BREAKING: Intiman Theater Needs $500K By End of March to Keep Doors Open

UPDATE: Artistic director Kate Whoriskey offers her thoughts on the Intiman's blog.

Well, Paul Mullin was right--on all counts!--as it turns out. This just in from the Intiman:

An open letter to the Seattle arts community

February 11, 2011 

Dear friends,

I want to share some unsettling news about our beloved Intiman Theatre. As many of you know, we’ve been struggling for several months. Since the departure of our former Managing Director last fall, the board of trustees has unearthed a series of missteps and management failings. Inflated budget projections, unpaid bills and a complete lack of financial and accounting oversight have left the theater dangerously low on cash. Sadly, I must report that unless we are able to raise $500,000 by the end of March, an additional $250,000 by June, and $250,000 by September, we cannot continue. The $1 million dollar campaign is above and beyond the theatre’s 2011 annual fundraising goal.

Our staff and trustees have been tirelessly working to put our house in order – reconciling our books; establishing clear oversight; soliciting the support of independent leaders; paying down our debt; cutting operational costs; and reaching out to friends and family in the local community for help. The picture is now clearer and so is the harsh reality of the current situation.

I find this most difficult because the staff and creative leadership are incredibly strong right now and the quality of work being produced on our stage is of the highest quality and thematically touches on topics that need a public stage.

Seattle is a unique community; we are intellectually curious; progressively open minded; and willing to openly reflect and debate who we are as a community. I’m continually reminded by friends from the national theater community that only a city like Seattle could create a theater like Intiman. I also believe that only a city like Seattle can help preserve a gem like Intiman.

For 39 years Intiman has served as our community’s kitchen table for discussing relevant topics through art. We need your help to make sure that tradition continues. Please make a donation today by visiting  www.intiman.org. At the website you will find more information on the current situation along with video testimonials from our artistic director, Kate Whoriskey, and acting managing director Melaine Bennett. You will also be able to show your direct support by making a donation.

Thank you for your time and continued support in helping Seattle maintain its reputation as progressive/trend-setting hotbed for the performing arts. Theaters like Intiman are critical to protecting that fragile ecosystem. Please help us protect this local treasure by making a donation to the theater today.

Sincerely,

Kim Anderson

President

Intiman Theatre, Board of Trustees

More details after the break:

INTIMAN FACT SHEET   

 

What Happened?

●         The former Managing Director resigned on November 1, 2010. Personal reasons were cited.

●         Significant financial problems were uncovered at this time, putting the theatre into crisis mode. These include:

○        Misrepresentation and nondisclosure of the theatre’s financial stability and related financial issues to the Board and the various committees responsible for financial oversight of the theatre.

○        Unauthorized transfers by the Managing Director of restricted funds in the Foundation to the theatre’s operating account. Neither the Board nor Foundation Board approved the transfers.

○        Failure to meet best-practice standards in the finance office: severe inaccuracies and months-long backlog of bookkeeping, cash-flow attention, staffing capabilities and general reconciliation and accounting.

○        Mismanagement of and misrepresentation of financial impact of negotiations with co-producing entities.

○        Mismanagement of verbal pledge agreements from two key donors, resulting in a loss of revenue in the FY2010A budget.

 

What Immediate Actions Were Taken?

●         Replaced Managing Director and Finance Director

○         Promoted Melaine Bennett, then Director of Development, to Acting Managing Director.

○         Engaged professional consultation from Dean Barney, CFO and respected arts finance manager.

○         Hired Interim CFO, Barbara Anderson, who has just completed a first draft of the financial statement for the FY10A and 10B

●         From Nov. 1st through 2/4/2011, raised $874,315.

○         This number includes all CASH in; gifts, pledge payments, corporate, foundation government, etc.  It does not include pledges.

○         Of that $874,315, $348,598 was from the Board.

●         Created a rent repayment plan to bring Intiman current with Seattle Center.

●         Repaired relationships with unions after discovering there were lapsed payments.

●         Caught up on taxes.

●         Identified past payables and created plans for repayment installments for the majority of accounts; plans are continuing to be developed with all vendors.

●         Created a cash plan to get into 2011.

●         Created a budget for 2011 that cuts over $1.4million (25%) from the previous 12-month budget.

●         Commenced a 21-month audit to complete the financial picture for the 2009 and 2010 Seasons. Intiman changed its fiscal year calendar in 2010: previously ending March 31 and now ending December 31.

●         Produced The Scarlet Letter and co-produced Black Nativity with STG, completing the 2010 Season.

 

What Further Actions Continue?

·        Creating a fundraising initiative that will allow Intiman to operate in best-practice operations, create excellent theatre, engage the community, be a gathering place for ideas and art - AND go into the 40th Anniversary in 2012 debt-free. The campaign requires raising $500,000 by the end of March, an additional $250,000 by June, and $250,000 by September.

This is above and beyond the theatre’s 2011 annual fundraising goal.

●         Establishing new Task Forces from the Board to continually monitor fundraising, past payables, vendor communication and the budget.

●         Increasing board involvement in all areas of oversight for the various departments, especially in the areas of finance, accounting and budget tracking.

●         Creating benchmarks for fundraising goals in the extraordinary giving campaign for 2011.

●         Reducing staff to a 4-day week and working within the current budget to produce the 2011 plays.

●         Reinstating checks and balances systems from the Board down to hourly staff who handle money.

●         Documenting all practices and procedures.

●         Identifying new CFO (in progress).

●         Cultivating new Board membership (including one candidate who has an auditing background).