2010 Annual Report - Interlochen Center for the Arts
2010 Annual Report - Interlochen Center for the Arts
2010 Annual Report - Interlochen Center for the Arts
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<strong>2010</strong><br />
June 1, 2009 – May 31, <strong>2010</strong>
Letter from <strong>the</strong> President, Jeffrey S. Kimpton<br />
I<br />
nterlochen <strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong> is unlike any o<strong>the</strong>r arts community in <strong>the</strong> world. What sets<br />
<strong>Interlochen</strong> apart? Since our first summer in 1928, our purpose has been singular: to ignite a<br />
lifelong passion in <strong>the</strong> arts.<br />
Every aspect of this institution – <strong>Interlochen</strong> <strong>Arts</strong> Camp and our vibrant summer programs;<br />
<strong>Interlochen</strong> <strong>Arts</strong> Academy; adult and professional education through <strong>the</strong> <strong>Interlochen</strong> College<br />
of Creative <strong>Arts</strong>; public broadcasting via <strong>Interlochen</strong> Public Radio; and <strong>the</strong> region’s most<br />
ambitious per<strong>for</strong>mance series, <strong>Interlochen</strong> Presents – is intended to help those who value <strong>the</strong><br />
arts place <strong>the</strong>m at <strong>the</strong> core of <strong>the</strong>ir being.<br />
This report <strong>for</strong> fiscal year <strong>2010</strong> ( June 1, 2009 – May 31, <strong>2010</strong>) will detail a remarkably<br />
successful year – a year in which <strong>Interlochen</strong> grew in both depth and quality. We grew<br />
programmatically, organizationally and financially. Perhaps more importantly, it was a year in<br />
which we spent a great deal of time thinking about <strong>the</strong> future, undertaking a year-long visioning<br />
process to ensure that <strong>Interlochen</strong> remains successful, innovative and secure.<br />
There is no possibility <strong>for</strong> an organization such as ours to succeed without <strong>the</strong> vital commitment<br />
of a community of people who support our mission. People like you. It is that depth of<br />
commitment that sustains our spirit and our achievement. We are grateful <strong>for</strong> what you bring to<br />
<strong>Interlochen</strong>, <strong>for</strong> it plays a determining role in what <strong>Interlochen</strong> brings to <strong>the</strong> world.<br />
With deep thanks and appreciation,<br />
Jeffrey S. Kimpton<br />
President<br />
2
Fiscal Year <strong>2010</strong> Finances in Review<br />
T<br />
he report of finances <strong>for</strong> fiscal year <strong>2010</strong> ( June 1, 2009 – May 31, <strong>2010</strong>), as developed by our external<br />
auditors, Plante & Moran, P.L.L.C., details a successful year <strong>for</strong> <strong>Interlochen</strong> <strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong>.<br />
OPERATING BUDGET<br />
Revenue: $31,497,776 (up 6.4% from Fiscal Year 2009)<br />
Expenses: $28,289,358 (down 2.4% from Fiscal Year 2009)<br />
FUNDRAISING<br />
<strong>Interlochen</strong> Fund: $2,090,924<br />
<strong>Interlochen</strong> Public Radio: $1,222,064<br />
Total giving, including endowment and capital funds: $4,649,399<br />
Total number of donors: 8,933<br />
STUDENT ENROLLMENT<br />
<strong>Interlochen</strong> <strong>Arts</strong> Camp:<br />
2,460 students from 54 U.S. states and territories and 44 countries<br />
<strong>Interlochen</strong> <strong>Arts</strong> Academy:<br />
468 students from 48 U.S. states and territories and 25 countries<br />
SCHOLARSHIPS<br />
<strong>Interlochen</strong> provided a record $8.9 million in financial assistance to <strong>Interlochen</strong> students<br />
Government Support:<br />
