Arts and Economic Prosperity III

A new study helps answer the old question: What do arts bring to communities? It documents the economic impact of the nonprofit arts and culture industry, and covers 156 communities and regions representing all 50 states and the District of Columbia. The study was conducted by Americans for the Arts. It includes diverse communities, both rural and urban, ranging from four thousand to three million people.

The attached study focuses solely on nonprofit arts and culture organizations and their audiences and excludes spending by individual artists and the for-profit arts and entertainment sector. 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 the national estimates.

Arts are big business…with big benefits

America’s nonprofit arts and culture industry generates $166.2 billion in economic activity every year—$63.1 billion in spending by organizations and an additional $103.1 billion in event-related spending by audiences. The national impact of this activity is significant, supporting 5.7 million jobs and generating $29.6 billion in government revenue.

The impact of spending by nonprofit arts and culture organizations is far reaching; they pay their employees, purchase supplies, and acquire assets within the local community. Additionally, unlike most industries, nonprofit arts and culture leverage significant event-related spending by their audience. Whether serving the local community or out-of-town visitors, a vibrant arts and culture industry helps local businesses thrive.

Filed under: Engaging donors, General