The Cleveland Orchestra — Year-End Report 2018

F2v16 20-Jan-2019

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Musical Arts Association Y E A R S

THE CLEVELAND ORCHESTRA

ANNUAL ME ETING — December 11, 2O18 Agenda MEETING OF THE MUSICAL ARTS ASSOCIATION Welcome and Call to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Richard K. Smucker Moment of Silence Approval of Minutes from the Previous Annual Meeting (December 5, 2017) Report of the Nominating and Governance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . David J. Hooker Proposed Amendments to the Code of Regulations Election of Trustees City of Cleveland Council Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Councilman Kevn Conwell Report of Richard K. Smucker Report of André Gremillet Legacy Giving Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jon A. Lindseth and Dave Stokley Other Business and Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Richard K. Smucker

MUSICAL PERFORMANCE featuring three members of the Cleveland Orchestra Youth Orchestra from Divertimento in D major, K136 — by WOLFGANG AMADÈ MOZART 1. Allegro 3. Presto KAYLEE BONTRAGER, violin — COYO YUN-TING LEE, violin — THE CLE VEL AND ORCHESTR A GINGER DEPPMAN, viola — COYO ZACH KEUM, cello — COYO

MEETING OF THE BOARD OF TRUSTEES Call to Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Richard K. Smucker Report of the Nominating and Governance Committee . . . . . . . . . . . . . . . . . . . . . . . . . . David J. Hooker Election of Officers and Select Committees Other Business and Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Richard K. Smucker

In celebration of The Cleveland Orchestra’s 100th Birthday, and in recognition of the generosity of donors to the Sound for the Centennial Campaign, please join us for a reception in the Smith Lobby following the evening’s performance.

Ye a r i n R e v i e w

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Centennial Overview The Cleveland Orchestra celebrated the Centennial of its founding across an eighteen-month period, including the 100th season in 2017-18 — and extending into the 2018-19 season up to the actual 100th birthday on December 11, 2018. The celebrations, which touched the lives of over 400,000 people across the region and within the state of Ohio, as well as countless more around the world, also featured the 50th Anniversary of the Orchestra’s summer home, Blossom Music Center. The ensemble’s annual free community performance in downtown Cleveland on July 6, 2018, was designated as The Cleveland Orchestra’s official Birthday Concert, shared with thousands in person and many more via live radio broadcast and online video-streaming. The 100th Anniversary Gala, held on September 29, 2018, at Severance Hall, was recorded for national telecast as part of PBS’s Great Performances series in early 2019, and will also be distributed internationally through DVD sales and as telecasts in Europe and Japan.

Severance Hall and Northeast Ohio 2017-18 was The Cleveland Orchestra’s 100th season and Franz WelserMöst’s sixteenth year as music director.

Highlights included encore performances of Janáček’s opera The Cunning Little Vixen, first presented in 2014; this innovative production once again juxtaposed live singers with time-lapsed video imagery — and was also presented to acclaim on tour in Vienna, the first time a fully-staged opera had been performed in Vienna’s premier concert hall, the Musikverein. Also opening the season was a special multi-media Education Concert created in collaboration with Cleveland’s School of the Arts; that six-month project was tied directly to Franz Welser-Möst’s season-ending “Prometheus Project” concerts, which explored Beethoven’s music as commentary and impetus in advocating for justice and human good — tying together regular season programming and education offerings to amplify learning opportunities and connections between the arts and everyday life.

For the Centennial, Welser-Möst had long advocated that, rather than merely celebrating the Orchestra’s illustrious history, the season should focus on commemorating the hometown region that has eagerly supported and

enjoyed The Cleveland Orchestra in its first hundred years — and acknowledge the synergy and symbiosis between city and orchestra, including the Orchestra’s role as ambassador for the community’s expectations and excellence in all things. As part of this, a special “Around the Region Tour” was featured throughout the season, with the Orchestra and related ensembles (choruses and youth orchestra) performing far and wide in more than twenty programs experienced by over 25,000 and seen by tens of thousands more statewide via telecast, in collaboration with Clevelandbased ideastream, of the ensemble’s annual Martin Luther King Jr. Celebration concert in January 2018.

