A Case of Deadly Donor Dependence: A Caution for the “Lucky”

March 27, 2015;New York Times

Cedar Lake Contemporary Ballet announced its two spring performances as its farewell performances soon after a single major donor decided not to continue funding the group. Cedar Lake was fortunate to have a wealthy donor passionate about ballet who not only funded the dance troupe’s efforts and activities, but also was the original founder. Unfortunately, Nancy Laurie (founder and single major funder) decided to discontinue the dance group after this year’s season.

Before we go on, we would like to refer you to a classic NPQ article by Clara Miller, “Gift Horse or Trojan Horse: A Thorough Physical is Critical,” which addresses the larger issue of accepting gifts that may be too large for you to swallow safely.

Since its inception in 2003, Cedar Lake’s mission focused on the development of dance by providing international choreographers an environment for creation and curation of their work and connecting those works to a worldwide audience. Although Laurie founded the company in 2003, it was not recognized as a legal 501(c)(3) nonprofit organization until 2012—but the truth is it could just as well have remained as it was, since in the end, the entity was pretty much fully owned by one individual.

So no one should be surprised with the matter-of-fact way she disentangled herself from the endeavor, since her interest may have waned. A spokeswoman for Laurie, Melissa Nathan, commented blandly on the reason for the discontinuation of funding: “Over the past decade we have dedicated substantial resources to Cedar Lake. Unfortunately, prevailing circumstances make running Cedar Lake no longer viable in this community.”

A review of public financial statements of the organization show that the financial contribution from Ms. Laurie and her foundation (The Nancy Walton Laurie Foundation) provided more than three-quarters of Cedar Lake’s $5.9 million in revenue, with tickets and touring revenue only generating about seven percent of the total. In addition, when the company was first founded, Laurie purchased two buildings for Cedar Lake’s performance and studio space, totaling close to $11.3 million.

In contrast to other attempts to close successful arts organizations, there was little active resistance here. This probably comes as no surprise, in that there were few others who felt any kind of ownership of it—all of that collectivity had been crowded out by Lurie’s largesse. In the end, the company was fully owned by Lurie as long as she was interested; those were the terms.

This is a case that demonstrates how a wealthy, passionate major donor can have the power and influence to make or break an organization. Because Cedar Lake did not stretch out beyond the support of Nancy Laurie and the foundation, it now finds itself closing after a strong run of great impact to its locality and the dance community as a whole.—Jennifer Swan and Ruth McCambridge

About the author

Jennifer Swan

Jennifer Swan is currently the Associate Director for Arts Services Initiative of WNY (ASI). In this role Ms. Swan assists in positioning ASI as the link between the arts and cultural community and other sectors of the region. She provides outreach and administrative support to ASI’s partner networks including the Greater Buffalo Cultural Alliance (GBCA), Cultural Alliance of Niagara (CAN), and serves on the Arts Partners for Learning (APL) Leadership Team. Ms. Swan is the New York State Council on the Arts Decentralization (DEC) Grant Program Coordinator for Erie and Niagara Counties. Previously Ms. Swan was the Business Manager for the Buffalo Philharmonic Chorus where she was responsible for the day–to-day operations, working alongside the Board of Directors and committees. Major projects included the involvement of the Chorus in the Music Culture 716 collaborative and extending the Chorus’ regular season to include special performances at community events such as the National Historic Preservation Conference held in Buffalo in October 2011. Ms. Swan currently serves on the Chorus’ Concert, Marketing, and Nominating Committees. From 2009-2011 she managed and maintained the box office and front of house at the Lancaster Opera House, and orchestrated and organized an annual fundraiser for two years. Here she solicited donations and managed all aspects of the event from preparation to day-of activities. Her other arts and cultural work includes judging Congressman Higgins’ Congressional Student Art Competition in 2012, 2013, and 2014; past work includes Music is Art’s The Big Easy in Buffalo Committee, Volunteer Coordinator for Hallwalls Contemporary Arts Center’s Artists and Models: Nocturminal fundraiser, Marketing/Concert Crew for Slee Hall at Lippes Concert Hall at the University at Buffalo, and Music Librarian and Marketing for the Amherst Chamber Ensembles. Additional work in the for-profit sector includes Promotions for Citadel Broadcasting and Righteous Babe Records, and management and marketing for several individual music projects. Ms. Swan has presented at a variety of community-wide engagements including to Leadership Buffalo’s Arts, Culture, and Tourism Day (June 2014), Daemen College’s Art and Community Class (April 2014), University at Buffalo’s Management Career Development Class (November 2013), and the Public Relations Student Society of America (PRSSA) Evening with the Professionals at Buffalo State College (October 2012). Ms. Swan has a MA in Arts Management from the University at Buffalo and a BA in Communications/Broadcasting with a minor in music from Buffalo State College. While at the University at Buffalo she traveled abroad with NUROPE (Nomadic University for Art, Philosophy, and Enterprise in Europe) to Sweden and Finland, completing an intensive scholarly program entitled Beyond Bergman and Nobel: Scandinavian Cultural Policy and Performing Arts. As a result of that academic excursion, Ms. Swan co-wrote an article forUB International titled “Summer School in Arts Management Held in Finland and Sweden.”

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