Author: Berry, James M. and Stonebarger, DeWayne A.

Publication Year: 1976

Media Type: Report

Summary:

Consistent with its purposes, the Fort Wayne Fine Arts Foundation... commissioned this study to be undertaken in order to estimate its impact on the economy of Allen County, Indiana. Consequently, the study focuses on the added income and employment generated in Allen County as a result of the expenditures of the Foundation and its member organizations.

Abstract:

Consistent with its purposes, the Fort Wayne Fine Arts Foundation... commissioned this study to be undertaken in order to estimate its impact on the economy of Allen County, Indiana. Consequently, the study focuses on the added income and employment generated in Allen County as a result of the expenditures of the Foundation and its member organizations. No consideration is given to the effectiveness of the Foundation in meeting its major purpose: strengthening the cultural life of the Fort Wayne community. This study is patterned after a study by Caffrey and Isaacs and other impact studies conducted for not-for-profit organizations. See references section for specific studies and their annotations.

The findings of the study revealed the direct impact of Foundation-related spending on Allen County during 1976 was $1,444,968. Of this amount $303,832 was spent by the Foundation and its member units; $712,335 by employees and artists; and $428,801 by patrons of Foundation performances and exhibitions. The expenditures of the Foundation and its units were distributed as follows: rent, utilities and insurance, $64,515; supplies, equipment, repairs and catering, $74,657; and other local spending, $160,328. Expenditures of employees and artists were distributed as follows: housing, $148,533; food, $105,892; clothing $29,849; entertainment, $25,585; durable goods, $81,729 and other spending $320,747. Of the $428,801 in patron expenditures, $63,607 went for shopping; $284,752 was spent on meals; $29,018 covered tips and gratuities; $25,050 for parking; and $26,374 for other spending. The expenditure flows identified above stimulated indirect spending in the local economy which increased the total spending impact to twice the amount of direct spending. The estimate of direct spending impact is, therefore, multiplied by two ($1,444,968 x 2) and the result $2,889,936 becomes the total spending impact on the economy of Allen County

The employment impact on the local economy was 326 jobs divided as follows: 71 employed by Foundation units; 49 artists in service; and 206 jobs created in the local community by the Foundation-related expenditures. Support for the Foundation and its units derived from several sources: direct financial support; volunteer services; and support from the community via its tax exempt status. Financial support for 1976 was $909,496 with slightly more than 40% of that amount, or $370,488, generated from membership fees and box office receipts. The remainder of the financial support came from: gifts, $232,126; governments, $211,300; endowments and investments, $85,752; and concessions, $9,830.

830 volunteer workers donated an estimated 44,800 hours of services to the Foundation and its units during 1976. Property with an assessed valuation of $578,800 is owned by the Foundation and is excused from taxation by city and county units. The cost to local government in lost tax revenues is $49,082. Approximately 90 percent of the Foundation's patrons reside within a twenty-five mile radius of Fort Wayne with the average distance traveled to a performance being 15.5 miles for the round trip. (Introduction, p. 2; Highlights, p. 4-5).

CONTENTS
1. Introduction.
2. Highlights of the study.
3. Foundation support.
4. Foundation-related spending impact.
5. Employment impact.
6. Fine arts foundation attitude survey.

Arts & Intersections:

Categories: Economic Impact