December 1, 2011 - June 30, 2012



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Performance times 24 Hours a Day

Ticket pricing Whatever Works for You

Frequently Asked Questions

Q: Is the Theatre really going to close?

The Theatre needs to raise $350,000 before December 31, 2011 to ensure that we will finish our scheduled season performances through June. We have currently raised $240,389 (as of December 14). We need to raise an additional $400,000 before our fiscal year ends on June 30, 2012, in order to open our 2012-2013 season in the Fall of 2012. If we fall short of this goal, there is a real possibility that the Theatre will not embark upon a 31st season.

Q: Why does the Theatre need donations? Don’t you sell tickets?

The Theatre raises 65% of its annual $1.6 million budget from ticket sales. Because we are a 501(c)(3) not-for-profit organization, the remainder comes from tax-deductible donations. These donations come from individuals, companies, and foundations. Less than 3% of our funding comes from the government in the form of Georgia Council for the Arts and the City of Marietta. We could, as some have suggested, raise our ticket prices to generate more income, but as a not-for-profit we try to keep our ticket prices on the low side so that more members of the public can attend and enjoy our work.

Q: Why, all of a sudden, is the Theatre struggling to survive?

For Theatre in the Square, the economic crisis began in the fall of 2007, when the home sales market collapsed. Many of our corporate funders were homebuilders, and over the next 18 months, we lost 75% of all our corporate support. As the economic downturn wore on, the remaining corporations and foundations started to see their reserves shrink and their budgets decrease. Corporations began withdrawing or reducing the monies they spent outside their companies, necessarily cutting back their expenditures in the areas of marketing, sponsorships, and philanthropic initiatives.

Foundations suffered as well. Foundation revenue is generated through the investments of cash reserves. Each year, a foundation’s investments are generally low risk, sound ones, and profits generated go back into the principle of the fund. Then the foundation gives away approximately 5% of its principle annually to non-profit organizations of their choosing. As the stock market lost its value and individuals saw their portfolios decrease in value, foundations’ earnings also decreased and losses began to occur. The amount of money available to give away was reduced - in some cases, very dramatically. With fewer dollars to give, fewer organizations received contributions. Many organizations lucky enough to continue to receive grants, such as our Theatre, saw giving continue at much reduced levels.

From a ticketing perspective, while we continued to see audiences in our theatres for all of our shows, we did notice a drop in season ticket purchases and in some cases, drops in ticket sales. Unfortunately, Theatre in the Square is among many performing arts organizations locally and nationally to experience this. Many habitual theatre goers were cutting back themselves, and leisure purchases such as vacations, performance tickets, and subscriptions slowly began to decline. The loss of fundraising income combined with slower ticket sales has led to the Theatre’s financial challenges.

Q: Has the Theatre made any effort to trim its costs and cut back its budget?

Yes. Part of the reason that the Theatre had been as financially stable as long as it had been is because of the quality of our artistic and administrative staffs. Our team members have always had tight budgets, hugely aware that the monies they spend on various initiatives came directly from individuals in our community who expect that we maximize each dollar earned. Our team is terrific. And creative. They have always produced great work with modest budgets.

However, when we began to feel a decrease in income, we looked at our budget again. We determined that it would not be easy, but that we could do our best to eliminate a few labor intensive projects with lower revenue and thus cut expenses. In addition, as of the summer of 2011, we have gone through two rounds of layoffs. Team members who remained with the Theatre took on additional responsibilities and workload.

When income really started declining, we asked our team members to accept a 10% pay cut (our leadership team took 20%) and to pay more out of pocket for their health insurance benefit. In exchange, we were able to keep the remaining staff employed. We encourage staff members to work from home on Mondays, eliminating the need to keep lights and machinery on all that day in the offices.

At about the same time, we experienced turnover in our administrative departments – Development and Marketing included. As you might imagine, a lapse in fundraising and marketing at a time when the Theatre was experiencing shortfalls in revenue and ticket sales further complicated our ability to bring in dollars.

Q: How big a part does debt play in this financial crisis?

Fortunately, not a very large part. However, we do have vendor obligations that we need to meet. A surprising number of vendors actually waived our bills and turned our debt to them into in-kind gifts to the Theatre. Many vendors who did not have the ability to completely waive what we owed them either reduced the total amount of our invoices or have agreed to let us pay them in installments, or at a point in the future when the monies are available.

Q: How much money is needed to “save” the Theatre? And how long will this ensure the Theatre’s viability?

Long story short, we need $750,000 to pay off our vendor debt, finish the current season, and ensure the next season of performances.

In order to keep the Theatre open through June 2012 (our current season), we need to raise $350,000 by December 31. We currently sit at having raised $240,389 (as of December 14). These dollars will enable us to hire two Development and Marketing staff members to fill current vacancies and specifically address our fundraising and marketing needs. Furthermore, these dollars will ensure our ability to carry out our two current productions, Sanders Family Christmas and The 1940s Radio Hour as well as prepare to open our next performance scheduled in February: The Ladies Man.

