Dutch-dances, parades and flowers are most of what visitors see of the Tulip Time Festival.

But it’s the business side of the celebration that hits home for locals — and that’s worth a closer look.
One of the area economy’s heaviest hitters, Tulip Time brings tourists into town by the thousands, for an estimated $10 million in economic effect on the Holland area every year.

And because it’s the biggest show in town, the business side is complex: Almost everyone in the area, from toddlers to top business executives, donates time or treasure to the festival, whether it’s street scrubbing or a corporate sponsorship. Financial numbers from the festival show many of those groups and individuals benefit from Tulip Time as well.

What’s paid in

Tulip Time’s yearly budget, roughly $1 million, is funded by two things: Corporate donations and ticket sales.

“About 30 percent of our budget comes from the corporate world,” said Executive Director Gwen Auwerda.

Donors sponsor individual events and are listed in the Tulip Time brochure, ranked according to the amount they give.

The Tulip Time Festival Inc. since December 2008 has been a 501c3 nonprofit organization, which allows charitable donations to the festival to be tax-deductible. Auwerda said it’s common for corporate donors to start out at the bottom of Tulip Time’s ranking, bronze, and graduate up to silver or gold in later years as they see benefits of a bigger presence in the community.

But the majority of Tulip Time’s revenue, 70 percent, comes from ticket sales, which include tickets for every event in the Tulip Time guide — no matter if it’s held at Central Wesleyan Church or Holland High School.

“Anything that has a ticket price on it is part of our ticket income,” said Susan Zalnis, the Tulip Time marketing and group sales director.

Tulip Time lays out money for out-of-town artists to show up and perform, but other performances and ticketed events are produced locally. The total take from each event’s ticket sales is split between Tulip Time and venues, or in other cases, the nonprofit organization that hosts the event.

Auwerda said the hosting venues end up getting more than 50 percent of the ticket sales. The split ratio isn’t standardized — some groups take more than others — but she’s working to change that.

What is paid forward

With thousands of visitors in the area spending money, Tulip Time estimates the entire economic effect on the area is $10 million.

That’s the big picture. But Tulip Time keeps track of some of the money it passes on directly — a total of $137,496 last year.

Mission and community programs raised $75,823 through meals Tulip Time coordinated with visitors last year.

Volunteer programs — where Tulip Time “pays” volunteers from groups such as the Holland Rotary or the Red Cross, by making donations to their cause — drew $6,530 last year.

Nonprofit groups, which stage performances or host other events, split ticket sales with the festival and bring in thousands of dollars each year. Even after expenses, a lot of money is raised.

“I think, for us, the work we do with the nonprofits is our way of giving back,” Auwerda said.

Tulip Time raised $55,143 last year for arts and culture programs for places such as Evergreen Commons Senior Center and the Holland Symphony Orchestra.

It’s one of the reasons the Holland Windmill Chorus, a barbershop group, has remains financially solvent, said longtime member Paul Bekker. The local barbershop singing group has packed in attendees for about 60 years.

“Tulip Time is really great in that they sell our tickets,” Bekker said. “If we tried to do something ourselves, our guys don’t know how to sell tickets.

“Being a nonprofit organization, the only income we can get is by doing the shows,” he added.

What can’t be counted

A large part of what makes up Tulip Time doesn’t appear anywhere on the festival’s balance sheet.

In-kind giving — donations of tangibles and services — looms large in how Tulip Time operates.

Auwerda gives a couple of examples: Every year, a local construction management company sets up information booths all around town. A local hardware store recently donated flower planters for the new Tulip Time office.

Auwerda is sure it’s worth more than $10,000 a year, but putting a number to it is tough.

“It doesn’t even show up on a financial statement, but it’s a way for the community to get behind the festival,” she said. “It’s hard to quantify that. We try to give credit to the organizations that want it.”

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