Item B: Arts & Economic Prosperity IV (AEP4)

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Frequently Asked Questions This section answers some common questions about this study and the metholo y used to complete it. How were the 182 participating communities and regions selected? In 2010, Americans for the Arts published a Gall for Participants for communities interested in patticipating in the Ares & Economic Prosperity irstudy. Of the more than 200 participants that expressed interest, 182 agreed to participate and complete four participation criteria: (1) identify and code the universe of nonprofit arts and culture organizations in their study region, (2) assist researchers with the collection of detailed financial and .attendance data from those organizations; (3) conduct audience- intercept surveys at cultural events; and (4) pay a rnodcst Bost- sharing fee (no community was refused participation for an inability to pay). How were the eligible nonprofit arts organizations in each community electcd? Local partner attempied to identify their universe of nonprofit arts and culttire organizations using the Urban Institute's Nntionatl Taxonomy of Exempt Entity (NTEE) codes as a guideline. Eligible organizatipns included those whose primary purpose is to promote appreciation for and understanding of the visual, performing, folk, and media arts. Public arts councils, public presenting facilities car institutions, and embedded organizations that have their own budget also were included if they play a substantial role in the cultural life of the community. For- profit businesses and individual artists are excluded from this study, What type of economic analysis was done to determine the study results:' An input - output analysis model was customized for cacti of the participating communities and reglw to determine the local economic impact their nonprofit arts and culture organizations and arts audiences. }americans for the Arts, which conducted the research, worked with highly regaided economists to design the input - output model used for this study. What other information was collected in addition to the arts surveys? In additicm to detailed expenditure data provided by the sureeyed organizations, extensive wage, labor, tax, and commerce data were collected from local, state, and federal, governments for use in the input- output model. Why doesn't this study use a multiplier? When many people 'hear about an economic impact study, they expect the result to be quantified in what is often called a multiplier or an economic activity multiplier. The economic activity multiplier is an estimate of the number of tames a dollar changes hands within the community (e.g., a Theater pays its actor, the actor spends money at the grocery store, the gmecry store pays the cashier, and so on). It is quantified as one number by which expenditures are multiplied. The convenience of the multiplier is that it is one simple number. Users rarely note, however, that the multiplier is developed by snaking ,gross estimates of the industries within the local economy and does not allow for differences in the characteristics of Use industries. Using an economic activity multiplier usually results in an overestimation of the economic impact and therefore lacks reliability. Affc & r'conofn7Ir Prosy efidyrdV I Afrr'eficans rov tt a Arls 23