Michigan Council <strong>for</strong> <strong>Arts</strong> and Cultural Affairs (General Operating Support): $ 20,000<br />
Corporation <strong>for</strong> Public Broadcasting (<strong>Interlochen</strong> Public Radio): $269,058<br />
Comprehensive financial reports may be found on page 8 through12 of this report.<br />
Complete audited financial statements are available online at www.interlochen.org/support<br />
or by calling our advancement office at 231.276.7623.<br />
What Sets <strong>Interlochen</strong> Apart?<br />
T<br />
he past year has been a successful one <strong>for</strong> <strong>Interlochen</strong> <strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong>. We met enrollment goals<br />
<strong>for</strong> <strong>Interlochen</strong> <strong>Arts</strong> Camp and Academy. Our per<strong>for</strong>mance series generated its highest net revenue in<br />
history, while auxiliary sales (lodging, food, clothing and gifts) remained stable or increased. Ticket sales<br />
and auxiliary income directly support our scholarship program; strong per<strong>for</strong>mance in <strong>the</strong>se areas helped<br />
<strong>Interlochen</strong> meet <strong>the</strong> increased demand <strong>for</strong> financial assistance required by families this year. For <strong>the</strong><br />
third year in a row, IPR was named “Public Radio Station of <strong>the</strong> Year” by <strong>the</strong> Michigan Association of<br />
Broadcasters.<br />
Perhaps most importantly, <strong>Interlochen</strong> did not reduce or cut any core programs, people or salaries.<br />
<strong>Interlochen</strong> has remained stable during volatile times because <strong>the</strong> <strong>Interlochen</strong> community has remained<br />
stable: families have invested in a world class arts education <strong>for</strong> <strong>the</strong>ir children, and donors have continued<br />
to recognize <strong>the</strong> importance of our mission in arts education, presentations and broadcasting.<br />
At a time when nonprofit organizations are facing extraordinary challenges, <strong>Interlochen</strong> has continued<br />
to grow – streng<strong>the</strong>ning our operations and extending our achievements. Several factors have helped us<br />
chart a steady course during times of uncertainty:<br />
Flight to known quality during difficult times.<br />
Research has shown that people are hesitant to invest in<br />
unknown institutions during times of economic turmoil.<br />
As one of <strong>the</strong> oldest and most respected arts education<br />
programs in <strong>the</strong> nation, <strong>Interlochen</strong> has benefited from a<br />
long history of innovation and success.<br />
Significant growth in visibility through web and online<br />
media. Until <strong>the</strong> early 2000s, <strong>Interlochen</strong> had no web<br />
presence and limited communications technology.<br />
We have invested significantly in online communications<br />
at precisely <strong>the</strong> right time. Our national webcasts and<br />
strong web videos help parents, friends and prospective<br />
students recognize <strong>the</strong> value of an <strong>Interlochen</strong> education.<br />
Synergy of core programs. We have worked hard to build<br />
strong synergies between <strong>Interlochen</strong>’s core programs.<br />
Our summer <strong>Arts</strong> Camp, high school Academy, adult<br />
education, public broadcasting and year-round per<strong>for</strong>mance<br />
programs are all related in purpose and intent.<br />
National and international recruiting pool. <strong>Interlochen</strong> is<br />
<strong>for</strong>tunate in that we draw from a national and worldwide<br />
pool of students – helping us overcome geographic boundaries<br />
that limit o<strong>the</strong>r institutions.<br />
