Poncho's executive director Gordon Hamilton resigns

The executive director of local arts nonprofit Poncho resigned last week, signaling a shift in direction at the organization after tepid fundraising totals last year.

Gordon Hamilton, who took the helm at Poncho nearly five years ago, had been criticized for relying too heavily on donor events to raise money at the Seattle-based organization.

The change in leadership, which Hamilton described as a "mutual agreement" in an interview Monday, is expected to mark a shift away from pricey event fundraisers, some of which cost more than they brought in.

"I'm proud of the work I did and the arts we have in our community," Hamilton said. "I think it was just time for a change."

Hamilton will be succeeded by interim executive director Sara Lawson.

Poncho, a major arts benefactor in the Seattle art scene, provides arts institutions throughout the region with thousands of dollars of grants each year.

So far this year, Poncho has offered more than $920,000 in grants ranging from just a few hundred dollars to the American String Project to roughly $94,000 to Pacific Northwest Ballet.

The organization's fundraising total dropped 10 percent in the last fiscal year, after Poncho's annual gala failed to raise more money than it cost, said board Chairwoman Janet True.

The change at Poncho is representative of similar debates at nonprofits everywhere: Are costly fundraising events an effective way to meet funding goals?

Some argue high-end events can attract a web of energized, loyal donors. Others say these events are a waste of money, limiting a nonprofit's capacity to do philanthropic work.

With nonprofits, event expenses come out to be as much as half of all the net proceeds from the event. Poncho failed to meet that standard with its annual gala this year, as the event raised less than it cost.

The last annual gala at Poncho, held in April, showed a net loss of roughly $200,000, True said. Officials at Poncho are expected to scrap that event in favor of one that is cheaper and more focused on local art.

The organization's other two annual events — an art auction and a wine auction — did bring in revenue and are expected to remain.

Robert Faturechi: 206-464-2393 or rfaturechi@seattletimes.com