The season concluded in late spring with two ambitious multi-concert and multi-week festivals. “The Ecstasy of Tristan and Isolde” was built around in-concert performances of Wagner’s history-making opera Tristan and Isolde, alongside two additional concerts that explored music’s ability to invoke and involve human transcendence, meditation, and understanding. “The Prometheus Project” ended the season in May, with performances of all nine of Beethoven’s symphonies, plus related works, with his music examined (and heard) through the lens of that epochal composer’s political views for human justice and individual/ community responsibility. The series of concerts was performed on three continents, with sold-out presentations in Vienna and Tokyo following the inaugural sold-out performances in Cleveland at Severance Hall.

Overall, more than 165,000 attended Orchestra concerts at Severance Hall between September 2017 and the end of August 2018, including 31 soldout presentations. (Another 50,000 attended a wide variety of rental events and performances at Severance Hall.)

Community and Education The Cleveland Orchestra continued engaging with more people across Northeast Ohio throughout the 2017-18 Centennial Season, building on an expansive variety of education and community programs and presentations. In addition to such ongoing programs as Family Concerts, Education Concerts (for schools), and Musical Rainbows (now renamed as Music Explorers), new programs included Mindful Music Moments, an innovative tool for social and emotional well-being that provides a

THE CLEVELAND ORCHESTRA

four-minute daily dose of classical music coupled with mindfulness exercises delivered via schools’ daily morning announcements.

In addition to the “Around the Region Tour” and Prometheus Project Education Concert mentioned earlier, a special Education Concert for schools was also created around the 50th anniversary of the death of Martin Luther King Jr. and presented in Cleveland, Akron, and Miami. Altogether, over 100,000 children, students, and adults, participated in the wide variety of presentations, programs, and ticket opportunities that the Orchestra offers annually to make music available, affordable, and affecting.

Overall, the Orchestra’s community and music programs focus on four primary areas: 1.) to expand access, so that every child in the Cleveland area, regardless of race or socioeconomic background, can experience The Cleveland Orchestra and be touched by the power of music; 2.) to enable more children to play music, in order to reap the life-long cognitive, academic, and social-emotional benefits that quality music-study provides; 3.) to advocate and promote why music matters, leveraging the Orchestra’s brand to raise awareness of the well-documented benefits of music education and musicmaking, and to advocate on the local, state, and national level for policies that make music part of a well-rounded education for every child, helping to develop creative and critical thinkers and engaged citizens; and 4.) to unite The Cleveland Orchestra’s diverse community across Northeast Ohio through music, by connecting citizens of all ages to each other and to the Orchestra.

Touring and Residencies Each year, the Orchestra apportions several weeks of its performance schedule to residencies and touring activities beyond Northeast Ohio. These away-from-home performances are designed to enhance both the artistic and financial strength of the organization overall, and extend and enhance the Or-

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Y E A R S

THE CLEVELAND ORCHESTRA

chestra’s worldwide reputation.

The Orchestra performed on the road on several occasions throughout the 2017-18 Centennial Season, including two overseas tours, a two-week residency in Miami, and a pair of concerts at New York’s famed Carnegie Hall. Franz Welser-Möst conducted all of these concerts, including a fall European Tour (12 concerts) and “The Prometheus Project” performances (5 concerts each in Vienna and Tokyo) in the spring. The Miami residency featured four public concerts and two education presentations for schools, performed across two weeks at the end of January and beginning of February. As part of this tour, the Cleveland Orchestra Youth Orchestra and Youth Chorus visited the Ohio Statehouse in Columbus to perform for legislators and other officials.

Founded in 1918, The Cleveland Orchestra proudly serves its hometown region, offering extraordinary performances, strong eduction programs, and community initiatives.

