Artist Financial Profile: loadbang
A discussion with Executive Director Andy Kozar
In 2007, four friends at Manhattan School of Music—Andrew Kozar, Jeffery Gavett, Philip Everall*, and William Lang—were spending significant amounts of time together talking about new music at school, and also at the bar. Realizing they could be performing new music with each other instead of just talking, they began rehearsals for what would become a concert series in an abandoned library at MSM called “Will and Andy’s Power Concerts.” These concerts were only 20-minutes long and, “just like a power nap,” they were all you needed to freshen up your day. Since these friends represented trumpet, baritone voice, clarinet, and trombone, repertoire was lacking. Their first concert program included performances of an Earl Brown graphic notation score, a few barbershop quartets (yes, they sung them), and a piece Jeff wrote for the group.
Fast forward 12 years and these four friends had become loadbang, a “formidable new music force” in the new music scene. I had the pleasure of speaking with their executive director and trumpet player, Andy Kozar, over the phone. Andy was gracious enough to tell me more about how the ensemble started, the history of their finances, a bit about their individual lifestyles, and the ins and outs of how loadbang operates as an integral piece of each members’ musical and financial activity. If you are looking to start an ensemble, I hope this article will offer you a sample working model for best practices.
Before we dig into loadbang’s financials, it’s important to note that the financials of any nonprofit are accessible to the public. Every non-profit is required to annually file a Form 990 and many can be accessed through Guidestar.org. The IRS website states:
Forms 990 and 990-EZ are used by tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations to provide the IRS with the information required by section 6033.
and continues with:
Some members of the public rely on Form 990 or Form 990-EZ as their primary or sole source of information about a particular organization. How the public perceives an organization in such cases can be determined by information presented on its return.
In short, a 990 does not always provide a clear picture, but the form can give the overall details of the financial health of an organization, primary activities and how much was spent on them, the names of the board of directors, and the compensation of the highest-paid officials in the organization. For the real tax nerds wondering what section 6033 is, here you go.
Before I called Andy, I pulled loadbang’s most recent 990 filed in 2018, from the 2017/2018 concert season (their fiscal year runs July to the end of June).
With all the success that loadbang has achieved, some may be surprised that this ensemble is only a portion of each of the members’ incomes. This is why many musicians belong to several performing groups, in addition to their own freelance and teaching or composing work. Looking at the Form 990, the 2018 revenue amounted to $66,319.94 for the season. Expenses totaled $68,958.12, resulting in an organizational deficit of ($2,638.18) for the year. The revenue alone is not enough for any one of the loadbang members to comfortably live in New York City, yet loadbang is a very well managed organization and has set a great trajectory.
Their 990 reveals that $47,233.33 of the revenue is from “program service revenue.” Essentially this is ticket sales and artist fees, making up 71% of the gross revenue. The other 29% is from “contributions, gifts, and grants” and “gross profit (or loss) from sales of inventory”. This information reveals that loadbang is funded primarily through performance activity. Andy mentioned that loadbang had 38 performances during the 2017/2018 concert season.
The other significant part of loadbang’s revenue is in the “contributions, gifts, grants, and similar amounts received.” This amount adds up to $18,750, approximately 28% of the organization’s total revenue. This money was most likely from received grants for concert and recording projects from organizations listed in the support section of their website. For those who noticed, the missing 1%, or $337, was profit from CD sales.
Talking with Andy, over the years that loadbang has been an ensemble, revenue has grown every year through increases in activity, and the ensemble developed a simple way to put money back into the business: since there are four members, loadbang divides the revenue—after deducting travel expenses—into five parts: a piece for each member to sustain their living, with the fifth part going back into the organization. They did this from the very beginning, allowing their nonprofit to grow the money they need to develop projects and offset occasional deficits like they saw in 2018. Even nonprofits have to put money back into the business to maximize potential and fund their own growth.
Some readers may be wondering, “If they had an overall deficit in 2018, how did they make any money?” The members of loadbang paid themselves first. This is represented in line 13 of the 990 “Professional fees and other payments to independent contractors” of $50,047.15. A couple things to unpack here: this amount was probably not just paid to the quartet, as there could be other composers, sound engineers, and artists at large who are part of the loadbang economic activity. The other thing to note is that loadbang has decided to pay themselves as independent contractors, which is a non-employee status that allows organizations to pay performers and other contractual employees without paying payroll taxes or being responsible for their contractors’ owed income taxes. This is the most common way for musicians, composers, and other creatives to be paid. It is also reflective of the way the members and collaborators of loadbang make their other incomes—through gigging.
Other expenses listed on the 990 are printing, publication, postage, shipping ($987), occupancy—rent for concert space rental for self-produced concerts ($1,683), and “other expenses” of $16,000 that ends up being “travel expenses” as outlined by Schedule O. All of these expenses result in a deficit for the year of $2,638. Because loadbang reliably allocates funds as part of its annual budget to build the organization, a net loss for the 2018 year is not a big deal.
I asked Andy about recordings, because everyone wonders: do you make any money from the CD sales?
No, not at all. It’s a huge money pit. We don’t look at the records as a money-making thing. They are kind of the business card—you show people what you can do at the highest level—and it sets loadbang apart from new music organizations because all of the rep exists only for us. We have a responsibility to record the pieces. As long as the record is good, it can raise our profile in interesting ways.
Loadbang’s discography is impressive. With 12 albums to their name, they are cementing their impact on new music into history, while simultaneously making it easy for booking agents and institutions to hear examples of their programming. So like many arts projects, the CDs aim to pay for themselves but aren’t necessarily an important part of their profit creation, though Andy did say they occasionally get small royalty checks.
