Projected Revenue & Expenses for Completed Center

The following financial projections apply to the completed Center for the Arts. To see our Capital Project Budget, click here.

• Operating Budget 2026 & 2027: Start Up / Construction Period
• 2027 Operating Budget will look very similar to 2026
  
• Operating Budget 2028, 2029, 2030: Construction Complete, Fully Operating
• Assumptions

Assumptions

1. Museum Admissions
   • An average admission fee of $10/ticket with an estimated 10,000 tickets in Year 1. Admissions will increase by 500 tickets each year.
2. Memberships
   • 100 Members at a $100 annual cost per membership. We are projecting to grow by 50 memberships each year.
3. Donations
   • Annual Lead and Major Gifts - $30,000 in Year 1. Gifts from Major Donors will be projected to grow by $10,000 annually.
   • Colorado Gives Day / Annual Mailer
     • $75,000 Assumes 500 donors at $150 per donor per year from email marketing blast to collectors.
     • The cost related to the email blast is assumed to be $1,000
   • Donation Jar - $25,000 est. This would equate to a $1.19 average donation per admission. Donation jar gifts will grow with admissions.
   • Education Program Donations
     • Basler Foundation has tentatively committed $2,000/year
4. Foundation Grants - $25,000/year, increasing by $5,000 each year
   • Estimating $20,000/year in general operating funds, and $5,000/year in education funds
   • Foundations will likely include:
     • El Pomar Foundation
     • Gates Family Foundation
     • Krueger Family Foundation
     • Boettcher Foundation
     • Outcalt Foundation
     • Hoglund Foundation
5. Government Grants - $20,000/year, increasing to $25,000 after the first year
   • Estimating $7,000/year in general operating funds, and $13,000/year in education funds
   • Creede City Government
     • Virginia Christensen Fund - up to $5,000
   • Mineral County - up to $1000
   • Lodging Tax Board - up to $10,000 (increase to $15,000)
   • Colorado Creative Industries
     • Colorado Creates Grant Education Programming $8,000
6. Sponsorships - Corporate & Business - $20,000/year
   • Corporations and Businesses will have sponsorship opportunities that provide positive visibility in exchange for financial support.
   • Sponsorship opportunities will likely include:
     • Exhibit & Gallery Sponsorships - $1000 to $5,000 per exhibit.
     • Arts Education & "Title" Sponsorships - $1,000 to $10,000
     • Event Sponsorships - $1,000 to $5,000 per event.
7. Special Art Center Events
   • Plein Air Days are held every other year in the fall.
   • Watercolor Days are held every other year in the fall.
   • $5,000 in Year 1 increasing to $10,000 in future years
   • Marketing expenses would be $1,000 in Year 1 and then $2,0000
8. Workshops
   • 4UR Ranch Workshops
     • For each workshop, Stephen receives $500 per student, which includes 20 students ($10,000 in total per workshop)
     • Expenses related to the workshop are estimated to be $2,667 ($2,167 for the assistant and $500 for the dinner)
     • The revenue after expenses per workshop is $7,333
     • There will be two 4UR Ranch workshops per year for $14,666/year.
   • 10-day Workshop in Creede
     • Students per workshop – 18
     • Revenue per student -$1,000 ($18,000 in fees)
     • Expenses estimated to be $2,667 ($2,167 for the assistant and $500 for the dinner)
     • Net revenue after expenses would be $15,333
   • Outside artists to teach workshops annually.
     • An average of 15 students per workshop
     • Gross revenue per student is $1,000 ($15,000 in total)
     • Expenses were estimated to be $6,167
       • Assistant - $2,167
       • Outside Artist Fee - $3,500
       • Hosted Dinner - $500
     • Total revenue after expenses per workshop after artist expenses - $8,833
     • Two Workshops per year for a total of $17,666 annually
   • The net revenue after expenses for all the workshops was $47,665
9. Rentals & Artist Retreats
   • Rentals are assumed to be an average of $2,500 per event/retreat.
   • It is assumed that we will host one event in Year 1; three events in Year 2, and then average four events the following years
10. Education Programming - Youth & Adult
    • Begun in 2025. Assumptions based on 2026 budget. Does not include staffing, but does include contracted teachers.
    • 2028 Income = $33,000, Expenses = $11,000.
    • 2029 Income = $38,500, Expenses = $12,500.
    • 2030 Income = $44,000, Expenses = $14,500.
    • Grant funding for Education Programming is accounted for in Foundation/Government Grant line items
11. Gift Shop - Rounded Total Retail Income: $85,000; COGS: $40,000; Fees $4,500; Net Income: $45,000; Increasing 5% per year
    • Giclee Prints – Total Retail: $39,200; Net: $21,200
      • Sales price net of cost of $265 ($490 sales price less $225 cost per print)
      • Number of prints sold – 80
      • The number of prints sold each year increased by 5%
    • Jenny Inge Artwork - Total Retail: $25,000; Net: $8,250
      • commission to the museum equal to 33%.
