Since announcing in April it was halting operations, the Arkansas Repertory Theatre has received a groundswell of monetary donations from individuals and foundations but has a long way to go to meet its remaining goal of $2.3 million.
Board members outlined The Rep’s steps toward financial stability, including the the revival of its “Our Next Act” fundraising campaign, during a panel discussion on the theater’s future Thursday at the Clinton School of Public Service.
The campaign began in 2016 with a goal of $5.3 million to create a reserve account and pay off property debt. But The Rep suspended the campaign after raising only $1.7 million.
But two challenge grants totaling more than $1 million from the Windgate Charitable Foundation and the John and Robyn Horn Foundation prompted organizers to restart the campaign. In addition to $75,000 in upfront dollars from Windgate, The Rep has received $278,000 as of June 6, reducing the total amount needed to $2.3 million.
Ruth Shepherd, The Rep’s former development director and chair-elect of its board of directors, also announced that the theater is selling the Peachtree Apartments, its primary lodging for resident actors. She said the sale will cut The Rep’s property debts in half. Board member Bill Rector, now part of a leadership team determining The Rep’s next steps, said replacement lodging hasn’t been worked out yet, but contracting with owners of extended stay units is under consideration.
Debt has dogged the theater, siphoning revenue from productions. As a result, Shepherd said, The Rep has been operating “hand-to-mouth” for several years. The board’s examination of its operations showed the theater breaking even in terms of production expenses and income, but operating costs tipped the scales to a loss. She said real estate owned by the theater, including its Annex, which was acquired for education programs, are a “constant cash drain.”
The Rep’s staff has also taken a hit — around two-thirds have been laid off in the past year, Shepherd said.
The 2017-18 season was a case study in The Rep’s financial troubles. The Rep staged six plays and one musical. Shepherd said successful musicals can often underwrite losses from other shows if they stay on budget, but in recent years, most haven’t. This season’s “Mamma Mia,” for example, did not meet its budget goals.
“Theater is an inherently risky business … in theater, every night it’s a brand new adventure,” she said.
The theater also consolidated its property loans in the fall. The theater budgeted $1.2 million for stage productions, about a quarter of the total budget for the season, and had planned for $1.75 million in ticket sales. But sales for the season only totaled around $1.1 million, a $650,000 shortfall. Shepherd said the decision to cancel “God of Carnage” was made to avoid further debt.
A steering committee of 55 volunteers is in the planning stages for The Rep’s next season. Shepherd said the future of The Rep revolves around three main goals: professionalism, affordability and sustainability.
Shepherd also attributed some of The Rep’s troubles to the changing community theater landscape in central Arkansas. When the theater was founded, it was one of very few in the area, and it was the only professional nonprofit theater within 300 miles, she said. Today there are multiple community theaters in the area competing for ticket buyers.
This isn’t the first time The Rep has attempted to get its finances in order. In 2008, it launched the “REPrise” campaign with a goal of $8 million to pay off debt, create a reserve fund and make facility updates. That campaign raised $6.2 million.
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