Donor Education

If you’re starting a theatre or just doing a one-off production, make no mistake, you will have to rely on the generosity of people to help make it happen.

Consider this statistic (according to Theatre Communications Group): In 1964, the average nonprofit theatre derived 85% of their revenues from earned income (i.e. subscriptions and single ticket sales) and 15% from contributed income (i.e. donations and grants). In 2024, it was 40% from earned income and 60% from contributed. (Some smaller nonprofit theaters report 20% earned and 80% contributed!)

That is a seismic shift.

Why did it occur?

There are several reasons including the decline in subscriptions, ticket prices not keeping up with production costs and audience levels still down 25% from pre pandemic levels, among others.

In your fundraising efforts, you should educate donors on this trend. Just like you know why you’re making your art, they need to know why they should fund your art.

P.S. – The below 3 part Freakonomics podcast is an excellent educational resource:

Part One (Episode 629): “How Is Live Theater Still Alive?”: https://freakonomics.com/podcast/how-is-live-theater-still-alive/

Part Two: (Episode 630): “On Broadway, Nobody Knows Nothing”: https://freakonomics.com/podcast/on-broadway-nobody-knows-nothing/

Part Three: (Episode 631): “Will 3 Summers of Lincoln Make it to Broadway?”: https://freakonomics.com/podcast/will-3-summers-of-lincoln-make-it-to-broadway/

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