Crains New York - February 18, 2013 - (Page 30)

has always been heavily dependent on donors. One attribute that has helped another company, Gotham Chamber Opera, is its defined mission, according to its executive director, David Bennett. Since it performs only chamber operas, “our donors see it as a complement to the Met as opposed to competing with them,” he said. Mr. Bennett said that because Dicapo produces a wide range of operas, from the classics to newer works,it is more challenging to create a targeted fundraising message. He added that fundraising is timeconsuming and that Mr. Capasso has his hands full with other responsibilities. “Michael runs the company, he directs,he produces,he builds sets,” said Mr. Bennett. “It takes a lot of time and effort to fundraise, and you can’t do it if you are directing and producing, too.” Continued from Page 29 for donors and considering staging productions out of town to raise money. Mr. Capasso doesn’t understand why Dicapo hasn’t attracted bluechip philanthropists. Its productions have a history of accolades from The New York Times and The New Yorker. Dicapo has also been crowned the city’s third opera after the Metropolitan Opera and New York City Opera because of its permanent home and robust number of productions, even though its $1.2 million budget is dwarfed by those of its compatriots. It’s even been dubbed the “closest thing New York has to a mini-Met.” Dicapo earns more of its budget from operations than its brethren, which rely heavily on fundraising. Most opera companies are dependent on donations,so Mr. Dicapo believed philanthropists would admire the company’s self-reliance. “People keep telling me they love what I’m doing, but nobody wants to write a check,” said Mr. Capasso. “A $250,000 donation would save my life, and at the Met they wouldn’t even appreciate it.” His plight is emblematic of that of many small arts organizations, whose missteps are amplified during hard times. It’s also the tale of how a founder’s passion for an organization can blind him to practicalities. Mr. Capasso ignored basic principles that other opera companies swear by, failing to cultivate a strong donor base and management team. Romantic beginnings Mr. Capasso fell in love with opera when, as a 7-year-old, he was introduced to the works of Enrico Caruso by his grandfather. He knew he wasn’t talented enough to become a professional singer, so he joined the family construction business. But after dabbling in staging operas for a few years, he started Dicapo with his former music teacher in 1981, producing Tosca in a now-defunct Long Island theater. For years, he produced operas in different venues, even staging holiday performances at department stores. Then, in 1991, Dicapo was given the chance to build a permanent theater in the basement of St. Jean Baptiste Church on Lexington Avenue and East 76th Street. Mr. Capasso called in every favor he could from his construction days and even operated the backhoe himself. The 204-seat theater was built in 100 days. Reviewers extolled the pleasures of watching an opera in an intimate setting. “He was there all the time,” said the Rev. John Kamas, who was the church’s pastor at the time and is on Dicapo’s board. “You can’t believe his dedication.” Mr. Capasso is so committed to Dicapo that he says he hasn’t drawn a salary in years and recently took a construction management job to make ends meet. Despite his sacri- SCENES FROM OPERAS staged at the Dicapo theater (from top): The Most Happy Fella, Turandot and Rigoletto. fice,he still has numerous creditors, including his publicist, the church and numerous musicians and singers. Donations fell to about $100,000 last year from $400,000 five years earlier. Law firm Duane Morris is working pro bono to keep creditors at bay while Mr. Capasso ‘A $250,000 donation would save my life’ tries to raise money. “Taking the hiatus was the hardest decision I’ve ever made in my life,” said Mr. Capasso. He had hoped donations would flow in 2011, when the company celebrated its 30th anniversary.They didn’t. The anniversary gala raised only $25,000. Dicapo’s predicament is an odd twist for an organization run by someone who prides himself on bringing business standards to the nonprofit world. Mr. Capasso boasts that 60% of Dicapo’s budget comes from earned income like ticket sales and costume rentals, while the industry average is about 40%. But opera experts say Mr. Capasso’s 60% is actually a weakness. “It is a sign you aren’t raising enough money,” said Marc Scorca, president and CEO of Opera America, a service organization. He said operas are notoriously expensive to produce, so the art form 30 | Crain’s New York Business | February 18, 2013 Insurmountable odds Mr. Capasso said he wears many hats because he’d rather pour money into productions, not staff. He adds that over the years he’s never had a board that has raised enough money to give him the opportunity to employ more managers. In 2010, one donor promised him $100,000 to hire a fundraising consultant but gave him only $6,000. Rev. Kamas agreed that the board wasn’t very effective at raising money. It also wasn’t particularly critical of Mr. Capasso’s management style. “The productions were just so beautiful, and everyone loved them,” he said. Now Mr. Capasso is working to replenish the board, which has dwindled to six from 11 about a year ago. Early results haven’t been promising. One member, Judy Iovino, has never been on a board before, but she joined six months ago because she loves opera and Mr. Capasso