REPORT OF THE CHIEF EXECUTIVE: 2018 B UDGET P REVIEW S ECOND P - PowerPoint PPT Presentation

REPORT OF THE CHIEF EXECUTIVE: 2018 B UDGET P REVIEW S ECOND P RESENTATION 10 AM – 12 PM O CTOBER 23, 2017 IFAA O FFICES , 404 K IVA C OURT , S ANTA F E

2018 IFAA B UDGET L ENS W HAT ARE THE ESSENTIALS ? I F “ MORE WITH LESS ” . . . WHAT DOES THAT LOOK LIKE ? W HAT ARE HIGH - IMPACT / HIGH - VALUE ELEMENTS . . . AND TRADE - OFFS ? W HAT ’ S A BETTER EQUILIBRIUM FOR IFAA/IFAM SUSTAINABILITY ?

2018 IFAA B UDGET : P ROPOSAL T ODAY $3.154 MILLION 0.45% VS . 2017 W E ’ RE USING THESE REVENUE ASSUMPTIONS $1.70 MILLION CONTRIBUTED $1.433 MILLION EARNED S INCE 2014 - 3.5% CONTRIBUTED + 52.22% EARNED

2018 IFAA B UDGET : A SSUMPTIONS HEDGE 2018 M ARKET : $3.0 MILLION IN SALES 4%-5% INCREASES AMONG MAIN IFAM CONTRACTORS $0 ALLOCATION FOR OPERATING RESERVE , STAFF DEVELOPMENT , SEARCH FIRM FEES DELAYED HIRES / NON - FULL - TIME STAFF WHERE POSSIBLE SUSTAINABLE STAFFING : 4- PERCENT STAFF COLA , SEASONAL HIRES IN ARTIST RELATIONS , FINANCE & ADVANCEMENT SIGNIFICANT SHIFT TOWARD ARTISTS AS FINANCIAL PARTNERS : YEAR ONE 90%, THEREAFTER 80% MINIMUM ( ALL VENUES ) C AVEAT : <$10K STAYS AT 10%

FY18 TOTAL EXPENSES: $3.154M $126,110 $326,142 $186,800 $1,287,819 $291,366 $935,824 Salaries, Payroll Taxes & Benefits SF Market /SF Market Artist Logistics/ Ambiance / Volunteers Advancement Marketing & Communications Artist Development / Community Outreach/Selection & Placement Other (Facilities, Outreach Markets, Pop-ups, M&E, Board, Overhead less Salaries)

FY18 TOTAL EARNED INCOME – NO CONTRIBUTIONS: $1.433M $128,750 $122,125 $46,000 $420,000 $134,000 $582,600 Ticket Sales Artist Handling Fee (Dallas Santa Fe Markets) Booth Rentals (artist booths and other vendors) Sales at Market - Ambiance, Best of the Best (after cost of goods sold is subtracted) Popup and Book Sales (after cost of goods sold is subtracted) Other (Artists Tuition, Guest Registration, 15th Anniversary Dinner, Pre-Market Events, Arlington Sister Market)

2018 B UDGET : R EVENUE H ISTORY 2014-2018 C ONTRIBUTED I NCOME 2014 $1,761,570 (goal) 2018 $1,700,000 (goal) = 3.5% decrease from 2014 to 2018 E ARNED I NCOME 2014 $941,730 2018 $1,433,475 (goal) = 52.22% increase from 2014 to 2018

B UDGET R EVENUE : CONTRIBUTION GOALS ( NOT ACTUALS ) 2014-2017 ASSUMES 3% GROWTH ANNUALLY 2014 $1.762M + 3% = 2015 $1.815M + 3% = 2016 $1.869M + 3% = 2017 $1.925M + 3% = 2018 $1.983M + 3% =

B UDGET R EVENUE : CONTRIBUTIONS 2014-2017 G OALS + 3% VS . A CTUALS G OALS A CTUALS 2014 $1.762M + 3% $1.622M 2015 $1.815M + 3% $1.686M 2016 $1.869M + 3% $1.571M 2017 $1.925M + 3% $1.9M – adjusted & in progress... 2018 $1.983M + 3% $1.7M budgeted

OPERATING BUDGET VS. CONTRIBUTED INCOME: 2014-2018 (2018 = projection) TOTAL OPERATING BUDGET TOTAL CONTRIBUTIONS $4.0 MILLIONS $3.5 $3.154M $3.140M $2.816M $3.0 $2.703M $2.740M $2.5 $2.00M $2.0 $1.70M $1.622M $1.686M $1.5 $1.571M $1.0 Projected FY14 FY15 FY16 FY17 FY18

OPERATING BUDGET VS. CONTRIBUTED INCOME: 2014-2017 Goals vs. Actuals Assuming $1.6M in 2017 = ~$700K TOTAL OPERATING BUDGET TOTAL CONTRIBUTIONS $4.0 MILLIONS $3.5 $3.154M $3.174M $2.816M $3.0 $2.703M $2.740M $2.5 $2.0 $1.70M $1.60M? $1.5 $1.0 Projected FY14 FY15 FY16 FY17 FY18

SUSTAINABLE GROWTH VIA REPLICATION & SCALE: 30% IFAA SHARE OF MARKET SALES (NO TIX, BOOTH, SPONS, SOFT BRAND, OTHER) Y R . 1 ( ARTISTS ) Y R . 3 Y R . 5 MKT 1 $150K (30) $300K (40) $600K (50) MKT 2 $300K (60) $600K (70) $1.2M (80) MKT 3 $450K (90) $900K (110) $1.8M (130) _______________________________________________________ $900K $1.80M $3.60M LK @ 30% $270K $600K $1.2M

DISCUSSION