We’ve been duped, Burners. For 4 years now, we’ve been sold on a “pie in the sky” vision. Burning Man would no longer be about exploiting volunteer labor and the financial and artistic contributions of Burners, to create profits for a small group operating in near-secrecy without oversight. Instead, it would now be a charity, with our tax-free deductions supporting an altruistic vision to bring Burning Man’s Principles to the world. The Founders would step down, but leave the infrastructure in place to maintain the integrity of Burner values into the next century.
A noble vision, but here’s what really happened:
- the Founders set up a private company and transferred the main assets of the business to it; this company earns royalties for the use of the Burning Man name, logo and trademarks
- the Founders each got a $1 million+ tax break for passing their share of future profits from the LLC over to the new tax-exempt non-profit
- transparency was removed, except for public IRS Forms which were filed late.
- people who had given substantial amounts of their lives volunteering for Burning Man, were arbitrarily shunted out the door to make room for new, paid employees.
- ticket prices went up, revenues doubled
- it got harder for veteran Burners to attend, while remaining relatively easy for Virgins
Rather than the transparency we’ve been promised for so many years, and a new BMOrg focused on charitable works, we get higher ticket prices, more revenue streams, and more secrecy. I’m not so sure that Burning Man has jumped the corporate shark – it seems more like it’s been eaten by it.
The new Afterburn report is buried deep in the new web site. If you read “Voices of Burning Man”, the section of the new site that seems to actually update, you’d have no clue about it. If you go to burningman.org, there’s nothing on the main page. If you navigate their menu system – The Culture, The Event, The Network, Stuff & Things – you will have to really dig to find anything about it (the correct sequence is Menu, The Culture, Historical Archives, Black Rock City History, Afterburn Reports, 2014 Afterburn Report). Basically, to read the Afterburn, you need to subscribe to the Jackrabbit Speaks or click this link.
This year’s report begins with the type of statement we’re used to seeing from this crew:
Our AfterBurn reports will continue as they have since 2001, except they’ll now be consolidated, and focus exclusively on the production of the event in Black Rock City.
“Continue as they have since 2001” in OrgSpeak means “be completely different from how they have been since 2001”.
The word “consolidated” in this context means “much smaller”. Significantly, BMOrg are no longer publishing Burning Man’s financial chart. This was always an incomplete document, since for some reason they didn’t share their revenues; we had to make assumptions based on ticket and ice sales. At least it highlighted things like BMOrg spending more on travel and costumes for themselves than they did on donations and art for the community. Read our analysis for 2013 and 2012, as well as the IRS returns for Burning Man Project 2013 and Black Rock Arts Foundation 2013.
BMOrg continue to insist that transparency is still “coming soon”:
Separately, Burning Man will begin producing an annual report, in addition to the yearly IRS Form 990 financial reporting. That report will focus on Burning Man’s nonprofit activities and year-round global programming, as well as updates about Burning Man’s organizational infrastructure and support departments (such as Communications, Technology, Legal, Accounting, Human Resources, etc.).
Given that we just got the 2013 information in February 2015, it seems unlikely that we will be able to have any meaningful discussion about Burning Man 2014 for a year and a half after the event. What’s the point of that? It seems like it would be fairly straightforward to ask the various department heads to write a brief report on the event by December 1, then post these to burningman.org. What do we gain by waiting a year and a half? This is all for charity, right – so why not have openness, sharing, participation, communal effort, civic responsibility, radical self expression, radical inclusion? Why run it like a typical profit-driven corporation, where any disclosure of information must be signed off by the Board and PR team? The event is sold out, so it’s not like their revenues are at risk. At this point, the global culture will grow from participation and authenticity, not exclusion, hypocrisy and secrecy.
BMOrg have just had professional auditors going through the books for 2013 and 2014: will these accounts be published? It seems very, very unlikely.
It is now well more than a year since Larry Harvey said
It has been asked if we intend to reveal the financial records of Black Rock City LLC. The answer is yes; that too will happen at about the same time as the Burning Man Project reveals its information—these two entities will then become a clean well-lighted suite of rooms thrown open for inspection.
So will there be an event in the future when “the Burning Man Project reveals its information”? Or did he just mean the IRS Form 990 filings? I’m not holding my breath. Right now, it seems that there is no intention to EVER reveal the financial records of Black Rock City LLC.
In January, Communications Director Megan Miller told the Reno Gazette-Journal:
“It is definitely incomplete information,” said Megan Miller, communications director for Burning Man Project.
While all of the information required from the Internal Revenue Service is in the documents, Miller said, Burning Man cannot yet disclose revenue information from this past year’s festival, nor the one prior since the organization currently is undergoing an outside audit for 2013 and 2014.
All of this missing information that Burners have been seeking should be available before this year’s end, Miller said
The audit has been signed off, so what are they waiting for? Still counting the money? Or perhaps, so busy counting the $30.5 million from 2015’s ticket sales that what happened in the past doesn’t occupy much attention any more.
The increase in ticket prices and population cap over the last few years has led to a massive windfall for BMOrg, but only a slight increase in the number of art projects sponsored by Burning Man. Artists still have to raise funds themselves, half to two-thirds of project cost.
For 2014, $800,000 was spent on art, across 61 projects – an average of $13,115 per project. There were another 200 art installations placed on the Playa without any financial support from BMOrg.
And what of the giving back to the community? It’s now more than halfway through the 2014-2015 Burn year, and more than a year since BMOrg “fully completed their transition to a non-profit”. So we should be able to point to lots of great outreach activity, right? Maybe I just can’t find that section of their website. There’ve been a few TED talks and panel discussions.
They’ve gone from “the only things we sell are ice and coffee, and all proceeds from that go to local charities” to “the Arctica volunteers donate their tips to charity” – which was about $13,000 last year.
Perhaps when we finally get to see the 2014 financial information for the Burning Man Project, it will describe some wonderful things that the self-appointed custodians of Burner culture have done to promote it, and we can all feel like we’re saving the world together. Maybe we’ll see a new, fair contract for the artists, when the art grant recipients for 2015 are publicly announced.
Remember 6 months ago, when the community was outraged about the Burning Man Project Director running an expensive Commodification camp with dozens of paid employees? The Minister of Propaganda told us:
(shhhh, just between you and us …) we’re working on a really really BIG project that will serve to tell the Burning Man story as it is today and into the future, and it’s gonna be RAD. You’ll know it when you see it.
Could we get the rad thing now, please? Pretty please?
Buried within the latest Jackrabbit was the news that Jim Tananbaum has stepped down from the board of the Burning Man Project. This could’ve been a positive, if it had happened in response to the crisis, showing that BMOrg listened to the community. Instead they published his statement blaming all his paid employees for his camp’s problems, and lecturing us on what a great example of the Ten Principles it all was. The resignation now comes as too little, too late to have any meaning. We’ve seen what BMOrg’s real response to the AirBnB-ing of Burning Man has been: “camps that get placement have to have an interactive element”. Or, in OrgSpeak: “all systems go, plug-n-players! Charge as much as you like, employ as many sherpas as you like, just buy the $800 VIP tickets. Get your Citibank Gold festival packages now!”