2016-11-10T15:02:52-06:00 2016-06-30 420714325 RSM US LLP 1 S Wacker Drive Suite 800 Chicago IL 60606 990 2015-07-01 363930153 Music and Dance Theater Chicago Inc MUSI 3123342400 205 East Randolph Drive Chicago IL 60601 V Michael Tiknis President & Managing Director 3123342400 2016-11-10 1 David Biller P01251566 3126343400 2015 2017-02-10 21:41:12Z Harris Theater for Music and Dance V Michael Tiknis 205 East Randolph Drive Chicago IL 60601 14475803 0 X www.HarrisTheaterChicago.org X 1993 IL See Schedule O 34 33 281 340 0 0 4803036 3370878 2073158 2619340 1205520 -151685 610438 358898 8692152 6197431 0 0 0 0 3098394 3686303 0 0 1148434 5808195 7360772 8906589 11047075 -214437 -4849644 80726373 76774568 25268576 27838290 55457797 48936278 X See Schedule O 0 0 5886506 1069685 Resident Company Support and Capacity Building: Limited financial and administrative resources present challenges to the Harris Theater resident companies as they build the administrative capacity necessary for long-term sustainability. To address this need, the Harris Theater has developed a number of services and programs to empower non-profit companies to meet their varied artistic and institutional goals. The Harris Theater provides marketing, production and professional development opportunities to help each organization grow their audience, maximize existing production elements, and raise the caliber of artistic initiatives. In 2015-2016, Resident Company Support and Capacity Building activities served 32 non-profit organizations.The Partnership Initiative encompasses the Theater's services in the following areas:- Rental and technical subsidy programs: Approximately 68% of daily usage costs are underwritten by the Theater for all non-profit renters.- Additional rent and technical subsidy opportunities to offset production expenses.- Theatrical, lighting, and sound equipment and the counsel of in-house technical staff.- Marketing, press relations, and ticket sales support.- Learning Lab professional development series that provides, professional development seminars, an online toolkit and targeted coaching sessions to help companies build their marketing, fundraising, governance, fiscal, and administrative capabilities.- The Harris Theater uses Tessitura, comprehensive patron data management software which integrates development, marketing and ticketing functions for leading arts and cultural organizations. The Theater is the primary licensee in a consortium of four Chicago performing arts organizations who share use of the database. Fee-based membership in the Harris Theater Tessitura Consortium is available to all Resident Companies and peer organizations in Chicago. Benefits of membership include access to training workshops and other professional development opportunities.- Committee on Resident Companies (CORC) meets quarterly to provide a forum for collective peer learning and exchange among Harris Theater Resident Companies, Trustee representatives and staff. The meetings include a report on Harris Theater business that impacts companies' work, as well as an opportunity for companies to share upcoming events, goals, and institutional needs. - The Theater presents resident companies as part of its Harris Theater Presents evening series, Family Series weekend matinees, and MIX at SIX after work series, elevating the resident companies' presence in Chicago without the financial commitment of self-producing. In addition to this financial benefit, the Harris also expands resident company audiences by exposing their work to its presented series audience base of more than 15,000 patrons per season. During the 2015-2016 season, the Theater presented the Chicago Children's Choir alongside the artists of the Sphinx Virtuosi in a holiday concert in December 2015. New resident company Lucky Plush Productions was presented as part of the MIX at SIX series, and Harris Theater Presents mainstage, with the Harris-commissioned premiere of Tripping the Light Fantastic: The Making of Superstrip. Through the Eat to the Beat series, the Theater presented arts education partners Chicago Academy for the Arts, Chicago High School for the Arts, Music Institute of Chicago. 2992651 1483896 Harris Theater Presents: The purpose of the Harris Theater Presents (HTP) series is to present extraordinary artists, ensembles, and performances that in programming that is a unique complement to Chicago's cultural offerings. HTP performances have a halo effect on resident company audience development efforts, provide an opportunity to collaborate artistically, in community engagement and master class settings and extend the Theater's mission through local and national visibility.