Author: National Research Center of the Arts

Publication Year: 1971

Media Type: Report

Summary:

The report [prepared for the Performing Arts Association of New York State, in cooperation with the New York State Association of Museums] presented in the following pages was designed as an industry look at the arts organizations and cultural institutions of New York State. The organizations, therefore, are viewed from the perspective of employers of capital and labor, purchasers of goods and services and producers of a valuable service product benefiting many levels of society.

Abstract:

The report [prepared for the Performing Arts Association of New York State, in cooperation with the New York State Association of Museums] presented in the following pages was designed as an industry look at the arts organizations and cultural institutions of New York State. The organizations, therefore, are viewed from the perspective of employers of capital and labor, purchasers of goods and services and producers of a valuable service product benefiting many levels of society. Included in the survey were arts organizations and cultural institutions, such as museums, recognized as non-profit (or its equivalent) by the New York State Council on the Arts and within the Council's statutory scope. The organizations were initially drawn from a list of over 3,000 compiled from records obtained from a number of sources, including the Performing Arts Association of New York State, the New York State Council on the Arts, the American Association of museums, the Community Theatre Association and the Business Committee for the Arts.

The non-profit arts and cultural institutions of New York State represent a high impact, high productivity industry - but one with modest manpower and capital and serious limitations on development. Research among 543 arts and cultural organizations across the state yielded the following picture: Total income for the non-profit arts and cultural institutions in 1970-71 was $168.6 million; total expenditures, $177 million. The net income gap for the industry was, therefore, nearly $8.4 million. Fifty-four percent, or 291, of the organizations surveyed reported that they ended last year with a net income gap. In dollar terms, the net income of these 291 organizations exceeded $13 million. This is the real amount that must be provided by the private and public sectors beyond the current level of support if these organizations are to cover their expenses.

The remaining 252 organizations managed to break even or emerge with a surplus. Yet, it should be noted that many of these may be in the process of a gradual liquidation in doing so, for remaining solvent often diminishes the opportunity for artistic growth and involves sacrifices in the quality of the artistic product. The funds required for them to be much more productive and innovative, however, are not measured in this study. A full 80% of all income came from private sources of support, while 18% came from government. (The remaining 2% came from miscellaneous other unearned income). For every dollar that the arts received from government, therefore, they received $4.36 from private sources.

Private support of the arts and culture industry includes both income earned from the public's participation and income contributed by the private sector. Earned income alone represented 54% of total income in 1970-71 and covered 51% of total expense. The difference between earned income and expenses (that is, the gross income gap, shared last year by a full 91% of the organizations surveyed) totaled $86.5 million. For this amount, the non-profit arts and cultural industry relied on private contributions and government grants.

Private contributions in 1970-71 represented 26% of total income. Individuals contributed the largest share (32% of total private giving), followed by private foundations (28%) and corporations (10%). The remaining 30% of income from private sources came from United Funds campaigns, other special fund-raising activities, and income from endowment funds. The total manpower of the non-profit arts and cultural industry in 1970-71 was approximately 58,000 persons. Of this number, 31,000 were compensated by salaries and/or fees and another 27,000 were volunteers in substitute for paid personnel.

Representing 58% of total expenditures, payroll costs for the industry came to more than $103 million last year. Average earnings of administrative and artistic directors are a fair indication of the sacrifices made on the part of personnel in the industry: the average annual salary for administrative directors was $10,203 last year (only $8,519 in the performing arts world, and $14,048 among museums); and for artistic directors, $9,354 ($9,326 among performing arts groups, and $10,259 among museums).

Administrative and artistic directors are clearly a highly skilled and educated management force. In addition, a full 29% of all trustees/directors on the boards of these organizations are business executives or financial experts. Moreover, reasons for selecting individual board members suggest that organizations are looking more for good management guidance than for good fund-raising, since a full 31% of all trustees/directors were said to have been chosen for their expertise in administrative areas of value to the organization.

Few industries with such modest capital and manpower served so many with so much as the arts and cultural industry in 1970-71. Total attendance at all arts and cultural activities in New York State last year was more than 70 million. Of this total, audiences of nearly 24 million attended activities sponsored by performing arts groups; nearly 45 million, activities by visual arts groups and museums; and more than 1.7 million, activities by arts councils.

To arrive at statistics on the actual number of individuals who have attended activities of the arts or cultural institutions in New York, taking into account the rate of repeats of attendance, would require a statewide audience penetration study or major cross sectional survey of the public participation in arts and cultural activities. Performing arts events included a total of 26,521 performances in New York State last year (23,058 home performances and 3,463 performances on tour within the state).

In addition, New York organizations staged a total of 3,473 touring performances outside the state in 1970-71. Included in these performances were a variety of 9,585 different programs or bills - 7,470 performed at home, 1,204 performed on tour within the state, and 911 outside the state.

