2. Houston Blues Museum
Pre-Incubator Class of 2013
To invest, impact, and inform
the administrative capacity of arts organizations
toward artistic excellence.
3. INVEST
Provide specialized support towards an organization’s infrastructure.
FINANCIAL BOARD
RESOURCES GOVERNANCE
ADMINISTRATIVE STAFF
SYSTEMS MANAGEMENT
6. Important Dates
• Part 1: Letter of Inquiry & Business Model
Template
– Deadline Friday, November 30, 2012
(5:00 p.m. - not a postmark deadline)
• Part 2: Invitation for Full Application:
– Invitations by Friday, December 7, 2012
– Deadline Friday, December 21, 2012
(5:00 p.m. - not a postmark deadline)
• Participants Announced January 2013
• Pre-Incubator Program Begins:
– February 1, 2013 through January 31, 2014
BooTown
Pre-Incubator Class of 2013
7. General Eligibility
• primary mission is the production or
presentation of arts and cultural programming.
• annual cash revenues (not including any HAA
grants) are between $10,000 and $75,000.
• IRS tax-exempt status must have been granted
at least one year prior to the grant application
deadline.
• produced or presented arts or cultural
programming open to the general public for at
least one year prior to the grant application
deadline.
Cover photo by Gabriella Nissen
• Individual artists who are structured through a
local or national fiscal sponsorship at the time of
deadline are eligible to apply.
Stark Naked Theatre Company
Pre-Incubator Class of 2013
8. Tips on Letter of Inquiry
• Use your organization letterhead
• List your board of directors (on margin)
• No more than 2 pages total
• Be succinct with your narrative regarding:
1. the organization, its mission and accomplishments;
2. specific challenges it is facing and its artistic goals and
organizational infrastructure over the next 12 months;
and
3. how the Pre-Incubator Program will help you achieve
those goals.
Korean American Society of Houston
Pre-Incubator Class of 2013
9. Tips on Business Model Template
• Mission: Keep it succinct. If you can say it in
one breathe, you have a mission statement.
• Market: Describe the who. Attendance records,
age, zip code, etc.? Narrow the field. Do not
make a broad statement (i.e. all of Houston).
• Programs: Describe the what. Identify
programs created within last 12 months. Be
brief & elaborate more in LOI. If possible,
include est. # of attendees per program.
• Revenue: Distinguish contributions from
program revenue.
• Expenses: Should be aligned with Programs
within last 12 months.
• Outreach: Describe the how. Is it through advertising,
collateral distribution, cross marketing, email marketing, snail
mailing lists, newsletters, press releases, event marketing, radio
interviews, print publications, social media, website, etc.?
• Other: Stay within the allotted 1 page format!
Make it short & sweet. Elaborate in the LOI.
10. Program Participation
Program Begins February 1, 2013
Six Month Review: February 2012 – July 2013
Strengthen governance,
management, financial 180 days
resources, and admin systems. 30+ action items
Panel Review for Capacity Funds August 2013
Capacity Fund Award
October 2013
Notifications
Focus on marketing & HAA October 2013 –
funding January 2014
Program Ends January 31, 2014 WindSync
Pre-Incubator Class of 2013
11. Pre-Incubator Benefits
Pre-
Incubator
Capacity
Management Funding
Services (up to $7.5K)
• Organizational Assessment Administrative Expenses:
rental fees, administrative salaries, financial
• Attend12 Monthly Incubator Meetings management systems, website development,
on Governance, Financial Resources, strategic consultancy, etc.
Management, & Marketing Program Expenses:
• Access to Incubator Organizational artistic fees, production expenses, marketing &
Learning Database public relations expenses, etc.