Blossom 2018 2018 marked the 50th anniversary of the opening of Blossom Music Center as the Orchestra’s summer home and continued the Centennial celebrations on into the autumn. A Festival season of 19 concerts was presented at Blossom across ten weekends between the Fourth-of-July and Memorial Day holidays. A special fundraising dinner/ event was held in July, while concert propgrams included Yo-Yo Ma performing the Bach Suites for Solo Cello to a capacity crowd and an all-but-sold-out presentation over Labor Day Weekend of the original Star Wars film A New Hope. Overall, 2018 welcomed 138,500 music-lovers to the Orchestra’s Festival concerts — 20,000 more than the year before and the highest total in 20 years.

This represented an average of 7,250 per concert, the second-highest average in the Festival’s history. (An additional 395,000 attended 28 non-orchestral concerts presented at Blossom by LiveNation.)

Orchestra Personnel Between January 2018 and December 2018, Franz Welser-Möst appointed three new players to The Cleveland Orchestra: Stephen Tavani (assistant concertmaster, beginning September 2018), Zhan Shu (violin, beginning September 2018), and Jessica Sindell (assistant principal flute, beginning November 2018).

Thomas Klaber retired at the end of the 2017-18 season, following 33 years as the ensemble’s bass trombone player.

In its first century, The Cleveland Orchestra has introduced over 4 million young people to live symphonic music.

Each year since 1989, The Cleveland Orchestra has presented a free concert in downtown Cleveland, with this past summer’s on July 6, 2018, as the ensemble’s official 100th Birthday bash.

Nearly 3 million people have experienced the Orchestra through these free performances.

Notes to Financial Statements

(IN THOUSANDS) (CONDENSED)

NOTE A Summary of Significant Accounting Policies

YEARS ENDED JUNE 30, 2018 AND 2017

NOTE E Pension and Other Retirement Benefi ts

Organization: The mission of the Musical Arts Association (the Association): “The Cleveland Orchestra inspires and enriches lives by creating extraordinary musical experiences at the highest level of artistic excellence.”

The Association operates The Cleveland Orchestra; owns and operates Severance Hall, located in Cleveland, Ohio; and owns Blossom Music Center (BMC), situated on approximately 198 acres of land in Summit County, Ohio.

Permanently restricted endowment net assets are subject to donor imposed restrictions that require the assets to be maintained in perpetuity. Certain of these net assets are maintained by the Association and others, charitable perpetual trusts, are in the control of third party trustees or administrators. The Association records its interest in charitable perpetual trusts at its pro-rata share of the fair market value of the assets.

The Association has a frozen noncontributory defined benefit pension plan covering substantially all employees. The benefits are based on years of service and the employee’s compensation level. The Association’s funding policy is to contribute annually at least the minimum amount required by the Employee Retirement Income Security Act of 1974.

Basis of Accounting: The Association’s accounting records are maintained on the accrual basis of accounting.

The Association’s annual draw is based on a total return philosophy, and is calculated as the prior fiscal year’s draw amount weighted 70%, plus 5% of the prior fiscal year’s average quarterly endowment market value net of investment fees weighted 30%, plus 5% of the current fiscal year’s endowment cash contributions pro-rated based on the fiscal quarter received. Because the amount drawn in a given year is heavily weighted by the market value of the endowment in prior years, the percentage drawn of a given year’s endowment market value often varies from the 5% draw factor used in the calculation.

The following table sets forth the Plan’s funded status, key assumptions, and other activity recognized in the Association’s financial statements:

Basis of Presentation: The Association records all unconditional promises to give (pledges) as receivables and revenue in the period made and classifies such contributions into three net asset classes based upon external (donor) imposed restrictions. A description of the three net asset classes follows: Unrestricted Net Assets — Net assets that are not subject to any donor imposed restrictions.

Temporarily Restricted Net Assets — Net assets subject to donor imposed restrictions that will be met by actions of the Association and/or the passage of time.