- Past Harris Theater Presents performances have included: Laurie Anderson, Chamber Music Society of Lincoln Center, Walt Whitman's Soul Children of Chicago, Merce Cunningham Dance Company, New York City Ballet, San Francisco Ballet, Paris Opera Ballet, Hamburg Ballet, Sphinx Virtuosi and Vienna Symphony, New World Symphony, Mikhail Baryshnikov, Pinchas Zukerman, and Wendy Whelan among others. 317746 65759 Harris Theater Community Engagement: The Theater partners with over 30 health and human services organizations, K-12 schools and community arts organizations to promote access to the transformative power of the performing arts for all communities.1. Access Tickets Program: The Theater partners with health and human service partners to provide underwritten tickets to performances. This program ensures that families who might not otherwise have access are able to experience the benefits of music and dance to enrich their lives. In addition to health and human service partners, the Theater provides underwritten tickets to arts education partners to connect their regular classroom experiences to master class work with guest artists and the performance onstage.Over the course of the 2015-2016 season, the Theater made available over 2,100 underwritten tickets to its partners, reaching 25 diverse Chicago neighborhoods.2. Enrichment activities: In conjunction with the Access Tickets Program, the Harris Theater facilitates activities for its health and human service partners with Harris Theater guest artists. Enrichment programming from the 2015-2016 season included: - October 9, 2015 - Rehabilitation Institute of Chicago Caring for Kids program in movement activity with performers from AXIS Dance, the country's premier dance company for people with and without disabilities.- January 30, 2016 - Before the Family Series performance of Kronos Quartet, the Theater hosted 75 children and families from Turning the Page, a family enrichment and literacy program based in North Lawndale, for a pizza party and educational activities in the Harris lobby and Donor Room. Special guest artist Van-Anh Vo provided a demonstration of Vietnamese music for the group, gave everyone a chance to play the dan t'rung and participate through clapping and singing, and answered questions from children and parents. - March 26, 2016 - The Theater partnered with Illinois Action for Children, a Lawndale-based organization that provides family support for early childhood care and education, to welcome 67 children and family members to pre-performance enrichment activities. The activities included a backstage tour of the Theater and a visit to the Performers' Lounge, where two C!RCA acrobats visited with the families in costume, discussed what to expect in the performance, and led them in some animal impressions.3. Arts Education: The Theater extends the reach of its Harris Theater Presents series by facilitating partnerships among student and community groups. The Theater provided opportunities for 600 young people to connect with the world's leading musicians and dancers through 18 events, including 7 master classes and workshops, 7 artist talks and lectures, 3 post-performance Q&A sessions, and 1 open rehearsal. Highlights include:- February 27, 2016 - Laura Cazzaniga, Ballet Mistress of the Hamburg Ballet and a former principal in the company, conducted a master class for high school dance students from ChiArts and Chicago Academy for the Arts. In addition, 90 high school dance students from ChiArts, Chicago Academy for the Arts, and Curie Metro High School received underwritten tickets to see the company onstage at the Harris Theater. A student who attended both the class and the performance commented: "I was so inspired by the performance last night, it was so exciting for me to come in and take this class today. It was a really refreshing look at the technique that we do here every day. I'm always curious to get new insight into the same technique but looking at it in a different way." - March 29, 2016 - Leading up to his Chicago debut, rising opera star Javier Camarena met with approximately 50 young people at the National Museum of Mexican Art. He performed, led a sing-a-long of traditional Mexican songs, and participated in a dynamic Q&A that touched on everything from techniques for developing one's voice to the story of how he became inspired to be an opera singer. The event was presented in partnership with Lyric Unlimited and The National Museum of Mexican Art, and was attended by young people from Merit School of Music, Mariachi Heritage Foundation, and Chicago Mariachi Project. 