We hoped it was an April Fool’s joke.

Seattle production company One Reel announced today that the city’s 2013 annual Family 4th fireworks show is off, done, over, because it couldn’t raise the $500,000 it needed in time to make it happen.

family4th
4th of July fireworks over Seattle’s Lake Union. (Photo: One Reel)

So you know where every geek’s mind went to next: Why don’t we just crowdfund it?

“Kickstarter. I’m not joking,” designer David Hoang wrote on Facebook.

It was my first reaction, too. Well, after thinking that someone could swoop in and save the show at the last minute, like radio host Dave Ross helped do back in 2010. That was the first time One Reel said the fireworks show was “cancelled.”

Oh yeah. We’ve been here before.

But this year, it’s different. One Reel, a nonprofit, has decided it’s not that great an idea to sign supplier contracts before they know they have the money to put on the show. The deadline was the suppliers’ deadline, and it was yesterday. No joke, no deus ex machina. After 25 years, One Reel is not producing Seattle’s only remaining Fourth of July fireworks show.

Did they consider trying to crowdfund it? Sure.

Here’s why they didn’t.

1) They kind of already tried

Screen Shot 2013-04-01 at 7.10.18 PMOn March 5, One Reel announced its “For the People by the People” Family 4th fundraising campaign. It wasn’t Kickstarter or Indiegogo, but it took online donations of any amount from anyone in the community — businesses and people — all month long. The campaign was the result of a hard truth: corporate giving ain’t what it used to be. From 2002 to 2008, Washington Mutual was the sole title sponsor of Seattle’s Family 4th at Lake Union. In 2009, Chase, which acquired that failed trust, took on the sponsorship.

In 2010, One Reel couldn’t get any other major Seattle company to step up — until a media campaign driven by Ross and our collective horror at the idea of a dark July 4 pushed a flurry of small donations and got Starbucks and Microsoft to match $125,000 each. That was the year that showed a way forward. When the economy’s in a bad way and corporate sponsors stop cutting checks, people can step in.

I asked One Reel marketing and communications director Aubrey Bergauer if this year’s open fundraising campaign was a test of that model.

“Every time there’s a crowdfunding campaign there’s that question. Maybe we did get the answer,” she said. “Universally everyone says they love the fireworks. But when it came time to put dollars behind it, people didn’t.”

She said she was OK with the amount of attention the campaign got. The company did a big push in its final week. Of course, today’s headlines are bigger.

2) Kickstarter and Indiegogo are not an easy fix

Crowdfunding sites Kickstarter and Indiegogo have made fundraising easier. But they haven’t made it easy.

“Crowdfunding is teaching everyday people what a campaign is, how much goes into it and how easy it is to fail,” said Nathaniel James, Seattle founder of Philanthrogeek.com, a publication and consultancy for social giving, which includes crowd funding. “The media get really obsessed with the big famous wins — Pebble, Veronica Mars. They just gloss over the massive fail rate.”

James said he didn’t know of a civic crowdfunded project to ever get $500,000 on those sites, “which is not to say it can’t,” he said. It would just take a lot of planning and a lot of work. Many crowd funded projects reach their goal and beyond with a few dozen donations. One Reel got that and more, but it only got them a tenth of the way there.

Plus, there are those rewards to think about. Contributors to Kickstarter and Indiegogo projects don’t just give; they expect to be given perks or some token of their participation. Those could make a $500,000 project cost a bit more. The sites take a cut of the overall take. That would complicate things further.

Staff at One Reel did consider using the sites, Bergauer told me. But they didn’t consider it for long.

“A lot of people think you do a crowdfunding campaign on Kickstarter or Indiegogo and your problem is solved,” Bergauer said. “That’s just not the case.”

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The crowd at Gas Works Park is traditionally just part of the audience for Seattle’s annual Fourth of July fireworks show. (Photo: One Reel)

3) It’s not sustainable.

Online crowdfunding is great for one-off projects. But asking for money year after year could get old. Fast. Crowdfunded projects work best when what your funding has an end point.

More than money, what the Seattle fireworks show needs to happen this year is a way to happen every year.

One Reel knows it needs to find a sustainable model. Why don’t they have one, three years after the old model collapsed? Bergauer could only say that after two years squeaking by on smaller sponsors, and one year trying — and failing — to get broad community support, they’re still looking.

That’s where crowdfunding presents an interesting opportunity, James said.

“People get excited about the funding, but they really should get excited about the crowd.”

If he were tasked with crowd funding the fireworks, James told me, he’d put the focus on getting thousands of brains to come together and solve the problem.

So … who wants to do this?

It might be putting it lightly to say that a lot of us, hearing today’s news, are a little frustrated.

One Reel has produced the event since 1988. But it’s not the only thing it does. Once it winds down tentative plans for Family 4th, the company will turn its attention to Bumbershoot, a successful event by any measure.

Bergauer stood by the quality of One Reel’s work. But as a citizen of Seattle, she acknowledged that the show isn’t about the company.

“If someone else can do it and do it better than us, the city would be happy,” she said.

One Reel’s annual production is a monster. Half a million people watch — 50,000 at Gas Works Park, 250,000 around the lake and 200,000 on TV. But as much as I’m hearing some people say fireworks are costly and dirty and noisy, and wouldn’t we be better off if we could drive through Fremont on the Fourth of July for once, something tells me this city’s not going to let that holiday’s night sky go dark.

