A Study of Major Contributors to The Colonial Theatre Keene, New Hampshire A Research Study Presentation by: The Arts Management Seminar Class Franklin Pierce College May, 2004

Introduction The Colonial Theatre opened its doors on January 29, The theatre is a community landmark. The theatre is located in downtown Keene, New Hampshire. The theatre is the last of Cheshire County's five historical theaters. Former Owner Charles Baldwin called it "New England's most modern and perfectly appointed theatre." Over the years, the Colonial Theatre has hosted movies, vaudeville shows, operas and numerous community events. (source:

Due to the lack of financial support, non-profit organizations are trying to identify ways of increasing financial resources from current donors. In addition non-profits are trying to identify new corporate donors. Nature of the Problem

To identify strategies for The Colonial Theatre to expand donor contributions and increase the number of contributors to the theatre. Purpose of the Project

Research is necessary to determine why corporate sponsors contribute to The Colonial Theatre, located in Keene, New Hampshire. Problem Statement

1. Determine who is responsible for making the decision to contribute to The Colonial Theatre. 2.Identify the process used by organizations that contribute to The Colonial. 3.Identify the criteria used by organizations that contribute to The Colonial. 4.Determine what benefits the organizations perceive as valuable by being a donor to The Colonial Theatre; as well as what other kinds of benefits they would like to experience. 5.Determine the characteristics of contributing organizations. Research Objectives

Criteria – Characteristics that the donors look for when considering to donate to an organization. Process – The steps involved in donors choosing the organizations to which they donate. For the purposes of this research study, these terms were defined as follows:

Literature Review Over the past 40 years we have witnessed a dramatic increase in the number of non-profit organizations. According to E. Barman (2004), the number has increased from 300,000 in 1967, to over 1,000,000 in The number is still growing. The increase in non-profit organizations has caused a rise in the number of organizations seeking financial support through grants and donations from individuals and businesses.

Literature Review (cont.) Foundations give an estimated 3.7 billion dollars to arts, culture, media, and the humanities. In 2000, there was roughly double the amount of support given just 4 years earlier…. The relative share of foundations support for arts and culture, as a proportion of total foundation giving, ranged from 12% to 15% between 1996 and 2000.

Methodology and Procedures

Problem Identification Laura Scott, Director of Development, attended class February 2 nd to give a detailed presentation of The Colonial Theatre. She informed the class that The Colonial Theatre has 73 corporate sponsors, who contribute financially, and in return receive benefits for their contributions. The benefits range from free tickets for performances, to having the name of the contributing organization displayed on the marquee. Ms. Scott wanted to determine why the 73 organizations financially support the theatre.

Development of the Survey It was determined that the best method for obtaining this information was through a survey to be distributed to all of the contributors. The survey was developed in approximately 2 weeks through class discussions. The final survey consisted of 15 questions. After consulting with Ms. Scott the final survey was approved on March 3 rd.

Survey Questions 1. Who is responsible for making the final decision to contribute to the colonial? Please state the positions of the individual or group of individuals. 2. Which of the following best describes the selection process used to determine which organization your firm makes the contribution to? 3. What characteristics must an arts organization have in order to receive funding from your organization? 4. Does your organization require programming targeted to specific demographic groups? 5. If you answered yes to question 4, which demographic groups does your organization focus on?

Survey Questions (cont.) 6. What benefits do you perceive to be valuable as a donor to the Colonial Theatre? 7. What kinds of benefits would you like to receive in addition to those listed in Question 6? 8. Which of the following categories best describes your organization? 9. Where is your company located in relation to the Colonial? 10. How many times per year does your organization or employees utilize your benefits as a sponsor of the Colonial?

11. How many other organizations do you support financially? 12. What percentage of your charitable budget supports the Colonial? 13. How many employees does your organization employ? (Estimate) 14. What patron level best describes your classification at the Colonial this year? 15. Which statement most accurately reflects your probable support for the Theatre next season? Survey Questions (cont.)

Sample Size and Definition of Population The sample size consisted of 73 corporate sponsors. (This number also represents the population). A corporate sponsor donates $250 or more.