9196903 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 59 0 1 281 1 0 0 0 0 0 1 1 0 0 0 0 X 34 33 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X Laura Hanssel 3123347777 205 East Randolph Drive Chicago IL 60601 Ms Alexandra C Nichols Chairman 20.00 X X 0 0 0 Ms Elizabeth Hartigan Connelly Vice Chair 5.00 X X 0 0 0 Mr Peter M Ellis Vice Chair 5.00 X X 0 0 0 Dr Ricardo T Rosenkranz Vice Chair 5.00 X X 0 0 0 Ms Mary Kay Sullivan Vice Chair 5.00 X X 0 0 0 Mr David Snyder Treasurer 5.00 X X 0 0 0 Ms Marilyn Fatt Vitale Secretary 5.00 X X 0 0 0 Ms Caryn Harris Executive Committee, Member at Large 5.00 X X 0 0 0 Mr James L Alexander Trustee (Left June 30, 2016) 1.00 X 0 0 0 Mr John W Ballantine Trustee 1.00 X 0 0 0 Ms Lee Blackwell Baur Trustee 1.00 X 0 0 0 Mr Paul S Boulis Trustee 1.00 X 0 0 0 Ms Sunny Chico Trustee (Left Feb 16, 2016) 1.00 X 0 0 0 Ms Louise Frank Trustee 1.00 X 0 0 0 Mr Jay Franke Trustee 5.00 X 0 0 0 Mr Robert J Gauch Jr Trustee 1.00 X 0 0 0 Ms Sandra P Guthman Trustee 5.00 X 0 0 0 Ms Joan W Harris Trustee 5.00 X 0 0 0 Ms Christine N Evans Kelly Trustee 1.00 X 0 0 0 Ms Deborah A Korompilas Trustee 1.00 X 0 0 0 Ms Merrillyn J Kosier Trustee 1.00 X 0 0 0 Mr Mac MacLellan Trustee 1.00 X 0 0 0 Mr P Douglas McKeen Trustee (Left Jan 29, 2016) 1.00 X 0 0 0 Mr Zarin Mehta Trustee 1.00 X 0 0 0 Ms Judith Neisser Trustee 1.00 X 0 0 0 Mr Kenneth R Norgan Trustee 1.00 X 0 0 0 Ms Abby McCormick O'Neil Trustee 5.00 X 0 0 0 Mr Jason Palmquist Trustee 1.00 X 0 0 0 Mr William Ruffin Trustee 1.00 X 0 0 0 Mr Patrick M Sheahan Trustee 1.00 X 0 0 0 Mr John Q Smith Trustee 1.00 X 0 0 0 Ms Susan Stark Trustee 1.00 X 0 0 0 Mr Jeffrey D Steele Trustee (Left June 30, 2016) 1.00 X 0 0 0 Mr Elliot Weissbluth Trustee 1.00 X 0 0 0 Ms Dori Wilson Trustee 1.00 X 0 0 0 Ms Maria Zec Trustee 1.00 X 0 0 0 Mr V Michael Tiknis President & Managing Director 40.00 X X 311652 0 19723 Mr Jacob Anderson Asst. Secretary/Asst. to President 40.00 X 48969 0 8084 Ms Laura Hanssel Executive VP & CFO 40.00 X 182534 0 19120 Ms Cheryl Mendelson COO, Executive VP - External Affairs 40.00 X 252071 0 22540 Mr Steven M Abrams Executive VP/General Manager 40.00 X 120995 0 10639 Mr Andrew M Principe Technical Director 40.00 X 128579 0 43152 Kevin D Sullivan Master Electrician 40.00 X 101667 0 34730 Ms Lori Dimun VP of Operations and Production 40.00 X 107830 0 5460 Ms Jodi Kurtze VP of Development 40.00 X 113830 0 5708 1368127 0 169156 9 0 1 0 Turner Construction 55 E Monroe Suite 1430 Chicago IL 60603 Construction 4127607 HBRA Architects Inc 372 W Ontario Street Chicago IL 60654 Architectural Planning 208600 League of Chicago Theatres 17 N Wabash Avenue Suite 520 Chicago IL 60602 Advertising 198632 Switchfast Technologies 4043 N Ravenswood 203 Chicago IL 60613 IT Service Provider 182340 The Chamber Music Society of Lincoln Cen 70 Lincoln Ctr Plaza 10th Fl New York NY 10023 Harris Presents Performing Artists 134535 11 866700 4000 2500178 68593 3370878 Theater Box Office 711190 1549655 1549655 Usage Fees 711190 1069685 1069685 2619340 506939 506939 495200 0 495200 495200 495200 7428659 8087283 -658624 -658624 -658624 48750 866700 191089 -142339 -142339 6037 6037 6037 6197431 2619340 0 207213 X 864692 600372 105164 159156 2184938 1517043 265733 402162 152453 86723 44554 21176 265301 150918 77533 36850 218919 174165 7351 37403 69203 65878 3325 41054 39082 1972 65281 62145 3136 2384392 2343917 11644 28831 808509 715754 17195 75560 170689 160289 8089 2311 392058 373223 18835 164787 148966 3173 12648 531117 505601 25516 1380107 1313803 66304 276732 263437 13295 Repairs & Maintenance 602715 578729 23986 Bad Debt 236155 236155 Cultivation Events 118913 118913 Sales Tax 20340 19363 977 98720 77495 3956 17269 11047075 9196903 701738 1148434 1038069 1760201 140976 43269 14425576 10376225 29705 22192 19963 8147 27324 79518 59979363 17652765 39466100 42326598 20449127 16094393 4946037 5885112 183496 178913 80726373 76774568 684465 1145044 416377 442661 20000000 20000000 3220000 5000000 947734 1250585 25268576 27838290 X 38242081 32968084 11715716 10468194 5500000 5500000 55457797 48936278 80726373 76774568 X -4849644 -1369024 -302851 X 0 1 X 1 0 X 3634750 2774071 11572557 4803036 3370878 26155292 3634750 2774071 11572557 4803036 3370878 26155292 10493024 15662268 397995 1108792 779980 689906 506939 3483612 3101 95715 9168 488 6037 114509 29753413 13172930 0.52640 0.49180 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 5500000 -182052 -182052 5500000 5500000 -51094 -51094 5500000 500000 5000000 115422 115422 5500000 500000 42846 42846 500000 500000 9079 9079 500000 1.00000 1 0 50768009 15569538 35198471 2266469 2083227 183242 6944885 6944885 42326598 Alternative Investments 3090020 F Investment in Limited Liability Company 2795092 F 5885112 Fair Value of Swap Agreement 1250585 1250585 X 4573238 -1671875 47682 -1624193 6197431 0 6197431 11094757 47682 47682 11047075 0 11047075 Part V, Line 4: General Operating Costs Part X, Line 2: The Theater is a not-for-profit corporation as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from income taxes on related income pursuant to Section 501(a) of the Code. