Arts and Econ Prosperity
The findings from Arts & Economic Prosperity III send a clear and welcome
message: leaders who care about community and economic development
can feel good about choosing to invest in the arts
ROBERT L. LYNCH
President and CEO. Americans for the Arts
The Arts Mean, Business
ROBERT L. LYNCH, PRESIDENT AND CEO, AMERICANS FOR tHE ARTS
The key lesson from Arts & Economic Prosperity III is that communities that invest in the arts
reap the additional benefits of jobs, economic growth, and a quality of life that positions
those communities to compete in our 21st century. creative economy. In my travels across
the country, business and government leaders often talk to me about the challenges of funding
the arts and other community needs amid shrinking resources. They worry about jobs and
the economic performance of their community. How well are they competing in the high-stakes
race to attract new businesses? Is their region a magnet for a skilled and creative workforce?
I am continually impressed by the commitment to doing what is best for their constituents
and to improving quality of life for all. The findings from Arts & Economic Prosperity III
send a clear and welcome message: leaders who care about community and economic
development can feel good about choosing to invest in the arts.
Most of us appreciate the Intrinsic benefits of the arts-their
beauty and vision; how they Inspire, soothe, provoke, and
connect us. When It comes time to make tough funding
choices, however; elected officials and business leaders also
need to have strong and credible data that demonstrate
the economic benefits of a vibrant nonprofit arts and
culture Industry.
Arts (. Economic Prosperity III Is our third stUdy of the
nonprofit arts and culture Industry's Impact on the nation's
economy. Because of their rigor and reliability, results
from the 1994 and 2002 studies have become the most
frequently used statistics to demonstrate the value of arts
and culture locally, statewide, and nationally. This new
stUdy Is our largest ever, featuring findings from 156
stUdy regions (116 cities and counties, 35 multicounty
regions, and five states). Data was collected from an
Impressive 6,080 nonprofit arts and culture organizations
and 94,478 of their attendees across all SO states
and th~ District of Columbia.
By every measure, the results are Impressive! Nationally,
the nonprofit arts and culture Industry'generates $166.2
billion In economic activity annually-a 24 percent Increase
In just the past five years. That amount Is greater than
the Gross Domestic Product of most countries. This
spending supports 5.7 million full-time jobs right here
In the United States-an Increase of 850,000 jobs since
our 2002 stUdy. What's more, because arts and culture
organizations are strongly rooted in their communities,
these are jobs that necessarily remain local and cannot
be shipped overseas.
Our Industry also generates nearly $30 billion in revenue
to local, state, and federal governments every year. By
comparison, the three levels of government collectively
spend less than $4 billion annually to support arts
and culture-a spectacular 7:1 return on Investment that
would even thrill Wall Street veterans.
Arts & Economic Prosperity III has more good news for
business leaders. Arts and culture organizations-businesses
in their own right-leverage additional event-related spending
by their audiences that pump vital revenue Into restaurants,
hotels, retail stores, and other local businesses. When patrons
attend a performing arts event, for example, they may park
their car In a toll garage, purchase dinner at a restaurant,
and elilt dessert after the show. Valuable commerce Is
generated for local merchants. This stUdy shows that
the typical attendee spends $27.79 per person, per event,
In addition to the cost of admission. When a community
attracts cultural tourists, It harnesses even greater economic
rewards. Nonlocal audiences spend twice as much as their
local counterparts ($40.19 VS. $1953). Arts and culture
are magnets for tourists, and tourism research repeatedly
shows that cultural travelers stay longer and spend more.
Whether serving the local community or out-of-town
visitors, a vibrant arts and culture Industry helps local
businesses thrive.
Right now, cities around the world are competing to attract
new businesses as well as our brightest young professionals.
International studies show that the winners will be
communities that offer an abundance of arts and culture
opportunities. As the arts flourish, so will creativity and
innovation-the fuel that drives our global economy.
Arts & Economic Prosperity III Is great news for those
whose daily task Is to strengthen the economy and enrich
quality of life. No longer do business and elected leaders
need to choose between arts and economic prosperity.
Nationally, as well as locally, the arts mean business!
Arts &: Economic Prosperity III page J
In my own philanthropy and business endeavors, I have seer,t ,the critical
role that the arts play in stimulating creati:vity and in developing vital
communities. As this study indicates, the arts have a crucial impact
on our economy and are an important catalyst for learning, discovery,
and achievement in 9ur country.
PAUL G. ALliN
Philanthropist and Co- Founder. Microsoft
Economic Impact 'of America's
Nonprofit Arts & C~lture Industry
Every day, the 100,000 nonprofit arts and culture organizations that
populate the nation's cities and towns are making their communities more desirable places
to live and work. They provide inspiration and enjoyment to residents, beautify shared public
places, and strengthen the social fabric. This study demonstrates that the nonprofit arts
and culture industry is also an economic driver in these communities-a growth industry
that supports jobs, generates government revenue, and is the cornerstone of tourism.
