| NEWS 06.23.09 1:00 PM |
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| Facing Severe Sponsorship Drop, Gen Art Brings Back Benefit to Raise Funds |
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For the past decade, Gen Art's revenue model relied almost solely on corporate partnerships from brands such as Acura, which sponsored New York's recent Gen Art Film Festival.
Photo: Alice and Chris for BizBash
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Gen Art, the frequent event host that matches up emerging creative talent with corporate sponsors, has seen a 70 percent drop in sponsorship dollars from 2008 to 2009. So after relying on money from marketers to fund both its for-profit event production company and its nonprofit wing during most of its 15-year history, Gen Art has made drastic cutbacks and will put on its first benefit in nearly 10 years this week in New York.
"If the recession had hit three months later, it would have been a completely different story," said Gen Art C.E.O. and founder Ian Gerard, thinking back to last October, "but because it all happened before the 2009 fiscal year came, everyone drastically cut back their marketing budgets from the start."
Those cutbacks affected ongoing initiatives with Gen Art. Despite having yearlong deals in the works, official partners such as Acura, American Express, and Citibank all pulled back. "We're still working with all of those companies," Gerard said. "It's just been at such a reduced amount. It's more event-by-event versus an annual deal across all of our events or a large number of them."
As a result, Gen Art was forced to lay off about a third of its staff in December. The remaining 27 staffers were recently reduced to a four-day workweek. And next week half of them will go on furlough for the months of July and August—including New York-based event director Kaki Stergiou. Offices in Chicago, Miami, and San Francisco have all been closed, though Gen Art maintains programs in those markets by having staffers work remotely.
The organization operates as two distinct entities: Gen Art Productions, a for-profit firm that plans events and secures corporate sponsorships, and the Gen Art Foundation, a tax-exempt charity that seeks out and offers grants to emerging talent in art, fashion, film, and music. It is now looking back to its roots to find a way to more solid ground: A 15th anniversary benefit, dubbed "I Heart Gen Art," is planned for New York tomorrow.
"Originally we started with a very grassroots, benefit-oriented way of raising money, but as we learned that corporate America was interested in our audience and what we were doing, we grew very accustomed to having corporate partners," Gerard said. "We moved away from benefits toward that type of model. Most organizations have an annual benefit, but we haven't done that in over 10 years, so we've definitely gone back to the drawing board in our planning of this over the last three months."
To execute the nonprofit wing's first benefit in such a long time, Stergiou has had to go outside her normal duties, soliciting favors and donations from her most loyal vendors. "We've gotten so much help with this," Stergiou said of the 7 W New York-hosted fete, which she anticipated will draw a crowd of at least 1,000. "We have next-to-zero costs for the venue, and our catering partner [New Jersey-based Vitella's Cucina and Catering] is giving us lobster and $12,000 worth of food for free."
Another thing Gen Art has been able to count on is the legion of actors, artists, and designers it has supported over the years. Alan Cumming, Adrian Grenier, and Zac Posen all serve as honorary chairs of Wednesday's benefit, and Gerard anticipated they'll raise $100,000. (He is hoping for $250,000.) Gerard also said he expects to receive an additional $500,000 in private investments over the next two months to keep the for-profit production company moving. And he's hoping Gen Art will be in better shape by fall. "We've laid a lot of groundwork, it's just bringing that all to fruition now," he said. "A successful benefit, the $500,000 from investors, and lining up partnerships for the last four months of the year—if all of those things happen, or if most of them do, we'll be in descent shape going into 2010."
—Michael O'Connell
RELATED TOPICS
Gen Art, Citibank, Acura, American Express
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