In Friday’s (9/21) Philadelphia Inquirer, Peter Dobrin writes, “The Philadelphia Orchestra Association’s 15½ months in Chapter 11 lowered some expenses, removed pension-funding risk, and eliminated a modest amount of debt owed to vendors. But seven weeks after exiting bankruptcy, the organization that presents the world-renowned ensemble is far from fiscally secure. The association, with a $45.5 million annual budget, has only about $3.7 million in cash on hand, says board chairman Richard B. Worley. Ticket income will be freed from escrow as performances start taking place in October. But even then, the orchestra is betting its future on as-yet-unidentified donations—and that money must come this fall, Worley says. … The funding climate is tough, but progress is being made. Since filing for bankruptcy in April 2011, the orchestra has raised $40 million for its recovery fund, a pool of money used to cover the gap between expenses and income. Most of that has been spent, but in the next two years, almost $10 million in pledges is scheduled to come in. Much more, though, is needed. The orchestra must raise $45 million in new money over the next four years (in addition to its regular annual fund-raising)—$25 million of that in the next 12 months.”
Posted September 21, 2012