Nonprofit arts and culture organizations pay their
employees, purchase supplies, contract for services,
and acquire assets from within their communities.
Their audiences generate event-related spending for
local merchants such as restaurants, retail stores, hotels,
and parking garages. This study sends an important
message to community leaders that support for the
arts is an investment in economic well- being as well
as quality onife.
Nationally, the nonprofit arts and culture industry
generates $166.~ billion in economic activity
every year-$63.1 billion in spending by organizations
and an additional $103.1 billion in event-related spending
by their audiences. The impact of this activity is significant,
supporting 5.7 million U.S. jobs and generating h9.6
billion in government revenue.
Arts ,& Economic Prosperity III is the most comprehensive
study of the nonprofit arts and culture industry ever
conducted. It documents the economic impact of the
nonprofit arts and' culture industry in 156 communities
and regions (116 cities and counties, 35 multicounty
regions, and five states), and represents all 50 states
and the District of Columbia. The diverse communities
range in population (four thousand to three million)
and type (rural to urban).
Researchers collected detailed
expenditure and attendance data
from 6,080 nonprofit arts and
culture organizations and 94,478
of their attendees to measure
ECONOMIC IMPACT OF THE NONPROFIT ARTS & CULTURE INDUSTRY (2005)
(expenditures by both organizations and audiences)
Full-Time Equivalent Jobs
5.7 million
Local Government Revenue
$ 7.9 billion
Federal Income Tax Revenue'
$ 12.6 billion
Arts &: Economic Prosperity III page 3
total industry spending. Project
economists customized input! output
analysis models for each study region
to provide specific and reliable
economic impact data. This study
Mayors understand the connectioll between. the arts industry
and city revenues. Besides providing thousands of jobs, the arts generate
billions in government and business revenues and play an important
role in the economic revitalization of our nation's cities.
DOUGLAS H. PALMER
Mayor olTrenton. NJ
President, The United States Conference of Mayors
uses four economic measures to define economic
impact: fl1l;l-time equivalent jobs. resident household
income. and revenue to local and state government.
. Full- nme Equivalent (FI'E) Jobs describe the total amount
oflabor employed. Economists measure FfE jobs, not
the total number of employees, because it is a more
accurate measure that accounts for part-time employment.
. Resident Household Income (often called Personal
In.come) includes salaries. wages. and entrepreneurial
income paid to local residents. It is the money residents
earn and use to pay for food, mortgages, and other
living expenses.
. Revenue to Local and State Government includes revenue
from taxes (income, property, or sales) as well as funds
from license fees, utility fees, filing fees, and other
similar sources.
Arts & Economic Prosperity III f9cuses solely on nonprofit
arts and culture organizations and their audiences. It
excludes spendingbyjndividualrartists and tl;1efor-profit
arts and entertainment industry (e.g., Broadway or the
motion picture industry). Due to the rigor with which
the study was conducted, statistical extrapolations
of the nation's nonprofit arts and culture sector can
be made and are presented in this report.
D
~
~---- -
h ~
~ nn~-Ir. nO
f)~~ ~
ww ill
~~
There is no better indicator of the spiritual health of our city, its
neighborhoods, and the larger region than the state of the arts. The arts
deepen our understanding of the human spirit, extend our capacity
to comprehend the lives of others, allow us to imagine a more just
and humane world. Through their diversity of feeling, their variety
of form, their multiplicity of inspiration, the arts make our culture
richer and more reflective.
JONATHAN FANTON
President. MacArthur Foundation
Arts & Economic Prosperity III page 5
Nonprofit Arts & Culture:
A Growth Industry
The nation's ponprofit arts and culture industry
has grown steadily sinc~ the first analysis in 199~,
expanding at a rate greater than inflation.
Between ~ooo and ~ooS, spending by organizations
and their audiences grew ~4 percent, from $134
billion to $166.~ billion. When adjusted for
inflation, this represents a healthy 11 percent
increase. Gross Domestic Product, by comparison,
grew at a slightly faster rate of 1~.S percent
(adjusted for inflation).
Spending by nonprofit arts and culture organi-
zations grew 18.6 percent between ~ooo and ~ooS,
from $S3.~ billion to $63.1 billion (a 4 percent
increase when adjusted for inflation). Event-related
spending by audiences attending a nonprofit arts
and culture event increased ~8 percent duringthe same
peri0d, from $80.8 billion to $103.1 billion; or 15 percent
when adjusted for inflation. Audience spending was not
studied in the 199~ analysis.
GROWTH OF THE NONPROnT ARTS & CULTURE INDUSTRY
(U.S. dollars in billions)
ORGAItZATlOI EXfElIDITUIES
In
o
o
N
ORGAIUZATIOII EXPEIIDITURES
o
o
o
N
ORGAIlIZATIOI UPlIIDITURES
N
0.
