Search

phase not only completes the campaign, but also strengthens the organizations
relationship with its donors and volunteers.

The Nashua Performing Arts Center strategy to raise $2.5 million through private
contributions toward the total $6.5 million secured will be slightly different, simply
because the effort is already so much in the public eye.

CAPITAL CAMPAIGN GIFT SOURCES

The projected breakdown of the sources of funding through this $2.5 million capital
campaign are:

PROJECTED SOURCES OF CAPITAL
CAMPAIGN CONTRIBUTIONS

Foundations
10%

Corporations
25%

7 Individuals
65%

Nationally, corporate giving accounts for just six percent of charitable giving. [Source:
Giving USA 2018 Report] Here, corporate gifts are projected at a higher proportion
because they include those made by purchasing CDFA tax credits and because employer
owners and leaders interviewed highly rated the Performing Arts Center's impact on
employers.

CAPITAL CAMPAIGN GIFT SIZES

Many donors to capital campaigns contribute once they feel the chance of success is high.
This is especially true with the Performing Arts Center because it is a start-up entity.

A campaign in support of a start-up nonprofit has a challenge because a) it does not have
relationships with donors; and, b) it does not have a track record of success to reassure
prospective donors that their gift will be well used. In addition, the Nashua community is
not 100% convinced of the need for a performing arts center, meaning some that would
typically give to a community fundraising effort may not.

Full Circle Consulting |www.fullcirclenh.com

A chart that identifies the projected number of gifts needed and at what gift size is shown
below. As noted above, the leadership gift phase is critical to a campaign’s success.
Several lead gifts secured will get the campaign to a positive tipping point in which other
donors, those that were highly enthusiastic about a performing arts center but felt less
sure about its chances for success, are highly likely to step in.

Although not part of this study, anecdotal evidence shows that the public phase has the
potential to comprise a larger-than-usual share of the campaign due to grass-roots
support by Nashua’s younger population.

Nashua Performing Arts Center
Projected gifts to a $2.5 million capital campaign
Phases Size of Gift Number of Gifts Total
Lead Gift Phase $ 500,000 1 $ 500,000
14 lead gifts $ 250,000 2 $ 500,000
$1.75 million $ 100,000 4 $ 400,000
70% of campaign goal $ 50,000 t $ 350,000
Major Gift Phase $ 25,000 8 $ 200,000
41 major gifts $ 15,000 8 $ 120,000
$495,000 for $2.245 million $ 10,000 10 $ 100,000
20% of campaign goal $ 5,000 15 $ 75,000
Public Phase $ 2,500 20 $ 50,000
345 gifts totaling $255,000 $ 1,000 30 $ 30,000
10% of campaign total $ 500 45 $ 22,500
<500 250 $ 152,500
Totals 400 $ 2,500,000

PRIVATE SECTOR FUNDING TIMELINE

2018
Q2 Q3

m Readiness
New Market Tax Credits
Gift Phase

CDFA Tax Credit

Gift Phase

Tax Credit sales
Public Phase

Phase

Page 10 Full Circle Consulting|www.fullcirclenh.com|

Capital Campaign Committee

The campaign committee is being formed now. It will begin to meet twice monthly in mid-
October. Its first task will be to identify lead prospective donors, identify who is the best
member of the committee to approach them for a gift, and identify what about the
project is likely to be of highest interest to them. Solicitation visits will then commence
and continue until the projected 14 leadership gifts are secured. As noted above, the
leadership gift phase is critical to a campaign’s success.

These are private, ongoing conversations with donors that take time. Many donors to
capital campaigns contribute once they feel the chance of success is high. This is
especially true with the Performing Arts Center because it is a start-up entity.

While the lead gifts are being sought, the newly formed campaign committee, the work
group with support from City staff, and Full Circle Consulting will apply to the NH
Community Development Finance Authority for an allocation of state tax credits. The due
date for this application has not yet been announced; the annual deadline is usually in
March or April with award allocations announced in June.