The next $400,000 will enable us to complete the scheduled season with Red Letter Jesus, Flyin’ West, and Tuna Does Vegas. Our administrative staff will be able to begin implementing a comprehensive fundraising and marketing strategy for the next five-year period. Our artistic staff will be able to identify the next season’s worth of performances and begin to build the teams necessary to hire actors and stage staff for the 2012-2013 season.

And most importantly, this money will be used to repay all those vendors to whom we currently owe funds. Having eliminated our operating debt, we will be able to focus solely on our future needs and plan accordingly.

Q: Why would I give the Theatre money when it could just shut down?

First of all, EVERY CONTRIBUTION HELPS! And with every person who chooses to give, our chances for survival increase. We are very close to raising the first $350,000 we need by year’s end. And if we achieve this goal, we are that much more confident in reaching our next goal next year. We will have more time to plan and more time to work with you and all of our supporters on the various means through which your support will help us succeed.

Q: Why do we need to give to the Theatre in the Square? Isn’t there another theatre on the square? Isn’t that too much?

Theatre in the Square brings over 50,000 people to the square annually and this translates into more than $750,000 for local businesses. Many of our staff members and patrons eat and shop and live on and near the square every day. Our patrons of all ages will find at least one if not several performances that fit their interests every year. The Theatre on the Square has made Marietta a destination by bringing high-quality professional theatre to the city for 30 years. It is a source of pride for Marietta and indeed, the state of Georgia.

Just across the Square, the Earl Smith Strand Theatre is among the historic buildings on the square and was newly renovated three years ago. The Strand is a venue that many organzations use for movies, music, theatre, receptions, and the like. We are not a competitor of the Strand, in fact, we have partnered with the Strand in the past and may do so again in the future.

Q: What are you going to do differently? In other words, how will you avoid this type of financial situation in the future?

For one, we are diversifying our revenue stream. We have, in the past, counted on 65% of our income to be generated through ticket sales. We would like that number to be a bit smaller. We would like to increase our revenue stream through fundraising mechanisms: individual and corporate donors, gifts of stock, planned gifts, special events, grant requests, expanded annual fund dollars, and increased levels of in-kind gifts (such as print needs, lumber for sets, etc.)

We plan to barter more with the community, trading services with other organizations to eliminate the need for exchanging cash for services and enabling us to share our skills and assets with other organizations willing to do the same.

We plan to expand our marketing initiatives in order to offer the best tickets and packages to the most diverse audiences possible. We will continue to explore areas of marketing both through traditional media as well as through digital communications. We will coordinate our marketing and development initiatives with one another and over a longer term than we have been able to do before. We will work with our Board of Directors to update our strategic planning and make sure that we are meeting the needs and desires of this community when it comes to high-quality theatrical performances.

Q: Will the types and quality of performances be altered?

Yes and No. We are planning ahead for the performances in our next seasons by keeping in mind what our community wants to experience. This might mean that we add to our performance lineup in certain years and we remove certain performances in others. We will not compromise on the quality of the performances in any area. We always strive to hire the best performers, the best directors, musicians, designers, choreographers, technical crew, and staff we can possibly recruit to ensure that no matter what you experience with us, no matter what your familiarity with the subject matter, you will be exposed to fantastic performances certain to entertain.

Q: Who makes up our Board of Directors and what are they doing to address the financial issues?

Our Board members meet regularly in full board meetings and in committees to address the needs of the organization. Each one of our Board members makes substantial financial contributions to the Theatre every year - often multiple times per year. Our Board works diligently to forge relationships between the Theatre and corporations locally, obtaining services and products for us at free or reduced rates. Our Board members attend our shows, bring their friends, and promote the Theatre to their friends, colleagues, families, and acquaintances. Our Board remains optimistic that the Theatre will have a long and vibrant future but they are counting on our community to support us and work with us to make that happen.

You can see our Board list here.

Q: How can I help?

First, we are asking all our supporters to give as generously as possible to the Theatre. If you have never donated to the Theatre but enjoy what we do or appreciate our presence in Marietta and on the Square, please donate. Your contributions are tax deductible and go far in contributing to our shared success. If you have given to us before and have more room to give, please renew your support. We will strive to make our financial asks as few as possible and we will make every dollar work for the theatre to the extent possible.

Give from our Wish List. There are a few very specific needs we have for sets (lumber!) and for printing (copy paper! Envelopes! Office supplies!) Call us! Tell us what you might have to offer and we will let you know if it is something that would prove useful in our projects.

Do you have stocks or bonds? You could donate one or more shares of stock through our brokerage firm. It’s not cash out of your pocket but it is cash to us and we certainly appreciate that!

Do you have an old automobile (or truck or motorcycle or boat) that you need to offload? It doesn’t even have to run. Call us about donating it. There is a simple process and it gets rid of a burden for you while earning cash for us. And, it’s tax deductible!

Find out about your company’s matching gift program. Many corporations match employee gifts to not-for-profits by 50-200%. Some corporations will continue to do so even after you’ve retired from the company.

Volunteer with us! We have a variety of needs for volunteers – from the box office to the administrative offices to pre-show ushering. Some jobs are people jobs. Others are desk jobs. There is surely something for every person’s skill and interest level.

Consider joining our Board of Directors! Call us at 404-556-4737 x34 to find out more about the commitments involved.

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