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Wednesday, July 09, 2003

By Andrew Druckenbrod, Post-Gazette Classical Music Critic

The Pittsburgh Symphony Orchestra no longer is worrying that it won't have enough cash to pay its bills this year, but the organization financially is "not out of the woods," said board president Thomas Todd.

The PSO had projected an approximately $800,000 cash shortfall for the fiscal year ending Aug. 31. "We went to work on that and have now dealt with it," said Todd. "We are and will be concerned about our cash flow but have made arrangements to deal with that."

"It's good news, and it is a positive development," said Zachary Smith, the musicians' spokesman. "The shortfall was a problem, and it has been successfully addressed and there is an undercurrent of optimism in the organization."

But rather than being swept away by the developments, the PSO is deeply concerned about its long-term financial health. "Our [$2.5 million] structural deficit remains," said Todd. "But I am optimistic that we are going to be able to put in place a plan that will deal with the financial deficit."

The potential cash shortage was staved off by annual fund contributions, subscription sales and single ticket sales for "Chicago" in July and Sheryl Crow in August, said PSO vice president of public affairs Jody Doherty.

As of July 2, $5.4 million has been raised toward the annual fund goal of $6.3 million, yielding the PSO approximately $800,000 more in cash than it had last year at this time. Contributions to the annual fund go toward the operating budget of $30 million.

So far, 54 businesses have donated for the first time to the PSO. But the focus this fiscal year was on individual giving.

"We have an underdeveloped giving habit by individuals -- they haven't been asked," said Leslie Wild Swenson, interim vice president of development. "We are the third-most-philanthropic city in the U.S., but we rank 27th in individual giving."

It appears that the intensified efforts of the PSO to involve individuals has paid off: 2,583 have given for the first time, with an average gift of $160.

"We have stopped the bleeding" said Swenson. "For donors of amounts under $250, we used to just give them a receipt for taxes." Now the PSO gives them thank-you cards and invitations to events and prints their names in programs or on its Web site. "We are doing some very simple things better, and for a fund-raising program in transition, with a lot of staff turnover, it is a big success."

Swenson said the PSO board is now playing a central role in raising money. "There is a board of directors who are inexperienced in fund raising. They are generous and giving, but there hasn't been a situation for which they had to raise money. Their reticence isn't a lack of commitment, it is a lack of training, and they have not been getting the support."

With less than two months left, any and all hands on deck will be needed to raise the additional $900,000 needed to meet the annual fund goal. "We could meet the goal, or it could swing the other way," said Swenson.

The musicians are helping the PSO, raising money with a matching challenge, which asked subscribers who have not donated before to meet a $100,000 pledge.

Also, the PSO's endowment has taken a turn for the better with the recent rise in the stock market. Currently at $97 million, it's up from a low of $87 million in January.

But despite the good financial news, Smith, the musicians' spokesman, said: "The last pieces of puzzle are coming up with a labor agreement and getting an executive director in place. The long-term economic issues facing this orchestra are not going to be as successful until we have the leadership in place."