0.
.-
S30 H lllllld~
Audience expenditure data not collected in 1992.
both organizations
and audiences). Twenty-three 0 25 communfti ate increases in nonprofit a ure organization
expenditures, with an average growth of 58.0 percent. Ev lated spending b a dJences grew an average of 5~.4
;:-- -:: ,- ".~ '1: <-___._ : ' '\" '.:' '.'~' .:::'::, ,.;: >: .":"'" -_::(.-(:_. ' - _ -_ ,--::(- ,'." _,,_'<Y '~> /" ',' ":~.;<,{.-,, ry1'
percent, with Just five ltie5 encfng declines. Wh . n'tOC)ether. ic activity grew 49.7 percent,
expanding well ahead of not just th atlonal arts.and culture i~dustry growth rate of 24 percent, but abead ofth~
nation's Gross Domestic Product as well. The foll,owing are the 25 communities I,. this analysis:
Anchorage, AK
Boise, 10
Boulder, CO
Broward County, FL
Chandler, AZ
Columbus/Franklin County, OH
Dover, DE
Erie County, PA
Forsyth County, NC
Ft. Collins, CO
Glendale, CA
Homer, AK
Indianapolis, IN,
Lehigh Valley, PA
Mesa, AZ
Miami-Dade County, FL
Minneapolis, MN
Newark, NJ
P AZ
Po smouth, "'H
st. Cloud, MN
St. Louis, MO
Tempe, AZ
Walnut Cre~, CA
Westchester County, NY
Arts &.EcoIWmic Prosperity 111 pap 6
NONPROFIT ARTS & CULTURE ORGANIZATIONS
Nonprofit arts and culture organizations are active
contributors to the business community. They are
employers, producers, consumers, and members of
chambers of commerce. as weUas key partners in the
marketing and promotion of their cities and regions.
Spending by nonprofit arts and culture organizations ,
nationally was estimated at $63.1 billion in ~005. This
output supports ~.6 million U.S. jobs, provides $57.3
billion in household income. and generates $13.~ billion
in total government revenue.
IMPACT OF NONPROFIT ARTS & CULTURE ORGANIZATIONS
Full-Time Equivalent Jobs
2.6 million
Local Government Revenue
$ 2.8 billion
Federal Income Tax Revenue
$ 6.9 billion
INDUSTRY EMPLOYMENT COMPARISONS,
Spending by nonprofit arts and culture organizations
provides rewarding employment for more than just
artists. curators" and musicians. It also directly supports
builders, plumbers, accountants, printers, and an array
of occupations spanning many industries.
In ~005, nonprofit arts and culture organizations
alone supported ~.6 million full-time equivalent
jobs. Of this total, 1.3 million jobs were a result of
.. direct" expenditures by nonprofit arts organizations,
representing 1.01 percent ofthe U.S. workforce.ii
Compared to the size of other sectors ofthe U.S.
workforce, this figure is significant.
Nonprofit arts and culture organizations support more'
jobs than there are accountants and auditors, public safety
officers, even lawyers, and just slightly fewer than
elementary school teachers. The chart below provides
a helpful context for the large number of jobs directly
supported by nonprofit arts and culture organizations.
It must be noted that the arts and culture jobs represent
portions of multiple industry sectors (e.g., musicians,
designers. accountants, printers), whereas the comparison
groups are single job classifications.
PERCENTAGE OF U.S. WORKFORCE (2005)
JOBS
SUPPORTED BY
NONPROFIT ARTS
ELEMENTARY ACCOUNTANTS
SCHOOL , AUDITORS
TEACHERS
POLICE
OFFICERS
LAWYERS
....
FARMING.
FISHING.
FORESTRY
TELEMARKErERS COMPUTER POSTAL MAIL
PROGRAMMERS CARRIERS
PROFESSIONAL
ATHLETES
FIRE
FIGHTERS
:' , ,h- ':;' <':::-:::..:~ ,;< ,:,: ,:;';'-:: ':'~::,::-::,,",:)::; ::::'.< ~__'-:f; '<:::::. , ,'/:, ":.'i',:<,: ,:)-><_; .:: : '.:- :".<1' .4;"': ,') ,:', ,,):~ .:::'~
, Arts & Economic Prosper,lt" III us~s a so,ph,lsticated economtc analysis
_ ___",_:_ _::_ :: >: --'-;--':' '~' : ':"", ,< -} - ": ::'" _ :':"''''''; <':;:::"::"':"X -<i':":'::"~'x'::_ ,'.<":; "~""':':"':'::::::-':: x .-,_:{ _''': <;.-. "," ",:' ,
econ'omic Impact.' It Is a system of mathematical' equations that-combine
., ,~
Input/output analysis enables e nom s to track how 'many times a
the economic impact generated by each round of spending. How can a d
lIed'input/out ut analysis to mea_ure
itlcctf m sand economic theory.
respent" wlthin economy. and
be respent? Consi ing example:
A theater company purchases a gallon of paint from the local hardware store for $20~ generating the direct economic
impact of the expenditure. The hardware store then uses a portion of the aforementioned $20 to pay the saies clerk's
salary; the sales clerk' respends some of the money for groceries; the grocery store uses some of the money to pay
,
its cashier; the cashier then spends some for the utility bill; and so on. The subsequent rounds of spending
are the indirect economic impacts.
economic Impact. The subsequent rounds of spending are all of the
of the direct and indirect impacts.
