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HARTFORDBUSINESS.COM | OCTOBER 28, 2024 13 tlesey, which advises nonprofits. "In a simplistic view- point, the word 'endow- ment' is used to mean, I give you $1 million to hold in perpetuity, and the income earned off of that million is utilized for a general or specific purpose for an organization's benefit," Andrews said. The interest and/or dividends from investing an endowment can be used to support anything from staff sala- ries to capital purchases, he said. In general, an organization will use a "rolling quarterly average" percentage of the return on invest- ment, "usually it's 4% to 5%," for the stated purpose and reinvest the rest, without touching the principal, Andrews said. Charter Oak's endowment wasn't "a significant one," Berman said, but in March the organization received a big boost — a $6.5 million grant from the Community Investment Fund that it will use to renovate its 148-year-old home, erected in 1876 as the state's first synagogue, and make it fully accessible. Berman said that grant helped boost the cultural center's building campaign. "We raised … over $11 million and we need to raise another $1.5 million or so," she said. Berman said her organization is doing OK financially, but added that many small and midsize arts organi- zations still struggle. "You don't have to be broke to live hand-to-mouth, but you've got to put food on the table before you can start putting aside money that you can't touch," she said. Set the Stage Charter Oak is not the only arts organization seeking to boost its endowment. Earlier this month, Hartford Stage announced its Set the Stage fund- raising campaign seeking to raise $20 million for its endowment fund. The campaign began quietly last year and has raised more than $9 million from corporate and individual donors. Managing Director Cynthia Rider, who was hired five years ago, said an earlier plan to strengthen the organi- zation's endowment was proposed around the time she arrived but was derailed by the pandemic. "There had already been a lot of conversation, over many years, about the need to grow the endowment," she said. "So, our endowment is about $6 million-ish, and for an organization with a $10 million budget, that's not particularly large and doesn't provide a large percentage of annual support." About 60% of Hartford Stage's annual budget is funded from donations, Rider said. "If we had no contributed income, and we had to support ourselves on ticket sales alone, we would have to charge $175 for every single ticket." In the pandemic's wake, the endowment has become even more important, she said, since subscrip- tions and individual ticket sales have not yet returned to where they were before 2020. "Our subscriptions are down 50% post-pandemic," Rider said. That's equal to about $1 million in revenue, according to the organization's website. Rick Costello, who retired as an associate general counsel and senior vice president at The Hartford about four years ago, is serving as co-chair of the Set the Stage campaign along with Stanley Black & Decker Presi- dent and CEO Don Allan Jr. Costello is a member of the Hartford Stage board and chairs its development committee. He said the organization has had an endowment that's too small to meet its needs. "This campaign is a very mean- ingful step towards … right-sizing the endowment," he said. Hartford Stage, out of necessity, reduced its "full-time headcount" to make the organization leaner during the pandemic, but costs continued to rise due to inflation, Costello said. Hartford Stage did conduct a "Raise the Curtain" fundraising campaign during the pandemic to help with costs, and received ARPA funds as well. "So, the combination of those two sources of funds have allowed us to keep breaking even, if you will, on an operating basis," as ticket and subscription sales have slowly begun to improve, Costello said. A quarter of the Set the Stage fundraising, or about $5 million, will help close the gap from ticket and subscription sales, he added. "We think it's going to take several more years to get the people back and to bring in new audiences and get our earned revenue back into balance with our contributed revenue," he said. Something 'sexy' The difficulty for arts organizations, or nonprofits in general, is that trying to raise money to help with opera- tions may not hold as much appeal for donors. "A lot of times, people that want to give want to give towards something that's, well, the word 'sexy' comes to mind," Andrews said. "It's harder for people to get an endowment and say we're just going to try to keep people paid." It's also difficult, he said, because of the size of donations often being sought, and the number of organiza- tions seeking help. "Usually, when you raise an endowment, you're going toward high-net-worth, wealthy individuals" who donate large amounts, Andrews said. "It's not like the United Way that wants you to give five bucks every pay period." He also noted that many legacy companies in Hartford are now part of larger corporations based elsewhere. "They're more global and national, and they have to spread their interests in different places," Andrews said. That means there's less money available for local nonprofits. Rider believes any business that wants to retain workers and improve the community in which it is located should donate to the arts. "If you want to see an economically vibrant center to the Hartford region, you want your arts institutions to be strong and thriving," she said. "Whether that's because you see every single show and you love it, or because you just want to see a thriving downtown Hartford with great opportunities for young people and for artists and the jobs it creates here in Connecticut, then you should support this campaign." Rabbi Donna Berman (left) received the 2024 Champions for Children award this year in honor of her leadership in service to Greater Hartford youth. CONTRIBUTED PHOTO Drew Andrews Protecting physicians & facilities since 1984 Integris Group provides the healthcare community with the highest quality insurance products, services, and business solutions. 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