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Theater may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Theater, the continued tax-exempt status of the bond issued by the Theater, and various positions related to the potential sources of unrelated business taxable income. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes and accounting in interim periods. At June 30, 2016 and 2015, management has determined that there are no uncertain tax positions. The Theater files annual information returns in the U.S. federal jurisdiction and the state of Illinois. The Theater is generally no longer subject to examination by the Internal Revenue Service for tax years before 2013. Part XI, Line 2d - Other Adjustments: Advertising 47,682. Part XII, Line 2d - Other Adjustments: Advertising 47,682. Dinner 915450 866700 48750 55652 72975 62462 915450 866700 48750 55652 72975 62462 191089 -142339 X 1 1 X X X X 1 0 0 0 0 0 0 1 0 Mr V Michael Tiknis President & Managing Director 311652 0 0 0 0 0 10600 0 9123 0 331375 0 0 0 Ms Laura Hanssel Executive VP & CFO 167534 0 15000 0 0 0 7600 0 11520 0 201654 0 0 0 Ms Cheryl Mendelson COO, Executive VP - External Affairs 237071 0 15000 0 0 0 10325 0 12215 0 274611 0 0 0 Mr Andrew M Principe Technical Director 125079 0 3500 0 0 0 18136 0 25016 0 171731 0 0 0 Part I, Line 1a Social club dues were paid on behalf of Michael Tiknis in the amount of $2,125 for Theater related business. The social club dues are non-taxable. Part I, Line 4a Mr. Steven M. Abrams, former Executive Vice President and General Manager, received $46,448 as severance compensation in calendar year 2015. Part I, Line 7 The bonus payments received by Ms. Laura Hanssel, Ms. Cheryl Mendelson and Mr. Steven Abrams are non-fixed and discretionary in nature. The bonuses are awarded on the basis of a merit system, as reviewed by the President of the Theater. Bonus payments are not guaranteed or contracted. A Illinois Finance Authority 861091967 45200BLT3 2005-05-11 20000000 Refinance of construction loan payable 0 0 0 A 20000000 371884 19628116 2005 0 0 1 1 A 0 0 0 0 1 0 0 A 0 0 0 0 1 0 0 0 0 A 0 X 1 18593 FMV X Airfare 1 50000 Selling price of don 0 0 0 0 Part I, Column (b): is the number of contributions. Form 990, Part I, Line 1: Description of Organization's Mission: The mission of the Harris Theater is to be Chicago's primary residence for music and dance, connecting diverse audiences with outstanding artists from across the city, the nation, and the world. The Theater supports this mission through three strategies: Resident Company Support and Capacity Building, Harris Theater Presents, and Community Engagement. Resident Company Support and Capacity Building: Central to the Theater's mission, these evolving services provide essential support for The Harris Theater's 35 resident companies. Activities include subsidized rental, production and marketing support, professional development workshops, and opportunities to collaborate and build community. The Harris Theater's Community Engagement activities aim to build bridges between artists and underserved youth and families from throughout the Chicago region, taking advantage of access to the world's leading musicians and dancers. Activities include Arts Education Partnerships and Access Tickets. Form 990, Part III, Line 1: Description of Organization's Mission: The mission of the Harris Theater is to be Chicago's primary residence for music and dance, connecting diverse audiences with outstanding artists from across the city, the nation, and the world. The Theater supports this mission through three strategies: Resident Company Support and Capacity Building, Harris Theater Presents, and Community Engagement. Resident Company Support and Capacity Building: Central to the Theater's mission, these evolving services provide essential support for The Harris Theater's 35 resident companies. Activities include subsidized rental, production and marketing support, professional development workshops, and opportunities to collaborate and build community. The Harris Theater's Community Engagement activities aim to build bridges between artists and underserved youth and families from throughout the Chicago region, taking advantage of access to the world's leading musicians and dancers. Activities include Arts Education Partnerships and Access Tickets. Form 990, Part VI, Section A, line 2 Joan W. Harris and Louise Frank have a family relationship. Form 990, Part VI, Section B, line 11 On September 17, 2015 the Board of Trustees of the Harris Theater approved a resolution that, with the Fiscal year ended June 30, 2015, gives the Audit Committee of the Board the authority to review the federal Form 990 and Illinois Form AG990-IL on the Board's behalf. On October 25, 2016, the Audit committee of the Board of Trustees met with representatives of RSM US LLP, who prepared the Form 990 