Permanently Restricted Net Assets — Net assets subject to donor restrictions that the corpus be invested in perpetuity and the income be utilized for designated purpose(s).

Land, Buildings, and Equipment: Severance Hall opened in 1931 and is located on land leased from Case Western Reserve University. The Association has a 99-year lease, which expires in 2029 and is renewable for additional 99-year periods in perpetuity. The lease (including the option period) provides for a nominal rental charge and requires the Association to pay all taxes and assessments that may be levied on the premises. Blossom Music Center opened in 1968. The Association owns the land and all buildings thereon.

Purchased land, buildings, and equipment are stated at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the respective assets, averaging 20 years for land improvements, 40 years for buildings, and 5 to 20 years for equipment, using a half-year life convention in the year of acquisition. Routine repairs and maintenance and individual capital expenditures of less than five hundred dollars are expensed as incurred. The Association’s music library and archives and its equity in the Medical Center Company are carried at no value in the financial statements.

Collective Bargaining Agreements: The Association’s orchestra musicians, stagehands, ticket sellers, and service employees are covered by collective bargaining agreements. The Cleveland Federation of Musicians, Local No. 4, three-year collective bargaining agreement expired September 2, 2018, with the terms of that agreement remaining in place and the parties continuing to meet to reach a new agreement.

The Service Employees International Union, Local 1 collective bargaining agreement expires December 31, 2019; the Stage Employees Local No. 27 of the International Alliance of Theatrical Stage Employees have entered into a memorandum of understanding for a new collective bargaining agreement expiring August 31, 2020; and the Treasurers and Ticket Sellers Division, AFL-CIO Local 756 collective bargaining agreement expires December 31, 2020.

NOTE B Endowment Because the endowment assets include funds derived originally from permanently restricted contributions, management thereof is subject to Ohio State law. In July 1996, the 121st General Assembly of the State of Ohio passed Substitute House Bill No. 391. Under the provisions of this Bill as interpreted by the Association, the Association is permitted to expend the gains, both realized and unrealized, on its permanently restricted endowment contributions unless specifically restricted by the donor.

Uniform Prudent Management of Institutional Funds Act (UPMIFA) requires the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result, the Association classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.

The following describes the Association’s classes of endowment net assets: Unrestricted endowment net assets consist of funds which have been designated by the Board of Trustees to function as endowment. The classification includes split interest agreements and gains on permanently restricted endowment net assets for which the use of income is not governed by donor imposed restrictions and that have been appropriated by the Board.

Temporarily restricted endowment net assets are subject to donor imposed restrictions that will be met by actions of the Association and/or the passage of time. This classification includes all unspent gains on permanently restricted endowment net assets for which the use of income is governed by donor imposed restrictions.

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JUNE 30, 2018

JUNE 30, 2017

Projected benefit obligation at year end Fair value of plan assets at year end

$ 73,458 56,737

$ 77,148 43,864

(Under)funded status of the Plan

$ (16,721)

$ (33,284)

2018

2017

4.37 % 8.50 %

4.08 % 8.50 %

Endowment investments are summarized as follows as of June 30: Large-cap US equity Small-cap US equity International equity Marketable alternatives Cash / fixed income

2018

2017

$ 61,981 11,860 36,859 41,453 39,306 $ 191,459

$ 77,447 10,290 33,010 35,447 36,018 $ 192,212

At June 30, 2018 and 2017, respectively, the Association had borrowed $6,563 and $980 from the unrestricted, board designated portion of the endowment to meet cash flow needs. The borrowing is within the $9,000 limit authorized by the Board of Trustees for year ending June 30, 2018 and $5,000 for year ending June 30, 2017. Borrowings under this authorization are part of the 5-Year Financial Plan to build a sustainable financial model, which was approved by the Board in June 2017, and are to be repaid to the endowment with foregone investment income by June 30, 2022. Also at June 30, 2018, with Board of Trustees approval, the Association had borrowed $7,007 from the unrestricted, board designated portion of the endowment to advance receipt of certain pledge and estate payments to be used as part of a $12,500 accelerated contribution that was made to the Association’s defined benefit pension plan in November 2017. The borrowing continues to be repaid upon receipt of the pledge and estate payments, with the final payment expected in 2022.

