student tickets sold) which, we noted, was a previous concern of the Fine Arts Commission. Further, more than 48 discrete zip codes now identify the mailing addresses of our ticket buyers. 2016 -17 season ticket sales currently stand at over $57,000 and single tickets are on target to meet budgeted goals. XI. Attach a copy of your last fiscal year financial report, audited or unaudited. This does not apply to schools or parks. Failure to submit this will result in rejection of your application. Attached is a copy of the Symphony's most recent yearend audit prepared by Smith Marion & Company, LLP. CERTIFICATION Project Officer: r. Anne L. Viric I Title Executive Director Telephone No.: (909) 381 -5388 Date January 13, 2017 Email Address: alviricel@sanbernardinosVm honV.org 12 List Board of Directors and Officers (does not apply to parks and schools) (include names, addresses, and telephone numbers.) The following list applies to our 2016 -17 season. In 2017 -18, the President Elect will become President and the 15t and 2nd VPs will each move up. The new 2nd VP will be Dr. Jay Fiene. President Judith Valles *Indicates business address. 13 SAN BERNARDINO SYMPHONY ORCHESTRA (A Nonprofit Corporation) FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANTS' REVIEW REPORT FOR THE YEAR ENDED JUNE 30, 2016 47u,e,t�cC �l��r Tip SACO Smith Marion Cnm parry, i. Lf' FINANCIAL INFORMATION SAN BERNARDINO SYMPHONY ORCHESTRA STATEMENT OF FINANCIAL POSITION JUNE 30, 2016 ASSETS Current Assets Cash Restricted cash Subtotal cash Accounts receivable, net Prepaid expenses Total Current Assets Non - Current Assets Property and equipment (net) Investments Jones Trust Inventory Total non - current assets TOTAL ASSETS LIABILITIES AND NET ASSETS Current Liabilities Accounts payable Deferred revenue Total Current Liabilities Non- Current Liabilities Deferred Debt Total Non - Current Liabilities Total Liabilities NET ASSETS Unrestricted Temporarily restricted Permanently restricted Total Net Assets TOTAL LIABILITIES & NET ASSETS See accompanying notes and accountants' report 2 $ 56,145 4,970 61,115 18,317 10,247 89,679 4,537 704,601 129,962 371,958 1,211,058 $ 1,300,737 37,756 94,064 131,820 135,542 135,542 267,362 778,436 54,939 200,000 1,033,375 $ 1,300,737 SAN BERNARDINO SYMPHONY ORCHESTRA STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2015 NET CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets $ (134,415) Adjustments to reconcile change in net assets to net cash provided by operations: Non -cash Items Net Unrealized (gain) /loss on trusts (13,640) Net Unrealized (gain)/loss on investments (17,654) (Increase) decrease in cash due to: $ 61,115 Accounts receivable 29,393 Prepaid expenses (6,406) Increase (decrease) in cash due to: Accounts payable and accrued expenses (52,921) Deferred revenue 94,064 CASH (USED)/PROVIDED BY OPERATING ACTIVITIES (101,579) NET CASH FLOW FROM INVESTING ACTIVITIES Realized (gain) loss 55,780 Reinvestment of interest and dividends (30,714) Proceeds from sale of investments 117,399 CASH (USED)/PROVIDED BY INVESTING ACTIVITIES 142,465 NET CASH FLOW FROM FINANCING ACTIVITIES CASH (USED) /PROVIDED BY FINANCING ACTIVITIES Net Increase in Cash 40,886 Beginning cash and cash equivalents 20,229 Ending Cash and Cash Equivalents $ 61,115 SUPPLEMENTAL DATA: Interest paid $ - In -kind donations $ 45,000 Taxes paid $ - See accompanying notes and accountants' report 4 SAN BERNARDINO SYMPHONY ORCHESTRA NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 1. THE ORGANIZATION The San Bernardino Symphony Orchestra was founded in 1929 by Maestro James K. Guthrie, an internationally renowned conductor and community leader. The Orchestra is one of the longest - running and most prestigious in the Inland Empire, having completed 86 successful seasons. It was also the first fully professional ensemble of musicians in the region, boasting an unparalleled standard of musical performance under the dynamic leadership if its conductor, Maestro Frank Fetta. The San Bernardino Symphony Orchestra holds its subscription concerts in the California Theatre of the Performing Arts, a National Registry of Historic Places site. The Theater's unique aesthetics and acoustic design highlight the Symphony's deep and rich sound giving audiences an unmatched concert-going experience. The Mission of San Bernardino Symphony Orchestra is to present and maintain high quality, professional symphonic and classical music in San Bernardino County and the surrounding regions, and to foster and active music education program in the schools and in the larger community. The Symphony also maintains Maestro Guthrie's 5,000 -piece music collection as a rental library used extensively by colleges and symphonies nation wide. