Orange County Register

The venerable Sawdust Art Festival is the legacy of a gaggle of rebellious artists who thumbed their noses at the hoity-toity Festival of Arts (where the artwork was juried) and embraced the wild spirit of the 1960s. No stuffed shirts or judges at the Sawdust; just laid-back bohemia, where artists could create and sell their wares.

If there’s some argument about how the Sawdust has evolved, we’ll leave that to the critics and the artists themselves. The Watchdog is concerned about the money. According to the Sawdust’s most recent tax returns:

• The number of visitors was down a whopping 24 percent between 2002-03 and 2006-07.
• The festival spent more than it earned in 2006 and 2007, forcing it to dip into reserves to make ends meet.
• Revenue was up 11.6 percent since 2002-03 -
• But expenses were up 18.4 percent over the same time period.
• Net assets - essentially, its reserves - fell nearly 8 percent.

But 2008 was much better, officials say.

Note the erratic blue “revenue” bar in the following graph, and the steadily-climbing  “expenses” bar:

And note how the overspending has dipped into net assets: 

WANTED: WARM BODIES

Getting people to the festival was clearly an issue.

• There were 187,000 visitors through the gate in 2002-03, and again in 03-04.
• Only 163,000 came in 04-05.
• Dropping to 142,500 in 2005-06.
• Dropping to 141,500 in 2006-07.

  FACTOIDS

• Even though admission fell considerably, admission revenue was up 23 percent over the five years (to $1,202,113).
• Food and beverages sales grew by nearly 26 percent (to $246,134).
• The overwhelming majority of the Sawdust’s spending is where it should be - on programs (nearly 74 percent).
• It spends a lot on management - 26 percent (nonprofit watchdog Charity Navigator generally likes to see no more than 15 percent of spending here) - but spends nothing on fundraising. 
• 2007’s highest paid employees (including benefits):
  • grounds manager, $58,293
  • controller, $54,449
  • events coordinator, $49,854

2008 WAS BETTER! SAWDUST SAYS

The tax returns for 2007-08 won’t be out for some time, but Sawdust spokeswoman Cynthia Fung said that the financial picture definitely brightened this year:

For the first time since the Sawdust’s 2002 season, the non-profit organization is experiencing positive results from its heavy program spending.  Of the 42 annual summer shows, many long-time artists and exhibitors have reported the 2008 season to be among the best ever.

Attendance numbers were up from last year, which is great news for us considering the condition of the economy. We had visitors from all over come in, and pushed forth a marketing campaign to draw in guests from not only Orange County but counties outside of OC. As a result, our paid adult attendance increased about 3 percent over last year, and our children attendance increased 8 percent from last year. The Sawdust concessions, including the Saloon, Coke Booth and Sawdust Shoppe, also experienced an increase in sales, up 7 percent from 2007.

Exhibitors and artists really worked hard on educating the public, and the Children’s Art Spot, Mud Hut and Sawdust Studio were consistently well-attended. And of course, the lively entertainment, artist demos, guided tours, Artists Benevolence Art Auction, and our first ever Wildlife Days and Midsummer Green Day contributed to the festival’s attraction.

We’re looking forward to a successful Winter Fantasy.

(The uber-fun holiday version of the Sawdust, complete with wandering carollers in Dickens garb and “snow” for the kiddies to throw at one another, runs Nov. 22 and 23; Nov. 28, 29 and 30; Dec. 6 and 7; and Dec. 13 and 14. )

HISTORY

The festival began in 1965. There was no festival in 1966, but in 1967, the artists held the second one near Pacific Coast Highway. Real sawdust was used to control dust; local media dubbed it the Sawdust Festival; and the name stuck.

The show found its permanent home on Laguna Canyon Road in 1968. The property was a campground run by the Funk family, according to Sawdust lore, and lent on the condition that a Funk family member could exhibit. In 1972, the Sawdust artists bought the 3-acre property, and now it’s worth about $2.1 million, according to tax returns.

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