All arts, all ages. While some organizations are specific<br />
to one art <strong>for</strong>m or one age group, <strong>Interlochen</strong> provides<br />
comprehensive offerings across six disciplines (music,<br />
<strong>the</strong>atre, dance, visual arts, creative writing and film) and<br />
serves all ages – from 8 to 80 and beyond.<br />
3 4
Highlights<br />
<strong>Interlochen</strong> Students Earn National Recognition from <strong>the</strong> NFAA<br />
Thirty-six <strong>Interlochen</strong> students and alumni were honored by <strong>the</strong> National Foundation <strong>for</strong><br />
Advancement in <strong>the</strong> <strong>Arts</strong> during <strong>the</strong> 2009-10 Young<strong>Arts</strong> program. Fourteen <strong>Interlochen</strong> Campers<br />
and <strong>Arts</strong> Academy students were selected as finalists and 22 received honorable mentions.<br />
IPR named “Public Radio Station of <strong>the</strong><br />
Year” AGAIN!<br />
For <strong>the</strong> third year in a row, <strong>Interlochen</strong> Public Radio was<br />
named “Public Radio Station of <strong>the</strong> Year” by <strong>the</strong> Michigan<br />
Association of Broadcasters. IPR received six individual<br />
Broadcast Excellence Awards, including Best of Category<br />
awards <strong>for</strong> “Hard News & Current Events,” “Mini-Documentary<br />
or Series,” “Newscast,” “News Special or Public<br />
Affairs Program” and “Community Involvement.”<br />
Mallory-Towsley <strong>Center</strong> <strong>for</strong> <strong>Arts</strong> Leadership<br />
A one million dollar project has trans<strong>for</strong>med <strong>the</strong> <strong>for</strong>mer costume shop into <strong>the</strong> Mallory-Towsley <strong>Center</strong> <strong>for</strong><br />
<strong>Arts</strong> Leadership. The completely remodeled 8,000 square-foot conference center serves many purposes,<br />
including housing our adult education programs <strong>for</strong> <strong>the</strong> <strong>Interlochen</strong> College of Creative <strong>Arts</strong>.<br />
Visual <strong>Arts</strong> Building Earns Architectural Honor<br />
The Herbert H. and Barbara C. Dow <strong>Center</strong> <strong>for</strong> Visual <strong>Arts</strong> was one of 12 buildings honored by <strong>the</strong><br />
American Institute of Architects in Michigan at its <strong>2010</strong> awards program. Designed by Cornerstone<br />
Architects, <strong>the</strong> 36,000 square foot building houses <strong>Interlochen</strong>’s visual arts studios, classrooms and<br />
galleries. In <strong>the</strong>ir comments, <strong>the</strong> jury called it “a perfect visual arts space….”<br />
<strong>Interlochen</strong> hosts policy <strong>for</strong>um on arts education<br />
In August 2009, <strong>Interlochen</strong> <strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong> partnered with Michigan Youth <strong>Arts</strong> to convene Michigan’s<br />
first <strong>Arts</strong> Education Policy Forum. The ga<strong>the</strong>ring took place on <strong>the</strong> <strong>Interlochen</strong> campus and included<br />
representatives from <strong>the</strong> Michigan Department of Education, <strong>the</strong> Michigan Council <strong>for</strong> <strong>Arts</strong> and Cultural<br />
Affairs and 18 arts education organizations. The group developed a statewide policy agenda<br />
to advance arts education in Michigan.<br />
Per<strong>for</strong>mance Today visits <strong>Interlochen</strong> <strong>Arts</strong> Camp<br />
Fred Child, host of <strong>the</strong> nationally syndicated classical music program Per<strong>for</strong>mance Today, visited<br />
