A model with proven results

Kentucky Opera closes in the black again

LOUISVILLE, KENTUCKY – (July 20, 2011) Kentucky Opera is again proud to announce it closed fiscal year 2011 on May 31, with a budget surplus, which marks the second consecutive year that the organization has ended in the black. This is a significant achievement given the current financial environment that has witnessed a decline in both corporate stewardship and government funding to arts organizations.

David Roth, Kentucky Opera’s General Director, says, “We are now fully reaping the benefits of the restructuring plan we initiated in 2007. This new model increased the artistic relevance of Kentucky Opera and has made our organization both financially viable and flexible, while preparing the company to meet future challenges in a dynamic economy. We have maintained three mainstage productions, as we added a concert opera performance in Owensboro and developed the Composer Workshop residency program which will have long-term effects in our industry and community.”

Though the strategic restructuring required many vital changes to the company, the most important benchmarks Kentucky Opera achieved over the past four years include:

February 2007: Adopting a Five Year Strategic Plan to increase the artistic relevancy of the company while stabilizing it financially.
July 2007: Relocating administration to ArtSpace – reduced overhead through subsidized rent from the Fund for the Arts.
July 2008: Merging key departments with the Louisville Orchestra including Marketing/Public Relations, Box Office, and Finance.
July 2009: Initiating a year-long review of the campaign for individual donors increasing the number of both large and small gifts.
September 2009: Opening the BROWN-FORMAN 2009 FALL SEASON at Kentucky Opera’s new home in the elegant and intimate Brown Theatre.
May 2010: Ending fiscal year 2010 in the black.
September 2010: Increasing subscriptions by more than 25% for the BROWN-FORMAN 2010 FALL SEASON, and achieved sold out performances of MADAME BUTTERFLY.
May 2011: Ending fiscal year 2011 in the black –increasing earned revenue through higher ticket sales and unearned revenue through individual gifts.

To reinforce our artistic vitality and maintain our financial health, Kentucky Opera is broadening its audience and is well on the way to reaching its goal of 1600 subscribers this season (an 18% increase over last year). To achieve this, the company is using high-touch/high-impact events that connect new patrons to the company and to the art form. This “boutique style” marketing approach is also enabling the organization to expand beyond Louisville offering performances in Owensboro, Kentucky; Bowling Green, Kentucky; and Lafayette, Indiana.

Roth also attributes the health of Kentucky Opera to its long-term support from key community stakeholders such as the Brown-Forman Corporation as the season sponsor, Hilliard Lyons and Stock Yards Bank support as production sponsors, GE sponsorship of the Studio Artist Program, and the annual support Kentucky Opera receives from the Kentucky Arts Council, Metro Louisville, and Fund for the Arts. Also contributing were a significant increase in fundraising effectiveness at events such as the annual black-tie gala, Carnevale, and the 2011 Annual Car Raffle which netted record profits of $115,000 and $95,000 respectively. With a dedicated and fully engaged board of directors, Kentucky Opera is positioned not only to meet the economic challenges that lie ahead, but also to expand its reach into the community.