Welcome to the Arts and Economic Prosperity 5 Report

Arts & Economic Prosperity 5 is Americans for the Arts’ fifth study of the nonprofit arts and culture industry's impact on the economy. It documents the economic contributions of the arts in 341 diverse communities and regions across the country, representing all 50 states and the District of Columbia. Nationally, the nonprofit arts and culture industry generated $166.3 billion of economic activity during 2015—$63.8 billion in spending by arts and cultural organizations and an additional $102.5 billion in event-related expenditures by their audiences. This activity supported 4.6 million jobs and generated $27.5 billion in revenue to local, state, and federal governments (a yield well beyond their collective $5 billion in arts allocations).

By every measure, the results are impressive. This study puts to rest a 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. Arts & Economic Prosperity 5 shows conclusively that, locally as well as nationally, the arts mean business!

Americans for the Arts is the nation’s leading provider of studies that measure the economic impact of nonprofit arts and culture organizations and their audiences. 

What Is an Economic Impact Study?

Any time money changes hands there is a measurable economic impact. Nonprofit arts and culture organizations are employers, producers, and consumers. Their spending is far-reaching: they pay employees, purchase supplies, contract for services, and acquire assets within their community. In addition, unlike most industries, nonprofit arts and culture organizations leverage a significant amount of event-related spending by their audiences. For example, when patrons attend a cultural event they may pay to park their car, purchase dinner at a restaurant, shop in nearby stores, eat dessert after the show, and stay the night in a hotel (or pay a babysitter upon their return home). This spending generates dependable, sustainable commerce for local businesses.

Our proprietary research Arts & Economic Prosperity ™ research methodology enables our partners to measure—in a reliable and affordable manner—the impact of all this spending on four key areas of your economy:

1. The number of full-time equivalent (FTE) jobs supported within your community
2. The amount of household income (i.e., wages and salaries) paid to residents
3. The amount of revenue generated for local (city and county) government
4. The amount of revenue generated for your state government

Why is a Customized Economic Impact Study Right for My Community?

Because no community is the same, there is no one-size-fits-all method of studying the economic impact of the arts. As an advocacy tool, there is little more powerful than rigorous, deep, and personalized data—the kind of data that convinced California's Speaker of the House John Perez to direct $2 million from the State Assembly Operating Budget to the California Arts Council.  The kind of data that prompted the San Diego, CA city council to unanimously approve a "Penny for the Arts" plan, which could generate an additional $18 million for the arts in San Diego. And the kind of data that persuaded the New Hampshire State Legislature to increase the appropriation for the NH State Council on the Arts instead of abolishing it.

We are able to study the impact of any organization or geographic region, including:

• Individual organizations, facilities, performances, or events
• Arts districts
• Cities, counties, or multi-county regions
• Entire states

What do I need to bring to the table?

We'll need your commitment to completing the data collection requirements. The more time you are willing to dedicate to collecting as much information as you possibly can, the deeper and more powerful the results will be. You take the pulse of your community—and we'll take it from there. With a small cost-sharing participation fee, you will gain access to a personalized representative at Americans for the Arts to walk you through the process, and you will never have to worry that you are not completing something correctly or that you've misunderstood any numbers. Your understanding of and connection to your own community is our most powerful asset in creating these personalized reports.

But I'm a/an...

Then you're right for this study!  We have worked with everyone from individuals all the way up to statewide agencies, and we have the capacity to work with you whatever your size and capacity.  That includes:

• Individual facilities (e.g., performing arts centers, museums, and theaters)
• Arts councils, arts commissions, and departments of cultural affairs
• Economic development, community development, and planning agencies
• State arts agencies and statewide advocacy organizations
• Private foundations and community foundations

To give you an idea of the kinds of results you can expect, please take a look below at the report that most closely matches your community's needs:

Sample Final Reports

What makes a report from Americans for the Arts different?

With more than 400 successfully completed customized economic impact studies under our belt over the last ten years alone, Americans for the Arts brings incomparable depth of experience and a wealth of data.  With our studies, you will gain direct access to a wide network of others who have completed studies with us, and you can be sure that your results are rigorously tested with our advanced and authoritative model. 

• You can compare your findings to the findings for the 182 communities (pdf, 263 KB) that participated in our most recent national study, Arts & Economic Prosperity IV.
• Our studies employ a highly regarded input-output analysis that is the basis for two Nobel Prizes in economics (our economist will customize an econometric model specifically for your community).
• The findings from our studies are the most frequently cited statistics used to demonstrate the impact of the arts on our local, state, and national economies.

