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Full Arts and Economic Prosperity III Study Arts & Economic The Economic Impact of Nonprofit Arts .rMI Culture Organizations and Their Audience From the iconic images of the Florida Highwaymen to the museums that preserve and collect our history, arts and culture define us. They improve quality of life for Floridians and visitors to our state. The arts and culture inspire creativity and lifelong learning, build strong communities, and build a strong network for leadership that encourages a stronger Florida. The findings of The Arts and Economic Prosperity III reveal that, in addition to these innumerable benefits, arts and culture bring economic vitality to our state. This study reveals that the cultural industry is important to economic prosperity. In Florida, arts and culture mean business. With more than $3 billion in total direct expenditures into the Florida economy in 2008, arts and culture are sound investments in Florida’s future. In the pages to follow, you will read about the many ways that arts and culture are good news for those looking to strengthen Florida’s economy. Leaders in Florida are supportive of arts and culture because they have helped to bring new businesses and ventures to our state. In today’s competitive global marketplace, arts and culture can play an important role in attracting high-wage jobs and a creative workforce. The Arts and Economic Prosperity III expands that notion. Not only can the cultural industry play its important part in attracting business critical to economic recovery, this industry contributes directly to economic activity, supports jobs, and returns revenue to local and state government. The return on investment number speaks for itself. At 5:1 in Florida in 2008, it is clear that the arts and culture are a worthwhile investment in Florida’s future. That year, over 30 million people, including 7 million school children, participated in grants-supported programs from the Division of Cultural Affairs. That’s people in all of Florida’s 67 counties attending more than 32,000 cultural events. Coupled with the over $3 billion in total expenditures, arts and culture mean better quality of life and better business all across our state. In addition to their inherent value, arts and culture have the power to build a better Florida. We are committed to arts and culture, and to the tremendous benefits they bring. We hope that after you read The Arts and Economic Prosperity III you’ll agree that arts and culture are indeed good news. Kurt S. Browning JuDee Pettijohn Sandy Shaughnessy Secretary of State Deputy Secretary Director Office of Cultural, Historical, Division of Cultural Affairs & Information Programs Ar ts and Economic Prosperity III was conducted by Americans for the Arts, the nation’s leading nonprofit organization for advancing the arts in America. Established in 1960, we are dedicated to representing and serving local communities and creating opportunities for every American to participate in and appreciate all forms of the arts. Generous support for this project was provided by Citizens for Florida Arts, Inc. Copyright 2009 by Americans for the Arts. Printed in the United States. Table of Contents The Arts Mean Business ........................................................... 1 By Robert L. Lynch, President and CEO, Americans for the Arts The Economic Impact of the Nonprofit Arts and Culture Industry in the State of Florida .................................... 3 Defining Economic Impact ....................................................................3 Economic Impact of the ENTIRE Nonprofit Arts and Culture Industry...................................................................................................4 Direct and Indirect Economic Impact: How a Dollar is Re- Spent in the Economy ............................................................................5 Economic Impact of Spending by Nonprofit Arts and Culture ORGANIZATIONS ...............................................................................6 Economic Impact of Spending by Nonprofit Arts and Culture AUDIENCES .........................................................................................7 Visitors Spend More...............................................................................8 Voluntarism and In-Kind Contributions ................................... 9 Conclusion ................................................................................. 11 Arts & Economic Prosperity III Calculator .............................. 13 Economic Impact Per $100,000 of Spending by Nonprofit Arts and Culture ORGANIZATIONS....................................................13 Economic Impact Per $100,000 of Spending by Nonprofit Arts and Culture AUDIENCES..............................................................14 Comparisons with Similarly Populated Study Regions ............ 17 About This Study ...................................................................... 19 End Notes ...............................................................................................22 Frequently Used Terms ............................................................. 23 Frequently Asked Questions ..................................................... 25 In Appreciation ......................................................................... 27 "Understanding and acknowledging the incredible economic impact of the nonprofit arts and culture industry, we must always remember their fundamental value. They foster beauty, creativity, originality, and vitality. The arts inspire us, soothe us, provoke us, involve us, and connect us. But they also create jobs and contribute to the economy." — 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 benefit 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 their 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— By every measure, the results are impressive! Nationally, their beauty and vision; how they inspire, soothe, the nonprofit arts and culture industry generates $166.2 provoke, and connect us. When it comes time to make billion in economic activity annually—a 24 percent tough funding choices, however, elected officials and increase in just the past five years. That amount is greater business leaders also need to have strong and credible than the Gross Domestic Product of most countries. This data that demonstrate the economic benefits of a vibrant spending supports 5.7 million full-time jobs right here in nonprofit arts and culture industry. the U.S.—an increase of 850,000 jobs since our 2002 study. What’s more, because arts and culture organizations Arts & Economic Prosperity III is our third study of the are strongly rooted in their community, these are jobs that nonprofit arts and culture industry’s impact on the necessarily remain local and cannot be shipped overseas. nation’s economy. Because of their rigor and reliability, results from the 1994 and 2002 studies have become the Our industry also generates nearly $30 billion in revenue most frequently used statistics to demonstrate the value to local, state, and federal governments every year. By of arts and culture locally, statewide, and nationally. comparison, the three levels of government collectively This new study is our largest ever, featuring findings spend less than $4 billion annually to support arts and from 156 study regions (116 cities and counties, 35 culture—a spectacular 7:1 return on investment that would multi-county regions, and five statewide studies). Data even thrill Wall Street veterans. were collected from an impressive 6,080 nonprofit arts and culture organizations and 94,478 of their attendees Arts & Economic Prosperity III has more good news for across all 50 states and the District of Columbia. business leaders. Arts and culture organizations— Arts & Economic Prosperity III | Americans for the Arts 1 businesses in their own right—leverage additional event- visitors, a vibrant arts and culture industry helps local related spending by their audiences that pumps vital businesses thrive. revenue into restaurants, hotels, retail stores, and other local businesses. When patrons attend a performing arts Right now, cities around the world are competing to event, for example, they may park their car in a toll attract new businesses as well as our brightest young garage, purchase dinner at a restaurant, and eat dessert professionals. International studies show that the after the show. Valuable commerce is generated for local winners will be communities that offer an abundance of merchants. This study shows that the typical attendee arts and
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