    • Other Artwork Sales - Total Retail: $6000 ; Net: $2,000.
      • commission to the museum equal to 33%.
    • Book Sales - Total Retail: $3000; Net: $1800
      • Sales price per book - $30
      • Wholesale cost of books was assumed to be $18
      • The number of books sold was assumed to be 100 in Year 1, increasing to 300 by Year 5
    • Videos/DVDs - Total Retail: $7500; Net: $6700
      • The retail price of videos was assumed to be $75
      • The cost of videos was $8 based on historical sales.
      • Net profit per DVD - $67
      • The number of videos sold per year was assumed to be 100
    • Streaming - Total Retail: $1000; Net: $960
      • Assumes streaming gross revenue of $1,000
      • Annual cost related to streaming - $140
    • Poster Sales - Total Retail: $2400; Net: $1,200
      • Assumes retail price of $30 per poster with 50% of the proceeds going to CRT
      • CRT pays for the cost of the posters.
    • Miscellaneous Sales (coffee mugs, wine glasses, hats, T-shirts, etc.) - Total Retail: $20,000; Net: $10,000
      • $10,000 in revenue
      • Assumed the average price of each item was $20 with a wholesale price of $10/item. This would assume that 1,000 items are sold annually, which equates to .05 items sold per admission. Several items sold are projected to increase with admissions each year.
    • Credit Card Fees = $3,400, increasing each year with sales
      • Assumed 4% of retail sales
12. Wages and Salaries – Salaries are increased by 3% per year.
    • The Director - this position will include general executive director duties, plus some Development work and Curator/Exhibit management. The position will be filled by one person at $75,000 plus 30% benefits and payroll taxes ($97,500).
    • The Education Program Director will be filled by one part-time person at $24,000.
    • The Admin Assistant will be filled by one part-time person hourly; estimated $12,000 for 2026/2027. Then increasing to $24,000 for 2028-2030.
    • Seasonal Gift Shop staffing is estimated at $15,000 and can be filled by more than one person. Anticipated 80 days of high season traffic will require this additional part-time staffing
13. Marketing
    • Marketing expenses will be $10,000.
    • Professional Contract Labor for marketing services will be $25,000.
14. Grantwriting, Development and Fundraising
    • Professional Contracted Grantwriter would cost $10,000
    • Development, Fundraising and Event costs are estimated at $25,000
15. Exhibits - $10,000/year
    • Shipping, installation and materials for setup and takedown
16. Licenses, Fees & Insurance
    • Various annual licenses and fees are required (SOS registration, sales tax exempt fees, bank service charges, etc)
    • Workman’s Comp insurance is estimated at $1000/yr. Increases 5%/year
    • Property insurance costs are estimated at $22,000/yr. This would include the commercial building insurance as well as a Fine Arts Inland Marine policy. Increases 10%/year in Colorado.
    • Liability insurance costs are estimated at $8,000/yr. Increases 3%/year.
    • Board of Directors insurance is estimated at $1,200/yr
17. Finance/Accounting
    • The independent bookkeeper would be responsible for monthly bookkeeping, payroll, filing sales tax returns, and payroll tax returns.
    • Contract labor is estimated at $12,000.
    • Additional $3,000 for filing annual 990 and audit services by a contracted accounting firm.
    • The assumed rate increases by 3% each year.
    • Sales taxes are collected from the sales and submitted to the state. The Center should not need to pay taxes beyond what they collected from the customers.
18. Legal
    • Legal expenses will be required for ongoing needs. Estimating $3,000 annually.
19. Board of Directors Expenses - $250/year
    • Materials, supplies, and light refreshments for Board Meetings
20. Travel Expenses - $1,800/year
    • Food, Gas, and Lodging for travel related to fundraising or exhibit cultivation
21. Employee Business Meals - $200/year
    • To include meetings with Donors or Artists, and staff Holiday/Appreciation parties
22. Housekeeping and Maintenance
    • Housekeeping is assumed to average $10,000 annually – increasing by 5% annually.
    • Maintenance - $15,000 annually – increases 3% each year.
23. Conservation of Collection
    • $2,000 annual cost after opening
24. Utilities
    • Assumed to be $41,500 per year, with 3% increase per year
      • Internet: $600/month
      • Electricity: $2300/month
      • Water/Sewer: $200/month
      • Trash/Recycling: $325/month
      • Propane: $50/month
25. Security Systems
    • System included in Capital Budget
    • Software, monitoring fees, and equipment maintenance/replacement is estimated to be $1200/year, increasing by 8%/year
26. Office Expenses - Supplies, Equipment, Software, etc
    • Ongoing office expenses - $4,000, inflated by 3% per year.
    • POS subscription was assumed to be $10,000 annually
    • Furniture, Fixtures, and Equipment - $2000/year for capitalized equipment purchases
    • Postage costs of $500