Youth Arts Alliance of Savannah

Youth Arts Alliance of Savannah (YAAS) 2015-2019

i | Y o u t h A r t s A l l i a n c e o f S a v a n n a h

Introduction

The following document is a formal business plan for the purposes of outlining the development, structure, and

function of the Youth Arts Alliance of Savannah (YAAS), a 501(c)3 organization established in the state of

Georgia.

This plan will cover year one through five, starting in 2015 and extending through the end of 2019.

ii | Y o u t h A r t s A l l i a n c e o f S a v a n n a h

Executive Summary Youth Arts Alliance of Savannah (YAAS) is a 501(c)3 not for profit organization providing free art programming to children in grades K through 8 of low-income families in the Savannah, Georgia area. Our organization will form partnerships with local schools, the Housing Authority of Savannah (HAS), local artists, and Savannah College of Art and Design students, to bring our customers high quality and dependable arts programming.

Our mission is to implement a variety of art classes to students that transcends the material taught in their everyday schooling. We see ourselves inspiring a change in young children and motivating an increased interest in the arts. As an organization we value commitment, excellence, integrity, and empowerment, and carry these values with us in all our operations.

Structurally, YAAS consists of a Board of Directors (which has 6 members), the founder/CEO (Hillary Eustis), and an Artistic/Executive Director. In the fourth year of operation (2018) we will add a Marketing Director to our team. Our organization fosters partnerships with donors, local schools, local artists and SCAD students, and the HAS.

In regards to our programming, we offer classes in painting, drawing, and sculpture. Classes are divided by groups of students in grades K through 2, 3 through 5, and 6 through 8. We will offer 12 programs a year, each consisting of 4 class sessions.

For funding we will look to board members, donors, grants, an SBA loan, and fundraising activities as sources of revenue. For year one, we have calculated a potential net loss of $14,051. However, in year two we project an increase in donor funding and a decrease in some startup expenses, which provides us with a projected net profit of $8,749. From year two, we expect a continual increase in donor support and grant funding, which results in a year three net profit of $49,549, a year four net profit of $132,426, and a year five net profit of $166,399.

iii | Y o u t h A r t s A l l i a n c e o f S a v a n n a h

Table of Contents

Mission 1 Vision 2 Values 3 Organizational Overview Who are we? 4 Who do we work with? 5 Product Portfolio Product Overview 6 Programming Plan 7 Market Analysis Industry Overview 8 Situational Analysis (SWOT) 9-10 Arts Programming in Savannah & Needs/Feasibility 11 Community 12 Goals, Strategies & Evaluation 13-17 Funding/Financial Plan Startup Financials and

Fundraising 18-19 Profit/Loss, Year 1 20 4-year Pro Forma 21 Loan Repayment Plan 22 Organization Evaluation 23

1 | Y o u t h A r t s A l l i a n c e o f S a v a n n a h

Youth Arts Alliance of Savannah will exist for the sole purpose of providing

underprivileged youth of the Savannah area with free educational arts

programming that transcends material that may be offered within the typical

classroom setting.

Youth Arts Alliance of Savannah (YAAS) is a nonprofit agency

that provides free educational art programs for financially

underprivileged youth of the Chatham county area. Through

forming partnerships with the Housing Authority of Savannah, local schools, and local artists,

YAAS will implement a variety of art classes for kids who may not otherwise have the opportunity

to experience the arts.

Mission


Youth Arts Alliance of Savannah will inspire a change in the lives of young children in the

Chatham county area who may not otherwise ever be exposed to advanced art

programming in their everyday schooling.

As an organization, we will motivate an increased interest in the arts within these

children and encourage them to explore their creative side, in an effort to empower more young adults in the future to seek careers in

the creative industry.

Vision


Commitment We will work together to effectively and continually better serve our community.

Excellence We will strive to always challenge ourselves to ensure we maintain the highest level of performance within our services.

Integrity We will always act in accordance with our mission, preserving honesty in what we do and say, and taking responsibility for our actions.

