There is empirical evidence that United Arts Funds raise critical financial support for local arts communities, but an important question remains: Are there significant differences in the fiscal capacity and financial health and stability between local arts sectors in communities where UAFs operate and arts sectors without UAFs? The Urban Institute explored this question with a study that compared financial data of the top 25 arts organizations in 29 communities with UAFs to a similar sample in 29 communities without UAFs. Comparison cities were carefully selected according to region, location in a metropolitan area, and 2000 population, as well as the total number and type of arts organizations. The results provide important evidence that supports the effectiveness of UAFs as a component of local arts funding.

Key Findings:

• On average, art sectors in UAF communities are significantly larger than the arts in comparable localities, but tend to raise revenues in similar ways.
• Total spending by arts-related nonprofits is significantly higher in local communities with UAFs.
• Arts organizations in UAF communities spend a statistically significant amount less on fundraising costs.
• The arts sectors in UAF communities are more financially stable and healthier than the arts sectors in their comparison localities.