The major gift phase represents a broadening of the circle of prospective donors and
volunteers. The campaign committee will continue to meet twice-a-month, and in
addition to one-on-one meetings will organize small events at private homes and seek
private foundation support. Through this phase a projected 41 gifts will come in, and the
campaign will reach 90% of its goal.

If CDFA Tax Credits are allocated to the project, the campaign committee will sell them to
area businesses. More information on CDFA Tax Credits may be found here.

The public phase is when hundreds of donors join in and give at whatever level they are
able. Clearly, the Performing Arts Center will accept contributions of any size at any time,
but this phase is when the effort is made to secure a large number of smaller gifts.
Activities include social and traditional media campaigns, special events, and direct mail.

Donors to all phases of this campaign may make their contributions over a period of
three to five years so that an individual interested in giving $10,000 to the campaign in
one year could make a $50,000 gift by contributing $10,000 a year for five years.

New Market Tax Credits

City staff and a New Market Tax Credit Consultant have begun the process to apply for
and secure an allocation of New Market Tax Credits. The expectation is that they will have
a letter of commitment in the second quarter of 2019 with cash available for the project
by the end of 2019.

Full Circle Consulting|www.fullcirclenh.com| Page 11

RECOMMENDATIONS

Eighty-three percent of those interviewed support the project and believe or strongly
hope that it will succeed. This is a positive indicator of success for a campaign.

The case for support brochure and documents were received positively by almost all of
those interviewed; many commented that they were compelling. Overall, interviewees
agreed that the case for support as presented is a strong piece of marketing collateral for
the project.

WHAT INTERVIEWEES LIKE

There are three distinct but intertwined reasons that those interviewed support a
performing arts center in downtown.

1. It will bring art and performances to Nashua

Most of those interviewed are excited at the idea of a vibrant, cultural downtown with live
performances. Many made the point they would prefer to go downtown to hear quality
live music and see performances rather than travel out of the city. And they see it as a
means toward embracing and promoting artistic and cultural diversity in the community.

2. It will help to revitalize Nashua’s downtown

The idea that this will spark revitalization in downtown was also met positively. That it will
translate into short-term economic growth was met with less enthusiasm and some
skepticism. But most articulated that a vibrant downtown is good for the entire
community. Vibrant was described as one in which the downtown is a destination for
dining and cultural events. Vibrant is also a downtown in which people want to live. One
interviewee noted that millennials and baby boomers are looking for the same thing in
their community: walkability, simple living, and vibrancy.

3. Avibrant performing arts center and downtown will support Nashua business’
efforts to attract and retain high-quality workers.

Most of the business owners and leaders interviewed saw the value of a downtown
performing arts center to their ability to attract and retain employees, younger employees
especially, that place high value on arts and culture in a community.

REASONS FOR OPPOSITION TO THE PROJECT

Reasons for strong skepticism about and/or opposition to the project and its success
voiced by 10% of those interviewed are:
1. The City should not be investing public money in a performing arts center.

2. The cost of the project is way too high.

Page 12 Full Circle Consulting |www.fullcirclenh.com |]

3. The location is not appropriate. Outside of downtown would have allowed for a larger
venue to be built. Parking is not available downtown.
4. The City is not capable of doing it right.

5. Downtown is not worth investing in.

6. The City has lost the momentum and enthusiasm it had for this project right after the
bond vote.

CONCERNS

In terms of concerns about the project, two themes rose immediately to the top during
the interview process:

1. There is a deep distrust of the City’s ability to manage this project.

2. This has to be “done right” or it will fail.

Both are encapsulated in the specific concerns identified below.
Specific concerns not adequately addressed by the case for support documents are:
Parking

Twenty percent of those interviewed named parking as a concern. The site selection
study identified hundreds of parking spots within a short distance of the proposed
performing arts center, but parking remains a concern largely because of the perception
that the parking garages (home to those hundreds of spots) are not safe or do not feel
safe.

Recommendation: Provide the needed upgrades to the parking garages to ensure safety
and feeling of safety.