Empowerment We will endeavor to continually instill a sense of cultural empowerment within our customers, ensuring they receive what we promise to them.

Values


Who are we?

Board of Directors

Oversight & Governance

Sets policies and procedures

Fiduciary duties & Fundraising responsibilities

Founder/CEO Hillary Eustis

Oversees all operations of the organization

Supervisor to the Executive/Artistic Director

Liaison between E/AD, Partners, and Board

Executive/ Artistic Director

Manages executive functions of org

Develops artistic programs

About the Founder/CEO

Hillary holds a Bachelor of Arts in Art History from Syracuse University and a Master of Arts in Arts Administration from the Savannah College of Art and Design.

She has held multiple professional volunteer and internship positions with galleries and museums, including the Telfair Museums in Savannah.

She has experience working with the education department at the Telfair, developing the skills necessary to successfully lead a youth arts organization.

At the Allen David Gallery, Hillary gained managerial experience and successfully fostered strong relationships with local artists, which will aid in the success of YAAS.


Who do we work with?

Housing Authority of Savannah Connection to

families

Provide use of community center

facilities

Local Schools Provide info on eligible students

Provide space for programming

Local Artists/SCAD Student Artists

Provide quality arts instruction to our

students

Donors

Provide financial support to YAAS for the success of our

programs

Savannah Arts Academy

Provide office space for YAAS


What does YAAS Offer?

Grades K-2Classes: Building Blocks, Painting

Paytime, Let's Draw!, Open Studio

Provide introductory instruction in sculpture, painting, and drawing

for students aged 5 to 7.

Grades 6-8Classes: Advanced 3D

Drawing, Paint This!, Sculpt It!, Open Studio

Provide advanced instruction in drawing, painting, design, and sculpture for students

aged 11-13.

Grades 3-5Classes: Contemporary Creativity, Beginner 3D Drawing, Cartoon Fun,

Open StudioProvide intermediate

instruction in contemporary arts,

drawing, and design for students aged 8-10.

Classes will be instructed by a mix of local professional artists and SCAD student artists. Participants can sign up for classes covering drawing, sculpting, painting, or design. We offer classes in each discipline. We also offer an open studio class in each age group, which allows participants to explore any of these three disciplines freely.

Classes will take place during after school hours and last from an hour to hour and a half, depending on the age group.

Classes do not require an entry fee from participants, as these are free classes being offered to children of low income families.

We will hold classes either at local schools, or at the community center space provided by the Housing Authority of Savannah.


Programming Plan Year One - 2015

JAN

FEB

MAR

APR

MAY

JUNE

JULY

OCT

AUG

NOV

SEPT

DEC

Building Blocks (K-2)

Contemporary Creativity (3-5)

Sculpt It! (6-8)

Painting Playtime (K-2)

Beginner 3D Drawing (3-5)

Advanced 3D Drawing (6-8)

Let’s Draw! (K-2)

Open Studio (K-2)

Cartoon Fun (3-5)

Open Studio (3-5)

Paint This! (6-8)

Open Studio (6-8)

In our first year of operation (2015), YAAS will implement 12 class programs. Each class program consists of 4 sessions of the respective class over a two week period in the designated month.

We expect interest in our programs to increase by our second year of operation (2016). Therefore, we will double our class program offerings to 24 programs for the year in order to accommodate an increase in the number of students.

Starting in year one, we will continually look to feedback and evaluations by our consumers to see how we may need to adapt, change, or add new classes based on changing interests and demands. We will continue to do this through year 5 of operation (2019).


CustomersThose taking advantage of the programming offered by the Youth Arts Alliance of Savannah will be school

children in grades K through eight, who qualify under the Free Breakfast

and Lunch program.*

Target MarketServices

YAAS will focus program efforts towards children aged five to eighteen in

the Chatham County area who are individuals of"low-income" families.