12. Capacity Building Grant
• High performing Participants are funded
(Year 1 = 6 awards out of 11 Participants)
• Unrestricted grant award up to $7,500
• Grant is distributed in 2 installments:
– 80% by October 2013 upon signed
agreement
– 20% by early Spring 2014 pending Final
report Approval
Mildred’s Umbrella Theater Company
Pre-Incubator Class of 2013
14. The Initiative at-a-glance
PROGRAM: Pre-Incubator Incubator Accelerator Sustainability
Develop orgs from Incubate orgs from Accelerate orgs from Sustain mature orgs through
Goal idea to start-up start-up to growth growth to maturity decline & turnaround
Partnership Term 12 months 36 months 12 months 12 months
Limited awards of $15,000/year Up to Up to
Investment $5000 - $7500 for three years $10,000 - $20,000 $20,000
Client residency, Caapcity funding for
Capacity funding for
Management services & management multiyear strategic
Services capacity funding services, & capacity planning or
multiyear strategic planning
or implementation
funding implementation
Client budget size $10K - $75K $75K - $200K $100K - $750K $750K+
Client staff size 0 – 1 FTE 0.5 – 2 FTE 2 – 4 FTE Staff > 3 FTE
(Full Time Equivalent)
Class of 2013 Class of 2013 Class of 2012
Art Cars of Houston Brazilian Arts Hope Stone Inc. Class of 2012
Aperio Foundation HITS Theatre
BooTown Class of 2013
The Back Porch Players Classical Theatre Aurora Picture Show MECA
26 Houston Blues Museum Company
KASH Buffalo Soldiers Class of 2013
Current Lone Star Lyric Theatre Festival Dance Source National Museum Mercury
Participants Mildred’s Umbrella Houston
NobleMotion Dance FrenetiCore
The Rothko Chapel
Stark Naked Theatre Company Freneticore Musiqa Inc.
WindSync
InterActive Theatre River Oaks Chamber
Company Orchestra
Accepting new
November 30, 2012 May 2013 May 2013 May 2013
Applications
16. Participant Profile:
“The mission of NobleMotion Dance is to make work that is emotionally daring and
honest; inspires discourse and understanding amongst diverse communities; and
integrates dance, theater, and technology in unique ways.”
• Incorporated in 2009
• 2011 operating budget = $20,000
• Main challenge NMD faces is raising enough funds to
keep up with the company’s growing artistic demands:
• Increase pay for NMD dancers
• Expand the board of NMD
• Increase organizational support by compensating staff
• Increase visibility through marketing of NMD’s performances & services
• Move NMD performances to a larger venue
Enters the Pre-Incubator Program on Feb 2012
17. Participant Profile:
$70,000 Through Pre-Incubator:
$60,000
“… [it] has served as a crash course on how to manage a
non-profit arts organization. This invaluable experience has
introduced us to new accounting, management and
$50,000
fundraising practices that have transformed
the way we operate as a functioning
$40,000
organization.”
- Andy Noble, Executive Director
$30,000
$20,000
$10,000
$-
2010
2011
2012
2013
2014
Total Revenues (TR) Total Expenses (TE) Earned Income
Linear (Total Revenues (TR)) Linear (Total Expenses (TE)) Linear (Earned Income)
Source: Unaudited financial statements 2011 – 2012 & projected budget
submitted by Participant through Pre-Incubator Program.
18. Arts Project Grant (APG) $2,500
HAA IMPACT Pre-Incubator Grant:
Towards program related expenses $7,500
and staff management
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
2010
2011
2012
2013
2014
Total Revenues (TR) Total Expenses (TE) Earned Income
Linear (Total Revenues (TR)) Linear (Total Expenses (TE)) Linear (Earned Income)
Source: Unaudited financial statements 2011 – 2012 & projected budget
submitted by Participant through Pre-Incubator Program.
19. Incubator Class of 2013
Current Incubator profile:
• 4 to 11 years in existence
• $100K to $300K budgets
• 1.5 to 2.5 staff members
From left to right:
JJ Johnston (Classical Theatre Company),
Angela Foster (InterActive Theatre Company), Rebecca
French (FrentiCore),
Mollie Miller (Dance Source Houston/ FrentiCore),
Mauricio Campos (Brazilian Arts Foundation),
Stephanie Wong (Dance Source Houston)
21. Participant Profile:
“CTC is dedicated to boldly re-envisioning classical drama on stage, in the community,
and in the classroom through engaging and enlightening plays – brining them new life
and relevance while maintaining the integrity that the works deserve.”
- Mission Statement
• Founded in 2007
• 1st Year operating budget = $8,000
• 2 full productions in the Inaugural season
• Office space in board members home
• 4 founding board members
• 1 volunteer unpaid Executive Artistic Director
Enters the Arts Incubator Program on Sept 2010
22. Participant Profile:
From 2008 to 2012:
$350,000
• 10 full productions totaling 118 performances
$300,000
• 2400% budget growth ($8,000 to $200,000)
$250,000 • New performance venue - Studio 101
• 12 CTC Board of Directors
$200,000
• 3 Full Time Paid Staff
$150,000
$100,000
$50,000
$-
2014
2007
2008
2009
2010
2011
2012
2013
Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)
Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))
Source: IRS Form 990 from 2007 – 2011.
