Author: Grossman, Carol B.

Publication Year: 1974

Media Type: Report

Summary:

A survey of 76 arts organizations was conducted for the Council on Foundations' Project in the arts (described in the may/June 1975 issue of Foundation News). The objective was to obtain an accurate current picture of the economic condition of a representative sample of arts organizations. The 76 organizations were selected with the advice of the National Endowment for the Arts and others to reflect a variety of fields, sizes and locations. The organizations completed a financial questionnaire that included income and expense components for FY '72, '73 and '74, plus an estimate for '75.

Abstract:

A survey of 76 arts organizations was conducted for the Council on Foundations' Project in the arts (described in the may/June 1975 issue of Foundation News). The objective was to obtain an accurate current picture of the economic condition of a representative sample of arts organizations. The 76 organizations were selected with the advice of the National Endowment for the Arts and others to reflect a variety of fields, sizes and locations. The organizations completed a financial questionnaire that included income and expense components for FY '72, '73 and '74, plus an estimate for '75. The financial questionnaires were followed with detailed telephone interviews that covered such topics as expenditure trends, changing support patterns and the outlook for the next two years. The 76 organizations broke down into the following categories: theatre, dance, opera, symphony, museums, regional film centers, performing centers, summer festivals, community arts, folk arts, united arts funds, and cultural programming on public television.

The last two years have been difficult economic ones for the nation and the object of the survey was to determine how arts organizations have been affected by the combined forces of inflation and recession. While the financial portion of the survey depicted an unexpected stability, it was obvious that artistic sacrifices are being made to maintain this fiscal health. While none of the surveyed organizations are about to declare bankruptcy, many have found it necessary to cut back in services or programs.

The financial data indicate that expenses are up - by 14 percent to 41 percent from 1972 to 1974 - but so was earned income and, in most cases, unearned income as well. Therefore the earned income gap (earnings minus costs) rose only slightly. In some instances 1974 deficits were actually down from the two prior years.

Double-digit inflation means rising costs, often in areas that cannot be controlled. Museums have been hurt by rising energy costs, and utilities are likely in future to absorb even greater percentages of their budgets as more museums install year-round climate control. One midwest museum reported a 150-per cent increase in utility costs in 18 months. Inflation can also affect the nature of the artistic product. Theatres, opera and dance companies expressed concern about materials and costume expenses and, as a result, are presenting productions that require simpler sets and costumes. Touring organizations cited doubled air fares and increased per diem costs as particularly burdensome and several are planning to cease such activity.

Arts & Intersections:

Categories: Economic Impact