<strong>Interlochen</strong> <strong>for</strong> <strong>the</strong> final weekend of <strong>the</strong> summer 2009 <strong>Interlochen</strong> <strong>Arts</strong> Camp. Child produced two<br />
shows at <strong>Interlochen</strong>, featuring two hours of student and faculty per<strong>for</strong>mances, which were broadcast<br />
to more than 1.2 million weekly listeners on 237 public radio stations around <strong>the</strong> country.<br />
Tenor saxophonist Rachel Mazer of Alamo, Cali<strong>for</strong>nia, and guitar major<br />
Max Bowen of Ann Arbor, Michigan were invited onstage to per<strong>for</strong>m with<br />
<strong>the</strong> Steve Miller Band<br />
Summer <strong>Arts</strong> Festival draws crowds<br />
More than 90,000 patrons attended an event during<br />
<strong>Interlochen</strong>’s 2009 Summer <strong>Arts</strong> Festival season.<br />
Shows exceeding 90 percent capacity included Willie<br />
Nelson; <strong>the</strong> Steve Miller Band; Paula Poundstone; <strong>the</strong><br />
<strong>Interlochen</strong> Shakespeare Festival production, “The<br />
Taming of <strong>the</strong> Shrew”; Circo Comedia; and <strong>the</strong> high<br />
school musical <strong>the</strong>atre production, “Anything Goes.”<br />
Math and Science Department Receives Grant<br />
<strong>Interlochen</strong>’s math and science department received a $150,000 grant from <strong>the</strong> science-focused R.B. Annis<br />
Foundation of Indianapolis, Indiana. The gift increased <strong>the</strong> Annis Endowment to $400,000, supporting<br />
ongoing program costs including professional development and <strong>the</strong> purchase of computers, software<br />
and equipment. The gift also provides <strong>for</strong> <strong>the</strong> continuation of <strong>the</strong> Annis Student and Teachers Enrichment<br />
Program (A-STEP,) which promotes learning opportunities outside <strong>the</strong> classroom.<br />
Theatre Department Hosts Agent Showcase<br />
As <strong>the</strong> Academy year drew to a close, <strong>the</strong> <strong>the</strong>atre department held its first ever agent showcase, inviting<br />
casting professionals from New York City and Los Angeles to <strong>Interlochen</strong> to meet with students. In<br />
college and conservatory acting programs, such showcases are an important final step <strong>for</strong> <strong>the</strong>atre students<br />
as <strong>the</strong>y begin to establish a career – giving students a chance to network and demonstrate <strong>the</strong>ir talents in<br />
front of industry professionals.<br />
5 6
Thinking Ahead <strong>for</strong> an Uncertain Future<br />
Planning ahead is crucial <strong>for</strong> any organization in today’s world. Between 2005 and 2008, <strong>Interlochen</strong><br />
conducted a brand audit, a web communications review and an 18-month-long scenarios planning<br />
project. These ef<strong>for</strong>ts positioned us to respond to <strong>the</strong> increasingly volatile environment of <strong>the</strong> last<br />
two years, by helping us learn to manage <strong>the</strong> unpredictable.<br />
The U.S. War College uses <strong>the</strong> term VUCA to help military and government leaders anticipate and<br />
respond to global crises. The acronym stands <strong>for</strong> volatility, uncertainty, complexity and ambiguity;<br />
it’s a method of assessing <strong>the</strong> unpredictable that sheds light on <strong>the</strong> past year.<br />
Volatility: Recent years have brought a devastating national and global recession, multiple natural<br />
disasters, climate change, a worldwide flu pandemic and an increasingly hostile political environment.<br />
This volatility has created an atmosphere in which both public and private investment in <strong>the</strong> arts have<br />