NOTE C Miami Residency Since 2007, for three to four weeks annually, The Cleveland Orchestra has engaged in a Miami residency, which serves adults and young people in Florida (primarily in the Miami-Dade community) through a variety of concerts and community engagement activities including school programs and coaching with university students. During these weeks, the Orchestra performs concerts at the Adrienne Arsht Center for the Performing Arts of Miami-Dade County and partners with numerous community organizations.

Through June 30, 2017, the Association partnered with the Miami Music Association (MMA), a Florida corporation that was formed in 2005 and is exempt from income tax under Section 501(c)(3) of the Internal Revenue Code. The Association and MMA entered into a Summary Operating Agreement and Memorandum of Understanding (MOU) that governs the relationship between the Association and MMA. In April 2017, the Association and MMA agreed to terminate the Summary Operating Agreement effective June 30, 2017, and in January 2018 MMA was dissolved. The Cleveland Orchestra will continue its Miami activities under a new business model without the involvement or support of MMA. In accordance with the terms of the MOU, the Association recorded $108 and $266 of pledges receivable from MMA at June 30, 2018 and 2017, respectively.

NOTE D Cuyahoga Falls Concerts, Inc. Agreement Effective November 1, 2014, the Association entered into an amended and restated 15-year agreement with Cuyahoga Falls Concerts, Inc. (CFCI) (the “Agreement”) that expires October 31, 2029. CFCI will operate Blossom Music Center (BMC) and will book, promote, and present special attractions, upon which it will pay the Association annual rentals based upon a percentage of CFCI’s gross receipts from BMC special attractions. Upon signing of the Agreement, CFCI granted the Association $7,500 to fund future Association operations. This grant has been recorded as temporarily restricted revenue and is being amortized into unrestricted revenue on a straight-line basis over the 15-year term of the Agreement. The obligations of CFCI under the Agreement are guaranteed by HOB (House of Blues) Entertainment, Inc. In addition, under this agreement, the Association and CFCI are charging one dollar for each ticket sold for concerts at Blossom Music Center to fund a capital improvements program.

THE CLEVELAND ORCHESTRA

Weighted-average assumptions: Discount rate Expected rate of return on plan assets

Net periodic benefit cost Employer contributions Benefits paid

2018

2017

$ 673 $ 12,845 $ 3,698

$ 1,071 $ 382 $ 3,639

The portion of the defined benefit pension plan covering hall and office employees was frozen effective April 1, 2009. At that date, a new contributory 403(b) plan was established. Association contributions to the 403(b) plan for hall and office employees totaled $278 and $328 for the years ended June 30, 2018 and 2017, respectively.

Per the terms of the collective bargaining agreement with the Cleveland Federation of Musicians, Local No. 4 (Union), the portion of the defined benefit pension plan covering these employees was frozen effective August 1, 2009. Effective August 1, 2009, the Association began contributing a percentage of the musician’s minimum weekly salary to the American Federation of Musicians and Employers’ Pension Fund (AFM&EPF). Per further agreement between the Union and the Association: (a) effective March 30, 2010, the Association withdrew from and ceased participation in the AFM&EPF with respect to all contributions provided under the collective bargaining agreement, and no contributions shall be due to the AFM&EPF under the collective bargaining agreement after that date, and (b) effective April 1, 2010, the Association began contributing a percentage of the musicians’ minimum weekly salary into the 403(b) plan. Contributions to the 403(b) plan for the musiciains totaled $1,461 and $1,408 for the years ended June 30, 2018 and 2017, respectively.