How much will a Customized Study cost?

Americans for the Arts is proud to partially subsidize these customized studies using the Ruth Lilly Fund for Americans for the Arts and working through our Institute for Community Development and the Arts, with the goal of providing all U.S. communities with affordable access to economic impact research about the nonprofit arts industry. When compared to for-profit consultants using similar methodology, we charge three to four times less, and endeavor at all times to bring this resource to as many people as possible.

We understand the burdens of time and resources that are a part of everyday life for arts organizations and others that deal directly with them, and we know that every dollar counts.  These customized studies are an invaluable asset to your advocacy efforts, and are a significant investment in the future of the arts in your community.  This tool is an upfront cost that we hope will more than pay for itself down the road.

Ready to learn more?  

First, take a look at our Project Resources:

• Economic Impact Fact Sheet and Sample Timeline (pdf, 94 KB)
• Sample Project Contract (pdf, 276 KB)
• Sample Audience Expenditure Survey (pdf, 29 KB)
• Sample Organizational Expenditure Survey (pdf. 49 KB)

Now, we want to hear from you!

To get answers to your questions—and to request a draft contract for your organization—contact Senior Director of Research Services Ben Davidson by phone at 202.371.2830, or by e-mail at [email protected].  

Already participated in this program?  We want to hear from you, too!  Please email or call us to let us know how your experience was, and how we can continue to support you in your important advocacy efforts.

Don't miss this valuable opportunity to work with experts one-on-one to create your personalized casemaking tool for the arts in your community!

Think economic impact studies might not be for you, but still interested in value-added casemaking tools based on rigorous research? Visit our Web-Based Survey page, which will tell you everything you need to know about the completely customized, fully managed research services we offer.
 

The following data is taken from the 2007 study. If you are looking for the most updated numbers, please visit our current Arts & Economic Prosperity IV. For data points from Arts & Economic Prosperity I or II, please contact us at [email protected].

Arts & Economic Prosperity III: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences documents the key role played by the nonprofit arts and culture industry in strengthening our nation’s economy. This study demonstrates that the nonprofit arts and culture industry is an economic driver in communities—a growth industry that supports jobs, generates government revenue, and is the cornerstone of tourism.

Nationally, the 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 their audiences. The study 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 $166.2 billion in total economic activity has a significant national impact, generating the following:

• 5.7 million full-time equivalent jobs
• $104.2 billion in household income
• $7.9 billion in local government tax revenues
• $9.1 billion in state government tax revenues
• $12.6 billion in federal income tax revenues

Our Arts & Economic Prosperity studies continue to be among the most frequently cited statistics used to demonstrate the impact of the nation’s nonprofit arts industry on the local, state, and national economy.

Download the Reports

	Brochure with Study Highlights Download (PDF, 1.55 MB, 5 pages)
	Summary Report with Background, Scope, and Methodology Download (PDF, 7.2 MB, 24 page)
	National Report with Data Tables and Survey Instruments Download (PDF, 2,18 MB, 300 pages)

Make the Case for Arts Support in Your Community

• Download a PowerPoint Presentation (ppt, 3310 KB) of the National Economic Impact Findings
• Download a Sample Opinion-Editorial about the Study
  • June 3 – Las Vegas Review Journal
    NEVADA VIEWS: Las Vegas and the arts

• The Tool Kit—An informal and ever-expanding web resource with tips, tools, and suggestions on using economic impact data (23-page pdf, 1.66 MB)
• View a map of our participating study regions and download a one page economic impact summary from a community near you.

Resources for the Media

• The 156 Participating Study Regions (pdf, 62 KB), with contact information for the Local Study Partners
• Press Release, announcing the National Study findings (pdf, 36KB)
• Congressional Arts Briefing, Washington, DC (May 22, 2007)
• Press Release, announcing the Local and Comparative Study findings (PDF, 67KB)
• Summary of Findings for the 156 Participating Study Regions (pdf, 38 KB)

Selected Press Coverage of Arts & Economic Prosperity III

• Newsday, May 23: An Art to Generating $166B for Business
• Philanthropy News Digest, May 23: Arts Economy Is Robust, Report Finds
• Bloomberg, May 22: Arts Groups Pumped $166.2 Billion Into U.S. in 2005, Study Says
• The Chronicle of Philanthropy, May 22: Arts Groups Are Growing Part of American Economy, Report Says
• Forbes, May 22: Americans for the Arts' Study Shows $166 Billion in Economic Activity and 5.7 Million Jobs Are Generated Annually by the Nonprofit Arts and Culture Industry
• Washington Post, May 22: Nonprofit Arts Groups Rebound from 9/11 Slide

See More Press Coverage

National Partners

The following national organizations partner with Americans for the Arts to help public- and private-sector leaders understand the economic and social benefits that the arts bring to their communities, states, and the nation.