One Reel had a point, naming their 2013 fundraising campaign “For the People By the People.”

So… who’s in?

Mónica Guzmán is a community strategist, freelance journalist and award-winning digital life columnist for GeekWire. You can find her tweeting away at @moniguzman, subscribe to her public Facebook posts at facebook.com/moniguzman or reach her via email. See a list of her clients on her website. Also see this archive of her weekly GeekWire columns.

Photos via One Reel.

Comments

  • Anonymous

    Reason 1A. They already tried Kickstarter. In January, they ran a campaign for Emerald City Search that asked for $35,000. Maybe not much for fireworks, but a lot for a treasure hunt. It only got 65 backers for $5,250 and failed. One Reel should stick with Bumbershoot, which they do well.

  • Alex

    Wow!!

  • Boo Boo

    Yet another thing Seattlites can’t come together on – at least Bellevue can pull something together. The hipster start-ups of Seattle are too busy pi$$ing their money away on overpriced H Hours at Rn74

  • http://www.facebook.com/the.leif Leif Espelund

    Absurd all around. Absurd that One Reel didn’t do a good job of promoting the fundraising campaign (this is the first I heard of it). Absurd that the giants of industry don’t support the community that makes them so successful. Amazon is right on Lake Union, this would be a great chance for them to show they care about the place they chose as home.

  • Allen

    If it’s a big enough event with enough TV viewers that a local station wants to have exclusive broadcast rights for advertising purposes, maybe those rights should have been sold to the highest bidder, with the price starting at 500k.

  • Cassie Wallender

    Bummer that I hadn’t heard of the fundraising campaign until it was too late to pitch in. I would have, and I’m sure I’m not the only one.

    • http://moniguzman.com Monica Guzman

      Aubrey told me she was happy with how media covered the campaign. But for things like this to get big, media, at least in the traditional sense, may not be enough. I wonder what they could’ve done to get more attention, but also, how much of the burden to run a do-or-die must-go-viral campaign they have to carry on their shoulders. The failure of the one-sponsor model is putting then in the position of constant salesmen as well as event producers. It’s a big shift for them.

  • http://www.produxs.com/ Brent Copstead

    Very Sad to hear, but more disappointed with the company in charge of this. For 5 years I helped put on the Coeur d’Alene Idaho Fireworks display on the lake, for less then $25,000. Probably one of the more impressive shows in the area. There is no reason why they couldn’t cut back and put on a more reasonable show.

  • Phil

    I have been hearing about the fundraising campaign since January and at the end of the day, everyone always wants something for free. The corporate sponsorship model of the past was the most preferred approach but corporations don’t have the same community oriented goals like they used to. WaMu was an ideal sponsor because it wasn’t about ROI but “giving back” to the community in which it’s employees lived. People bitch about Amazon, Starbucks, Microsoft not stepping-up to foot the bill but they are not compelled to do so (I guess it’s their prerogative). Probably the most sustainable long-term solution is to have the City of Seattle foot the bill but all the lazy fat asses that bitch about everything would never allow that to happen. This will always be a civic event reinforces community spirit – too bad the local gov’t and corporations can’t support that but as as the Rolling Stones once said “don’t know what you go ’til it’s gone”.

    • Seattlejo

      Even if you heard about it in January, doesn’t excuse them not even using their own Social Media to promote this until 3/6. I’m curious as to how easy it was to donate.

  • Seattlejo

    I’m sort of curious as to where they advertised, where they put notice out? It looks like their FB and Twitter Acct started talking about it March 5th. How did they expect people to participate without any notice?

    As a frequent KS backer I knew about the Emerald Search campaign on KS but since it’s not my thing, wasn’t compelled to participate.

  • anonymous

    One Reel is responsible for messing this up. They have had three years to find a recurring sponsor, and failed. They didn’t start their crowdfunding effort until March. They did very little media outreach. Worst of all, they pay themselves far too much.

    It costs about $100,000 for the fireworks. Tom Douglas claimed on the radio today that logistics cost about $300,000 (a number which is likely inflated). One Reel claims it has waived profits. Does it really spend $100,000 on staff hours?

    Somebody from the City needs to audit this process for efficiency. One Reel should be fired, and we should bring in another company that will do it for less. It doesn’t need half a million dollars to proceed.

  • John

    Many years ago, a major corporation approached One Reel to produce a fireworks show on Lake Union. And they have done a great job year after year! But to saddle One Reel with “ownership” of the show is unfair. True, they have been able to pull it off with out a major sponsor owning the show the last couple of years, but they should not be expected to do that year after year. Fundraising is not what One Reel is equipped to do. One Reel produces shows, they do not fund them.

  • sarah

    How about getting the city to reduce fees? Seattle hyper-regulates fireworks.

  • chapala21

    The production of the show by the non-profit production company One Reel costs $300,000…the fireworks $150,000 is what I’ve read.

  • http://www.facebook.com/vikas.khandelwal Vikas Khandelwal

    That’s a shame! I wonder whether One Reel considered listing themselves as a registered non-profit organization in the Microsoft Giving Program. More than $70M (to the best of my knowledge) are donated through this program every year – I believe that several MS employees who are already donating might have considered diverting 1-2% of their donations towards this cause.

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