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1. Gala—A Financial
Success
Report to the Board of Directors
This report contains final revenue data and
estimated expense data. Final expenses will be
reported as soon as all bills are paid.
Patrick V. Hess
6/15/2013

2. Table of Contents
Goals for the Gala ..............................................................................................................................1
Revenue Sources ................................................................................................................................1
Art Auction ......................................................................................................................................1
Sponsorships ...................................................................................................................................3
Ticket Sales ......................................................................................................................................4
Total Revenue .....................................................................................................................................4
Gala Expenses .....................................................................................................................................5
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3. Gala—A Financial Success
Report to the Board of Directors
Several Board members at the event commented that the 50th Anniversary Gala
generated the most positive feedback that they had received in their tenure on the
Board. The art was phenomenal, and the entire event was both enjoyable and very
memorable. The public relations value of this event cannot be underestimated. Prior
to the many communications sent out about this event, many citizens of North
Carolina and South Carolina knew relatively little about the Carolina Arts Federation.
A number of people indicated that they were not aware that the Carolina Arts
Federation was the financial sponsor of the popular Arts in Education program in K-12
schools until the solicitations for the Gala were mailed to them.
Goals for the Gala
The primary goal for the Gala was to serve as the major fundraising event of the
Carolina Arts Federation for this year. The Board set the financial goal for the event at
$150,000 net. Other goals revolved around public awareness of the work of the
Carolina Arts Federation and public awareness about the role of art in enhancing the
quality of life for our citizens and support for the Arts in Education program.
Revenue Sources
Previous fundraising events depended on ticket and table sales and an art auction for
revenue. Ticket and table sales provided the majority of the revenue at the primary
fundraising event for each of the past five years. The art sale was handled differently
than it was this year, and it had a very small profit in most years. In a couple of cases,
it did not break even. The three revenue sources this year all produced significant
revenue.
Art Auction
In previous years, one price was set for the art by the artist, and individuals bought it
at that price. The process did not include a silent auction. This year the artist set the
bid price and received 70 percent of that price if the art sold regardless of the final
sales price. Each artist was given four tickets to the Gala. The attached worksheet
shows the bid price, sale price, the artist’s share, and the Carolina Arts Federation
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4. share for each piece of art. All artwork sold, and the total sales price was $209,625
whereas the total bid price was $133,950, a difference of $75,675. Additional analyses
are provided for future planning.
Figure 1 shows the number of participating artists by state. The total number of
participants was 46.
30
Contributing Artists by State
25
20
Number
15
10
5
0
NC SC
Prepared by Patrick V. Hess, CAF Chair
Figure 1. Contributing Artist by State
Figure 2 compares the bid and sales prices by state. The North Carolina artists were
more accurate in setting the bid prices for their work than the South Carolina artists.
The South Carolina artists tended to undervalue their work.
Comparison of Bid Price and Sales Price
180
Thousands
160
140 154
120
100
80 93
60
40 55
20 41
0
NC SC
Figure 2. Comparison of Bid Price and Sales Price
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5. Participating artists received $93,765, and the Carolina Arts Federation received
$115,860. Table 1 shows revenue generated in each location.
Table 1. Revenue Generated from Art Auction.
Revenue Generated
Number of
Location CAF Share
Artists
NC 18 $26,710
Charlotte 7 12,715
Fayetteville 3 2,495
Greensboro 4 1,810
Raleigh 4 9,690
SC 28 $89,150
Charleston 6 18,860
Columbia 10 36,300
Greenville 5 11,415
Hilton Head 7 22,575
(blank) $115,860
(blank) 115,860
Grand Total 46 $231,720
Sponsorships
The Planning Committee recommended that corporate sponsorships be added to the
sources of revenue this year and took full responsibility for soliciting the various
corporations in the Carolinas. Table 2 shows the structure of the sponsorships.
Table 2. Structure of Sponsorships
Gala Celebration Sponsorships
Sponsorship Level Benefits of Sponsorships
 Presenting sponsor at event
 Full-page ad in program
Platinum-- $25,000
 Recognition in all print materials
 16 event tickets
 Half-page ad in program
Gold-- $15,000  Recognition in all print materials
 12 event tickets
Silver-- $10,000  Quarter-page ad in program
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6.  Recognition in all print materials
 10 event tickets
 Recognition in all print materials
Bronze-- $5,000
 8 event tickets
Twenty corporations sponsored the event. The strong support from the business
community in both states exceeded expectations significantly. The levels of
sponsorship were priced higher than normally expected to reflect the special occasion
of the 50th anniversary of the Carolina Arts Federation. For future fundraising events,
the level of sponsorships will need to be evaluated carefully. Table 3 shows the
number of sponsorships at each level and the revenue generated from sponsorships.
Table 3 Revenue from Sponsorships
Revenue from Sponsorships
Sponsorship Level Number Tickets Revenue
Platinum—$25,000 3 48 $ 75,000
Gold—$15,000 4 48 60,000
Silver—$10,000 5 50 50,000
Bronze—$5,000 8 64 40,000
Total 20 210 $225,000
The sponsorship package included a total of 210 tickets. The value of each ticket was
$100. The revenue generated from corporate sponsorships was $225,000.
Ticket Sales
Tickets were sold to individuals through a mass mailing. Approximately 500 letters
were sent to individuals who have shown an interest in the arts. The ticket price was
$100 per ticket, and 378 tickets were sold, generating $37,800.
Total Revenue
Corporate sponsorships generated the highest revenue of the three sources. Table 4
summarizes the revenue by source.
Table 4. Summary of Revenue Generated
Gala Celebration Revenue
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7. Source Tickets Revenue
Art auction 184 $115,860
Sponsorships 210 225,000
Ticket sales 378 37,800
Total 772 $378,660
The total revenue generated by the Gala was $378,660. This revenue more than
doubled the highest fundraising event prior to this one. Sponsorships created a new
opportunity to generate revenue. Individual ticket sales were not as high as they have
been at past events; however, the total number of tickets distributed far exceeded that
of any previous event. The decline in the number of tickets sold was offset by the
number of tickets provided with the sponsorship package.
Gala Expenses
The expense section of this report is based on agreed upon prices prior to the event.
Several bills have not been received and paid. The staff believes, however, that the
expenses summarized in Table 5 are reasonably accurate.
Table 5. Estimated Gala Expenses
Estimated Gala Expenses
Food, beverages, and facility costs ($60 per person) $46,320
Entertainment 6,000
Printing and promotion 22,500
Flowers, decorations, and art auction setup 8,000
Total $82,820
The estimated net revenue based on the expenses shown in Table 5 would be
$295,840. The amount is almost double the financial goal set for the event. Therefore,
it is truly a financial success.
Many volunteers and staff members devoted hundreds of hours to making this event
successful. In addition, many organizations provided in-kind products and services to
keep costs to a minimum. The Events Coordinator will prepare appropriate letters of
appreciation to these individuals on behalf of the Board.
As soon as all bills have been received and paid, this section of the report will be
finalized. It will be sent to all Board members and will be discussed at the next Board
meeting.
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