Editors Note: The National Philharmonic announced Tuesday afternoon that it was closing.
Despite a budget deficit that forced the largest county-based professional orchestra to recently furlough most of its staff, leaders of The National Philharmonic hope for a smooth concert season starting in September.
In a letter to vendors last week, National Philharmonic President Leanne Ferfolia wrote that the organization has been operating with a “negative cash flow” for the past 90 days. She wrote that the orchestra is lobbying the County Council and County Executive Marc Elrich for “emergency funding to both continue operations to get to our season in September and allow us to pay companies” it owes money.
“We are currently working with several funding sources to arrange for emergency cash infusions and have substantially reduced our operations over the summer to lessen our expenditures and avoid incurring additional debt so that we can use our financial resources in our core operations, including payment of our existing creditors,” Ferfolia wrote in the letter.
The letter goes on to say the nonprofit has furloughed “most” of its employees to reduce daily expenses but does not say how many employees are affected.
Representatives of the National Philharmonic did not respond to multiple requests for comment.
The National Philharmonic employed 144 people in 2016, according to the most recent tax documents available.
The National Philharmonic, which took up residence at the Music Center at Strathmore in 2005, is the most frequent user of office and rehearsal space at Strathmore, according to a memo the orchestra staff sent the County Council in May.
The National Philharmonic is the largest Montgomery County-based producer and presenter of classical music concerts, according to its website. The Philharmonic performs about 30 orchestra or choral concerts annually at Strathmore.
In a statement to Bethesda Beat, Strathmore said The National Philharmonic’s success is “very important to us” and the center has taken steps to “support the organization and its efforts to improve its sustainability.”
“We continue to work with its leadership and supporters and we are hopeful those efforts can contribute to the continued viability and success of the National Philharmonic at Strathmore,” the statement said.
In a memo to County Council members in May, Ferfolia wrote that in the past two years, the organization has increased its private fundraising income by 38% and reduced its staff, concert performances and rehearsals to save $1.6 million annually.
Between 2007 and 2019, the cost of producing a concert doubled, from $200,000 to $400,000, Ferfolia wrote.
“Such difficulties jeopardize the success of the (Strathmore) Music Center which is viewed as the jewel in the musical crown of Montgomery County. (National Philharmonic) wishes to continue serving as the local Resident Partner of Strathmore and the primary classical music provider to the County community and schools,” Ferfolia wrote.
The National Philharmonic received more than $100,000 from the county for fiscal year 2019 as part of the county’s arts and humanities grants program, according to local government documents.
County Budget Director Rich Madaleno Monday acknowledged that the National Philharmonic has approached county government officials about possibly receiving additional funding.
“We are talking to them about how we might make progress to help them survive, but I don’t know what’s going to come out of those conversations,” Madaleno told Bethesda Beat.
In 2016, the The National Philharmonic also faced budget problems, recording a $200,000 shortfall. The orchestra received $400,000 in county funding that year and agreed to revamp its operations, including restructuring its artistic and marketing functions to find more diverse audiences for its performances.
Bethesda Beat staff writer Dan Schere contributed to this report.
Caitlynn Peetz can be reached at caitlynn.peetz@moco360.media
This story has been updated to clarify information about the cost of producing a National Philharmonic performance.
