HomeMy WebLinkAboutItem B: Arts & Economic Prosperity IV (AEP4)
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Arts & Economic Prosperity IV (AEP4)
Meeting Date: February 27, 2013 Agenda Item Number: B
Department: Library, Recreation & Cultural Services Staff Contact: Renee Grube
www.eugene-or.gov Contact Telephone Number: 541-682-5067
ISSUE STATEMENT
This work session is a presentation of findings from the Arts & Economic Prosperity Study IV
(AEP4).
BACKGROUND
In January 2011, the community officially joined Americans for the Arts’ latest national economic
impact study, Arts & Economic Prosperity IV, a year-long, two-part study that evaluated the
impact that spending by nonprofit arts organizations and their audiences has on local economies,
as well as analysis of consumer habits and trends related to the arts and culture.
Findings reveal:
Nonprofit arts and culture organization in Eugene are a $45.6 million industry.
Of that, about $29 million is spent by the groups themselves (on salaries, supplies,
promotion, paying local artists, etc.).
An additional $16 million is related spending by patrons of arts events (this amount
excludes the price of admission and shows just what is spent for things such as a dinner out
or a hotel room, related to a person attending the event).
All of this economic activity supports the equivalent of 1,730 full-time jobs in Eugene.
And it generates $2.4 million in local and state government revenue.
Eugene’s statistics compare favorably to other locales of roughly the same population (100,000 to
250,000) that are part of the AEP4 study, specifically:
The number of jobs in the community supported by this arts spending is about triple the
median.
Eugene ranks number 7 of the 29 similar-sized areas studied in the number of jobs
supported by the arts per capita. Many of those that rank higher draw larger audiences
from outside their local areas than Eugene does.
Direct spending by Eugene’s arts groups is about double the median of arts groups in
similarly sized communities.
The study also reveals that residents in Eugene engage in the arts in a much more all-
encompassing way than folks in other similarly sized communities.
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Eugene ranks #7 in volunteer hours donated to arts groups.
Eugene ranks #4 in hours donated per volunteer
Eugene ranks #2 in number of out-of-town guests who go to an arts event while here
visiting friends and family.
Eugene ranks #4 in percentage of arts event attendees who are 19 to 34 years old.
Eugene ranks #2 in the number of people attending an arts event who said they are active
art makers themselves.
The Arts and Downtown Revitalization
Beyond the general economic benefits highlighted above, the arts are a key part of the
revitalization of downtown Eugene. Arts venues and events draw employers, customers and
dollars to the city core all-year-round. City staff has been working with its partners to establish a
cultural district in downtown as an economic development tool in attracting and nurturing
Eugene’s growing creative sector focused on software development, architectural and creative
services.
This strategy supports the regional economic development branding efforts that are focused on
creativity, innovation and quality of life and include a focus on short tourism stays, post-secondary
education, and business recruitment and expansion.
Listed below are several projects that have recently been implemented or are in process of being
implemented to support the various economic development strands.
Lord Leebrick/Oregon Contemporary Theatre
Lord Leebrick, now Oregon Contemporary Theatre, received a $150,000 downtown revitalization
loan. The funding has been used for project soft costs, including project design work, office moving
costs, and staff additions to manage construction and leasing, and additional fundraising for the
project. In addition, staff provided support for a grant application to the National Endowment for
the Art’s Our Town program to assist with façade and streetscape improvements.
Bijou Metro
With assistance from the City’s Emerging Business Loan Pool, the Bijou Art Cinema is creating the
Bijou Metro Movie Theater to be located downtown at Broadway and Willamette in the First on
Broadway Building. The City’s loan funds will be matched with owner equity. The Bijou Metro will
be a four-auditorium satellite location of the original Bijou Art Cinemas. Each of the auditoriums
will be equipped with state-of-the-art digital presentation systems, and the two largest auditoriums
would maximize the ability to collaborate with local film festivals and programming from the
University of Oregon. Films that do well at the original Bijou Art Cinemas location will move to
Bijou Metro for extended runs. Bijou Metro will provide patrons with a lounge space and expanded
concession options and another desired cultural and entertainment activity downtown.