Target MarketFundraising

YAAS will focus fundraising efforts towards individuals with a history of giving to arts orgs, and families of higher income levels.**

Industry Overview

*In accordance with this program, children of a household with five members, that has a maximum yearly income level of $51,634, are eligible to receive free breakfast and lunch at school.

According to the 2008-2012 U.S. Census Bureau American Community Survey, 54,955 households in Chatham County had incomes of less than $49,999, which is 54% of the total 101,727 households in the county.

In 2010, the population of Chatham County totaled 265,128 individuals. Of that total population, 50,855, or 19% were individuals aged five to nineteen. Furthermore, the number of households with individuals under eighteen totaled 32,240 out of 103,038 households in the county.

**According to the same American Community Survey, approximately 17,171 households in Chatham County have a yearly income level ranging from $100,000 to over $200,000. Of this 17,171, approximately 14,152 are families. This provides us with a basis for the potential number of supporters we could have.

Large not-for-profit arts organizations, such as the Telfair Museums, publicly disclose the names of those donors who do not request to be anonymous. We will look to these publications to put together a pool of potential donors in the Savannah area.


With a Master of Arts in Arts Administration, internship experience, and project development background, Hillary has the skills and knowledge necessary to head this organization. YAAS has the ability to move programming from location to location, providing classes at many schools around the city, as well as at the HAS community center. As an organization we will develop strong partnerships with the Housing Authority and local schools to ensure maximum success and outreach. We are able to establish a large arts community within our organization through outreach to artists, schools, SCAD students, etc.

As with any startup venture, the Youth Arts Alliance of Savannah is a new organization and will face challenges with the lack of an established presence in the area. We will be starting from scratch, forging our own contacts and partnerships, perhaps contending with existing partnerships between arts organizations in the area. Despite Hillary’s strong educational background, she lacks a strong business background. This could prove difficult in taking on the management of a non-profit arts organization.

Savannah offers a huge opportunity with a thriving arts market. Art and artistic talent inundates the community, providing us with individuals and families who are highly interested in arts programming. We have no direct competitors that offer free programming such as ours, giving us the opportunity to forge a new path in Savannah and emerge as a unique arts outreach organization. We have access to a wealth of local artists which enhances our ability to provide quality arts instruction to our students.

Though we do not have any direct competitors, there are orgs in the area that offer programming similar to ours, but at a cost to the customer. We will face difficulties in distinguishing our programs from those of these orgs. As a non-profit organization, we face the possibility of inadequate funding, which could greatly hinder the quality of our programs and/or the overall success of our association. As a startup organization with one founder, we have limited resources both financially and otherwise, which could also hinder success.

Situational Analysis (SWOT) Strengths

Founder’s Educational Background

Mobility Strong Partnerships Large Arts Community

Weaknesses

New Organization Lack of Business

Experience

Opportunities

Large Market No Direct Competitors Arts Environment Lots of Local Artists

Threats

Existing Arts Orgs Inadequate Funding Limited Resources


What does this mean for YAAS? Through identifying our weaknesses and threats, we are able to develop strategies to deal with such circumstances to ensure the success of our organization, despite the challenges we face. Here is how we plan to address these challenges:

Lack of Established Presence

Although we are brand new to the area, and will need to work extremely diligently to get our name and mission into the public, we are here with a very specific purpose, appealing to an underserved population. We will use this to our advantage, to distinguish ourselves from other organizations and identify ourselves as new and exciting.

Hillary’s Lack of Business Experience

We will address our founder’s lack of experience running a business by electing board members who have a strong business development background. This will ensure that we have a good basis of professional knowledge and experience needed for the success of YAAS.

Possibility of Inadequate Funding

While this is not a risk we can completely eliminate, we will identify, from the start, strong funding sources and spend our first year focusing on developing relationships with donors and identifying grants we wish to apply for.

Limited Resources

We will address this issue by developing powerful relationships with our partners, making them important assets to our organization and sources of ideas and materials.