Data Collection Method A cover letter was completed March 11 th to accompany the survey. On March 12 th, 73 letters and surveys were sent to the corporate sponsors. On April 10 th 25 surveys were received and completed. This is a response rate of approximately 33%. The Statistical Package for the Social Sciences (SPSS) was formatted on April 9 th, data entry began April 10 th.

Assumptions 1.We assumed the results of the survey would benefit The Colonial Theatre. 2.We assumed the feedback provided by the Director of Development was honest, accurate, and complete. 3.Our team assumed that the donors responses to the survey were honest, accurate, and complete.

Limitations 1. The three week survey response period may have been a limitation for the respondent. 2.Some of the researchers had limited experience with the statistical software. 3.Further investigation using interview techniques may have provided additional qualitative information. 4.A few of the questions on the survey were worded poorly. This was discovered after the survey was sent out

Who Make the Final Decision? Who is responsible for making the final decision to contribute to the colonial? Please state the positions of the individual or group of individuals. 16 survey respondents replied that the President or sole proprietor was the person making the final decisions.

Selection Process Which of the following best describes the selection process used to determine which organization your firm makes the contribution to?

Characteristics What characteristics must an arts organization have in order to receive funding from your organization?

Valued Benefits What benefits do you perceive to be valuable as a donor to the Colonial Theatre?

Organizations Which of the following categories best describes your organization?

Location of Donors Where is your company located in relation to the Colonial?

Utilization of Benefits How many times per year does your organization or employees utilize your benefits as a sponsor of the Colonial?

Supporting Other Organizations How many other organizations do you support financially?

Budget Percentage What percentage of your charitable budget supports the Colonial?

Patron Levels What patron level best describes your classification at the Colonial this year?

Support Level Which statement most accurately reflects your probable support for the Theatre next season?

Discussion A given individual within the non-profit organization must know someone within the donating company. Or someone within the donating company must know an individual within the non-profit organization. It is vital that the Director of Development knows who is in charge of making the final decision in order to properly address the donating company.

Discussion (cont.) Most companies who are donating to The Colonial Theatre do not require any specific characteristics of organizations that they donate to. Sponsors often do not utilize the benefits offered to them by The Colonial Theatre.

Discussion (cont.) It was determined that 54% of donors contribute between 1% and 20% of their charitable budgets to The Colonial Theatre. 80% of the donors to The Colonial Theatre are located in Keene.

Conclusions Our study concluded that 68% of all decisions for funding come from an individual within the company. Nearly 2/3 of these decision makers are presidents or sole proprietors. The majority of donors seek non-profits that connect with the community through outreach programs.

Conclusions (cont.) Recognition of donors is highly important. Over half of the respondents to the survey wanted to be recognized as a donor. However, there is no one benefit or form of recognition that donors perceive as more valuable than another. Research concluded that 80% of the contributors were retail and wholesale organizations.

Recommendations Based on our conclusions, we recommend that it is imperative for the Director of Development to know who is responsible for making donor contributions. It is recommended that The Colonial continue to target retail and wholesale in Keene when looking for donations. Expansion to the surrounding region would be beneficial.

Recommendations (cont.) It is recommended that The Colonial Theatre invite the decision makers to recognition dinner(s) and to present the findings of this study. It is also recommended that The Colonial Theatre conduct further research using qualitative research methods as to what benefits the donors are using. The Colonial Theatre should develop strategies that deal with businesses that donate to 5 or more organizations.

The Director of Development should consider key points discovered in this study to maintain current relationships with donors and to attract new donors to The Colonial Theatre. Recommendations (cont.)

References Barman, E. (2004). Nonprofit Sector Research Fund. The Rise of the donor: Organizational strategies, environmental constraints, and the field of workplace giving. Retrieved March 10, 2004 from Cultural Policy and the Arts National Data Archive. (2003). How much do foundations contribute to the arts and culture? – Definition of terms and Cautionary Notes. Trends in the Foundation Giving Arts and Culture. Retrieved March 10, 2004 from culture-facts/policy/foundationDefTerms.html

Thank You Any Questions?