Downtown Lighting Initiative
The Downtown Lighting initiative focuses on lighting up downtown, both for individual storefronts
and with aesthetic lights along Broadway and Willamette streets. The targeted area includes
Broadway between the Shedd Institute and the Oregon Contemporary Theatre (formerly Lord
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Leebrick), and Willamette from the Hult Center to the McDonald Theater. The aesthetic lighting is a
public private project that includes four main components:
programmable LED strands in trees at the east end of Broadway and the north end of
Willamette,
programmable LED pole mounted fixtures on the street lights along Broadway and
Willamette,
colored lights spilling out from the Parcade Garage,
creative lighting in the adjacent alleys.
Creative Tourism Festival, AKA August Arts Workshops (working titles –final name to come)
Arts and Business Alliance of Eugene (ABAE) is in the process of producing a month-long (August
2013) “creative tourism” festival featuring a robust schedule of participatory arts and culinary
workshops. This authentic cultural learning experience is geared for visitors as well as community
members and will feature hotel packages for out-of-town participants.
Artists will teach a variety of cultural arts, including visual arts, dance, music, theater, set building,
makeup, fashion, textiles, cooking, brewing, winemaking and a multi-location plein air* workshop
and competition in downtown Eugene. Existing festivals (Oregon Festival of American Music,
Scandinavian Festival, and Eugene Celebration), art walks, and events will also be showcased. This
festival will become a cornerstone annual event for Eugene and a signature program of ABAE that
serves artists, businesses, residents, and visitors and furthers the goal of creating a stronger
cultural tourism brand for Eugene. Workshops and competitions will be led by local and visiting
artists with a goal of having 500 registrants and 150 overnight hotel stays.
ABAE anticipates this event will define Eugene as an experiential destination for arts and culinary
immersion and a great city for the arts and outdoors.
*plein air means painting outdoors.
(sub)Urban Projections
A partnership between the University of Oregon Arts Administration program and the City's
Community Events program; this project brings life to the darkest months of the year. This joint
effort explores the intersections of traditional arts and emerging digital art forms
through projected art in the downtown urban landscape. In 2011, the creative directors hosted an
international digital art competition with entries coming in from across the United States, Canada,
France, Germany and England. 2012 brought a sponsorship from Kendall Auto and featured new
combinations of art forms by combining contemporary artists with digital mediums, classical
musicians collaborating with digital artists, dance combined with digital animation and projected
sound/light artists.
Summer in the City—Downtown
2013 will be the fourth year that six different event series are marketed under the Summer in the
City umbrella, including Summer in the City - Downtown. More than 10,000 people have
participated in the downtown events held at Broadway Plaza/Kesey Square. In partnership with
the Eugene Police Department, community events staff is working to move one of the evening
events to the East Park Blocks to increase the footprint of positive activity.
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Eugene Sunday Streets
Public Works Transportation staff is programming the third annual Eugene Sunday Streets which
will be held downtown for the first time this July. A crit, which is a bike race, held on a short
course, will be incorporated in Eugene Sunday Streets. Along the route, Broadway Plaza will
feature one or two local bands, a live DJ (both pedal-powered) as well as one or two areas for
active participation. Rounding out the cultural experience will be local brews and wines.
Park Your Art Here
The unveiling of the 4 annual temporary art project on the corner of 8 and Willamette on the
thth
City-owned Parcade parking garage will take place during Eugene Sunday Streets. For the second
year, COPIC Marker, a global arts supply company based in Eugene, is the primary sponsor and
will conduct the art competition. Ninkasi Brewing and the University of Oregon’s ETHOS Magazine
are also involved.