wi<strong>the</strong>red, causing substantial reductions in staff, programs and marketing at nonprofit organizations<br />
across <strong>the</strong> nation.<br />
Uncertainty: Approximately 25 percent of <strong>Interlochen</strong> students travel here from ano<strong>the</strong>r country. Last<br />
year, several Asian governments reacted to <strong>the</strong> H1N1 epidemic by banning <strong>for</strong>eign travel. The recession<br />
continues to hurt many <strong>Interlochen</strong> families and prospective students. Uncertainty about <strong>the</strong> future<br />
prevents people from making decisions about <strong>the</strong>ir investments in education, <strong>the</strong> arts, discretionary<br />
spending and philanthropy.<br />
Complexity: The world is interconnected in ways never imagined 83 years ago, and <strong>the</strong> challenges faced<br />
by organizations today are increasingly complex. Decision making is compounded by highly polarized<br />
attitudes and opinions, by <strong>the</strong> speed and intensity of communication, by significant increases in new<br />
state and federal rules, and by an intensely litigious society.<br />
Ambiguity: One by-product of <strong>the</strong> speed of communications technology is that people want to know <strong>the</strong><br />
outcomes of <strong>the</strong>ir actions immediately. In an increasingly complex, uncertain and volatile world, this is<br />
an expectation that is difficult to fulfill. In <strong>the</strong> absence of clarity, many in today’s society are tending not<br />
to commit, to wait <strong>for</strong> <strong>the</strong> one “clear” answer.<br />
7 8
Statement of Financial Position<br />
The Mallory-Towsley <strong>Center</strong> <strong>for</strong> <strong>Arts</strong> Leadership<br />
At <strong>Interlochen</strong>, we’ve attempted to counter increasing volatility, uncertainty, complexity and ambiguity<br />
with vision and creativity. We’ve expanded educational opportunities at <strong>Interlochen</strong> <strong>Arts</strong> Camp with new<br />
singer-songwriter, recording arts and jazz programs; added a comparative arts major at <strong>the</strong> Academy; and made<br />
investments in technology that are fueling growth in web communications and social media. Building on a<br />
Board of Trustees initiative, <strong>Interlochen</strong> enrollments of students of color have increased from 8 to 18%. We’ve<br />
continued to develop our campus with <strong>the</strong> opening of <strong>the</strong> Mallory-Towsley <strong>Center</strong> <strong>for</strong> <strong>Arts</strong> Leadership, and<br />
launched a new radio station – 89.7 FM Manistee/Ludington – to meet <strong>the</strong> growing demand <strong>for</strong> IPR’s awardwinning<br />
news service.<br />
We also look to <strong>the</strong> core values that have guided <strong>the</strong> institution <strong>for</strong> 83 years. Over <strong>the</strong> past year, members of<br />
<strong>the</strong> <strong>Interlochen</strong> Board of Trustees conducted hundreds of interviews with employees, students, alumni,<br />
parents and friends as <strong>the</strong>y worked to craft a vision <strong>for</strong> <strong>the</strong> organization’s future. These sessions have<br />
underscored five enduring traits of <strong>Interlochen</strong> that are as consistent today as <strong>the</strong>y have been throughout<br />
<strong>the</strong> last eight decades:<br />
Inspiring • Nurturing • Trans<strong>for</strong>mative • Enlightening • Enduring<br />
These core values and <strong>the</strong> deep commitment<br />
of <strong>the</strong> <strong>Interlochen</strong> community give us<br />
strength and stability as we look to <strong>the</strong> future.<br />
The direction we must provide is clear: our<br />
programs must be strong and of high quality,<br />