Note: Inter~stihglYf a dollar "ripples" very dlffere~t
gh each community. which Is why each study region has Its own
Across America, cities that once struggled economically are reinventing
and rebuilding themselves by investing in art and culture. Both are proven
catalysts for growth and economic prosperity. By creating cultural
hubs, nonprofit art businesses help cities define themselves, draw
tourists, and attract investment. Federal support for America's
nonprofit cultural organizations must go on if we hope to continue
enjoying the substantial benefits they bring.
loUISE M. SLAUGHTER
u.s. House of Representatives (NY)
Co-Chair, Congressional Arts Caucus
Arts & Economic Prosperity III page 8
A LABOR-INTENSIVE INDUSTRY
Dollars spent on human resources typically stay within
a community longer, thereby having a greater local
economic impact. The chart below demonstrates
the highly labor-intensive nature of the arts and culture
industry. Nearly half ofthe typical organization's
expenditures are for artists and personnel costs
(43.~ percent).
EXPENDITURES BY NONPROFIT ARTS
& CULTURE ORGANIZATIONS (2005)
(6.6~)
FACILlTYI
RENT
Audience Spending
The arts and culture industry, unlike many industries,
leverages a significant amount of event-related spending
by its audiences. For example, a patron attending an arts
event may pay to park the car in a garage, purchase dinner
at a restaurant, eat dessert after the show, and return home
to pay the babysitter. This generates related commerce
for local businesses such as restaurants, parking garages,
hotels, and retail stores. Total event-related spending
by nonprofit arts and culture audiences was an estimated
~n.r1f1A~l
( \Ar1 Rf\~
u
IMPACT OF NONPROFIT ARTS & CULTURE AUDIENCES
Full-Time EqUivalent Jobs
3.1 mlUlon
Local Government Revenue
$ 5.t billion '
Federal Income Tax Revenue
$103.1 billion in ~005. This spending supports
3.1 million full-time jobs in the United States, provides
$46.9 billion in household income, and generates
$16,4 billion in government revenue.
Nationally, the typical attendee spends an average
ofh7'79 per person, per event, in addition to the cost
of admission. Businesses that cater to arts and cUlture
audiences reap the rewards ohhis economic activity.
NONPROFIT ARTS & CULTURE ATTENDEES SPEND $27.79
PER PERSON ABOVE THE COST OF ADMISSION
($3.90)
GIFTSI
SOUVENIRS
($5.01)
LODGING
($2.82)
OTHER
, ~r
0J .['1 \0 (,
rrf F~ i\f\ I
r f~f\ )i
p.f\{1 p.f\
~
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n
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, VISITORS SPEND MORE
In addition to spending data, researchers asked
respondents to provide their home zip codes.
a comparison of event-related sp g by 10ca,1 and nonlocal attendees. Previous eco
has shown that nonlocal attendees spend more than their local counterparts. T
, spent twice
Local audiences, who live in the cou y In which the event occurred, s
per event In ad Ion to the cost of admission. Nonlocal attendees, those
this amount, or $40.19 per person.
, ;
As would be expected" ,",on local attendees s
significantly more In the categories of lodging, meals.
and transportatl ese findings demQn e that, "
'. ~ ,',:' ".'..>' " ._ ':,' ',' ~'o i .'_, ':' _, _ - ___' . -___, c .' ..." _ " , ._< ,,~': :.,": ", ',': :,' .'., -~' ,.""
when a communfty rlcts arts and culture tourists,' ' '"
it harnesses significant economic rewards.
EVENT-RELATED SPENDING BY ~AL VS. NONLOCAL AUDIENCES
LOCAL AUDIEICES
NONPROFIT A
Ir-
· Residents are attendees who live in the c
nonresidents live outside of the county.
Arts &: Economic Prosperity III page 10
This report reinforces why many cities and towns across the nation
are stepping up to support the continued growth of arts and culture.
Not only do the arts provide a much needed social escape for many in our
communities-they also help drive local economies. Having an abundance
of unique arts and events means more revenue for local businesses and makes
our communities more attractive to young, talented professionals-whose
decisions on where to start a career or business are increasingly driven
by quality of life and the availability of cultural amenities.
