Open Forum

Does anyone do profit sharing within their departments from the net profits of their shows?  For example, we work with our orchestra on all our musicals and I would like to share some of our profits from the show with them, but I truly don't know how to figure what percentage of the net profits would be fair to share.  We do the bulk of the work, of course...we produce the show, build it, market it, run the box office, etc, but the orchestra works very hard and I feel it is fair to offer them a percentage of the profits. This will be our 10th show to perform with this musical director and her student orchestra and in the past we have given them a large gift of some kind...something they have needed for their program,  and we have performed for them at their big fundraiser in the spring. But, I feel it is time to do something more.  I was thinking a 20/80 or 30/70 split...any thoughts out there on that?  We have to use our money to put into the next show, so I do have to be careful. Thanks for any advise you could offer.

Hi Page,

I would urge you to consider a few elements before offering to split profits.  I, too, have often thought of using this and have abandoned the idea every time. 

First, anytime this has been broached with me I ask if they are willing to share expenses.  If they want a share of a profits then I want them to have a share of the potential losses, too.  

Second, if you create this idea you may regret it later.  You'll be stuck offering profits year after year.  What if you have a bad year?  What if you want to do something really special one year and need extra money?  What if you have NO profits?  

Personally, I would continue your gift giving.  This doesn't set a precedent that you must continue and allows you to control the price of the gift.  

Every situation is different and that's just my two cents.  Good luck!

I love that you give them a gift! Maybe share a fundraiser, instead of profits from a production? I have a friend whose school's fine arts does an annual dinner with performances from the drama department, band and choir, with an art display as well. I believe they even offer child care so the parents can have a mini date, without babysitter expense. Each year the profits go to a different department.