Annual Report 2006 - Detroit Symphony Orchestra

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Finance Committee Chairman’s Report“The DSOhas achievedimportantmilestones inrecent years:the successfulcompletion ofour $125 million capital fundraisingcampaign, the construction of theMax M. Fisher Music Center, andour enviable financial track record ofbalancing our operating budget forthree years running. While we areproud of these achievements, we arefocused on the challenges that remainin these economically troubled times.If all stakeholders work together as a team, I believe that the best is yetto come.”—Lloyd Reuss, First ViceChairman, DSO Board of DirectorsBy any measure, 2006 was a great year for the DSO. In a challenging economic environment, for thethird year in a row, the DSO has achieved better than break-even operating results. In so doing, the DSO hasdistinguished itself as financially strong and stable in the industry.Many factors played a role in achieving a balanced operating budget: the generous support of our donors,the dedication of our concert patrons, and our adherence to disciplined cost containment efforts. In fiscal2006, the DSO continued to receive generous financial support, with nearly $13 millionbeing raised from all fundraising sources, including special event donations. Despitean increasingly competitive entertainment environment, our concert ticket sales in2006 actually exceeded the prior year’s mark by a small margin. In addition, the DSOaggressively leveraged our capital investment in the Max M. Fisher Music Center togenerate nearly $900,000 in rental and service income.The DSO’s financial condition continues to strengthen, with total net assets nowapproximating $175 million. Our endowment investments have increased to more than$72 million, and are augmented by another $10.3 million in endowment funds that are not owned by theDSO, but are held at the Community Foundation for Southeast Michigan for the sole benefit of the DSO.In light of the difficult challenges that we face as a cultural institution, the DSO has engaged in strategicplanning to identify a direction supporting our objectives to maintain fiscal stability and to grow in the comingyears. These planning efforts, in tandem with the continued generous support of our donors, will be key to toidentify a direction supporting our objectives to maintain fiscal stability and to grow in the coming years. Weare deeply grateful for your commitment and dedication to the DSO.Total Endowment Investments$90,500,000“The DSO hasexhibited strongstewardship of itsresources. Duringfiscal year 2006,the organization was able to containcosts, grow revenue and revise itsinvestment strategies for maximumreturn. Our goal is to ensure increasedand enduring support for the DSO.”—Arthur Weiss, Vice Chairman,DSO Board of DirectorsAlfred R. Glancy IIIChairman Emeritus and ViceChairman, Finance$62,500,000$69,000,000$75,500,000$87,500,00012 www.detroitsymphony.com
Statement of Activities2006 2005Unrestricted earned revenueTicket revenue $9,185,241 $9,271,494Presentation, education and other earned revenue 1,028,984 621,774Rental and retail activities 901,738 421,182Total earned revenue 11,115,963 10,314,450Performance related expensesDirect performance related expenses 20,140,123 19,034,847Indirect performance related expenses 2,637,889 2,501,456Total performance related expenses 22,778,012 21,536,303Other operating expensesFacilities 2,257,131 2,031,903Administration 2,929,179 2,688,853Total adminstration and other expenses 5,186,310 4,720,756Net results before fundraising and endowment income (16,848,359) (15,942,609)Unrestricted contributed supportPrivate support, including net assets released from restrictions 11,565,454 10,418,297Government support 734,109 864,050Special events and volunteer support, net 606,066 929,741Subtotal 12,905,629 12,212,088Fundraising expenses 2,018,652 1,950,190Net contributed support 10,886,977 10,261,898FY 2006 Operating RevenueFY 2006 Operating expenses Unrestricted endowment incomeEndowment draw for operations 4,404,618 4,273,742Orchestra Place income 1,024,541 1,041,758Total endowment income 5,429,159 5,315,500Net increase (decrease) in unrestricted net assets (532,223) (365,211)Temporarily restricted contributed supportTemporarily restricted private support 1,251,832 1,061,000Net assets released from restrictions (673,852) (683,914)Net increase in temporarily restricted net assets 577,980 377,086Increase in operating net assets $45,757 $11,87513
Page 1 and 2: AnnualReport2006
Page 3 and 4: GREETINGS From the Chairman and pre
Page 5 and 6: InspiringThe Detroit Symphony Orche
Page 7 and 8: Innovating“At a recent concert in
Page 9 and 10: Chick Corea coaches a DSA studentAn
Page 11 and 12: RevitalizingThe Detroit Symphony Or
Page 13: In March, The Max was chosen among
Page 17 and 18: DEVELOPMENT COMMITTEE CHAIRMAN’S
Page 19 and 20: SYMPHONY SOCIETYThe Detroit Symphon
Page 21 and 22: CORPORATE GIVINGThe Detroit Symphon
Page 23 and 24: * These performances without DSO.Re

Annual Report 2006 - Detroit Symphony Orchestra

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