our faculty <strong>the</strong> best, our students safe, well<br />
cared <strong>for</strong> and nurtured artistically and emotionally<br />
in a caring community. Our work<br />
must ensure that <strong>Interlochen</strong> continues to<br />
inspire and lead in <strong>the</strong> decades ahead, so that<br />
what we provide to <strong>the</strong> world arts community<br />
is right <strong>for</strong> our mission and right <strong>for</strong> our<br />
times. With your help, this is just what we<br />
intend to do.<br />
May 31, <strong>2010</strong> May 31, 2009<br />
ASSETS:<br />
Cash and cash equivalents $ 11,337,880 $ 8,819,385<br />
Investments 57,629,904 49,682,276<br />
Accounts receivable, net of allowance of $803,000<br />
in <strong>2010</strong> and $772,000 in 2009 28,658 70,311<br />
Gifts receivable 1,972,345 2,411,153<br />
Prepaid expenses and o<strong>the</strong>r receivables 678,885 479,880<br />
Inventories 1,368,216 1,349,092<br />
Land, buildings, and equipment, net 40,541,664 41,320,129<br />
O<strong>the</strong>r assets 1,366,143 1,338,499<br />
TOTAL $ 114,923,695 $ 105,470,725<br />
LIABILITIES:<br />
Accounts payable - Trade $ 569,039 $ 347,782<br />
Accrued liabilities 2,565,625 2,886,656<br />
Tuition deposits and o<strong>the</strong>r 8,481,346 8,381,863<br />
Annuities payable 620,230 644,054<br />
Bonds payable 26,300,000 26,300,000<br />
Total liabilities 38,536,240 38,560,355<br />
NET ASSETS:<br />
Unrestricted 51,664,628 43,142,359<br />
Temporarily restricted 3,831,869 2,668,310<br />
Permanently restricted 20,890,958 21,099,701<br />
Total net assets 76,387,455 66,910,370<br />
TOTAL $ 114,923,695 $ 105,470,725<br />
9 10
Statement of Activities and Changes in Net Assets<br />
Unrestricted Temporarily Restricted<br />
Permanently<br />
Restricted<br />
Operating Designated Designated<br />
Funds Restricted Endowment Total Scholarship General Plant Endowment May 31, <strong>2010</strong><br />
Funds Funds Unrestricted Funds Funds Funds Funds Total<br />
REVENUES AND OTHER ADDITIONS:<br />
Gross tuition and student fees $ 30,941,084 $ – $ – $ 30,941,084 $ – $ – $ – $ – $ 30,941,084<br />
Assets released from restrictions –<br />
Operating item–financial aid 2,747,178 (449,575) 2,297,603 (2,292,257) (5,346)<br />
Less financial aid grants (8,896,624) (8,896,624) (8,896,624)<br />
Net tuition and student fees 24,791,638 (449,575) 24,342,063 (2,292,257) (5,346) – – 22,044,460<br />
Ticket sales 1,545,470 1,545,470 1,545,470<br />
Lodging 1,002,727 1,002,727 1,002,727<br />
Retail sales 1,844,549 1,844,549 1,844,549<br />
Contributions and grants 1,222,064 14,852 211,190 1,448,106 2,090,924 193,093 379,964 537,312 4,649,399<br />
Net gain of investments 91,831 910,609 5,087,369 6,089,809 802,939 96,303 120,488 7,109,539<br />
Endowment allocation 359,543 359,543 (359,543)<br />
O<strong>the</strong>r revenues 639,954 16,058 66,992 723,004 (25) 25,183 16,853 765,015<br />
Total revenues and o<strong>the</strong>r additions 31,497,776 941,519 4,915,976 37,355,271 242,038 309,233 517,305 537,305 38,961,15 9<br />
COST OF GOODS AND SERVICES:<br />
Artist fees 660,371 660,371 10,000 670,371<br />
Cost of goods sold 1,016,934 1,016,934 1,016,934<br />
Total cost of goods and services 1,677,305 – – 1,677,305 – 10,000 – – 1,687,305<br />
COST OF OPERATIONS:<br />
Salaries, wages and benefits 17,868,977 17,868,977 121,451 17,990,428<br />
Food costs 986,937 986,937 986,937<br />
Contracted services 857,036 600 857,636 2,762 300 860,698<br />
Supplies 1,045,285 255,196 1,300,481 35,711 132,310 1,468,502<br />
Repairs and maintenance 518,480 25,525 544,005 800 1,500 546,305<br />
Leases and rents 196,084 196,084 500 425 197,009<br />
Utilities 733,039 733,039 733,039<br />
Insurance 275,217 1,051 276,268 1,146 277,414<br />
