Yesterday I was a guest on WNYC’s Soundcheck (about 15 minutes into the audio file), to discuss the challenges nonprofit arts organizations face during economic hard times. The lead-in to the conversation was this article by Daniel Wakin in the New York Times. The Swiss bank behemoth, UBS, had decided to pull its $10-million annual promotional spending and financial support from the UBS Verbier Orchestra, and refocus its giving on the International Music Festival of Lucerne.
The question was whether the decision was tied to UBS’ disastrous financial status.
From the little information available, it seems that the shift is more an issue of fit than financing for UBS, but such re-evaluations of all resource allocations are certainly expected in tougher economic times. The conversation on WNYC focused on whether this shift should be a warning for other arts organizations relying on corporate sponsorship, and what they should do to prepare.
Big-ticket corporate sponsors are wonderful means of support and promotion, but of course they carry a risk. As American Ballet Theater discovered in their kerfuffle with Movado back in 2003, or as the [insert merger-and-acquisition corporate name here] Celebrity Series of Boston discovered in their multi-name history (Bank of Boston, BankBoston, FleetBoston Financial, Bank of America, then nothing), high-profile corporations can be fickle friends.
As with most other forms of revenue, major corporate sponsorship is a matter of continual risk assessment, and thoughtful contingency planning (how boring does that sound?). There are a few things you can do to prepare for tough economic times. But nothing beats a voracious awareness of your environment, a continual eye on the health and happiness of your biggest supporters, and an iron stomach for the roller coaster of economic fate.