Park for Lunch
New in the summer of 2012, LRCS and EPD partnered with assistance from Saturday Market and
other entities to create a positive environment in the Park Blocks by encouraging downtown
employees to enjoy lunch at the Park Blocks. The program ran for nine weeks and offered a variety
of events and activities at lunch time on weekdays. This year, the line-up and activities will include
drop-in low impact fitness classes in partnership with the City’s Wellness Center and will also
offer tables from downtown fitness studios to promote their businesses. Other programming will
be geared towards the three downtown child care centers, inviting working parents to meet their
children in the park blocks for lunch. Local solo musicians and others will be invited to entertain.
Puddle Prints
Puddle Prints is a storytelling project lead by 2009-2010 Oregon Teacher of the Year Donna
DuBois. With a grant from the Smithsonian, Donna engaged her 4 and 5 grade Camas Ridge
thth
elementary students in a narrative, slideshow, video production covering 20 historical locations
throughout Eugene, including downtown. This effort will be finalized with signs at each location
depicting a historical photo of the site, a few sentences about its history and a QR code. The QR
code points mobile devices to the video slideshow narrative completed by students. This unique
project was done in partnership with the City, Travel Lane County, Bell + Funk, Lane Historical
Museum, and The Imagine Group.
RELATED CITY POLICIES
This item relates to the following Council Goals:
Accessible and Thriving Culture and Recreation: A community where arts and outdoors are
integral to our social and economic well-being and are available to all.
Sustainable Development
Effective and Accountable Municipal Government
It also supports the implementation of priority strategies identified in the Cultural Policy Review.
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COUNCIL OPTIONS
No options are provided; this item is for information only.
CITY MANAGER’S RECOMMENDATION
No recommendation is suggested; this item is for information only.
SUGGESTED MOTION
No suggested motion; this item is for information only.
ATTACHMENTS
A. Arts & Economic Prosperity IV (AEP4) Study
FOR MORE INFORMATION
Staff Contact: Renee Grube
Telephone: 541-682-5067
Staff E-Mail: renee.l.grube@ci.eugene.or.us
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ERS
'b'b"'
Arts and Economic Prosperity IV was conducted by
Americans for the Arts, the nation's leading nonprofit
organization for advancing the arts in America. Established
in 1960, we are dedicated to representing and serving local
communities and creating opportunities for every American
to participate in and appreciate all forms of the arts.
Copyright 2012 ArnerIcans for the Arts, 1000 Vermont Avenue NW, 6 tl Floor, Washington, DC 20005.
ArYs & Economic Prosperidy if a registered trademark of Arnerimns for the Arts.
Reprinted by permission.
Printed in the United States.
Table of Contents
The Arts Mean Business ............................ ............................... a
By Robert L. Lynch, President and C O. Am ricui s for the Arts
The Economic Impact of the Non,protit Arts and
C.Ilhlre i n &ustry in the City of Eugen ...... ............................... 3
D e11ning Ecommic Impact ..... ...........,....., .......................,., ...,......,,3
Economic Inipzet tithe ENTIRE Nonprof( Arts and
culturelndu!e Lry ..............,,.....,,................,....,,....,..... .,............,.,........,....4
Dived and Ind1rect Economic Impact: Flow a Dollar 1s R -
` p nt in the Economy .... .................................... ..............................�
Economic 1rnpuct «l ijicnclinv� ra Nonprolit Ai n(]
CUIWI fi: RGANIfA l IONS ........... ........... ............................... ......6
All Economic li act Beyond Do llars: V(-)l L11) tCCr1S [li., .... ---- ............:7
` lIQ Value of In-Kind Contr ibutions Its Arts Org anizations ...................7
Economic Impact oFSpending by Non1)ro i I A rts an
Culture AUDIENCES .. .............,,..... ...............,....... <.. ®,.,. ,...,..........,.....,8
Cu ltur al al TOrlrists . pertd MOM .......... ........... ............ ......................
Cultural Events At(wet New D4)11nrs and Retain ll xcal
Dollars .........- ........................................................ .............................10
CMICILtsion ................................................. ..................,............
1 l
Arts & Economic P roLyper ^ity IV C,11Ctllatoi . ...............................
13
Economic Impact per $1 00,000 c FSpending by Nonprofit
Arts and Culture ORGAN IZATIf_ NS................. W. - ..... ....................
