Arts nonprofit CSPS shifts finances, artistic approach for ‘second act’ in Cedar Rapids

CEDAR RAPIDS — As arts and culture organization CSPS had been working its way out of deep debt for over a year, the challenge that would catalyze a new era for the nonprofit arrived a year into the pandemic.

After CSPS failed to file tax returns for three consecutive years, the IRS notified the nonprofit in July 2021 that its tax-exempt 501(c)3 status had automatically been revoked, threatening the cultural staple’s ability to function in an already challenging landscape for the arts. Nonprofits need donors, and donors care that their contributions could be tax-exempt.

But that wasn’t all. Before long, a shocked board of directors slowly dwindled. By August 2022, all but then-president Monica Vernon had resigned.

A year later, the IRS restored the tax-exempt status. But about the same time, the organization’s interim director left, too. Money was getting short as the organization, started in the early 1980s, burned through all its reserves.

With nobody but Vernon and the organization’s small staff, the growing cry to call it quits suggested it was curtains for the organization named after the historic Czech and Slovak Prudential Society. But with deep ties to area, Vernon wasn’t ready to give in.

“Some people said we should just shutter the thing. Someone asked if we should sell the building,” she said. “But I was feeling really bullish about CSPS. I think it’s a jewel in the crown of the district down there.”

As the granddaughter of a Czech grocer who worked in the area through the Great Depression, Vernon saw the 1890 building in New Bohemia as a symbol of perseverance through difficult times. A place where grocers would hold weekend dances for a meager sum, it was part of her heritage.

Now, with a new executive director, a diversified board of 15 members and a detailed fiscal strategy, a new vision has taken hold to reset and polish the jewel for future generations to see — a place they can call their own, too.

How CSPS stayed afloat

“I think we all learned a huge lesson: to question,” Vernon said, after CSPS started piecing together the steps that led to its predicament.

So with her and a skeleton crew, the first thing she did was sit down with staff and ask for their suggestions. And they had a few — bluegrass events, hip-hop artists and genres of art that didn’t typically hold court in CSPS Hall.

“A lot of times the employees know more than anybody. I said let’s make sure there’s never a dark night here,” Vernon said. “So they did, and we made ends meet. I think at one point, we had $3 in the checking account, but we kept it going.”

They started focusing more on bringing in local artists, and less on coaxing visits from out-of-town names who cost substantially more.

In the meantime, some donors kept the faith. Even without the ability to deduct contributions made during the brief period without tax-exempt status, sponsors who knew and cared often considered it a means of advertisement.

“I believe in communities. (CSPS) is such a bulwark of that community,” Vernon said. “You’ve got to keep these things going.”

‘The Second Act’

With a more diversified board of 15 and plans to grow to 20, Vernon is feeling as bullish as ever about the vision that others are starting to see in CSPS, too — a new era she and others are calling the organization’s “second act.”

Together, they’ve realized a passion for the arts isn’t enough. Believing in the mission and vision of the organization means getting serious about financial sustainability.

Scott Byers, president of the board, said the work over the last year has put the nonprofit on stronger financial footing than it has been on in many years. While this means a departure from the types of acts the organization’s founders brought in — the caliber of names like Eileen Myles, Yoko Ono and Ani DiFranco — it means CSPS can continue to be a cultural hub that supports the arts without compromise.

Founders F John Herbert and Mel Andringa, “who are legends in the arts community and Cedar Rapids, did the community a wonderful service. They brought in acts from around the world,” Byers said. “Those were expensive, and they felt it was worth it.”

But, “we’re not going to operate that way any longer.”

With a zero-based budget, CSPS is now “reverse engineering” its income to analyze revenue from performances and showings, along with the associated costs and opportunity costs. After determining exactly what it costs to operate each year, it will plan performances based on what’s left over.

After slight turnover in tenants in the building, the board has shored up the terms of loose leases for restaurants and shops on the first floor that keep some of the most visible parts of its building vibrant. All of it — from new artists to eye-catching shops — contributes to a vision for community in the growing NewBo district.

“We’re systematizing everything, which has never been done. That’s going to be a game changer for us and for them,” Byers said. “We were operating by the seat of our pants, which sometimes works. But when it doesn’t, it frustrates all involved.”

Now, CSPS has multiyear agreements with local troupes like Revival Theatre Company and SPT Theatre. A regular donor and corporate sponsorship program, being implemented in the next month, will help secure a broader portfolio of income sources.

With its 501(c)3 status back, CSPS will be able to again apply for hotel-motel tax grants from the city of Cedar Rapids in the next cycle. In the future, it will plan a $500,000 capital improvement fund to upgrade sound and lighting systems, windows and climate control systems.

Building the team CSPS has now, the president said, was the biggest challenge. But now with a foundation six months in the making, CSPS is ready to reintroduce itself. After “stubbing their toe a number of times,” Byers said elevating the organization’s profile is something that will come as a result of every piece in the right place.

“Clearly the reputation got tarnished along the way. People who probably didn’t attend CSPS formed an opinion that the ship is sinking,” Byers said. “I defy anybody to tell me what’s out there that’s comparable to what CSPS is. It’s a unique venue that is unfailingly stimulating.”

A vision for local arts

CSPS’ new executive director, who started in November 2023, also thinks of the organization as a gem, of sorts.

“Anybody who has been to an amazing event knows CSPS is one of the greatest hidden gems in our city,” said Jason Zbornik, the executive director. “My vision is to (make it so) that it’s not a hidden gem.”

With a three-pronged plan that includes new talent, new types of events and the energy to support new ideas, he hopes to inject fresh aspirations and a sense of welcome into the nonprofit’s programming.

An artist in Cedar Rapids since the late 1990s, Zbornik has worked with local, regional and national talent through Nexus Entertainment Arts and 319 Fest.

With a 15 percent revenue growth at CSPS in January, he’s confident that the correction of business missteps is starting to better support the programming side. In addition to its new residential theater groups, new hip-hop, R&B and hard rock shows have infused new life into the halls with audiences who weren’t being served much in the past.

But his job isn’t just to book crowd pleasers. With wariness of CSPS in the local arts scene, he has to mend the connections with the talent, too. In years past, some performers would scoff when he suggested doing a show at CSPS — a sentiment he sympathized with.

“Generally, there was not as welcoming of a spirit to the rich and local talent right here, and there was more emphasis on (bringing) things to Cedar Rapids versus supporting what’s in Cedar Rapids,” he said. “Artists have had instances where they brought in acts that went well, that opened up new audiences for Cedar Rapids, and it was not either welcomed or appreciated.”

Calling the organization an incubator to new arts organizations, Brian Glick, artistic director and co-founder of Revival Theatre Company, said CSPS is hitting its stride in blending big and small acts well.

“Revival is very much about having local professionals and bringing others in across the country. They marry those (two things) well,” he said. “A good balance of both is a sweet spot for us, but it took us 10 years to figure that out.”

For the last 10 years, his company has been a “floating theater.” Its arrangement with CSPS allows it to enter a new stage of maturity with permanency that will better support Revival’s programming, education classes, workshops and office needs.

He thinks partnerships like this will be key to maintaining not only the physical space, but the place it holds in the New Bohemia district.

“It’s a win-win for both of us,” he said. “It’s honoring the past, honoring what Mel and John did, and trying to reshape a future … (so) that it thrives in the years to come.”

Comments: Features reporter Elijah Decious can be reached at (319) 398-8340 or elijah.decious@thegazette.com.