NOTE F — Debt On December 1, 2003, the Association issued $28,150 of County of Cuyahoga, Ohio, Economic Development Revenue Refunding Bonds, Series 2003, due December 1, 2028 (maturity date). No principal payments are required prior to the maturity date. Proceeds from this issue were used to redeem the County of Cuyahoga, Ohio, Economic Development Revenue Bonds, Series 1998, due April 1, 2028. The Series 1998 Bonds, which were issued as part of the overall financing plan for the renovation, restoration, and expansion of Severance Hall, were called and paid in full in February 2004.

The Series 2003 Bonds were issued and continue to function in a floating rate mode, with the interest rate re-set on a weekly basis. From July 1, 2017, to June 30, 2018, the interest rate for the Series 2003 Bonds ranged between 3.23% and 5.53%.

The Series 2003 Bonds are supported by a Financial Guaranty Insurance Policy which expires on December 1, 2028. In connection with the issuance of the bond insurance policy, the Association agreed to certain covenants, including limits on additional indebtedness, ratios of unrestricted cash and investments to outstanding debt, and periodic financial reporting. These covenants were met for the year ended June 30, 2018.

The Association maintains agreements with KeyBank and PNC Bank that extend through September 2019 and November 2020, respectively, providing committed unsecured lines of credit aggregating $10,000.

Amounts outstanding under these agreements totaled $4,284 and $0 as of June 30, 2018 and 2017, respectively.

NOTE G Cost of Fundraising The Association charges to operations on the Statement of Operating Activities expenses related to fundraising for annual fund, government grants, special fundraising and endowment pledges and contributions.

In addition, the Association netted the direct costs of its planned giving program, $180 and $105 for the years ended June 30, 2018 and 2017, respectively, against realized planned giving expectancies.

2 017/2 01 8 (IN THOUSANDS)

Financial Position

ASSETS

JUNE 30, 2018

Cash and Cash Equivalents Accounts and Pledges Receivable Other Assets

$

Land, Buildings and Equipment — net Endowment: Investments Pledges Receivable TOTAL ASSETS

JUNE 30, 2017

1,567 34,846 4,376 40,789

$

59 29,970 4,469 34,498

42,744

40,026

191,459 7,101 $ 282,093

192,212 10,903 $ 277,639

LIABILITIES AND NET ASSETS Liabilities:

Accounts Payable and Accrued Expenses Bonds Payable — net Lines of Credit Deferred Revenue Accrued Pension and Other Retirement Benefits

$

6,267 27,695 4,284 7,751 18,895 64,892

$ 6,348 27,647 — 6,917 35,288 76,200

(12,214) 32,235 20,021

(10,903) 23,053 12,150

Temporarily Restricted

43,063

36,238

Permanently Restricted

154,117 217,201 $ 282,093

153,051 201,439 $ 277,639

Total Liabilities Net Assets:

Unrestricted: Accumulated Operating Results Board Designated and Other

Total Net Assets TOTAL LIABILITIES AND NET ASSETS

(IN THOUSANDS)

Operating Activities

YEAR ENDED JUNE 30, 2018 REVENUE

Total Fixed Expenses

$

285

EXPENSE

YEAR ENDED JUNE 30, 2017

MARGIN

REVENUE

$ 34,158 $ (33,873)

$

EXPENSE

MARGIN

256 $ 34,225 $ (33,969)

Contributions from Operations

Activities Using Orchestra Services Media Blossom Special Attractions Non-Orchestra Activities

17,320 92 2,165 829 20,406

14,320 491 — 739 15,550

3,000 (399) 2,165 90 4,856

15,710 92 2,185 1,012 18,999

13,552 472 — 841 14,865

2,158 (380) 2,185 171 4,134

Total Annual Fundraising

10,122 1,937 1,856 1,366 15,281

2,892 — — 419 3,311

7,230 1,937 1,856 947 11,970

10,697 — 2,110 1,204 14,011

2,604 — — 474 3,078

8,093 — 2,110 730 10,933

Endowment Draw Subtotal

8,528 44,500

— 53,019

8,528 (8,519)