Retail space

The plan calls for renting the retail space on the first floor. Many wondered what kind of
retail would be attracted to such a large space when retail establishments are leaving
downtown. Others would like to see a partnership with the Currier Museum of Art for that
space, to make it a gallery and/or studio.

Recommendation: Clarify the use of the first-floor retail space (restaurant, gallery, retail
store?). Secure commitment(s) for that space as soon as possible. Clarify the partnership,
if any, with the Currier.

Organizational Structure

Almost all interviewees were relieved to hear that the City would not be running the
Performing Arts Center and that a nonprofit is being formed to do so.

Many of those interviewed stated the need for a strong, independent nonprofit
organization to manage the Performing Arts Center, and expressed that the Executive
Director, as the public face of the Performing Arts Center, needs to be a personable and
compelling leader as well as a qualified manager.

Full Circle Consulting |www.tullcirclenh,com|

eho t

The refrain “this has to be done right” was repeated in interviews. “Done right” meant
things as different as the comfort of the seating to the types of acts the Center will attract.
But the general feeling is a distrust that the City can manage the project successfully.

Recommendation:

e Enthusiasm for the project will increase when its face is an independent nonprofit,
rather than the City. As soon as is possible, have volunteers and the nonprofit be
drivers of the project rather than the City.

e Involve volunteers and/or the board of the nonprofit in the design and construction
of the performing arts center.

Is it worth investing in downtown?

One interviewee put it succinctly: you are not selling a performing arts center; you are
selling a revitalized downtown and the concept that downtown is important to Nashua.

Recommendation: In the case for support materials, highlight examples of other
successful downtown revitalization efforts.

Financial sustainability

Many interviewed worried that the Performing Arts Center is not financially sustainable.
Some felt that the revenue projections developed by Webb Management Services were
too optimistic.

Recommendation: Finalize the business plan and five-year projected operating budget
and disseminate. Publicize the business and financial comparisons to other performing
arts centers reported by Webb.

What kind of performances?

Fifteen percent of those interviewed felt they need greater detail on the kinds of
performances the center is likely to attract.

Recommendation: Include in campaign case materials a list of the types of performances
that will be sought.

Nothing is happening

There is a notable perception that nothing is being done and that the City has dropped
the ball. And, opposition to this project by some members of the community has created
some doubt about its success among those that do support is. Because of this, there is
some sense that the opportunity to succeed is being squandered. Chances of success are
improved by positive steps forward, but planning takes time. The campaign will be better
off when the community is presented with the plan for the Performing Arts Center's
organizational structure and fiscal sustainability. If those plans change - as plans do -
quick and thorough communication to that effect will support the campaign.

Recommendation:

Full Circle Consulting|www.fullcirclenh.com

Revenue Appropriations

POLICE 108

150 | POLICE DEPARTMENT 39 111
FIRE 115

152 | FIRE DEPARTMENT 40 117
PUBLIC SAFETY 121

157. | CITYWIDE COMMUNICATIONS 123

159 | OTHER PUBLIC SAFETY-HYDRANTS 125

162 | STREET LIGHTING 126
PUBLIC HEALTH & COMMUNITY SERVICES 127

171 | COMMUNITY SERVICES 130

172 | COMMUNITY HEALTH 42 132

173 | ENVIRONMENTAL HEALTH 43 134

174 | WELFARE ADMINISTRATION 44 136

175 | WELFARE ASSISTANCE 137
PUBLIC WORKS AND ENGINEERING 138

160 | PUBLIC WORKS AND ENGINEERING 45 142

161 | STREET DEPARTMENT 46 144

177 | PARKS AND RECREATION 47 147
PUBLIC SERVICES 150

140 | PINEWOOD CEMETERY 152

142 | WOODLAWN CEMETERY 48 153

144 | EDGEWOOD & SUBURBAN CEMETERIES 49 155
PUBLIC LIBRARY 157

179 | PUBLIC LIBRARY 50 159

e Create a website and/or social media accounts to provide updates on planning and
implementation of the efforts to secure private sector funding, including the work
done to date.

e Finalize business planning and publicize within the community

e As plans evolve, communicate promptly via website and/or social media platforms

e Place signage and window displays at 201 Main Street that announce a Performing
Arts Center will open in 2020.

e Remove the Alec's Shoes sign from 201 Main St.