BART PETERSON
Mayor of Indianapolis, IN
President, National League of Cities
CULTUR
As comm
money. Lo
Travelers
· Spend more ($623 vs. $457)
· Use a hotel, motel, or d-,breakfas~ (62 percent vs. 55 pe~cent)
· Spend $1,000 or more 09 rcent vs. 12 percent)
ger (5.2 nights vs. 3.4 nights)
A 2001 research study by the Travel Industry Association of America and Partners in 'Ii mlv Indicates. that:
· 65 percent of all adult travelers attended an arts and c...lture event while on a trip t
was 50+ miles away from home.
· 32 percent of the~e cultural travelers stayed longer because of the event.
· Of those that stayed longer, 57 percent extended their trips by one or more nights.
,.tt"'%
. -",
ARTS VOLUNTEERISM
Arts & Economic ProsperityJIlreveals a'significant
contribution to nonprofit artS and mflture organizations
as a result of volunteerism. The average city and county
in the study had 5,174 artS volunteers who donated
191,499 hours to nonprofit arts and culture organizations,
a donation valued at $3,4 ~on.v Th.e 6,080 responding
organizations had an average of 1~5 volunteers who
volunteered 45.3 hours each, for a total of 4,857 hours
per organization. While these arts volunteers may not
have an economic impact as defined in this study, they
clearly have an enormous impact on their communities
by helping arts and culture organizations function
as a viable industry.
IN-KIND CONTRIBUTIONS
The organizations surveyed for this study provided
data about their in-kind support (e.g., donated assets,
office space. airfare, or advertising space). Seventy-one
o
Conclusion
Nonprofit arts and culture organizations inthe United
States drive a $166 billion industry-a growth industry
that supports 5.7 million full-time jobs and generates
nearly $30 billion in government revenue annually.
Arts and culture organizations-businesses in their
own right-leverage significant event-related spending
by their audiences that pumps vital revenue into
restaurants, hotels, retail stores, parking garages, and
percent of the responding organizations received
in-kind support, averaging $47,906 each during
the ~005 fiscal year. C(Jrporations were the largest
provider ofin-kind services.
SOURCES OF IN-KIND CONTRIBUTIONS TO NONPROFIT
ARTS & CULTURE ORGANIZATIONS
5.3%
LOCAL ARTS
ORGANIZATIONS
y
~
other local businesses. This study lays to rest a common
misconception: that communities support arts and culture
at the expense of local economic development. In fact,
communities are investing in an industry that supports jobs,
generates government revenue, and is the cornerstone
of tourism. This report shows conclusively that, locally
as well as nationally. the arts mean business.
Arts &: Economic Prosperity III page 13
About This Study
The Arts & Economic Prosperity III study was (e.g., Broadway or the motion pleture industry).
conducted by Americans for the Arts to document Detailed expenditure data" was collected from 6,080
the economic impact of the nonprofit arts and culture arts and culture organizations and 94,478 of their
industry in 156 communities and regions (116 cities attendees. The project economists, from the Georgia
and counties, 35 multicounty regions, and five states), Institute of Technology, customized Input/output
representing all 50 states and the District of Columbia. analysis models for each study region to provide
The diverse communities range in population (four specific andreliable economic impact data about
thousand to three million) and type (rural to urban). the nonprofit arts and culture industries, specifically
The study focuses solely on nonprofit arts and culture full-time equivalent Jobs, household income, and local
organizations and their audiences. Public arts councils and state government revenue.
and public presenting facilities/institutions are included,
as are select programs embedded within another
156 LOCAL AND REGIONAL STUDY PARTNERS
organization (that have their own budgets and play
Americans for the Arts published a Call for Participants
in 2005, seeking communities interested in participating
in the Arts & Economic Prosperity III study. Of the more
than 200 participants that expressed interest, 156
substantial roles in the cultural life of communities).
The study excludes spending by individual artists
and the for-profit arts and entertainment sector
As Chairman of the Oklahoma Chamber of Commerce, I visited almost every
city and town in the state. There is a visible difference in places with an active
cultural community. I see people looking for places to park, stores staying open
late, and restaurants packed with customers. The business day is extended
and the cash registers are ringing.
KEN FERGESON
Chairman and CEO, NBanC
Past President. American Bankers Association
Arts & Economic Prosperi~ III page 1+
The arts have been and continue to be an important part of Arizona 's culture.
By igniting the mind, the arts can spark new ways of thinking, communicating,
and doing business.