Telephone and postage 419,643 14 419,657 219 419,876<br />
O<strong>the</strong>r operational 20,159 328,979 2,500 351,638 778 2,287 354,703<br />
Total cost of operations 22,920,857 611,365 2,500 23,534,722 – 162,221 137,968 – 23,834,911<br />
GENERAL AND ADMINISTRATIVE:<br />
Marketing 600,846 600,846 33,089 633,935<br />
Travel and entertainment 566,441 8,859 575,300 79,769 4,177 659,246<br />
Professional services 313,102 45,027 358,129 831 358,960<br />
Interest 740 71,846 72,586 72,586<br />
O<strong>the</strong>r 224,258 13,106 237,364 13,958 251,322<br />
Total general and administrative 1,705,387 138,838 1,844, – 126,816 5,008 – 1,976,049<br />
Total expenses be<strong>for</strong>e depreciation<br />
and board-designated expenditures 26,303,549 750,203 2,500 27,056,252 – 299,037 142,976 – 27,498,265<br />
INCREASE IN NET ASSETS BEFORE<br />
DEPRECIATION, ASSETS RELEASED<br />
FROM RESTRICTIONS, BOARD-<br />
DESIGNATED EXPENDITURES AND<br />
OTHER ADJUSTMENTS $ 5,194,227 $ 191,316 $ 4,913,476 $ 10,299,019 $ 242,038 $ 10,196 $ 374,329 $ 537,312 $ 11,462,894<br />
BOARD-DESIGNATED EXPENDITURE<br />
INCREASE IN NET ASSETS<br />
BEFORE DEPRECIATION, ASSETS<br />
RELEASED FROM RESTRICTIONS<br />
AND OTHER ADJUSTMENTS 5,194,227 191,316 4,913,576 10,299,019 242,038 10,196 374,329 537,312 11,462,894<br />
DEPRECIATION EXPENSE 1,985,809 1,985,809 1,985,809<br />
ASSETS RELEASED FROM<br />
RESTRICTIONS/TRANSFERS -<br />
Nonoperating items - Capital and o<strong>the</strong>r (10,862,853) 5,305,617 5,945,822 388,586 274,875 13,547 69,047 (746,055)<br />
NET (DECREASE) INCREASE IN NET<br />
ASSETS BEFORE CHANGE<br />
IN ACCOUNTING (7,654,435) 5,496,933 10,859,298 8,701,796 516,913 23,743 443,376 (208,743) 9,477,085<br />
CHANGE IN ACCOUNTING (179,527) (179,527) 179,527<br />
NET (DECREASE) INCREASE IN<br />
NET ASSETS (7,654,435 5,496,933 10,679,771 8,522,269 696,440 23,743 443,376 (208,743) 9,477,085<br />
NET ASSETS - Beginning of year 15,399,636 6,110,402 21,632,321 43,142,359 1,299,261 623,087 745,962 21,099,701 66,910,370<br />
NET ASSETS - End of year $ 7,745,202 $ 11,607,335 $ 32,312,092 $ 51,664,628 $ 1,995,701 $ 646,830 $ 1,189,338 $20,890,958 $ 76,387,455
Understanding Our Operations<br />
REVENUE<br />
Net tuition accounted <strong>for</strong> more than two<br />
thirds of <strong>Interlochen</strong>’s operating income,<br />
which totaled $31,497,776 in fiscal year<br />
<strong>2010</strong>. Gifts from donors accounted <strong>for</strong><br />
approximately 11% of that total. <strong>Annual</strong><br />
giving helps maintain our generous financial<br />
aid program and supports o<strong>the</strong>r critical<br />
operations, from per<strong>for</strong>mances to<br />
public radio.<br />
INVESTMENTS AND<br />
ENDOWMENT<br />
Investments at <strong>the</strong> end of fiscal year <strong>2010</strong><br />
were up $7.1 million, recovering more<br />
than 40% of <strong>the</strong> value lost during <strong>the</strong><br />
previous fiscal year. On average, investments<br />
are up 4.7% over <strong>the</strong> last six years, with<br />
<strong>the</strong> endowment/funds under management<br />
valued at $57.6 million.<br />
By policy of <strong>the</strong> Board of Trustees,<br />
4.6% of our endowment was returned<br />
to <strong>Interlochen</strong> <strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong> in<br />
fiscal year <strong>2010</strong> to support <strong>the</strong> needs of<br />
<strong>the</strong> institution. The amount allocated<br />
<strong>for</strong> operations and scholarships totaled<br />
$1,015,797. Along with capital and<br />
restricted donations of $1,110,369, we<br />
were able to invest in capital improvement<br />
projects, preservation of our aging<br />
facilities and new construction.<br />
EXPENSES<br />