13
Economic Impact pc - r $ 1 MAO of Spending by Nonprofit
Arts a C uIttire AUDIENCES . ...,. .... ......... ........ ...14
Making Coniparisons with SinniInr Study Regions .............................15
About This StUdy ............. .................................... ..................... 17
F recd uently Used ` Fei, m.s ........... ............................... l
Frequeiitly Asked Q UCS00 11S. ...................... .,............................
Acknow ledgments .................. .................... ............................... 25
"Understanding and acknowledging the incredible economic impact of the nonprofit
arts and culture, we must always remember their fundamental value. They foster
beauty, creativity, originality, and vitality. The arts inspire us, south us, provoke us,
involve us, and connect us. But they also create jobs and contribute to the economy.
Robert L. Lynch
President and CEO
Americans for the Arts
The Arts Mean Business
By Robert L. Lynch, President and CEO, Americans for the Arts
America's artists and arts organimtions live and work in every community from coast-to-coast—
fueling creativity, beautifying € ur cities, and improving our quality of life. In my travels across the
country, business and government leaders often talk to the about tine chal lenges of funding the arts
amid shrinking resources and alongside other pressing needs. Thcy worry about jabs and the
onomy. is their region a wagnet for attracting; an6 retaining, a skilled and innovative
workforce? How well are they competing in the high - stapes race to attract new businesses? ne
findi frorn .bards & Economic Prosperity IV send a clear® and welcome message: leaders who care
about community and economic vitality can feel good about choosing to invest in the arts.
Arts dt Economic Prosperild IV is our fourth study of
the nonprofit arts and culture industry's impact on the
economy. The most comp rehensiv+c study of its kind
ever conducted, it features Cu5tOna findings on 182
study regions representing all 50 states and the Disirict
of Columbia as well as estimates of economic impact
nationally Despite the economic headwinds that our
country faced in 2010, the results are impressive.
Nationally, the industry generated $135.2 billion
dollars ofeccnornic activity—S61 .1 billion by the
nation's nonprofit arts and culture organizations in
addition to $74.1 billion in event related expenditures
by their audiences. This economic activity supports 4.1
million fu l 1-time jobs. Our industry also gcneratcs
$213 billion in revenue to local, state, and federal
governments every year®a yield well beyond their
crallective $4 billion in arts allucations.
Arts and culture organizations are rresilient and
entrepreneurial husinesses. They employ Tacople locally,
pisi gcaods and services from within the cummunity,
and market and promote their regions. Arts organizaatians
are roofed locally; these are jobs that cannon he shipped
overseas. Like most industries, the Great Recwssion. haft a
measurable financial impact on the arts — erasing the
gains made during the pre - recession years, and leaving
2010 expenditures three percent lsehind their 2005 levels.
`rhe biggest effect of the recessiean was can attendance
and audience spending. hievitabiy, as people lost jobs
and worried about lasing their houses, arts attendance —
like attendance to sports events and leisure travel —
waned as we] 1. Yet, even in a down cc anomy, some
communities saw an increases in their arts spending and
employment. As the economy rebounds, the arts are well,
poised for growth, They are already producing new and
exciting work -- performances and exhibitions aaaei
festivals that entertain, inspire, and attract audiences.
Ans & E'cnnoorar'e Prosperity IV shoves tl t arts and
culture organizations leverage additional event - related
spending by their audiences that dumps revenue into
the local economy, When patrons attend an arts event
they may pay for harking, eat dinner at a restaurant,
shop in local retail stores,, and have dessert on the way
home, :Based on the 151,802 audience - intercept
surveys conducted for this srudy, the typical arts
attendee spends $24.60 per person, per event, beyond
the cast oFadmission.
Communities that draw cultural tourists experience an
additional boost of economic activity. Tourism industry
research has repeatedly demonstrated that arts tourists
stay longer and spend more than the average
traveler. r1nx & Pcon ain c Prosperity Ifs reflects those
endings: 32 percent of attendees live outside the
county in which the arxs event tarok placte, and their
event-related spending is creme than twice that of their
loml counterparts (nonlocal. $39.9+6 vs. local: $17.42 ).