With any talk about income, lifestyle discussions are often omitted but are very important to understand the nature of the business and how that plays out in the day-to-day existence of a performer. Andy was very candid during our discussions about lifestyle and was willing to share a bit about his own life, his other places of work, and the general performing activity of the other loadbang members. The intention of loadbang was never to go full time, as the loadbang members enjoy the variety of activities they participate in across different groups or solo performing, teaching, composing, and general freelancing. As Andy said about his work with loadbang, “It’s a piece of the puzzle—at this point I like all of the pieces of my puzzle… they all bring different benefits”
Andy is both the executive director of loadbang and their trumpet player. Looking at page two of their Form 990, it looks like Andy makes a little bit more than his ensemble members due to his leadership position, but he is not pulling a sizeable income from that activity. Andy also teaches at Longy School of Music at Bard College, in Cambridge, Boston. There, he is the chair of the Winds and Brass Department, co-director of Ensemble Uncaged, and the co-director of the Divergent Studio at Longy. Andy also freelances regularly in New York City, and composes and records quite often. To throw another complication into the mix, Andy’s wife, Corrine, is a tenure-track professor of voice at Susquehanna University in Pennsylvania. They have a townhome in Pennsylvania, but he spends part of the week in Boston and New York City. His schedule for a “normal” week looks like this:
Sunday-Tuesday: Longy School of Music, Boston
Tuesday-Saturday: Go back to NYC or Pennsylvania, or back and forth
But normal weeks are actually not the norm. Andy explains, “Normal is usually getting on a plane and going somewhere. Somehow it feels that’s impossible to be normal.” For now, the thriving music careers of Andy and his wife work well. They have to spend regular time coordinating schedules so they can be in the same places at the same time, but so far, their 2.5 years of marriage has been working out great.
For the rest of loadbang, the guys are more or less in New York City freelancing or on faculty at the Longy School of Music. I asked how they all ended up as faculty at Longy, and Andy told a quick story of how he started there four years ago and all of a sudden there were faculty openings for voice, clarinet, and trombone. His supervisor bounced the idea of the rest of loadbang coming on board, especially for their summer contemporary music program, Divergent Studio. It seemed to just work out from there!
So you want to start an ensemble?
Imagine you have a few friends who want to start a chamber group and have visions of becoming the next Kronos Quartet, Eight Blackbird, or Imani Winds. Although it is an excellent goal, be realistic about how an ensemble fits into your financial picture. Many ensembles start with nothing and have to put money back into their ensemble just to get it off the ground. Sometimes artistic fees barely cover travel and rehearsal costs, but you do the gig anyway to start to make a name for yourself (something you may do in your own career, but which can carry extra challenges in a group context). Realize that even the most successful ensembles are often just a piece of their founders’ incomes. As Andy put it:
I don’t mean to sound like a grumpy old man (I’m only 34), but sometimes there’s an expectation that comes from naiveté, that if you finish school and start a group and you’re doing cool things then you should be getting cool gigs….No one owes you anything—you don’t deserve a gig necessarily.
The best groups put the insane hours in following other ensembles, tracking down opportunities, and cold calling for the next gig. After speaking with Andy, I combined some of his sage advice into a shortlist of tips to get your ensemble going:
1. Play the gigs!
Don’t be too proud to take a gig. Gigs come from the hard work of networking, building relationships, and mimicking the groups you want to be like. If you can be willing to work, you will be more receptive to opportunities.
2. Send proposals out like your batting average relies on it.
It’s rare that someone will hand you a great gig. The more proposals you send out, the higher your chances of getting a contract. Your batting average increases. In our conversations, Andy said that 85-90% of the work loadbang gets is from reaching out to people and sending them proposals. The longer you do something in new music, the larger your network becomes. Only recently has loadbang seen an uptick in times they are approached to do a gig. For reference, early on, when loadbang would send out 100 proposals, they would only get seven to eight responses.
3. You may as well ask.
Even if you think a project or an idea is a long shot, it never hurts to ask—the worst someone can say is “no.” Early on loadbang thought it would be cool to get a commissioned piece from a skilled composer who they really loved, who just happened to be Charles Wuorinen. So they asked Wuorinen, thinking it would be a long shot. Apparently it wasn’t, and Wuorinen’s piece is featured on this CD.
4. Believe in your project.
Performers don’t start ensembles to become rich. They start groups out of passion and creative desire. This passion is also observed by your audience, collaborators, and funders, etc. As Andy put it:
If you’re really excited and believe in the project you’re doing, that reads. And if the product you have is good, you’re more likely to, over time, have some sort of modicum of success (however you define it)—it can be infectious.
Having passion from all members of your performing group so important. It communicates to your followers. It motivates you when keeping the ensemble going is a struggle. It keeps you honest about why you are pursuing the work.
5. Align your goals with your finances.
As an observer, I added this myself, after poring over my notes from my conversation with Andy. When anyone is seriously pursuing a project, they align their finances with their goals. Early on, loadbang put money back into the organization. This is the same for any small business. Sometimes you have to put more dollars in than you want to, but if you are serious about longevity and financial stability, it is important to organize your finances from the very beginning.
For performers and composers looking to start an ensemble, I hope this article was insightful. Do not forget that you have a plethora of amazing examples in the new music industry from which to draw knowledge. Success is not always left to the fates—you can steer your own ship in the direction of your choosing. Andrew Kozar also told me that you are welcome to reach out to him if our NewMusicBox readers have any questions, by emailing him at loadbang @ loadbangmusic.com.