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Tough choices ahead for the NAA

The Newark Arts Alliance has seldom, if ever, been “comfortable” in terms of cash flow. Now, the situation is dire. The future holds major changes in the way we operate, with the possibility of closing our doors.

Compared with 2008, revenue streams we’ve depended on are down – the annual campaign by $4,000, Mosaic by $2,000, and holiday sales by $800. Grant funds have also decreased. Our average monthly income has dropped to less than half of the monthly expenses.

The Board of Directors is taking steps to cut costs and increase income. However, the basic issue is that, while the NAA operates in many ways as a service organization, we have the expenses of a retail business (rent, utilities, staffing) without a corresponding source of income.

In an effort to reduce the gap, the Board has approved the following actions and policies:

• We have two paid staff members, whose actual “on the job” time generally exceeds their regular hours. Executive Director Terry Foreman has volunteered to work without salary in March, and hours for assistant Annalisa Ekbladh have been cut from six per week to three.
• The ArtForms newsletter will be delivered electronically to as many members as possible to reduce paper, postage, and use of staff/volunteer time.
• Additional fund-raising events have been scheduled, from a benefit concert in April to a wine dinner and Y’Art Sale in June to a Harvest Arts Festival in October.
• Art Loop venues that are for-profit businesses must join the NAA at the $50 “organization” level in order to be listed in our materials, beginning May 1.
• For exhibits, the submission fee for non-members has been doubled to $10 per entry.
• Groups that submit event listings for the newsletter or artist opportunities for broadcast e-mails will be invited to join at the “organization” level, which also gives them one free advertisement per year in the newsletter and a link on the Web site. They will also be asked to publicize NAA events through their Web site, newsletter, and social networking sites.
• To help cover copier expenses, we are opening use of the machine to the public at 5 cents per copy, including paper.
• Donations are being sought from the groups that meet in our space and those who attend our free events (exhibits, Sunday jams, etc.).

The options

If we cannot increase revenue and decrease costs sufficiently, the NAA is looking at making tough choices.

• Operate without a physical space. This move would take us back to the “old days” when events, exhibits, and classes were held wherever we could round up a location. It would also eliminate the Gallery Shop and meeting spaces for arts groups and activities like the drum circle and music jam.
• Operate with a volunteer staff. We currently cannot even find enough volunteer monitors to keep the doors open during our regular hours.
• Find additional sources of grant funds. This is even more difficult due to the economy. In addition, it is not clear whether we’ll receive the same level of funding from current grant sources.