Need more information? Have questions? Want to conduct an economic impact study in your community?
E-mail or call us at 202.371.2830.

All the videos related to Arts and Economic Prosperity IV are listed here with quick links to each. You can also browse available videos in the multimedia area directly at the bottom of this page.

Overview

Randy Cohen, VP of Research & Policy at Americans for the Arts, presents the study’s major findings and explains what factors make up the total economic impact of the nonprofit arts and culture industry. (1:03). Share any of the videos on your organization's website by using the embed code found when you navigation to each video page.

Additional Videos

Economic Impact Measurements (1:37)
Randy explains the three measurements of economic impact used in Arts & Economic Prosperity IV and what they all mean.

Nonprofit Arts & Culture Audiences (1:03)
Randy expands on the idea of event-related audience spending, how the economic impact of this varies between local and nonlocal audiences, and why this proves that the nonprofit arts and culture industry are a cornerstone of cultural tourism. 

Input/Output Methodology (1:47)
The "input/output" economic model and rigorous study methodology used in Arts & Economic Prosperity IV is explained.

Arts and The Great Recession (2:19)
Randy sheds some light on how the arts held up during the Great Recession and how AEP IV helps to demonstrate the resiliency of the nonprofit arts and culture industry. 

Visit our Arts & Economic Prosperity IV Channel on Youtube for more videos.
 

Want to share the good news about Arts & Economic Prosperity IV? Add this web sticker to your organization's website! Simply cut and paste the code below, then place it into the HTML of your web page to display the web sticker.

<a href="http://www.AmericansForTheArts.org/EconomicImpact"><img src="https://www.americansforthearts.org/sites/default/files/images/information_services/economic_impact/aepiv_web_sticker.gif" width="130" height="150" border="0" alt="Arts & Economic Prosperity IV"></a>

Help us spread the word through your social media networks. Use these resources to share the message that the arts mean business.

• Use our AEP IV hashtag when you tweet: #AEP4

• Save space by using a shortened bit.ly link in your tweets: http://bit.ly/AEPstudy

• Encourgage friends and colleagues to retweet you

Adapt these sample tweets to get the word out:

• New Arts & Economic Prosperity 4 study released by @Americans4Arts! What’s the economic impact of the arts? http://bit.ly/AEPstudy #AEP4

• The arts have a $135 billion economic impact in the U.S.! @Americans4Arts new study just released today. http://bit.ly/AEPstudy #AEP4

• 4.3 million = the number of FTE jobs created by the arts in the U.S.! @Americans4Arts has the scoop. http://bit.ly/AEPstudy #AEP4

• The arts in [MY COMMUNITY] generated $[XXX] in local government revenue. The arts in [MY COMMUNITY] mean business. http://bit.ly/AEPstudy #AEP4

• [XXXXX] = the number of full time equivalent jobs supported by the arts in [MY COMMUNITY]. The arts mean business! http://bit.ly/AEPstudy #AEP4

• MY COMMUNITY] took part in @Americans4Arts new economic impact study. The arts generated $[XXXXX] in [MY COMMUNITY]! http://bit.ly/AEPstudy #AEP4

Facebook is a great way to help create buzz around your AEP IV numbers:

• Adapt the framework of the examples above to update your Facebook status. Even though you have more characters than on Twitter, keep your messaging along these sames lines—short and simple

• Be sure to use a photo or image when you update your Facebook wall so that the post genterates more attention

• Encourage friends and colleagues to share and like your Facebook updates

Our national findings wouldn't be possible without the data collected from 182 participating study regions. Those 182 regions include 139 individual cities and counties, 31 multi-city regions, 10 states, and two arts districts and represent all 50 states and the District of Columbia. The diverse communities range in population from 1,600 to 3.8 million and from small rural to large urban. Our national findings are derived from the data from organizations and audiences in these communities.

