The Rye Arts Center

Annual Report

Fiscal Organization

The RAC is qualified for tax-exempt status with the Internal Revenue Service under Section 501(c)(3). Our Articles of Incorporation and the “determination letter” issued by the IRS, which states that the RAC has met the test for exemption, is also on file at its premises. As a result of its 501(c)(3) status, the RAC can accept general and designated contributions and offers donors a tax deduction for their gifts. The RAC files a yearly tax return on Form 990 on or before the fifteenth day of the fifth month following the close of its accounting period with the IRS.

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Annual President's Report

By Patti Gaulin, President
October 20, 2009

Thank you for your interest in The Rye Arts Center, a 501(c)(3) not for profit corporation, the largest community arts center in Westchester County, whose mission is to inspire interest and maximum participation in the arts, with programs characterized by artistic tradition, educational value, and a spirit of innovation. As a volunteer driven organization, we depend on the generosity of public and private funds and the individual efforts of our membership, staff and volunteers who provide the foundation for our accomplishments.

Fiscal year 2009, marked by an economic downturn and sudden loss of promised NYS funds, was met with increased focus on alternative sources of revenue, membership, patron and sponsorship development and the stewardship of an $850,000 operating budget. With extraordinary oversight by our Executive Director, Peggy Hill, and with attention to detail by our Finance Committee, headed by Treasurer, Tara Yeager, expenditures were reduced, facility improvements delayed and our budget revised to accommodate the changing abilities and needs of our constituency, while keeping all programming and scheduled events in place. We worked hard to maintain our membership numbers, but the level of giving declined. Despite all efforts, the year ended with a $34,000 deficit (the first operating deficit in many years), reducing our operating funds to $111,239. At the close of this fiscal year, an additional $122,794 remained in a separate “Wall Campaign” account dedicated to programming and capital expenditures received from on-going cumulative giving from corporate and individual donors, whose names are memorialized on the bronze “Wall Plaque” in the entrance foyer of the RAC. There remains room for the names of our future significant contributors.

Great technological improvements brought the RAC online with course and program event registration, an interactive website and a data base for statistical analysis for future growth. Marketing dollars were saved with e-vites, e-blasts and online catalogues and communications.

Signature events, including Festival@51, Painters on Location, Comedy Night, the annual fundraiser and gallery programming and exhibits were successful with the full support of our dedicated staff and volunteers, including our “hands-on” Board of Directors.

Class registrations in our music, media and arts schools were in a growth mode until impacted by the economic climate. However, our school directors met the challenge with uncompromised quality and increased diversity in our offerings. Community response was excellent and already the arts school is showing significant growth.

Curated Gallery Exhibitions stretched our horizons this past year with “Southern Exposure” (part of a County wide multiple exhibition on clay) and the celebrated images of the Hubble telescope, called “Heavens Above.”

New performing arts events included high school team performances in “Ah Capella” and a play reading by the “Proscenium Players.” The success of the “Mystery of Edgar Allen Poe” necessitated a quick change of venue to a school auditorium to accommodate our growing audience.

All outreach programs continued strongly with committed sponsorship (160 Head Start students graduated this year alone). We increased with programming at the Hispanic Resource Center in Mamaroneck and 21st Century in Port Chester, where we are the primary after-school arts programmer.

Arts-in-Education “Famous Artists” programming has been revitalized and restructured to provide superior adult education to over 220 volunteer docents who will, in turn, then teach approximately 6000 school children in Westchester and surrounding regions. Technological upgrades accompany many great changes being made to facilitate the educational experience.

Incorporating recommendations obtained from a Governance Study Report conducted by Dr. Gail Roman, the Board updated and refined the corporate By-laws and policies. Insights into our branding and marketing efforts were provided by a marketing study report conducted by Harvard Business School Partners. With the advice of lawyers, accountants, insurance agents and other professionals, the RAC policies and agreements were reviewed and revised where appropriate.

Moving forward in 2009/2010, the RAC continues to operate in a challenging financial environment as evidenced by a reduction in support levels and program enrollment. Multiple strategies are already in place to seek alternative sources of funding through private and public foundations, corporate sponsorship, legacy giving and NYS granting opportunities. Our formidable financial team has budgeted a decline in contribution from our schools, programs and fundraising dollars of 20% to 25% and only programs and events fully or self-funded will take place. Increasing our membership and patron numbers and maximizing the efficiency and effectiveness of marketing efforts are two of our top priorities.

Our most sincere gratitude is given to our County, corporate and individual donors and sponsors who have, and continue to, support our endeavors to realize our mission. Simply stated, the more shoulders upon which we stand, the higher we reach to attaining our goals.

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Annual Financial Report

For the Fiscal Year Ended June 30, 2009

The financial highlights for the fiscal year 2009 are reflected below. The decline in net assets of $23,681 represents the challenges The Rye Art Center faces each year to fund our educational programs, outreach, performing arts and gallery events. In the current year, the uncertainty of receiving grants as well as individual contributions is even greater than this past year and we are anticipating a further decline in net assets, possibly as much as $70,000, which will reduce our operating cash balance to only $40,000. In order to maintain the vitality and breadth of our programs and services, we reach out to the community for your support through our annual appeal.

Net Assets, beginning of year

$ 338,379

Revenue
Education	$ 548,368
Membership	53,156
N.Y.S. & County Government Grants	52,838
Corporate and Foundation Grants	29,503
Individual Contributions	73,954
Special Events, Exhibits & Performing Arts	66,832
Facility Usage	33,968
Total Revenue	$ 858,619

Expenses
Education	$ 406,276
Personnel	282,752
Administration & Building	91,098
Special Events, Exhibits & Performing Arts	46,576
Outreach	35,141
Other	20,457
Total Expenses	$ 882,300

Net Assets, end of year

$ 314,698

Increase (decrease) in net assets

$ (23,681)

These statements are audited.

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