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accountina The Symphony maintains its books on the accrual basis in accordance with accounting principles generally accepted in the United States of America. Basis of Presentation The San Bernardino Symphony Orchestra is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Revenue Sources Revenues are received primarily from: dues, contributions, and ticket sales. Cash and Cash Equivalents For purposes of the statements of cash flows, the Symphony considers cash and all highly liquid investments available for current use with an initial maturity of three months or less to be cash. Contributions Contributions received are recorded as increases in unrestricted, temporarily restricted, or permanently restricted net assets, depending on the existence or nature of any donor restrictions. All donor - restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restriction. When a restriction expires (i.e. when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Promises to Give Unconditional promises to give are recognized as contribution revenue in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Promises to give are recorded at net realizable values if expected to be collected in one year and at fair value if expected to be collected in more than one year. Conditional promises to give are recognized when the conditions on which they depend are substantially met. NOTES TO FINANCIAL STATEMENTS (Continued) PROPERTY AND EQUIPMENT The composition of property and equipment and related accumulated depreciation as of year -end is shown below. Equipment (Shell) $ 53,476 Office Equipment 1,962 55,438 Accumulated Depreciation (50,901) Net Property and Equipment: $ 4,537 Depreciation expense for the year amounted to: $ 4. FAIR VALUE Fair value of investments at June 30, 2016, is comprised of the following: 5. INVESTMENTS Investments as of June 30, 2016 are comprised of the following: Investments: Mutual funds Money Market funds Total Investments Jones Trust Investment Return: Interest & dividends Unrealized gain/(loss) Realized gain/(loss) Investment fees Total Investment Return Net Appreciation/ Cost Fair Value Depreciation $ 813,056 $ 698,571 $ (114,485) 6,030 6,030 - 819,086 704,601 (114,485) 96,167 129,962 33,795 $ 915,253 $ 834,563 $ (80,690) 30,714 17,654 (55,780) (2,501) $ (9,913) Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Assets Inputs Inputs Investments: (Level l) (Level 2) (Level 3) 6/30/2016 Mutual funds $ 698,571 $ - $ - $ 698,571 Money Market funds 6,030 - - 6,030 Total Investments 704,601 - - 704,601 Jones Trust 129,962 - - 129,962 $ 834,563 $ - $ - $ 834,563 5. INVESTMENTS Investments as of June 30, 2016 are comprised of the following: Investments: Mutual funds Money Market funds Total Investments Jones Trust Investment Return: Interest & dividends Unrealized gain/(loss) Realized gain/(loss) Investment fees Total Investment Return Net Appreciation/ Cost Fair Value Depreciation $ 813,056 $ 698,571 $ (114,485) 6,030 6,030 - 819,086 704,601 (114,485) 96,167 129,962 33,795 $ 915,253 $ 834,563 $ (80,690) 30,714 17,654 (55,780) (2,501) $ (9,913) NOTES TO FINANCIAL STATEMENTS (Continued) 10. SPECIAL EVENTS The Symphony fundraising activities for the year are as follows: Direct Special Revenue Expenses Events Net Guild Fundraising $ 48,644 $ 14,037 $ 34,607 11. ACCOUNTS RECEIVABLE The Symphony's accounts receivable consist of the following: Accounts receivable Accounts receivable $ 1,142 Accounts receivable - Guthrie 1,889 Barter receivable 16,028 19,059 Less: Allowance for uncollectable receivables (742) Total accounts receivable $ 18,317 12. IN -KIND The Symphony receives free from local media outlets for the promotions of its performances. As of June 30, 2016, the value of the advertising was estimated at $40,000. The Symphony also receives free meeting space six times during the year. The value of the meeting space was estimated at $5,000. 13. DEFERRED REVENUE The Symphony currently has deferred revenue designated for the upcoming season: Deferred Season Deferred Grant Funds Total Deferred Revenue 14. SUBSEQUENT EVENTS $ 39,500 55,236 $ 94,064 Accounting standards require that San Bernardino Symphony Orchestra assess and disclose the date and the basis for that date through which potential subsequent events have been evaluated. The date represents the date the financial statements were issued or were available to be issued. The Symphony evaluated all potential subsequent events as of November 7, 2016 when the financial statements were authorized and available to be issued. No subsequent events or transactions were identified after the balance sheet date or as of November 7, 2016 that require disclosure in the financial statements. 10