is an old friend.She has asked 25 people for money—seven have said yes—and has raised about $10,000. “People already have their pet charities,” she said. Mr. Capasso can’t get potential donors to a performance because the company is on hiatus. And even if he does find the funds to stage one, hiring people to work for him might be challenging because the company already owes many singers and musicians money. He insists that he has built up enough good will over the years that people will join his casts. His latest idea is to stage productions in cities where there are no longer any opera companies so the performance will be more of a novelty. He’s reached out to some theaters,but it’s too soon to say whether the plan will work. Meanwhile, Mr. Capasso remains hopeful that he’ll find his angel. “I am optimistic,” he said. “This company is my life.” Ⅲ LISTEN to a discussion at CrainsNewYork.com/podcasts newscom Lights out at the opera? SOURCE SNACK: KARLIE KLOSS by Adrianne Pasquarelli Model tries hand at Kookie-cutting A mid the star-studded parties and glamourfilled runways of New York Fashion Week, Crain’s New York caught up with model Karlie Kloss, the brand ambassador for MercedesBenz Fashion Week. The St. Louis native is a fledgling entrepreneur—she recently launched her own line of cookies at Momofuku Milk Bar. Having walked the runway shows of fashion heavyweights Carolina Herrera, Marc Jacobs and Michael Kors, Ms. Kloss is intimately familiar with the industry and its pressures. Congratulations on Karlie’s Kookies! Why did you decide to launch the brand, and what expansion plans are in the works? respect that and admire it. She’s an amazing businesswoman. You’re a supporter of the Model Alliance, a year-old nonprofit labor group that advocates better working conditions and an industry code of conduct. What are some issues facing the industry? The Model Alliance, as well as the Council of Fashion Designers of America’s Health Initiative, are both incredible.These organizations have come together to create a positive environment for models, and I respect the work they do. These cookies I’ve created—it’s the same idea of being able to balance a healthy lifestyle. There are obviously stereotypes or misconceptions that models struggle with being unhealthy and have industry pressures, but this community built by the Model Alliance and the CFDA is supportive. Personally, I feel like it’s become less and less of an issue. As a model, I love Fashion Week and working with designers and photographers. But I recognize I’ve been given a platform—I have a voice and I want to use that platform to give back. I love to bake,I love to cook, and I love sweets as well. I wanted to create something that was delicious but also good for you and healthy. I created this cookie with MERCEDESChristina Tosi; she’s the BENZ STAR LOUNGE chef and founder of Milk at Lincoln Bar. We came up with this Center’s recipe to create a vegan Damrosch Park, cookie that’s gluten-free so Columbus Avenue that people with health rebetween West 62nd and West strictions or allergies can 63rd streets indulge without the guilt. WHERE THEY DINED Is there also a philanthropic element to the venture? The biggest part of the program is that we can incorporate a charity aspect: All of the proceeds go to donating meals to schoolchildren around the U.S. and internationally. Right now, we donate 10 meals per cookie—which are sold in all [five] Milk Bars throughout the city. We’re working on getting them into Whole Foods very soon. AMBIENCE: VIP area hidden behind velvet ropes where hors d’oeuvres of sliders and flutes of champagne were passed by impeccably dressed waiters. WHAT THEY ATE: Ⅲ Mini-heartshaped versions of Karlie’s Kookies made for Fashion Week As an entrepreneur, are there any specific people in business that you look to as role models? Absolutely. With Karlie’s Kookies, we work with Lauren Bush Lauren’s charity organization, FEED. She is incredibly hardworking, passionate and caring. She’s so young, and she’s accomplished so much. I really How have models’ rights evolved over the past 20 years or so? I’m very young—I’m 20, so a few decades ago I wasn’t even born! But over the past few years, I’ve seen the whole industry come together to make these changes. Even Michael Kors always has healthy catering available backstage. He also makes sure his fittings aren’t done too late at night. All of these might not seem like important things, but the Model Alliance and the CFDA are very passionate about making sure these things are regulated. You started modeling when you were 15. Should 16 remain the minimum age for the runway? When I was 15, I was on the Calvin Klein runway, but I was very lucky to have a very good family when I started. Not all models are as fortunate to have such a supportive team around them,and 16 is definitely a much better age to be thrown into this chaos. What’s first on your to-do list after New York Fashion Week? For me, Fashion Week is only just beginning. I’m going to London, Milan and Paris and all that jazz. Ⅲ INSIDE TIP: The lounge was guarded by a bouncer, so if you’re not on the list, don’t even bother faking your way in! http://www.CrainsNewYork.com/podcasts

Table of Contents for the Digital Edition of Crains New York - February 18, 2013

DIGITAL NY
IN THE BOROUGHS
IN THE MARKETS
the insider
BUSINESS PEOPLE
OPINION
GREG DAVID
SMALL BUSINESS
REPORT: REAL ESTATE
THE LIST
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE SNACK
OUT AND ABOUT
SNAPS

Crains New York - February 18, 2013