Arts in Programming in Savannah

In the Savannah area, there are currently limited organizations that offer free art classes for children. No organizations exist for the purpose that we do – that is, to provide additional arts education to underprivileged children. We believe this is advantageous to us, as we are able to place ourselves into a niche market where success will not be threatened by preexisting organizations that offer identical services.

Needs/Feasibility We are working to bridge the gap between the arts instruction children receive in their everyday schooling, and the lack of availability of outside arts education for those who cannot afford to pay for such instruction. We believe there is a strong need for programming like ours, to give these kids a chance to experience arts beyond what they are learning in school, which is often largely restricted by budgetary concerns. We believe that YAAS is a feasible organization and would be successful in the Savannah area. We exist within a community that has a high awareness and appreciation for the arts, and we are confident we will be able to receive the financial support necessary to succeed. People love to give their money to efforts that benefit kids!

Scribble Art Studio

Teaches art to kids in downtown Savannah, GA and Pooler, GA.

Offers group classes, as well as private.

Payment required.

Telfair Museums

Offers youth studio art classes through the

Education Department. Payment required

S.P.A.C.E

Savannah’s Place for Art, Culture, and

Education offers kids art classes for kids

aged 4-17+. Payment required.


Community

We believe that the city of Savannah, and Chatham County as a whole, is the perfect place for an organization such as ours to thrive. We would exist within a community that has a high awareness of the arts and their impact on and benefit to the community. We would also have access to a wealth of local artistic talent to draw from for our programming.

Savannah is a vibrant city that offers a wealth of artistic talent and cultural insight. With the presence of the Savannah College of Art and Design, thousands of art students

come to the city each year, some even choosing to stay. The local art scene is alive and dynamic, with artists working to make

their community shine.


Goals for YAAS

1

2

Double program attendance by

year two by increasing community awareness

3

Double program attendance by

year two by increasing community awareness

Be able to double our programming by year two

Be debt free by the end of 2019 by paying off our SBA loan

Increase our marketing capacity by year four

Establish our organization

4


How will we do this?

Establish our organization

Est. BOD & Hire A/ED

Select members from the community to serve on the board of directors for YAAS.

Also hire an Artistic/Executive Director for

the organization.

File for 501(c)3 Status

Articles of Incorporation will be drafted and filed with

the state government.

File Form 1023 with the IRS to receive tax-exempt

status under Section 501(c)3.

Establish Bylaws

Define our bylaws to create a framework for how the

organization will run and be managed.

Also develop board policies (i.e. Conflict of Interest

Policy).

Evaluation Ensure that we receive word from the IRS on our application for 501(c)3 status within six months of submitting, and that we are granted tax-exemption. If we are not granted exemption, we must

address any problems that may have contributed to this, and resubmit within 3 months of notice.



Be able to double our programming by year two

Increase Funding

We will hold more fundraising events and

activities to boost financial support.

We will start a crowdfunding effort (i.e. Kickstarter) to

finance additional programming for year two.

Increase Community Awareness

We will hold more community events to increase interest and

become more relevant to community members.

We will also focus on a strong social media

presence in our community.

Limit Expenses

We will be conservative with our spending in year one,

and year two, only spending what we absolutely must on

office supplies and administration.

This will give us the ability to focus the rest of our funds

on increasing programming.

Evaluation We will look to our financial statement at the end of year one to be sure we are financially on track to have the ability to increase our programming. We will start surveying the families of our

target market mid-year one to find out how much of a demand there is for more programs.



Be debt free by the end of 2019 by paying off our SBA loan

Higher Level Donors

After year one, we will seek donors with a higher

financial capacity to give to our organization.

We will show the support from our initial donors and board, and success of our programming to attract

these donors.

Additional Grant $$

After year one, we will seek additional grants to drive up

revenue.

We will be able to show year one success to

increase our chances of receiving more grants.

Government Support

In year 4 we will focus on receiving government support

through applying for grants with the state of Georgia and

city of Savannah.

We will be able to show financial success from years 1-3 to increase our chances

of government funding.

