California Arts Group Faces Fund-Raising Troubles

The new Orange County Performing Arts Center, in California, needs to raise $70-million from private sources to meet its goal, and the center’s leaders say it seems unlikely the money will arrive in time for the center’s opening in September, reports the Los Angeles Times.

Financial challenges in the campaign, which seeks to raise $200-million, intensified in 2002 after a dispute on the center’s board prompted the resignation of two members, who were also major donors.

In addition, donors have been put off by two cases of embezzlement by center employees, the newspaper said.

Rather than wait for donations to rebound, the center in 2004 sold $180-million in bonds to pay for construction. However, if donations continue to be sluggish, the center may have to draw money away from its cultural programs or charge higher ticket prices to pay for interest on its construction debt, the newspaper said.