Betsy Wallace Managing Director & CFO
Sundance Institute Mission Sundance Institute is a nonprofit organization dedicated to the discovery and development of independent artists and audiences. Through its programs, the Institute seeks to discover, support, and inspire independent film and theatre artists from the United States and around the world, and to introduce audiences to their new work.
Sundance Institute Year-round activities include: • 25 highly selective storytelling artist labs with 234 days of residency held primarily at the Sundance Resort in Utah with over 260 artists attending • Over 25 public and private filmmaking workshops held throughout the U.S. with over 2,000 attendees • $3.0 million direct artist grant program • 88 city tour throughout the U.S. of short films introducing audiences to the best of independent short films • 16,000 year round Utah community outreach programs for Utah residents and students • Sundance Film Festival held in Utah to provide audiences groundbreaking stories
Sundance Institute State Gross Domestic Product: $151,500,000 Utah’s total profit, employee compensation, and taxes generated by the Festival State and Local Taxes: $14,000,000 Return on Investment (based on hard dollars) 1789% ROI to the State of Utah Jobs Supported: 2,778 Sundance Institute and Festival attendee spending supported the addition of these jobs Total Festival Attendance: 71,600 (PC, SLC, Sundance Resort) Publicity Value: $90,900,000 Print, online and broadcast coverage resulted in more than 53,000 stories showcasing Utah to the world In total, print, online and broadcast coverage of the 2017 Festival resulted in more than 53,000 stories and $90,900,000 in publicity value. Over 950 registered press attended the Festival from 22 countries including Argentina, Australia, Brazil, Canada, Colombia, Czech Republic, Dubai, France, Germany, Italy, Luxembourg, Mexico, Poland, Romania, Russia, South Korea, Spain, Sweden, Switzerland, United Kingdom, and Venezuela.
The World of Non-Profit Finances Topics: Roll of Board of Trustees Non-profit Accounting Internal KPIs External Benchmarking with Peers
Responsibilities of the Board of Trustees
Responsibilities of the Board of Trustees • Hire and set compensation for the Executive Director • Trustees/Board members have both legal and fiduciary duties including reading and understanding financial statements so they can be good stewards of the organization’s funds • Governance including the need to oversee the day-to- day operations and have foresight in planning programs and operations • Board development and participation on board committees • Fundraising for the non-profit
Sundance Institute’s Boards • Board of Trustees - 25 Trustees including 4 Artist Trustees • Utah Advisory Board - 19 Three Committees: Community, Devo & Gov’t • Executive Director’s Advisory Board – 10 with 2 Trustees
Responsibilities of the Board of Trustees Suggest going through a thorough review every 5 years of how the board is doing. Sundance’s Board has hired a 3 rd party consultant that specializes in non-profit boards identified three primary focuses for this scope: A. Structure and Policy B. Dues and Revenue Generation C. Performance and Engagement DeVos Institute of Arts Management provides training, consultation, and implementation support for arts managers and their boards
Non-Profit Accounting
Non-Profit Accounting Accounting rules are a bit different but they do follow GAAP and FASB Smaller Non-Profits may want to outsource its accounting function (check references, check with UNA). Checks & Balances: Don’t give them access to your bank account, Get a monthly list of all checks issued and confirm Get monthly financial statements
Non-Profit Accounting Couple of FASB changes coming down that might effect you: • ASU 2016-14 which will significantly change the presentation of Financial Statements of Not-for- Profit Entities, is effective for fiscal years beginning after December 15, 2017 • On February 25, 2016 the FASB issued a new lease accounting standard that will impact almost all entities that have leases. It becomes effective for non-profits for fiscal years beginning after December 15, 2019
Non-Profit Accounting Temporarily Permanently Unrestricted restricted Funds restricted Funds Funds Donor- Funds received with Funds may be imposed restriction a donor- used for any that will be satisfied imposed restriction purpose within in the future that states that mission (generally within the donation must one year). The be maintained donor's restriction permanently, but may may be for a permit the particular purpose organization to use or program or for up or expend use in a specified part or all of time period the income derived from the asset.
Internal KPIs Data sources
4 over arching things to keep in mind.. Support your Mission, that is why people give you money Build your Strategic Plan and establish a Budget – Forecast monthly/quarterly to see how you are doing Know your business & burn rate - cashflow is King Margin is Mission – try not to spend every $$ you receive
Why Track KPI (Internal Key Performance Indicators)? ● Measure ourselves against our strategic goals. ● Ensure our investments in each program are working to meet our goals. When do you let a program go? ● Refine strategy based on findings (for current program and future programs). Dashboards are great to get a visual look at KPI’s To be updated bi-annually or in real time if tool allows. Sundance is using Domo’s visualization tool to:
Dashboard Visualization Tools to Report KPI’s
Sundance’s 4 data pillars Demographics Artist 1 (will feed into the 2 Development & Programs) Progression (includes Labs, other artist development programs, and Festival) Finance and Audience Engagement 3 4 Admin (includes Festivals and Public Audience Programs - (includes HR) MarComm, ticketing, IG, Foundations, Corporate, and Events analytics fall under this pillar)
Measure ourselves against our strategic goals. ● Artists Supported - total, demos (age, gender, ethnicity, current location-includes US vs. International) vs trending over time Audiences : - # of attendees at the Festival – Economic Impact Report - Website Metrics - Visitation (pages, uniques), average time on website, predicted demographics, summary of top pages visited + traffic sources, editorial (top stories)
Measure ourselves against our strategic goals. Finance – Actuals versus Budget, Annual FCT v Budget Total Revenue , contributed revenue (donor), earned revenue (merchandise, public/ticketed events (excluding Festival), Festival (passes, packages, tickets, credentials), cash endowment draw CashFlow – 13 month look back and 12 month projection rollforward
Ensure our investments in each program are working to meet our goals. When do you let a program go? ● First monitor the performance the Profit & Loss statement set up for the Program Set non-financial targets and look on an annual basis is the program working Cut a program if it is not working…difficult to do but you must shed to grow
External Benchmarking with your Peers Develop Annual Metrics
Benchmarking with Peers Form 990’s give a lot of annual information that is useful in determining metrics as to how you are doing – sign up for Charity Navigator! Revenues: Breakdown between Contributed, Endowment and Earned Revenues Expenses (Program Efficiency Ratios): Program services, Mgmt & General and Fundraising Salaries and Salaries & Benefits
Benchmarking with Peers BENCHMARKS FY17 Year End Revenue Metrics - Contributed Revenue $ 28,487,629 Endowment Draw 300,000 Earned Revenue 14,760,597 Total Revenue $ 43,548,226 Revenue Metrics - as a % of total revenue Contributed Revenue 65.4% Benchmark is 46%; Institute target is 58% Endowment Draw 0.7% Benchmark is 2%; Institute target is 2% Earned Revenue 33.9% Benchmark is 52%; Institute target is 40% Total Revenue 100.0% Benchmark: Similar Organizations include a sampling of 6 organizations - FIND, AFI, BAM, CA Institute of Arts, TED, Film Society at Lincoln Center Expenses (excluding in-kind) Program Services $ 32,331,361 Mgmt & General 7,296,078 Fundraising 3,171,137 Total Expenses $ 42,798,576 Program Efficiency Ratio Program Services 75.5% Benchmark is 70% min; Institute target 75% Management & General 17.0% Benchmark 20% max; Institute target 17% Fundraising 7.4% Benchmark 9% max; Institute target 8% Total Expenses 100.0%
Thanks!
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