8,189 41,455

— 52,168

8,189 (10,713)

1,274 838 3,596 1,500 $ 51,708

— — — — $ 53,019

1,274 838 3,596 1,500 $ (1,311)

1,000 — 5,492 — — — — — $ 47,947 $ 52,168

1,000 5,492 — — $ (4,221)

Total Operations Annual Fundraising

Annual Fund Initiatives Funding Government Grants Volunteer Activities

Second Century Incremental Special Fundraising Campaign Operating Funds Unrestricted Bequests TOTAL RESULTS

(IN THOUSANDS)

Endowment Activities

Pledges and Contributions Investment Income (net of fees) Net Realized and Unrealized Gains Endowment Draw Reclassification Change in Endowment Net Assets

YEAR ENDED JUNE 30, 2018

YEAR ENDED JUNE 30, 2017

$

$

2,832 4,369 12,050 (8,644) (2,000) 8,607

5,647 3,216 20,544 (8,314) — 21,093

Net Assets — Beginning of Year Net Assets — End of Year

200,650 209,257

179,557 200,650

Net Accrued Income and Expense

(17,798) $ 191,459

(8,438) $ 192,212

ENDOWMENT INVESTMENTS — End of Year

MISSION The Cleveland Orchestra inspires and enriches lives by creating extraordinary musical experiences at the highest level of artistic excellence.

THE CLEVELAND ORCHESTRA By the Numbers: Touching People’s Lives Through Music The 2017-18 season and summer of 2018 reached thousands locally and around the globe:

• • • • • • • •

All told, The Cleveland Orchestra touched the lives of more than 400,000 people from across the Northeast Ohio in the past year.

Northeast Ohio figures include over 100,000 students and adults who participated and were invigorated and inspired by education presentations and community programs.

Over 165,000 attended Orchestra concerts at Severance Hall, including 31 sold-out presentations.

(Another 50,000 attended a wide variety of rental events and performances at Severance Hall.)

The Centennial Season’s “Around the Region” Tour featured 20 performances witnessed by over 25,000 people, and was experienced by tens of thousands more statewide via telecast, in collaboration with ideastream, of our 2018 Martin Luther King Jr. Celebration concert.

Blossom Music Center: The summer of 2018 commemorated the 50th Anniversary of Blossom, welcoming more than 138,500 music-lovers to the Orchestra’s Festival concerts — 20,000 more than the year before and the highest total in 20 years. This represented an average of 7,250 per concert, the second highest average in the Festival’s history. (An additional 395,000 attended 28 non-orchestral concerts presented at Blossom by LiveNation.)

The ongoing Under 18s Free program helped 40,000 young people attend concerts at Severance Hall and Blossom Music Festival.

In addition, 50,000 people attended Cleveland Orchestra concerts away from home, including two weeks of concerts in Miami (4 public concerts and 2 education concerts), a European tour in October 2017 (12 concerts), two performances at Carnegie Hall, and performances of the Prometheus Project (10 performances, 5 in Vienna and 5 in Tokyo) in spring 2018.

Many more experienced the Orchestra’s performances on radio, television, recordings, and via online broadcasts and streaming.

2 017/2 01 8 Summary of Gifts Annual Fund Trustees Other Individuals Corporations Foundations

$ 10,122,000 2,337,000 4,562,000 1,676,000 1,547,000

Special Fundraising Initiatives Funding Campaign Operating Unrestricted Bequests Second Century Project Underwriting Volunteer Support (net) Government Grants Subtotal, annual support Endowment Gifts Total

YEAR ENDED JUNE 30, 2018

838,000 1,937,000 3,596,000 1,500,000 2,316,000 1,346,000 947,000 1,856,000 $ 24,458,000 5,131,000 $ 29,589,000