JANET NAPOLITANO
Governor of Arizona
Chair, National Governors Association
agreed to participate and complete four participation Taxonomy of Exempt Entity codes as a guideline.vI
criteria: 1) identify and code the universe of nonprofit Eligible nonprofit arts and culture organizatlons-
arts and culture organizations in their study region; those whose primary purpose is to promote appreciation
2) disseminate, collect, and review for accuracy for and understanding of the visual, performing, folk,
expenditure surveys from those organizations; and media arts-received a web-based survey. Sent
3) conduct audience-intercept surveys at a mil1imum of via e-mail, the survey collected detailed information
18 diverse arts events; and 4) pay a modest cost-sharing about their fiscal year 2005 expenditures in more
fee <no community was refused participation for than 40 expenditure categories, including labor, local
an inability to pay). and non local artists, operations, materials, facilities,
and asset acquisition. Data was collected from 6,080
SURVEYS OF ORGANIZATIONS
organizations for this study. Response rates for the 156
communities averaged 41.3 percent and ranged from
10.4 percent to 100 percent. Responding organizations
had budgets ranging from a low of $0 to a high of
Each of the 156 study regions attempted to identify
its complete universe of nonprofit arts and culture
organizations using the Urban Institute's National
NV1
~!
1~G~ ~ R~~~
ft(]
\nT' \11
The arts benefit communities as well as individuals. Cities and towns
with flourishing cultUral activities attract business and tourists and provide
tremendous incentives for families. There are wonderful models in Massachusetts
and across the country of communities that have integrated cultural institutions
into revitalization efforts. They have strengthened their economies and greatly
improved quality of life in their neighborhoods.
Edward Kennedy
u.s. Senate (MA)
Co-Chair, Senate Cultural Caucus
$159.2, million. Each study region's results are based of 673 surveys per community. The randomly selected
solely on the actual survey data collected, not on fiscal respondents provided itemized expenditure data on
projections. The less-than-100 percent response rates attendance-related activities such as meals, souvenirs,
suggest an understatement of the economic Impact transportation, and lodging. Data was collected
findings In most of the Individual study regions. throughout the year (to guard against seasonal spikes
or drop-offs In attendance) as well as at a broad range
SURVEYS OF AUDIENCES of events (a night at the opera will typically yield
Audience-Intercept surveying, a common and accepted more spending than a Saturday children's theater
research method, was completed In 152 of the 156 study production, for example). Using total attendance data
regions to measure spending by audiences at nonprofit for 2005 (collected from the organization surveys),
arts and culture events. Patrons were asked to complete standard statistical methods were then used to derive
a short survey while attending an event. A total of a reliable estimate of total expenditures by attendees
94,478 attendees completed the survey for an average in each community. The survey respondents provided
Leticia Van de Putte
of expenditures by nonprofit arts and culture organl- Texas State Senate
President, National Conference 0 State Legisla
Information about the entire party with whom they
were attending the event. Wlttt an average travel, party
size of three people, this data actually represents the
spending patterns of more than 280,000 attendees,
significantly increasing the reliability of the data.
INPUT/OUTPUT ANALYSIS
To derive the most reliable economic impact data,
input/output analysis Is used to measure the Impact
zations and their audiences. This Is a highly regarded
type of economic analysis that has been the basis
, for two Nobel Prizes in economics. The models are
systems of mathematical equations that combine
statistical methods and economic theory in an area
of study called econometrics. The analysis traces how
many times a dollar is, respent within the local economy
before it leaks out, and it quantifies the economic impact
of each round of spending. This form of economic
analysis is well suited for this study because it can
be customized specifically to each community.
On a personal level, I recognize the
joyous celebration I experience from
the arts and as a policy-maker,
I recognize the tre1!lendous economic
contribution of the arts, from the
most sophisticated urban center to
the .most precious rural community.
~~
We in the public sector need to keep in mind what an important role the arts
play in economic development. Part of a community's vibrancy is defined by its
arts and culture quality and diversity. All the things we do at county level
to support the arts can make a difference, and I encourage county offiCials
to step up to make sure their communities understand the linkage between
local economic development and the arts.
Linda Langston
Linn County Supervisor (IA)
Chair, Arts Commission, National Association of Counties
Arts &: Economic Prosperity: III page 17
NATIONAL ESTIMATES
To derive the national estimates, the 116 city and county
study participants-multiregions and states are excluded
from this analysis-were first stratified into six population
groups, and an economic impact average was calculated
for each group. Second, the nation's largest 12,662
cities were assigned to one of the six groups based
on Its population, as supplied by the U.S. Census
Bureau. Third, each city was assigned the economic
impact average for its population group. Finally, the
values of the cities were added together to determine
the national economic impact findings. The two largest
U.S. cities, New York and Los Angeles, each with more
than $1 billion In organizational expenditures, were
excluded from this study to avoid inflating ~he national
estimates. In addition, Laguna Beach, CA, and Teton
County, WY, were removed when calculating the national
estimates due to their comparably high levels of
economic activity in the population category.
North Dakota's participation in this
study shows the economic ,impact
the arts can have .in rural and urban
economies alike. We look forward to
the state, arts council further exploring
the role of arts in rural economic
development.