Evaluation At the end of the second fiscal year of operation, we will look at our financial statements to make sure we are on track to repay our SBA loan. We will continue to monitor our debt every 6 months

from that point, and address any repayment problems as they may arise.



We will use increased revenue to:

Increase our marketing capacity by year four

Hire Marketing Director

We will use our increased revenue to hire a Marketing

Director in year four.

Having an experienced staff member in this department

will greatly increase our marketing knowledge and

capacity as an organization.

Hold Additional Fundraising Events

We will increase our fundraising events and use

them as a way of marketing our organization.

Expand Marketing Channels

By year three, we will look to expand beyond social

media and word of mouth, into additional channels of

marketing, such as newspaper and web

advertisements.

Evaluation At the end of year three we will send out surveys to our target market to find out their awareness of our marketing, to ensure we truly are increasing our capacity. This, combined with focus groups, will help us gather information about how relevant our marketing is and what we can do to improve in year four.


Startup Financials

It is estimated that the Youth Arts Alliance of Savannah will need $103,726 to cover startup costs and year one operations. (See profit and loss projection for a breakdown of these costs.)

We have identified the following sources of funding to cover these costs:

Crowdfunding

SBA Loan

Grants

Board Contributions

Donors


How are we raising these funds?

Donors We will look to local

supporters of the arts, and target donations from those who show an interest in investing in the future of local

youth.

Board Contributions We require that each of our six board members

contributes $5,000 to the organization, yearly. This requires either donating personally or raising that

amount for YAAS.

Grants We will apply for grants

geared toward supporting new

startups in the art sector. (I.e. Annenberg

Foundation, RGK Foundation)

Crowdfunding We plan to establish a

Kickstarter effort to reach a larger platform of

supporters. The money raised with this will be

put directly towards our creative programming.

SBA Loan We plan to take out a $10,000 loan to help

cover startup operational costs.

Please see page 22 for more details on this.


RevenueCrowdfunding $10,000

SBA Loan $10,000Grants $10,000

Board Contributions $30,000Donors $40,000

Total Revenues $100,000

ExpensesSalary $70,000

Benefits $19,246Office Supplies $2,000

Accounting/Legal $1,000Rent $8,400

Internet & Telephone $600Insurance $500

Loan Repayment $2,405Advertising/Marketing $1,500

Program Costs $4,800Artist Compensation $3,600

Total Expenses $114,051

Net Profit (Loss) ($14,051)

2015-2016 (Year One)Profit & Loss ProjectionYouth Arts Alliance of Savannah

Salary/Benefits: Consists of two paid employees, the Founder and the Artistic/Executive Director. Each receives a yearly salary of $35,000 and Benefits of about $9,623. Benefits include social security, Medicare, unemployment, healthcare, and sick/vacation time.

Office Supplies: We budget for the purchase of two desktop computers, and various desk supplies. We will not need to be purchasing desks or chairs, as those already exist in the office space.

Rent/Internet & Tel: The Savannah Arts Academy is offering us office space for a discounted price through a partnership agreement. They have also offered us a phone line and telephone service at a discounted cost.

Loan Repayment: See repayment plan details (page 22).

Program Costs: In year one, we will provide 12 programs, each program with 4 class sessions. Each session will cost us about $100 in supplies.

Artist Compensation: Our classes will be led by either a local artist, or a SCAD art student. Local artists will be financially compensated at $150 per class session. SCAD art students will provide instruction on a volunteer basis. Internship credit is possible if students wish to teach on a continuing basis.