In fiscal year <strong>2010</strong>, our operational<br />
expenses totaled $28,289,358. This figure<br />
represents a decrease of 2.4% compared<br />
with <strong>the</strong> previous year. Our investment<br />
in people, <strong>the</strong> heart of <strong>the</strong> <strong>Interlochen</strong><br />
experience, continues to be our biggest<br />
expense.<br />
The <strong>Interlochen</strong> fiscal year runs June 1<br />
through May 31. For a copy of our complete<br />
audited financial statements, prepared by<br />
Plante & Moran, P.L.L.C., call our<br />
advancement office at 231.276.7623.<br />
Gifts<br />
10.5%<br />
REVENUE<br />
$31,497,776<br />
Operations<br />
17.9%<br />
Salaries Wages<br />
& Benefits 63.2%<br />
Ticket Sales<br />
4.9%<br />
Net Tuition<br />
70.0%<br />
EXPENSES<br />
$28,289,358<br />
Earned Income<br />
(lodging,<br />
retail sales, o<strong>the</strong>r)<br />
11.4%<br />
Endowment Income<br />
<strong>for</strong> Financial Aid<br />
and Operations<br />
3.2%<br />
Cost of Goods<br />
& Services 5.9%<br />
General &<br />
Administrative<br />
6.0%<br />
Depreciation<br />
7.0%<br />
HOW DO INTERLOCHEN<br />
DONORS DESIGNATE<br />
THEIR GIFTS<br />
Nearly $4.7 million was given to <strong>Interlochen</strong><br />
<strong>Center</strong> <strong>for</strong> <strong>the</strong> <strong>Arts</strong> in fiscal year <strong>2010</strong> by<br />
8,933 individuals, corporations, foundations<br />
and small businesses. 45.0% of that<br />
total was directed to our annual fund<br />
program, <strong>the</strong> <strong>Interlochen</strong> Fund, which<br />
provides scholarship assistance to deserving<br />
students from across <strong>the</strong> globe. Gifts<br />
to our endowment add to <strong>the</strong> long-term<br />
stability of <strong>Interlochen</strong>, while gifts to<br />
capital and restricted projects, including<br />
<strong>Interlochen</strong> Public Radio, help to<br />
streng<strong>the</strong>n our many programs and <strong>the</strong><br />
facilities <strong>the</strong>y rely upon.<br />
SCHOLARSHIPS<br />
$8.9 million was awarded in <strong>the</strong> <strong>for</strong>m of<br />
scholarship and financial assistance <strong>for</strong><br />
deserving students to attend <strong>Interlochen</strong><br />
programs in fiscal year <strong>2010</strong>. Our high<br />
school Academy students – 77% of<br />
whom receive financial assistance in some<br />
<strong>for</strong>m – come from families with an average<br />
household income of $74,000. With<br />
Academy tuition at around $42,700, our<br />
ability to sustain a diverse, talented and<br />
highly motivated student body depends<br />
upon <strong>the</strong> generosity of individuals who<br />
support our scholarship program.<br />
WHERE DO INTERLOCHEN<br />
FUND GIFTS COME FROM<br />
4,319 donors contributed a total of<br />
$2,090,924 to The <strong>Interlochen</strong> Fund in<br />
fiscal year <strong>2010</strong>. Over <strong>the</strong> past decade,<br />
government support has decreased 94%,<br />
underscoring <strong>the</strong> increasing importance<br />
of giving from alumni, parents and<br />
friends.<br />
Capital, Restricted<br />
& Designated<br />
17.2%<br />
<strong>Interlochen</strong><br />
Public Radio<br />
26.3%<br />
Corporations &<br />
Foundations<br />
37.3%<br />
Employees<br />
2.4%<br />
Trustees<br />
7.1%<br />
DONOR GIFT<br />
DESIGNATIONS<br />
Total Giving: $4,649,399<br />
Endowment<br />
11.5%<br />
<strong>Interlochen</strong> Fund<br />
45.0%<br />
INTERLOCHEN FUND<br />
SOURCES<br />
<strong>Interlochen</strong> Fund Total<br />
$2,090,924<br />
Government<br />
1.0%<br />
Parents<br />
11.1%<br />
Friends<br />
25.6%<br />
Alumni<br />
15.5%<br />
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