23. Participant Profile:
Organizational Budget Profile (2008-2012)
$350,000
$300,000 3 Year Incubator Program $45,000
$250,000 HAA IMPACT APG GOS Arts Marketing Grants $42,900
BVA Program Patron Manager Arts Database
$200,000
$150,000
$100,000
$50,000
$-
2014
2007
2008
2009
2010
2011
2012
2013
Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)
Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))
Source: IRS Form 990 from 2007 – 2011.
24. Participant Profile:
Organizational Budget Profile (2008-2012)
$350,000
“Without question, one of our most supportive funders has been the
$300,000 Houston Arts Alliance. Whether it is through Project Grants,
$250,000 HAA IMPACT General Operating Support grants or the CBI programs, CTC would
certainly not be where it is today without the support of HAA.”
– JJ Johnston, Executive Artistic Director
$200,000
$150,000
$100,000
$50,000
$-
2014
2007
2008
2009
2010
2011
2012
2013
Total Revenues (TR) Total Expenses (TE) Ending Net Assets Earned Income (EI)
Ending Cash Balances Linear (Total Revenues (TR)) Linear (Total Expenses (TE))
Source: IRS Form 990 from 2007 – 2011.
26. Participant Profile:
“Mercury servesFinancial History Profile (2003 – 2011)power of music,
the community by celebrating the
Baroque and beyond, teaching sharing and performing with passion,
$1,200,000
Total Revenues
(TR) intimacy, and excellence.”
$1,000,000
Total Expenses
(TE) $800,000
•
Ending Net AssetsFounded in 2000
$600,000
• Performed 3 public concerts 1st year
$400,000
•
Earned Income
(EI) 3 founding members
•
$200,000
Ending Cash Ensemble managed from home office
Balances (ECB)
• 1st Year operating budget = $15,000
$-
2003
2004
2005
2006
2007
2008
2009
2010
2011
• Hired 1st PT Executive Director in 2005
Enters the Arts Incubator Program in 2003
27. Participant Profile:
$1,200,000
Total Revenues
(TR)
$1,000,000
Total Expenses
(TE) $800,000
Ending Net Assets $600,000
$400,000
Earned Income
(EI)
$200,000
Ending Cash
Balances (ECB)
$-
2003
2004
2005
2006
2007
2008
2009
2010
2011
Capacity Building Incubator Accelerator Accelerator Accelerator Accelerator Sustainability
(‘03-’06) (2013)
Investments (2005) (2007) (2009) (2011)
• Part time • Part time • Part time • Earned Create a
Executive Marketing Development Income Multi-Year
Director Hire Director Hire Director Hire Generation Strategic Plan
Source: IRS Form 990 from 2003– 2011.
28. Participant Profile:
$1,200,000
Total Revenues
(TR)
• 436% revenue growth in 7 years
•
$1,000,000
Total Expenses
Performing over 50 concerts a season
(TE) $800,000
• 27 board members
Ending Net Assets $600,000 • 6 staff members (4 added through HAA’s
$400,000
Capacity Building Initiative)
Earned Income
(EI)
$200,000
Ending Cash
Balances (ECB)
$-
2003
2004
2005
2006
2007
2008
2009
2010
2011
Capacity Building Incubator Accelerator Accelerator Accelerator Accelerator
Sustainability
(‘03-’06) (2005) (2007) (2009) (2011)
Investments
• Part time • Part time • Part time • Earned
Executive Marketing Development Income
Director Hire Director Hire Director Hire Generation
Source: IRS Form 990 from 2003 – 2011.
30. Capacity
Building
Initiative
Business
Grants
Volunteers
Program
for the Arts
strengthen
our
beneficiaries
Arts
Power2Give.org Database
Program
Patron
Manager
CRM
Photo courtesy of Voices Breaking Boundaries
Incubator Class of 2011
31. Questions?
Please contact:
Jerome Vielman
Programs & Services Manager
Houston Arts Alliance
3201 Allen Parkway, Suite 250
Houston, Texas, 77019
Direct: 713.581.6122
Email: jerome@haatx.com
www.houstonartsalliance.com
