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Why are the admissions expenses excluded from the analysis ofattdiencc <br />spending? <br />Researchers make the assumption that any admissions dollars paid by event attendees are typically collected as <br />mvenue for the organization that is presenting the event. The crgani tion them spends those dollars. The <br />admissions paid by audiences are excluded because those dollars are captured in the operating budgets of the <br />participating nonprofit arCs and culture organizations, This rrietJlodelogy avoids "double - counting" those dollars in <br />the analysis. <br />How is the economic impact of arts and culture organizations different from <br />other Industries? <br />Any time money changes hands there is a measurable euoncrnic impact. Social service organizations, libraries, <br />and all entities that spend money have an economic Impact. Wliat makes the economic impact of arts and cultrne <br />organizations unique is that, unlike most other indLigries, ihey induce large amounts of related spending by their <br />and iences. For example, when palrons attend a performing au•ts event, they may purchase dinner at a restaurant, eat <br />dessert after the shorn, and return home and pay the baby - sitter. All of these expenditures have a positive and <br />measurable impact on the economy. <br />Will my local legislators believe these results? <br />Yes, this study makes a strong argument to legislators, but you may need to ptovide them with some extra help. It <br />will be up to the user of this report to educate the public about economic impact studies in general and the results <br />of (his study in particular. 'I "he user may need to explain (1) the study methodology used; (2) that economists <br />created an input- output model far each enmmunity rind region in the study; and (3) the dif" MFIce between input- <br />output analysis and a multiplier. The good news is that as the number of economic impact studies completed by <br />ruts organizations and other special interest areas increases, so does the sophistication of community leaders <br />whose influence these studies are meant to affect. Today, most decision makers want to know what methodology <br />is being used and how and where the data were gathered. <br />You can be confident that the input- output analysis used in this study is a highly regarded model in the field of <br />economics (the basis of two Nobel Prizes i n economics). However, as in an prof field, there is <br />disagree,nrit about procedures, jargon, and the hest way tai determine results. Ask 12 artists to define art and you <br />may get 12 answers; expect the same of economists. You may meet an economist who believes that these studies <br />should be done d'rffierently (for example, a cost- benerit analysis of the arts). <br />How can a commuinity not participating in the Alerts and Economic Prosperity t <br />study apply these results? <br />Because of the variety of communities studied and the rigor with wkich the Ans & Economic Prosperity Itf study <br />was conducted, nonprofit arts and culture organizations located in communities that kuere not part of the study can <br />estimate their local economic impact, Estimates can be dertved by using; the Arn & E prosperity IV <br />Calculator (found at www „gmericansForl beArts.oWEcotiomiclrnpact). Additionally, users will find - sample <br />PowerPoint presentations, press releases, Op -Ed, attd other strategies fbr groper application of their estimated <br />economic impact data, <br />24 AFts & EwgQrrrj�”, PrMerRy 141 l americans tflr Ina Arts <br />