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

REPORT OF THE CHIEF EXECUTIVE: 2018 BUDGET PREVIEW

SECOND PRESENTATION 10AM – 12 PM OCTOBER 23, 2017 IFAA OFFICES, 404 KIVA COURT, SANTA FE

2018 IFAA BUDGET LENS

WHAT ARE THE ESSENTIALS? IF “MORE WITH LESS” . . . WHAT DOES THAT LOOK LIKE? WHAT ARE HIGH-IMPACT/HIGH-VALUE ELEMENTS . . . AND TRADE-OFFS? WHAT’S A BETTER EQUILIBRIUM FOR IFAA/IFAM SUSTAINABILITY?

2018 IFAA BUDGET: PROPOSAL TODAY

$3.154 MILLION 0.45% VS. 2017 WE’RE USING THESE REVENUE ASSUMPTIONS $1.70 MILLION CONTRIBUTED $1.433 MILLION EARNED SINCE 2014

• 3.5% CONTRIBUTED

+ 52.22% EARNED

2018 IFAA BUDGET: ASSUMPTIONS

HEDGE 2018 MARKET: $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)

CAVEAT: <$10K STAYS AT 10%

$1,287,819 $935,824 $291,366 $186,800 $126,110 $326,142

FY18 TOTAL EXPENSES: $3.154M

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)

$420,000 $582,600 $134,000 $46,000 $122,125 $128,750

FY18 TOTAL EARNED INCOME – NO CONTRIBUTIONS: $1.433M

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 BUDGET: REVENUE HISTORY 2014-2018

CONTRIBUTED INCOME 2014 $1,761,570 (goal) 2018 $1,700,000 (goal) = 3.5% decrease from 2014 to 2018 EARNED INCOME 2014 $941,730 2018 $1,433,475 (goal) = 52.22% increase from 2014 to 2018

BUDGET REVENUE: 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% =

BUDGET REVENUE: CONTRIBUTIONS 2014-2017 GOALS + 3% VS. ACTUALS GOALS ACTUALS

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

$1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 FY14 FY15 FY16 FY17 FY18 MILLIONS

OPERATING BUDGET VS. CONTRIBUTED INCOME: 2014-2018 (2018 = projection)

TOTAL OPERATING BUDGET TOTAL CONTRIBUTIONS

$2.740M $2.816M $1.622M $1.686M $1.571M $1.70M $2.703M $3.140M $2.00M

Projected

$3.154M

$1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 FY14 FY15 FY16 FY17 FY18 MILLIONS

OPERATING BUDGET VS. CONTRIBUTED INCOME: 2014-2017 Goals vs. Actuals Assuming $1.6M in 2017 = ~$700K

TOTAL OPERATING BUDGET TOTAL CONTRIBUTIONS

$2.740M $2.816M $1.70M $1.60M? $2.703M $3.174M

Projected

$3.154M

SUSTAINABLE GROWTH VIA REPLICATION & SCALE: 30% IFAA SHARE OF MARKET SALES (NO TIX, BOOTH, SPONS, SOFT BRAND, OTHER)

• YR. 1 (ARTISTS)
• YR. 3
• YR. 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)

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$900K $1.80M $3.60MLK @ 30% $270K $600K $1.2M

DISCUSSION