A bar and rentals have helped fund operations, some of which are offered free to groups in the community. Alcohol sales are way down and this is affecting every hospitality-based building. Legion halls and veterans associations have had to close if bar sales were their main source of revenue. And so it goes with non-profits.
In the case of the WECC, the issue of heating and cooling from their ancient HVAC system has been setting them back for years in the thousands. It can put organizations in a lot of debt. Just ask the Manitoba Theatre for Young People that just retired $1.5 million in debt with a capital campaign that raised $9 million. It also created a $1 million endowment.
At least three arts groups have closed because of money woes in the last little while. The heavy reliance on government funding is not enough enough. Even the WECC says it likely needs corporate support. The 380 seat performance center has been more innovative in how they book events but the music industry has really been hurting in recent years and a hall can't really get by with only several booked dates a month.
The big arts groups in Winnipeg were slow compared to American arts groups. The Royal Manitoba Theatre Centre hasn't revealed their endowment recently citing privacy rules but they do receive $1 million a year from the investments. That would at least be $20 to $40 million in an endowment. It is thought that the endowment is probably close to the $30 million mark. The younger Guthrie Theatre in Minneapolis is thought to have $70 million U.S. in their endowment. That is just under a whopping $100 million in Canadian.
The Winnipeg Art Gallery also has a multimillion endowment that follows their $65 million expansion. They add to theirs by selling part of their collection when they have quite a lot of an artist's works. Some arts groups also make money from value added services such as schools and seminars that come in addition to the main product they sell whether that is music, art or entertainment. Even private businesses such as McNally Robinson have value added with their restaurant and their classes.
The West End Cultural Centre has to do more than book talent as a rental hall and make money from the diminishing returns of a bar. They seem to have the right idea about seeking out support but it has to be more than a one-off of $50,000 for a budget shortfall. The response of getting $70,000 is wonderful but the WECC needs to assess its needs now and into future. It should possibly look at a capital projects upgrade where sponsors can be involved. This requires priorities as well as vision. It cannot be periodic support. It may be an annual donation request or bequests for those who pass away to include in their wills.
It is hard running a not for profit at the best of times. The need for volunteers, consistent use by the community and a steady stream of booking dates is hard enough to organize never mind thinking about mid to long term planning. It is promising that so many rushed to help support the WECC when they needed it but the next 30 years may require millions of upgrades and the time to think about it is now.
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