2015 2016 2017 2018 2019Revenue

Crowdfunding $10,000 $10,000 - - -SBA Loan $10,000 - - - -

Grants $10,000 $15,000 $20,000 $50,000 $50,000Board Contributions $30,000 $30,000 $30,000 $30,000 $30,000

Donors $40,000 $70,000 $110,000 $200,000 $220,000Fundraising Events - $5,000 $12,000 $20,000 $35,000

Total Revenues $100,000 $130,000 $172,000 $300,000 $335,000

ExpensesSalary $70,000 $70,000 $70,000 $105,000 $105,000

Benefits $19,246 $19,246 $19,246 $28,869 $28,896Office Supplies $2,000 $500 $1,000 $500 $1,000

Accounting/Legal $1,000 $1,000 $1,000 $1,000 $1,000Rent $8,400 $8,400 $8,400 $8,400 $8,400

Internet & Telephone $600 $600 $600 $600 $600Insurance $500 $500 $1,000 $1,000 $1,000

Loan Repayment $2,405 $2,405 $2,405 $2,405 $2,405Advertising/Marketing $1,500 $1,800 $2,000 $3,000 $3,500

Program Costs $4,800 $9,600 $9,600 $9,600 $9,600Artist Compensation $3,600 $7,200 $7,200 $7,200 $7,200

Total Expenses $114,051 $121,251 $122,451 $167,574 $168,601

Net Profit (Loss) ($14,051) $8,749 $49,549 $132,426 $166,399

Youth Arts Alliance of SavannahProfit & Loss Projection4-year Pro Forma

Grants: In year one, two, and three, we don’t expect to receive a large amount of our revenue from grants. After we are able to show success in our programs, we will anticipate increased grant funding in years four and five.

Fundraising Events: In year one, we will not rely on fundraising events as a significant source of money. Once we are able to get our name into the community and can show how strong our programming is, we will increasingly rely on these events for funding.

Salary/Benefits: In year four (2018) we will hire a Marketing director at $35,000/year. This increases our salary budget to $105,000 and benefits to $28,896.

Program Costs: In year two, we will double our programming to 24 classes, therefore our costs for materials doubles as well.

Artist Compensation: Due to our increase in programming, artist compensation will also double.


SBA Loan Repayment Plan Youth Arts Alliance of Savannah will take out a Small Business Administration Loan of $10,000 in 2015 to help cover startup costs. The maximum interest rate for such a loan is 7.5%. We will budget for this rate, and plan to repay the loan within 5 years, by the end of 2019.

Our anticipated repayment plan is as follows:

Our monthly principal & interest payments will amount to $200.38. Broken down by year, this makes our yearly repayment amount to $2,405. We will make 60 (monthly) payments, amounting to a total of $12,022.77 repaid. This consists of the $10,000 principal amount borrowed, and $2,022.77 in interest.

Date Interest Paid to Date Principal Paid to Date Loan BalanceEnd of 2015 $691.92 $1,712.63 $8,287.37End of 2016 $1,250.89 $3,558.22 $6,441.78End of 2017 $1,666.58 $5,547.08 $4,452.92End of 2018 $1,927.87 $7,690.35 $2,309.65End of 2019 $2,022.77 $10,000.00 $0.00


Organization Evaluation Program Evaluation

Starting immediately, in year one after our first four sessions of classes, we will look to our consumers for feedback on our programming. We will put out a survey to the families or parents of those children who took part in our first four sessions, and ask for feedback on quality of instruction, materials, setup, and methods of teaching, and so on. We want to ensure we are giving our consumer what they really want, therefore their feedback on our classes is incredibly valuable. We will continue to do this throughout year one for each of our twelve programs. At that end of our first year, we will again reach out to all the families served and ask for overall feedback. Doing this continually will allow us to adapt and improve our programming on a rolling basis, making us more successful as an organization.

Financial Evaluation

At the end of year one, we will review our projected profit/loss statement against our actual statement for the year, and ensure that we are on track with what we had anticipated. We will address any concerns that may arise and adjust our pro forma projections if necessary.

Organization Evaluation

As an organization we will evaluate our board members and employees every 6-months. We will address quality of work, dedication, and level of focus on the mission for each individual. As a whole, at the end of each year, we will review our mission, vision, and values to ensure we are still fulfilling each of these aspects successfully.

Documents

Youth Arts Alliance of Savannah