Jack Dalrymple
Lieutenant Governor of North Dakota
Chair Elect, National Lieutenant Governors Association
ENDNOTES
I ThIs f19ure Includes only Income \Ix paid on the $104.2 bI!llon In resident household
Income at thel1lte of 12.1 percent, the aft"'lJe percentalJe of adjustable 9rou
Income paid to the Internal Revenue Service In 2004 (latest data lVallable).
· The U.s. Department of Labor Bureau of Labor statistics reports that t..... Wire
130.307.840 nonself-employed Individuals In the U.s. workforce durln9 200S.
-The Hlstorlc/Cultural TrlIveler. 2001 (TrlIvelScope Survey).
~ Americans for the Arts, 2002.
'Independent Sector. 2007.
~ National Taxonomy of Exempt Entltles-developed by the National Center for
Charitable statistics at the Urbiln Instltute-ls a definitive classification systtm
for nonprofit or9lnlzatlons rec09nlzed as tax exempt by the Internal Revenue
Code. This system divides the entire universe of nonprofit or9lnlzatlons Into 10
brnd catqorlts, IncludJn9 "Arts, Culture. and HumanltleS:-11Ie Urbiln I~ute
reports that 94,314 nonprofit arts and culture ol'9anlzatlons were re91stered
with the IRS In 2005, up from 74.446 In 1999.
~~AD~m ~.~~~~
Ww WW ill
Arts & Ecoliomic Prosperity III page 18
Acknowledgements
Americans for the Arts wishes to express Its gratitude to the many people across the country who made Arts (. Economic
Prosperity III possible and assisted with its development and production. Special thanks to the Paul G. Allen Family Foundation,
the John D. and Catherine T. MacArthur Foundation, and The Ruth Lilly Fund for Americans for the Arts for their financial
support. Our local and statewide project partners contributed' both time and financial support. to the study.
ALABAMA
Cultural Alliance of Greater Birmingham
ALASKA
Anchorage Cultural Council
Homer Council on the Arts
ARIZONA
Chandler Center for the Arts
City of Mesa Arts and Cultural Division
City of Phoenix Office of Arts and Culture
City of Tempe Cultural Services Division
Tucson Pima Arts Council
ARKANSAS
Walton Arts Center (Northwest Arkansas)
CALIFORNIA
Arts Council Silicon Valley (Santa Clara County)
Arts Council of Sonoma County
City of Fullerton Cultural Affairs
City of Glendale Department of Parks,
Recreation, and Community Services
City of PasadenaquItural Affairs Division
City of Walnut Creek Department of Arts,
Recreation, and Community Services
Cultural Council of Santa Cruz County
Laguna Beach Alliance for the Arts
North Coast Cultural Coalition
(Humboldt County)
Riverside Arts Council
San Francisco Arts Commission
Santa BarblU!l County Arts Commission,
COLORADO
ArtsAlive Fort Collins
Bee Vradenburg Foundation (Colorado Springs)
Boulder Arts Commission
City of Loveland Museum and Gallery
Gunnison Council for the Arts
CONNECTICUT
Greater Hartford Arts Council
DELAWARE
Delaware Division of the Arts
DISTRICT OF COLUMBIA
Cultural Alliance of Greater Washington
D.C. Commission on the Arts and Humanities
FLORIDA
Bay Arts Alliance (Bay County) ,
Broward County Cultural Division
City of Gainesville Department of Parks,
Recreation, and Cultural Affairs
City of Orlando Office of Communications
and Neighborhood Enhancement
City ofWmter Park Department of Planning
and Community Development
MyRegion.com (in Partnership with United
Arts of Central Florida)
Orange County Arts and Cultural Affairs Office
Palm Beach County Cultural Council
Pinellas County Cultural Affairs Department
GEORGIA
City of Atlanta Bureau of Cultural Affairs
City of Savannah Department of Cultural Affairs
HAWAII
Maui Arts and Cultural Center
IDAHO
Boise City Arts Commission
Wood River Arts Alliance
ILLINOIS
Champaign County Arts, Culture, and
Entertainment Council
Illinois Arts Alliance (Chicago)
INDIANA
Arts Council of Indianapolis
Community Foundation of Saint Joseph County
IOWA
Iowa Cultural Corridor.Alliance (Cedar Rapids)
KANSAS
Salina Arts and Humanities Commission
The Arts Council (Sedgwick County)
KENTUCKY
Fund for the Arts (Louisville-Jefferson County)
LOUISIANA
Shreveport Regional Arts Council
MAINE
Portland Arts and Cultural Alliance
Arts & Economic Prosperity III page llO
MARYLAND
Arts & Humanities Council
of Montgomery County
Baltimore Office of Promotion and the Arts
Prince George's County Arts Council
MASSACHUSETTS
