Merger Case Study: The Bach Choir of Bethlehem and the Bel Canto Youth Chorus

1. The Bach Choir of Bethlehem and the Bel Canto Youth ChorusMerger Case StudyHal Black, Board PresidentBridget George, Executive DirectorGreg Funfgeld, Bach Choir Artistic DirectorJoy Hirokawa, Bel Canto Artistic Director June 21, 2018 Chorus America Conference

2. The Bach Choir of Bethlehem

3. The Bach Choir: Mission The mission of the Bach Choir of Bethlehem and its Bach Festival Orchestra is to perform the works of Johann Sebastian Bach and to promote and encourage appreciation of the aesthetic and spiritual value of Bach's music, while striving for the highest standards of musical excellence. This mission is to be achieved by engaging our audience—locally, nationally, and internationally—through education and performance, including works by composers who influenced Bach and were influenced by him, and through the programs of our Bel Canto Youth Chorus. Together, we cultivate a lifelong passion for the choral art.

4. The Bach Choir: Facts • Founded 1898 • 85 volunteer singers • 35 member professional Bach Festival Orchestra • Greg Funfgeld Artistic Director and Conductor since 1983 • Bridget George Executive Director since 1997 & four additional administrative staff • $1.2 million annual budget • No debt, $8 million endowment • 33 performances and educational programs a year for an audience of more than 22,000. • Bethlehem Bach Festival attracts audiences and Guarantors from 32 states • Educational programs include Bach to School, Bach at Noon, Family Concerts, Choral Scholars, and Zimmermann’s Coffee House • National & international recognition includes NEA grants 2011-2018; J.S. Bach Foundation award, Switzerland 2013 • Performances include the Thomaskirche, Leipzig; BBC Proms in Royal Albert Hall London; the Kennedy Center, Carnegie Hall, and Music Center at Strathmore • 14 recordings including on the Dorian & Analekta labels and two feature films on PBS

5. The Bel Canto Youth Chorus

6. The Bel Canto Youth Chorus: Mission The Bel Canto Youth Chorus provides an educational and artistic musical experience of the highest standard for children of diverse ethnic, religious, socio-economic, and cultural backgrounds, and nurtures a sense of accomplishment and community through the performance of choral repertoire chosen specifically for the young voice including classical, contemporary and traditional works from around the world.

7. The Bel Canto Youth Chorus: Facts • Founded 1993 • 58 singers grades 2 to 12 • Joy Hirokawa, Artistic Director & Founder since 1993 • 3 additional artistic staff, 1 administrator • $735 - $850 annual tuition, scholarships available • $90K annual budget • No debt, no endowment • 7 – 10 performances annually • Regular professional engagements with Lehigh Valley ensembles such as the The Bach Choir, Allentown Symphony and others • Choral Village educational program initiated in 2017-18 season • Appearences on ACDA, NAfME, PMEA, and AGO conference programs • National and international tours • Winner of the American Prize for Children’s Choirs • Noted for innovative programming

8. Process Steps and Key Participants • Initial contact to set direction and tone • Project team - board, artistic, and administrative leadership from each side • Due diligence investigation by both parties • Pre-merger Memorandum of Understanding • 2-yr agreement • Support for Bel Canto move to the Lehigh Valley • Set metrics for success • Set time frame to make final merger decision • Quarterly progress meetings were held by the project team • Merger vote by both Boards • A Plan of Merger executed • An integration plan was developed and carried out

9. How the merger was structured Name and mission of the Bel Canto Youth Chorus will be preserved within the Bach organization Administrative • Bel Canto was merged into The Bach Choir • Bach board assumed all fiduciary and management responsibilities • Bel Canto board became a committee of the Bach board • Bel Canto employees were merged into Bach’s existing staff  • All administrative functions will be merged into the Bach systems Artistic • Bel Canto Artistic Director is responsible for Bel Canto programming and chorus operations. • Bach Artistic Director and Conductor is responsible for developing joint programs, and to advise and support.

10. Bach Choir Strategic Considerations Why Bach added a youth choir • It fits our mission • Anatural extension of our youth outreach programming • There are financial benefits • Expand and diversify our audience • Enhance our image as educators, innovators and collaborators Why merge? Why now? Why not continue with an alliance? • Clarity in management and governance structure • Well-articulated, unified mission • It was the opportune moment

11. Strategic questions and concerns of the Bach Choir Board • Can Bach manage a youth choir? • Different business model • Legal requirements for child security • Will funders and Guarantors support the merger? • Are our missions truly compatible? • Mission creep or dilution? • Will the artistic directors work well together? Topics for discussion: • Respective roles and responsibilities; • Minimum number of collaborative programs a year; • Participation of Bel Canto singers in Bach outreach programs; • Building a core J.S. Bach repertoire for Bel Canto; • Maintaining the diverse cultural programming of Bel Canto; • A mutual commitment to strive for choral excellence.

12. Bel Canto Strategic Considerations Why Bel Canto Wanted to Move Locations • Serve a more diverse community in a more populous area • Build a more diverse ensemble membership • Performance and funding opportunities in the Lehigh Valley • Previous location unsustainable Why approach Bach Choir? • Positive experience on previous projects (Britten: St. Nicholas; Child’s Christmas in Bethlehem CD) • Bach’s demonstrated interest in educational programs • Strong administrative structure • Strong presence in the Lehigh Valley

13. Strategic questions and concerns of the Bel Canto board • Is the Bach Choir the right home for Bel Canto today and in the future? • Shared commitment to artistic excellence and educational programs • Collaborative spirit • Administrative excellence • Well-established and well-known organization • Mission/vision similarities and differences • Artistic governance • Repertoire and programming • Maintaining our identity within the Bach Choir umbrella • Moving to a new location • Will our families move with us 18 miles north of the current location? • Impact on the psyche/morale of longtime members & the choir as a whole? • How to establish ourselves as a presence in the Lehigh Valley? • How to reach a more diverse population?

14. Important Qualities of our Process • Strong commitment from leadership • Structured, and documented process • A thorough due diligence investigation prior to signing the MOU • Quarterly review sessions • Careful communication with the Board members • A candid debate to take the final step • Open communication channels between key players • Two-year trial period and decision deadline

15. Implementation - Practical Matters • Informing and obtaining agreement from both boards • Informing Bach Choir members, Bel Canto families, & donors • Hiring a Bel Canto Administrator • Moving the Bel Canto office and music library • Rehearsal and performance space • Managing the transition during the MOU • Defining administrative and artistic roles in a new structure • Change of name from “children’s chorus” to “youth chorus” • Child safety issues • Accounting systems alignment • Branding and Technology integration • Public Relations