and conducted that review. The extent of that review includes covering key issues. Each board member received an electronic copy of the final version of Form 990 prior to its filing. Form 990, Part VI, Section B, line 12c Music and Dance Theater Chicago, Inc.'s ("MADTC") conflict of interest policy addresses transactions and arrangements involving MADTC's trustees, officers and any other managers or supervisors identified by the Board of Trustees or the President as exercising substantial influence over the operations of MADTC ("Covered Persons"). Each Covered Person upon becoming such shall prepare, sign and submit a Conflict of Interest Questionnaire. In addition, each Covered Person shall promptly and fully disclose all material facts of every actual or potential conflict of interest: (I) That arises while he/she is a Covered Person, at the time such actual or potential conflict arises; and; (II)Annually by preparing, signing and submitting a Conflict of Interest Questionnaire. All disclosures involving a transaction or arrangement being considered at a meeting of the Board of Trustees or of a board committee shall be made to all members present at such meeting. All other disclosures shall be made to the President (who shall disclose his or her conflicts to the Board of Trustees). A Covered Person who is in doubt as to the existence of a conflict of interest is encouraged to disclose all facts pertaining to the transaction or arrangement before undertaking the transaction or arrangement or making any decision in the matter. Each Covered Person shall sign a statement acknowledging that he or she has received a copy of this Policy, has read and understands it, and agrees to comply with it. If the Board of Trustees has reasonable cause to believe that a Covered Person has failed to comply with this Policy, the Board may counsel the Covered Person regarding such failure and, if the issue is not resolved to the Board's satisfaction, may consider additional corrective action as appropriate. Conflict of interest information is collected annually and throughout the year when new trustees come on. Form 990, Part VI, Section B, line 15 With respect to compensation of the CEO/Executive Director on an ongoing basis, post-hiring, the Board of Trustees has delegated overall responsibility for establishing such compensation to the Executive Committee. To carry out this assignment, the Executive Committee utilizes an ad hoc compensation sub-committee ("the compensation sub-committee"), consisting of former and current Board Chairs, along with board members bearing special expertise in the area of compensation, to review and determine the compensation of the CEO/Executive Director. To determine the compensation of the CEO/Executive Director, the compensation sub-committee has successfully employed a number of tools and resources, including without limitation, a review of compensation for similar positions at similar organizations, drawing upon data from Form 990's for such organizations; the compensation committee, as a matter of policy, retains the option of utilizing independent compensation consultants and compensation surveys or studies, when it determines that it is appropriate to supplement data from other resources. Each year, the compensation sub-committee reviews the compensation of the CEO/Executive Director in conjunction with the review of the performance of the CEO/Executive Director, including accomplishments, achievement of goals, and opportunities for improvement. After the completion of such review, the compensation sub-committee reports its findings and recommendations to the Executive Committee, which then determines the compensation of the CEO/Executive Director for the ensuing year. At the beginning of each fiscal year, the Board Chair reports to the Board of Trustees the actions taken by the Executive Committee. Form 990, Part VI, Section C, line 19 The Theater makes its governing documents, conflict of interest policy, and financial statements available to the public upon request for the same period of disclosure as set forth in section 6104(d). In addition, the Theater participates in the Cultural Data Project which provided detailed information on the organization, including financial data. The Theater applies for numerous grants from foundations as well as governmental bodies and provides such documents in that application process. Web sites such as GuideStar also have relevant documents of the theater. Form 990, Part IX, line 11g Artist Fee: Program service expenses 2,113,198. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,113,198. Consulting: Program service expenses 230,719. Management and general expenses 11,644. Fundraising expenses 28,831. Total expenses 271,194. Form 990, Part XI, line 9: Change in Unrealized loss on Swap Agreement: -302,851.