The St. Paul Chamber Orchestra tapped its rainy day fund to balance its budget during a difficult year, the nonprofit announced Tuesday.
Operating expenses totaled $10.4 million for the 2024 fiscal year, which ended in June. But revenue reached only $9 million. So to make up the difference, the nonprofit used $1.4 million from its reserves.
This is the first time the nonprofit has drawn from its rainy day fund, which it has been building since 2018. It will draw from it in future years, too, said Jon Limbacher, president and managing director, to grapple with rising costs and steep declines in subscriptions.
“We have time,” Limbacher said. “We don’t have forever. We need to make progress to get back to structural balance. And we will do that.”
Also included in revenue were special one-time gifts and $2.1 million from its endowment. In a year marked by dropping donations from corporations and foundations, the endowment was a bright spot; its total value increased by 11% to $55.6 million.
Limbacher, who is set to retire in December 2025, has balanced the nonprofit’s budget throughout his time as president, which started in 2016, even through the pandemic, which shuttered stages across the country. The SPCO has been in the black since 2012, a year marked by a labor dispute and lockout.
The nonprofit spends less now than it did five years ago, when expenses totaled $10.8 million.
Then, about 20% of its income was “earned,” a category that includes ticket sales. Now, earned income is just 16% of its income. Then, about 63% of its income came from contributions from people, companies and foundations. Now, those contributions make up 50% of its income.