Nov. 7 (Bloomberg) -- The U.S. economy's woes have cost the Big Apple Circus Ltd. a mainstay of its fall gala. Lehman Brothers Holdings Inc., which gave $50,000 last year to underwrite free admission to the circus for youth groups, has pulled out.

``They said they weren't going to be able to do anything this time,'' Steve Dennin, Big Apple's vice president for development since 2006 and chief fundraiser, said in a phone interview. ``We'll miss them.''

The New York-based nonprofit, which brings its one-ring circus to 10 U.S. cities from September through July, depends on funds raised at the fall gala, being held tonight, to help fund artistic and community programs. The event, which took in $1.2 million last year, is hoping to reach the $1 million mark by today.

Lehman filed for bankruptcy in September. Chief Executive Officer Richard Fuld, 62, had served on Big Apple's gala committee in 2006. He'll remain chairman of the Lehman board while his employment is terminated at the end of the year without severance or bonus. He received $34.4 million in pay last year.

The Big Apple gala takes places in the circus's 1,700-seat tent, which has been pitched in Manhattan's Damrosch Park near Lincoln Center. Guests will get a ``gourmet box dinner'' and view the new production, called ``Play On!'' It features an international cast of human and animal performers. The gala will honor Dick Wolf, creator of the ``Law & Order'' television empire, for his support of nonprofit arts and community-service groups.

`I Can't Do it'

The circus has sold about 800 tickets, which range from $650 to $5,000. Only two of the $50,000 corporate boxes for 10 have takers so far, compared with five sold by this time last year.

``We've seen donors just say to the box seats, `I can't do it this year,''' said Gary Dunning, the circus's executive director, in a phone interview. ``There's a lot of retrenchment going on.''

Lehman's pullout adds a sour note to the finale of retiring ringmaster and circus founder Paul Binder, who started the show 31 years ago. Binder, who will work behind the scenes for the circus, has broadened its offerings beyond typical clown and stunt fare. Its Clown Care Unit sends performers to children at hospitals.

Freeze on Hires, Pay

With individual giving down this year, the circus has imposed a freeze on hiring and on the salaries of its 32 administrative employees, Dunning said. About a third of the circus's $22 million annual budget is covered by private gifts, Dennin said.

The circus hopes the gala's silent-auction item, four seats on its float in the Macy's Thanksgiving Day Parade, will push the event's take over the $1 million level. Last year, the experience went for $35,000.

``We're aware of the circumstances we're in, and we're certainly focused on the notion that we'll have to make do with less,'' Dunning said.

(Big Apple Circus's ``Play On!'' runs through Jan. 18 in Manhattan. Ticket prices range from $28 for mezzanine to $86 for ringside. The next cities on its tour are Atlanta starting Feb. 13 and Bridgewater, New Jersey, starting March 14. Information: +1-800-922-3772; http://www.bigapplecircus.org/tickets/index.aspx)

To contact the writer of this story: Patrick Cole in New York at pcole3@Bloomberg.net.

Last Updated: November 7, 2008 00:01 EST