Despite severe shortages of funds, many of the organizations surveyed continued to make performances and exhibits accessible to the public at no cost at all last year. In fact, a full 76.3% of all persons attending museums and all other exhibits of visual arts (that is, more than 20.3 million persons) entered free of charge. In addition, more than 7.5 million persons attended a total of 10,305 free performances throughout the state last year.

CONTENTS
Introduction.

Section I. The income gap.

Operating income statement-total.
Operating expense statement.
Total Organizations with income gap or surplus.
Income gap-gross and net.
A closer look at expenditures.
Operating expenses-total personnel and non-personnel.
Administrative and artistic personnel expenses.
Advertising and promotion costs.
Cost of advertising and promotion compared to total.
Purchasers of goods and services in the community.
Purchases of goods and services from the community.
A closer look at income.
Operating income.
Earned/unearned.
Share of operating expenses covered by income sources.
Contributions from private sources.
Support from individuals, foundations and corporations.
Private vs. public support.
Private and public (government) support of the arts.
Membership income.
Number of organizations with paid membership.
Total number of paid members.
Dollar income from membership fees.
Distinction between individual and organizational membership.
Entrance/admission fee to members.
Extent to which membership encourages attendance.
Fund raising activities.
Methods of fund raising used.

Section II. Manpower.

Numbers of personnel compensated by salaries or fees.
Total salaries and fees paid.
Voluntary personnel.
Number of voluntary personnel.
Voluntary personnel: Total hours worked.
Fringe benefits of personnel.
Organizations with fringe benefits.
Fringe benefits. 
Administrative personnel. 
Fringe benefits. 
Artistic personnel.

Section III. Management.

Administrative direction.
Sex of administrative director.
Age of administrative director.
Highest education of administrative director.
Whether administrative director attended administrative courses.
Length of time as administrative director.
Last job before becoming administrative director.
Annual salary of administrative director.
Artistic direction.
Sex of artistic director.
Age of artistic director.
Length of time as artistic director.
Last job before becoming artistic director.
Annual salary of artistic director.
Board of trustees/Directors.
Whether organization has board.
Number of trustees/Directors on board.
Percentage of men and women on boards.
Occupation of trustees/Directors.
Reasons for selection of trustees/Directors.
Number of board meetings per year.
Percentage of trustees/Directors present at meetings.
Whether administrative director is board member.
Whether other administrative directors invited to board meetings.
Importance of trustees/directors in governance and operations.
Who is involved in making major budget decisions.
Who is involved in making major programming decisions.

Section IV. Production and service.

The performing arts.
Total number of home performances.
Number of different bills/programs.
Total attendance at all home performances.
Touring performances, programs and attendance.
Total number of subscribers to all subscription series.
The Visual Arts.
Hours per week facilities are generally open to the public.
Whether hours open to the public have increased in five years.
Number of days open to the public.
Days of week open to the public.
Number of evenings open to the public.
Evenings open to the public.
Season of heaviest attendance.
Day of week of heaviest attendance.
Time of week of heaviest attendance.
Time of day of heaviest attendance.
Attendance among adults and students/children.
Total attendance-visual arts.
Other educational and cultural activities.
Educational or cultural activities and total attendance.
Organizations scheduling programs for special groups.
Grand total attendance.
Total attendance at all arts and cultural organizations.

Section V. Cost to the consumer.

Lowest average priced ticket.
Organizations offering tickets at reduced prices to various groups.
Number of, and attendance at, free performances.
Percentage of attendance entering free of charge.
Entrance fee for different types of visitors.
Average fixed admission fee for different types of visitors.

Section VI. Future of the industry.

Founding year of organization.
Changes in various aspects in the past few years.
Changes in costs for upkeep of facilities over last few years.
Changes in expenditures on security over last few years.
Changes in size/structure expected in next five years.
Changes in purpose/direction expected in next five years.
Government and the arts.
Whether government should play a larger role in financial support.
Influence of government support on programming of arts organizations.
Influence of applying to NYSCOA for funds on programming decisions.
Difficulty in applying to NYS Council on the arts.
Reasons why application to NYSCOA is difficult.
Extent NYSCOA funds enabled reduced-price or free admissions.
Action in support of NYSCOA's annual appropriation.
Shortage of funds.
Seriousness of shortage of funds.
Extent to which a shortage of funds limited activities.
Greatest needs of organizations, apart from more money.

Appendix:
     Description of organizations by budget and region within type.
     Organizations with tax exemption.
     Base of accounting.
     Whether organization conducts a professional annual audit.
     Ownership of space occupied by organization.
     Whether rent paid is token.
     Whether organizations have exclusive use of their facilities.
     Whether organization capitalizes its assets.
     Types of assets capitalized.
     Whether organization has an endowment fund.
     Percentage of collection that is museum's own property.
     Percentage of museum's collection exhibited.

Arts & Intersections:

Categories: Funding