The message is (Jean a vibrant ands cumrnunity acct
only keeps residents and their d.iscretiana.ry spending,
close to home, it also attracts visitors who spend
money and help local lausinesses, thrive.
Aris & ,I;'rccar rock Praslrerily IV demonstrates that
America's arts industry is not only resil lent in tunes of
economic uncertainty, but is also a key compotient to
our nation's economic recovery and future prosperity.
Business and elected Leaders need not feel that a choice
must be made between arts funding and economic
ptvsperity� This study pruves that they can choose
tooth. Nationally, as well as lncally, the arts mean
business.
+ts tr�4laorrirG f?r aria V I A Mevapans for aaie Aft
"As all budgets—local and national, public and private—continue to
reel from the effects of the economic downturn, some may perceive
the arts as an unaffordable luxury reserved for only the most
prosperous times. Fortunately, this rigorous report offers evidence
that the nonprofit arts industry provides not just cultural benefits to
our communities, but also makes significant positive economic
contributions to the nation's financial well being regardless of the
overall state of the economy. This certainly is something to applaud."
Jonathan Specter
President & CEO
The Conference Board
2 Arts& ECW0MiCPkwperfflyIV I Americans for the Arts
The Economic Impact of the
Nonprofit arts and Culture industry
in the City of wwn ,O
Arts car Economic Prosperity lV provides compelling new evidence that the nonprofit
arts and culture are a significant industry in the City of Eugene —one that generates
$45.6 million in total economic activity. This spending —$29.5 million by nonprofit
arts and eulture organizations and an additional $16.1 million in event - related
spending by their audiences — supports 1,739 full -time equivalent jabs, generates
$34.8 million in household income to local residents, and delivers $2.4 million in.
local and state government revenue. This economic impact study sends a strong
signal that when we support the arts, we not only enhance our quality of life, but we
also invest in the City of Eugene's economic well - being.
The City of Eugene is one of 182 study mgions that
participated in parts dl: Economic Prosperity 1V, the
most comprehensive study of its kind ever conducted.
It documents. the economic impact of the nonprofit arts
and CUItuPe sector in 139 cities and counties, 31 multi -
city or multi - county regions, 10 states, and two
individual arts districts — representing; all 50 U.S. states
and the District of Columbia. The divers: study regions
range in population (1,600 to four million) and type
(rural to large urban). Project economists customized
input - output analysis 9nodels to calculate specific and
reliable findings for each study region. This study
focuses solely on the economic impact of nonprofit arts
and culture organizations and event - related spending
by their audiences. Spending by individual artists and
the for -profit arts and culture sector (e.g,., Broadway or
the motion picture industry) are exclrx evd from this
study. Fer the purpose of this study, the geographic
area included in this analysis is defined as the City of
Eugene,
Defining Economic Impact
This proprietEny Atudy uses four economic measures [o
define economic impact; full -time equivalent jobs, resident
household income, and local and state government
revenues.
(1) Full-Time Equivalent {TTE} Jobs describes the total
amountof labor employed. E3cionomists mcasure I±TE.jobs,
not the total number ofemployees, because it is a more
accurate measure that accounts for pail -time. employment.
(2) Resident Household Income (often called Personal
Income) includes salaries, wages, and entrepreneurial
income paid to local residents, It is the money residents earn
and use to pay for Food, mortgages, and other living
expenses.
Revenue to (3) Local and (4) State Government includes
revcnuc from lccal and state taxes (e.g,, income, property,
sales, and lodging) as well as funds from license fees, utility
fees, filing fees, and other similar sources.
Arts & Economic Prosperily IV I Americans Mr the Arts 3
Economic Impact of the ENTIRE Nonprofit Arts and Culture Industry
(Combined Spending by Both Organizations and Their Audiences)
in the City of Eugene
During fiscal year 2010, aggregute nunprorit sector speandIng by both (he City of Eugene's notiprorit arts and
culture organizations and 111C.11 aUdIeTlCeS totaled $45.6 million. The table below demonstrates the total economic
impact of this spending.
