JAS 2017 Annual Report JAS18-22 2017 Annual Report 3.3 | Page 4

LETTER FROM THE PRESIDENT/CEO with rising talent costs in particular for Labor Day Experience headline artists. This trend is expected to continue in the coming years in an industry where touring is the primary source of consistent revenue for artists, and JAS will need to continue to grow its contributed income to stay competitive in the marketplace. In 2017, Jazz Aspen Snowmass (JAS) celebrated its 27th season with critically acclaimed programs across all core programming areas. A significant organizational turnaround first achieved in 2012 continued again in the fiscal year 2017, with the organization posting a net operating surplus of $340k. The most important trends of 2017 can be summarized as follows: • JAS fundraising from individual donors continued to grow steadily through growth in Patron and National Council underwriting support across all major JAS programs. Increased sales of Gold Patron Passes for the JAS Labor Day Experience, fueled by the 5th consecutive year with an advance sell-out of the entire Patron enclave. Plus, a third consecutive year with 20%+ growth in National Council Members over fiscal year 2016. JAS’ expanded National Council & Board Member Hospitality Tent at Labor Day was a big hit with Donors. JAS continued to experience strong support from its leading supporters for Hospitality Tents, a unique program in the concert industry, that affords Donors a prime vantage point near the stage. Separately, the JAS Café continues to attract new concert host underwriters enabling the series to further expand the level of talent across the series, with multiple Grammy winning artists now a regular occurrence. • Healthy Balance between Earned & Contributed Revenue: JAS’ overall mix of income from all sources remains a very healthy 50/50, split between Earned Income (principally Concert Tickets & Corporate Sponsorship), and, Individual Contributed Income (Patron & National Council contributions and Host Sponsorships). The significant growth in individual contributions in recent years has enabled JAS to keep up » 4 « jazz aspen snowm as s • Labor Day Experience Advance Sellouts: For the first time in its history JAS sold out 2 of 3 days well in advance, a watershed moment for the organization. Historically, JAS’ 10,000 capacity Town Park venue sells out closer to the date of the performance. JAS’ earliest ever announcement of two headline artists, Maroon 5 & Keith Urban, in December of 2016 (vs. the historical norm of a March announcement) helped fuel advance sellouts in early July & early August, respectively. The momentum created by the advance sales was reflected in increases in all memberships for 2018, which are purchased in last quarter of 2017. • Corporate Sponsorship: 2017 saw the growth of overall corporate sponsorship dollars to JAS, with particularly important contributions from Compass, The Denver Post, Entertainment Cruise Productions (The Jazz Cruise), D’Angelico Guitars, Alpine Bank, Corona, Tito’s Vodka, Patrón, Elijah Craig, Audi, and Liaison. • Expanding JAS Café Season: The program achieved steady growth in 2017 with the addition of bigger artists and more performances, continuing its trend of sold-out shows in both winter and summer. JAS Cafe’s presence at the rooftop of the Aspen Art Museum has grown into 12 nights of performances. JAS Café also added more summer and winter performances Downstairs @ the Cooking School of Aspen. Annual attendance at JAS Café performances exceeded 7,000 persons in 2017 with most shows sold out. The JAS Café has dramatically increased JAS’ year-round presence and helped introduce new audiences and donors to the organization, giving JAS a real and ongoing home for the programming of jazz, blues, world music and other related genres. The JAS Café has also given JAS an ongoing platform for “educating adult audiences,” one of our principal Mission objectives, through broad exposure to a wide variety of jazz related music, from around the world. In 2017 JAS launched a new Listen Up! series of talks with performing artists prior to their show. Artist