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Judith H. Dobrzynski on Culture

Rush Post: Financial Health Of the Arts Industry

Southern Methodist University’s National Center for Arts Research (NCAR), begun a few years ago, ,released a new bit of research today–“examining the financial, operating, engagement and staffing health of the U.S. nonprofit arts industry.”

I confess I find much of its work a bit unsurprising. Do we really need research that shows, as this report did, that “The receipt of an NEA or IMLS grant has a positive effect on nearly all performance outcomes” or that “Arts sectors that are heavily into digital distribution of their programs (podcasts, virtual tours, high-def broadcasts, etc.) engage far more people through virtual attendance than sectors that reply solely on live, in-person attendance—with opera and symphonies leading all other sectors in participation in digital programming”?

I’d have preferred juicier questions that those answered in the email announcing the release.

It did come to a  few more interesting conclusions:

  • New York organizations tend to have a negative bottom line – the most negative bottom line of any of the geographic market clusters.
  • Larger organizations are more likely to have a lower return on fundraising and are more likely to run a deficit.
  • There appears to be a ceiling on the amount of dollars that can be raised for each dollar spent on fundraising ($7.80).
  • There is relative consistency in return on marketing: $4.15 earned for every dollar spent on marketing.

I am crunched for time today, however, and can’t dig into the report further to find out why. Here’s a link to the press release and  link to the full report, which I will look at tomorrow or over the weekend. If there’s anything worth commenting on, I’ll be back.

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About Judith H. Dobrzynski

Now an independent journalist, I've worked as a reporter in the culture and business sections of The New York Times, and been the editor of the Sunday business section and deputy business editor there as well as a senior editor of Business Week and the managing editor of CNBC, the cable TV

About Real Clear Arts

This blog is about culture in America as seen through my lens, which is informed and colored by years of reporting not only on the arts and humanities, but also on business, philanthropy, science, government and other subjects. I may break news, but more likely I will comment, provide

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