Research partners agreed to complete four participation criteria:

1. Identify and code the comprehensive universe of nonprofit arts and culture organizations locate in their study region;
    
2. Assist with the collection of detailed financial and attendance information from those organizations, and review the information for accuracy;
    
3. Conduct audience-intercept surveys at a broad, representative sample of cultural events that take place in their study region; and
    
4. Pay a modest cost-sharing fee. No community was refused participation for an inability to pay.

Study Regions

Download a complete list of all 182 study regions. (pdf, 263 KB)
(organized by population size)

View the study region map to learn more about our study partners. (micro-site)

Local Findings

With the help of our study partners, detailed expenditure data was collected from 9,721 arts and culture organizations and 151,802 of their attendees.

Project economists from Georgia Institute of Technology customized input-output analysis models for each study region to provide specific and reliable economic impact data about the nonprofit arts and culture industries, specifically full-time equivalent jobs, household income, and local and state government revenue. This allows for the uniqueness of each local economy to be reflected in the findings.

Download a Summary of Local Findings for all 182 participating Study Regions: (PDF, 231 KB) (Excel, 60 KB)
 

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Arts & Economic Prosperity IV is our fourth study of the nonprofit arts and culture industry's impact on the economy. The most comprehensive study of its kind ever conducted, it gives us a quantifiable economic impact of nonprofit arts and culture organizations and their audiences. Using findings from 182 regions representing all 50 states and the District of Columbia, an input-output economic model is able to deliver national estimates.

Quick Facts

Nationally, the industry generated $135.2 billion of economic activity—$61.1 billion by the nation's nonprofit arts and culture organizations in addition to $74.1 billion in event-related expenditures by their audiences. This economic activity supports 4.13 million full-time jobs and generates $86.68 billion in resident household income. Our industry also generates $22.3 billion in revenue to local, state, and federal governments every year—a yield well beyond their collective $4 billion in arts allocations. Despite the economic headwinds that our country faced in 2010, the results are impressive.

Organizations

In 2010, nonprofit arts and culture organizations pumped an estimated $61.1 billion into the economy. Nonprofit arts and culture organizations are employers, producers, consumers, and key promoters of their cities and regions. Most of all the are valuable contributors to the business community.

Audiences

Dinner and a show go hand-in-hand. Attendance at arts events generates income for local businesses—restaurants, parking garages, hotels, retail stores. An average arts attendee spends $24.60 per event, not including the cost of admission. On the national level, these audiences provided $74.1 billion of valuable revenue for local merchants and their communities. 

In addition, to spending data, researchers asked each of the 151,802 survey respondents to provide his/her home ZIP code. Analysis of this data enabled a comparison of even-related spending by local and nonlocal attendees. While the ration of local to nonlocal attendees is different in every community, the national sample revealed that 31.8 percent of attendees traveled from outside of the county in which the event took place and 68.2 percent of attendees were local (resided inside the county).

Previous economic and tourism research has shown that nonlocal attendees spend more than their local counterparts and this study reflects those findings. Data shows that nonlocal attendees spent twice as much as local attendees ($39.96 vs. $17.42), demonstrating that when a community attracts cultural tourists, it harnesses significant economic rewards.

Arts & Economic Prosperity IV demonstrates that America's arts industry is not only resilient in times of economic uncertainty, but is also a key component to our nation's economic recovery and future prosperity. Business and elected leaders need not feel that a choice must be made between arts funding and economic prosperity. This study proves that they can choose both. Nationally as well as locally, the arts mean business!

Want to know more about this study's findings?

• Visit our Reports page to learn more about the study and review full data tables and methodology.
   
• You can also order printed copies of the full report, summary, and brochure.

   

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Download the version of the AEP IV report that fits your needs.

You can also order printed copies of all of these reports through our Online Store.

Download a our FAQ fact sheet to find out more about the report.

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Report and Brochure design by Sagetopia.

Social Media Tools
Help us spread the word about Arts & Economic Prosperity IV through your social network and local community by accessing sample tweets, Facebook status updates, and more!

Websticker
Add the Arts & Economic Prosperity IV logo to your organization's website with this easy-to-use web sticker.

Videos
A short series of videos meant to guide users through leveraging the study's key findings In addition, the live stream footage from the release of Arts & Economic Prosperity IV at our 2012 Annual Convention will be archived here.

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