RECOMMENDED CAPITAL CAMPAIGN GOAL

There are three things to consider in the analysis of what capital campaign goal is
feasible: history of donor giving to the organization, indicated lead gift amount, and total
giving indicated.

History of Donor Giving

Typically an analysis of the financial feasibility of a capital campaign goal includes a review
of donor giving to the organization. The Nashua Performing Arts Center is a start-up
organization and so has no history. The analysis, then, is based solely on standard
metrics that multiply the impact of indicated interest in giving.

Lead Gift

The largest gift to a campaign should total 20% of the campaign goal. The largest gift
identified in this study is $400,000. Using the metric that this will be 20% of the campaign
goal, an achievable campaign goal of private charitable contributions is $2 million.

Total Giving Indicated

The high range of total gifts indicated is $1.1 million. A standard metric in campaign
feasibility studies is that the total giving indicated should comprise at least 40% of the
goal. Using this metric, a capital campaign to support the Nashua Performing Arts Center
is likely to achieve a $2.5 million goal.

Recommendation

Based on these analyses, $2.1 million raised through charitable contributions and
$400,000 through the sale of CDFA tax credits for a total goal of $2.5 million is achievable.

City staff and a New Market Tax Credit consultant have determined that an additional
approximate $4 million will be available for the project through the sale of New Market
Tax Credits to private businesses.

CAPITAL CAMPAIGN LEADERSHIP

The capital campaign needs 7 to 10 volunteers that are passionate, willing to make their
own stretch gift to the campaign, and happy to seek out major gifts from others in the

Full Circle Consulting|www.fullcirclenh.com| Page 15

community. Three such people expressed interest in serving on the committee. While
this is positive, more are needed.

Recommendation: Recruit three to five additional campaign committee members
between now and November. A strong campaign committee is critical to the success of a
campaign.

ORGANIZATIONAL FUNDRAISING CAPACITY

Since this is a start-up and the nonprofit has yet to be formed, a nonprofit is needed to
accept contributions in support of the Performing Arts Center. City Arts Nashua has
informally agreed to serve as fiscal agent until the Performing Arts Center achieves its
nonprofit status.

Recommendation:
e Enter into a fiscal agreement with a City Arts Nashua that spells out their fiscal

agency fee and reporting requirements.

e Form a separate 501(c)(3) nonprofit.

e Contract with campaign counsel to consult on campaign strategy and support the
campaign committee

e Purchase a donor data base to track gifts and pledges

e Contract administrative support to manage the donor data base and produce thank
you letters and donor reports.

CONCLUSION: ONE WISH

At the conclusion of each interview, we asked study participants to dream by asking “If
you had one wish for the Nashua Performing Arts Center, what would it be?”

Most answered simply: that it comes to fruition; that it is successful; that it is done right;
that it is used frequently; that it is beautiful; that it becomes the center of downtown. The
tone of these wishes ranged from hopeful and excited to stoic (“I wish it the best of luck”).

Others were much more specific, and their answers represent the feeling of possibility
and enthusiasm that 83% of interviewees feel about the Nashua Performing Arts Center.

“That it propels the rest of downtown and the City to further heights.”
“That it becomes an architectural gem.”

“That it has a rooftop bar.”

“That it does more theater than music.”

“That it serves the underprivileged.”

“That it has great music.”

“That it becomes a part of the whole community.”

Page 16 Full Circle Consulting|www.fullcirclenh.com| ;

“That it attracts singer/songwriters, has sell out shows, and has valet parking.”

“That there is space for an art gallery.”

“That it opens with a live music festival in downtown, headlined by Ray LaMontagne, and
emceed by Mike O'Malley.”

Pudi Carcle Consulfinelwwwotullcirclenh.com ] celta A