City of Pittsfield Office of Cultural Development
MICHIGAN
Arts Council of Greater Kalamazoo
MINNESOTA
Arrowhead Regional Arts Council
(Arrowhead Region)
Arts and Culture Partnership (Saint Paul)
Central Minnesota Arts Board '
(Central Minnesota)
East Central Arts Council
(East Central Minnesota)
Fi\T!l Wmgs Arts Council
(Brainerd Lakes Region)
Lake Region Arts Council
(Minnesota Lake Region)
Metropolitan Regional Arts Council
(Minnesota Twin Cities' Metro Region)
Minneapolis Division of Cultural Affairs
(Mbuleapolis)
Minnesota Citizens for the Arts
(State of Minnesota)
Northwest RegionalArts Council
(Northwest Minnesota)
Prairie Lakes Regional Arts Council
(South Central Minnesota)
Region ~ Arts Council
(North Central Minnesota)
Southeast Minnesota Arts Council
(Southeast Minnesota)
Southwest MinnesotaArts and Humanities
Council (Southwest Minnesota)
St. Cloud Arts Commission (St. Cloud)
St. Croix Valley Community Foundation
(Washington and Chisago Counties)
MISSISSIPPI
Meridian Arts Council (Lauderdale County)
MISSOURI
St. Louis Regional Arts Commission
MONTANA
Missoula Cultural Council
NEBRASKA
Lincoln Arts Council
NEVADA
City of Las Vegas Division of Leisure
Services (Clark County)
NEW HAMPSHIRE
Art-Speak (PortsmouthlSeacoastArea)
NEW JERSEY
NewarkArts Council
New Brunswick Cultural Center
NEW MEXICO
Dotia Ana Arts Council
NEW YORK
Arts and Cultural Council of Greater Rochester
Arts Council in Buffalo and Erie CountylNiagara
Erie Regional Coalition
Orange County Department of Planning
Suffolk County Department of Economic
Development, Film & Cultural Mfairs
Ulster County Arts Council
Westchester Arts Council
NORTH CAROLINA
Arts and Science Council of
CharlottelMecklenburg
The Arts Council of Winston -Salem
and Forsyth County
Asheville Area Arts Council
United Arts Council of Greensboro
United Arts Council of Raleigh and Wake County
NORTH DAKOTA
Lake Agassiz Arts Council
MinotArea Council of the Arts
North Dakota Council on the Arts
OHIO
Fine Arts Fund (Cincinnati Region)
Greater Columbus Arts Council
Mansfield Fine Arts Center
OKLAHOMA
Arts and Humanities CoUncil of Tulsa
OREGON
Arts Council of Southern Oregon
Regional Arts and Culture Council (portland)
PENNSYLVANIA
Arts Council of Erie
Bradford County Regional Arts Council
Citizens for the Arts in Pennsylvania
Cultural Council of Luzerne County
Greater Philadelphia Cultural Alliance
Greater Pittsburgh Arts Council
Jump Street (Greater Harrisburg)
Lackawanna County Council on Education
and Culture
LancasterArts
LaurelArts (Somerset County)
Lehigh Valley Arts Council
~SHINGTON
AIlieaArts of What com County
Bainbd,~ IslandArts and Humani~es Council
City of Seattle Office of Arts. and Cultural Miaira
Tacoma Economic Development Department
WEST VIRGINIA
Oglebay Institute (Wheeling)
RHODE ISLAND
City of Providence Department of Art,
Culture, and Tourism
. WISCONSIN
Cultural Alliance of Greater Milwaukee
Fox Cities Performing Arts Center
, (Northeast Wisconsin Region)
Oshkosh Opera House Foundation
Overture Center for the Arts (Dane County)
St. Croix Valley Community Foundation
Viterbo College/School District of La Crosse
Wausau Area Performing Arts Foundation
(Marathon County)
WisconsinArts Board
SOUTH CAROLINA
Cultural Council of Richland
and Lexington Counties
SOUTH DAKOTA
Dahl Arts CenterlRapid City Arts Council
TENNESSEE
Metropolitan Nashville Arts Commission
TEXAS
Abilene Cultural Affairs Council
City of Austin Economic Growth
and Redevelopment Services Office
WYOMING
Center for the Arts (Teton County)
UTAH
Utsh Shakespearean FestiVal (Iron Countj)
VERMONT
Arts Council ofWmdham County
Flynn Center for the Performing Arts
(Greater Burlington)
VIRGINIA
Alexandria Commission for the Arts
Arlington County Cultural Miairs Division
Arts Council of Fairfax County
I
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1000 Vermont Avenue, NW, 6th Floor
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T 202.371.283'0
F 202.371.0424
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W www.AmericansForTheArts.org
7MfollowinglltJlional ~JllII1MrV1ilhAJlWrimJu JDrIheArll to hlip~ andpriNotle-redorloadn
undemond the oamomic and .ociGI ben.ejifs fhot the /JI1I bring to their communities. _. and the IIiaaion.
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