TOTAL Economic Irnpactef the Nonprofit Arts and Culture Industry in the City of Eugene
(Spending by Nonprol'it Arts and Culairc Organizations and Their Audi-eixcs)
------------------------------------------------------------------------ -------------------
Direct and Indirect Economic Impact: How a Dollar is Re-spent in the Economy
Arts & Fxonumic Pray pordy IV uses a soph[sticWcd economic analysis ca lled input - output inalysis to measure econ - 0111 - 1c
impact. It is - z system of mathematical equations that combines statistical mrilhods and economies iheory- Input-output analysis
enables eccuoinists to track how inany tinics a dollar-is ""pent" wMin the local economy, and the economic impaol
,generated by each round orspending, How cari a dollar be re-spent? Consider the fullGiving exaniple:
A theater company is the City of Eugeite purchases several gallons of paint from a local hardware store for $20f). The
hardivare store Illun uses a portion orthc $200 to pay [he sales clerk, lix saics derk re-spend-9 some of the money at a
grocery store; the groccry store uses sme to pay its cashier; tile cashier sp unds some on rent; and so on...
Thus. IN-, initial eNpundihure: by the llhroLcr company was foltowed by four additional rounds of local spending( y the hardware
More, the sales clerk, the grocery s tore, and the cashier).
• The ecoitomic impact err the (hcalter company's initial $200 expeaditure Is the direct economic impact.
• Tbc econoinic impacts of 1he "bscqUCFLt rounds of ]oval speiLding are the indirect hopacts,
• Eventually, the $200 dollars %viJl "leak out" of the local econgmy (i.e., be spent non-locally) and cease to have a local
cconomic impact. in This example, it the theater company purchased the paint from a non-local hardware store, ihere
would be no Local ccorkornic impact. Since che hardware: store is locate d in Lane County, the do I lots remain within [be
local econotay and create at least uno snore round of local spending by the hardwarc conpany,
■ The I at al impact is the su rn of the direct impact plus aril indirect impacts. This report provides the jqA&I i rm pact.
Adollar "ripples" very diffierent through each voinniunity, which is whya customized jrtpul-output model was cmati:d fx:A
City of Eugene.
4
.Ads $EC0rvmicPfQsj2@rty?V I Amerr for the Arts
MWisill of
Similar Study Regions
City of Eugene
Pop. - JK060 to 249,999
National Medina
Dirmt Expenditures
$45,556,531
$23,879,203
$49,080,279
Full-'rime Equivalent Jobs
1,739
X36
1,533
Resident Household Income
$34,810,000
Sl$,692,000
$35,124,500
Local Goycmrwnt Revenue
51,678,4100
$1,227,000
$1,946,500
State Govemment Revenuc
$7413
$ E,223,UDO
$2,498,000
Direct and Indirect Economic Impact: How a Dollar is Re-spent in the Economy
Arts & Fxonumic Pray pordy IV uses a soph[sticWcd economic analysis ca lled input - output inalysis to measure econ - 0111 - 1c
impact. It is - z system of mathematical equations that combines statistical mrilhods and economies iheory- Input-output analysis
enables eccuoinists to track how inany tinics a dollar-is ""pent" wMin the local economy, and the economic impaol
,generated by each round orspending, How cari a dollar be re-spent? Consider the fullGiving exaniple:
A theater company is the City of Eugeite purchases several gallons of paint from a local hardware store for $20f). The
hardivare store Illun uses a portion orthc $200 to pay [he sales clerk, lix saics derk re-spend-9 some of the money at a
grocery store; the groccry store uses sme to pay its cashier; tile cashier sp unds some on rent; and so on...
Thus. IN-, initial eNpundihure: by the llhroLcr company was foltowed by four additional rounds of local spending( y the hardware
More, the sales clerk, the grocery s tore, and the cashier).
• The ecoitomic impact err the (hcalter company's initial $200 expeaditure Is the direct economic impact.
