Posted on December 4, 2010

Cleveland Orchestra Annual Report Gives Reason for Optimism

According to figures made public in its most recent annual report, the Cleveland Orchestra has started to recover from the economic hit it suffered in 2009, the Cleveland Plain Dealer reports.

The orchestra reported a deficit of $2.3 million for the 2010 fiscal year, slightly more than the $2 million budget shortfall it recorded in 2009. The value of its endowment, in contrast, recovered nicely, ending the fiscal year at $106.6 million, up from $97.2 million in 2009. Giving by corporations and foundations also rose, from $3.8 million to $4.7 million.

In an effort to balance its budget last year, the orchestra enacted several measures, including voluntary pay cuts for music director Franz Welser-Most, executive director Gary Hanson, and other staff members. With the slight improvement in its finances, the orchestra has begun the process of restoring those cuts and hopes to have all employees back at their previous salary level by June 30.

Despite the somewhat better news, Hanson called the organization's endowment "seriously inadequate" in the report and expressed confidence in an ongoing fundraising effort that aims to boost the endowment to around $300 million. He also noted a recent grant of $20 million from the Milton and Tamar Maltz Family Foundation at the Jewish Community Federation of Cleveland that will be used to launch a Center for Future Audiences, which will be dedicated to winning the orchestra new fans and donors.

"The Cleveland Orchestra of today is very different from the institution of five years ago," said Hanson in the report. "Last year was a year of major changes in how we operate in Cleveland, and we're seeing results."