Page 24 - November 2017 inLEAGUE Resource Guide (Vol. 40, No. 5)

theatre’s Executive Director, Facilities the theatre’s needs and wants.
Manager and operations and technical
staff to compile information on every system, Ideally, the prior year’s surplus is used to
feature, and equipment throughout the fund the coming year’s capital needs. The
venue, including determining anticipated theatre collects a $3 per ticket preservation
life spans and current replacement costs. fee, which generates an average of
Additionally, the consultant coordinated with $275,000 - $300,000 that is either for capital
structural, mechanical/electrical/plumbing expenses or unneeded funds are added to
experts, as well as with equipment vendors an endowment for long-term investment.
and service providers, to research details The ultimate goal is that the fully-funded
required for the development of a long- endowment’s earnings will be sufficient to
range capital plan. cover future annual capital needs.

With all of this
information in hand,
the theatre’s Executive
Director compiled the
data into a Capital
Needs Assessment
(CNA) spreadsheet. It
detailed the extensive
listing of infrastructure,
systems, equipment,
fixtures and furnishings
along with their current
replacement costs and
projected future costs
based upon a 3.5%
compounded inflation
factor plus an annual
contingency.

During each fiscal
year’s fourth quarter,
staff reviews the
upcoming three years’ scheduled plan items. Tennessee From Center Balcony
At that time, the assessment consists of:
1. Does it need to be done as scheduled? A significant benefit of the Capital Needs
Assessment Plan has been a demonstration
2. Has anything been overlooked? to the Board, donors and the community
that the 2005 renovation investment is being
3. What’s the updated cost estimate for prudently and professionally well cared for
scheduled needs?
long term. Additionally, it provides Board
Once this review is finalized, in the first quarter and staff a basis for special fundraising
of the new year, projects are prioritized and opportunities. For example, through grants
scheduled. This then serves as the staff’s work and donations, both large and small, 90%
plan for the year. Except for emergency of the marquee and blade sign repair was
repairs, new items are not added to secured before using assessed preservation
the current year’s capital plan. This has
encouraged staff to think years ahead about continued page 25
PAGE 22 | INLEAGUE League of Historic American Theatres