Betsy Wallace Managing Director & CFO Sundance Institute - - PowerPoint PPT Presentation

Betsy Wallace Managing Director & CFO

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

• ver 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.

Sundance Institute

Topics: Roll of Board of Trustees Non-profit Accounting Internal KPIs External Benchmarking with Peers

The World of Non-Profit Finances

Responsibilities

• f 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

• rganization’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

• f how the board is doing.

Sundance’s Board has hired a 3rd 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

Unrestricted Funds Temporarily restricted Funds Permanently restricted Funds Funds may be used for any purpose within mission Donor- imposed restriction that will be satisfied in the future (generally within

• ne year). The

donor's restriction may be for a particular purpose

• r program or for

use in a specified time period Funds received with a donor- imposed restriction that states that the donation must be maintained permanently, but may permit the

• rganization to use

up or expend part or all of the income derived from the asset.

Internal KPIs

Data sources

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

4 over arching things to keep in mind..

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

(will feed into the Programs)

Artist Development & Progression

(includes Labs, other artist development programs, and Festival)

1 2

Finance and Admin

(includes HR)

Audience Engagement

(includes Festivals and Public Audience Programs - MarComm, ticketing, IG, Foundations, Corporate, and Events analytics fall under this pillar)

3 4

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% Endowment Draw 0.7% Earned Revenue 33.9% 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% Management & General 17.0% Fundraising 7.4% Total Expenses 100.0% Benchmark 9% max; Institute target 8% Benchmark is 46%; Institute target is 58% Benchmark is 2%; Institute target is 2% Benchmark is 52%; Institute target is 40% Benchmark is 70% min; Institute target 75% Benchmark 20% max; Institute target 17%

Thanks!