Uncomfortable revelations often ensue when journalists with real business experience scrutinize the byzantine doings and opaque sayings of large non-profit institutions. Adam Lashinsky, former executive editor of Fortune magazine, has done a huge service by addressing the crisis at the San Francisco Symphony in an article for the San Francisco Standard. When Esa-Pekka Salonen announced earlier this year that he would not renew his contract because of a fundamental disagreement with the Board of Governors, the Board and its CEO, Matt Spivey, responded with scary-sounding talk of drastic deficits. Lashinsky examines these claims and finds them problematic. He writes: "Spivey says the symphony had an $11 million operating deficit in its most recent fiscal year. But that’s only true if you leave out an 'extraordinary' $15.1 million donation from the Ann and Gordon Getty Foundation." He also says: "The symphony says much of its endowment is restricted to certain uses at certain times. That said, despite signaling in its most recent audited financial report that it would decrease its annual 'draw' from 5.75% to 4.5% over six years, it recently changed gears and increased that figure to 6.45%. The cash is clearly there for the taking—but apparently not enough to have kept the respected conductor it had worked so hard to recruit." Most eyebrow-raising is Lashinsky's mention of rumored plans to merge the San Francisco Symphony with the San Francisco Opera. "Spivey claims ignorance about these claims," Lashinsky adds. This strand of the story bears particularly close watching.
Previously: Mäkelä in Chicago, Salonen in San Francisco.