• Tbc econoinic impacts of 1he "bscqUCFLt rounds of ]oval speiLding are the indirect hopacts,
• Eventually, the $200 dollars %viJl "leak out" of the local econgmy (i.e., be spent non-locally) and cease to have a local
cconomic impact. in This example, it the theater company purchased the paint from a non-local hardware store, ihere
would be no Local ccorkornic impact. Since che hardware: store is locate d in Lane County, the do I lots remain within [be
local econotay and create at least uno snore round of local spending by the hardwarc conpany,
■ The I at al impact is the su rn of the direct impact plus aril indirect impacts. This report provides the jqA&I i rm pact.
Adollar "ripples" very diffierent through each voinniunity, which is whya customized jrtpul-output model was cmati:d fx:A
City of Eugene.
4
.Ads $EC0rvmicPfQsj2@rty?V I Amerr for the Arts
"]Mayors understand the connection between the arts industry and city
revenues. Arts activity creates thousands of direct and indirect jobs
and generates billions its goveniment and business rovenues, The arts
also make our cities destinations for tourists, help attract and retain
businesses, and play an important role in the economic revitalization
of cities and the vibrancy of our nci hborhoods."
Philadelphia Mayor Michael A. Nutter
President, "`).°'he United States Conference of Mayors 2012 -2013
"Many businesses support the arts across the country because they
intuitively understand that the ants matter, so it is great to get the
facts and a. clearer understanding of the links between the arts and
economic prosperity."
Stephen, Jordan, Executive Director
Business Civic Leadership Center
U.S. Chamber of Commerce
Arts e. EOonorrtrc Pr "rgy ry r Arrieftens for the arls 5
Economic Impact of Spending by Nonprofit Arts and Culture ORGANIZATIONS
in the City of Eugene
Nonprofit arts and couture organizations are inctive contributors to their business community. They are employers,
producers, and consumers. They are mernhers of the Chamber of Commerce as well as key partners in the
marketing and promotion of titeir cities, regions, and slates. Spending by nonprofit arts and culture organizations
totaled $29.5 miIIion in the City of Eugene during Fiscal yeas 2010. Tfiis spending is far - reaching; organizations
pay employees, purchase supplies, contract for services, and acquire assets within their community. These actions,
in turn, support jobs, create household income, and gcnerate revenue to the local and slate governments.
The City of Eugene's nonprofit sorts and culture organizations provide rewarding employment for more than just
administrators, artists„ curators, choreographers, and musicians. They also employ financial staff, facility
mana,gem, and salespeople. In addition, the spending by these organizations directly supports a wide array of other
cimupations spanning many industries (a.g., printing, event planning, legal, construction, and accounting).
Data were collected Flom 29 eligible nonprofit arts and culture organizations in the City of Eugcrte. Each provided
detailed budget information .about more than 40 expenditure categories for fiscal year 2010 (e,g., labor, payments
to local and nonlocal artists, operations, administration, programming, facilities, and capital expendit=slasset
acquisition). The following tables demonstrates the total ecdanornic impacts of tlleir aggregate spending„
TOTAL Economic rmpacl of Spending b Nonprofit Arts mid Culty re ORGANIZATIONS
ir➢ the City orKagine
A.rfS & ECW0Mor. Prugmrey 1 V I Amorlcans fpr i" A rte
Median of
$innitAr Study Regiorts
City orEug tte
1'Ojl. = 100AM tot 9,999
National Mefflam
IJ ircet Expenditures
$29,47 1,563
$12,013,659
$23,141,543
Full -Time Equivalent ]alas
1,245
463
791
Residtnt Household Income
b24,020
$9,261.500
$19,499,001)
Local Government Revcime
$984,000
$419,000
'$9367,0W
State Govern menI Rcvcnljc
' 46,t)(10
$5M000
$1,010,400
A.rfS & ECW0Mor. Prugmrey 1 V I Amorlcans fpr i" A rte
An Economic Impar=t Beyond Dollars: Volunteerism
While arts volunteers may not have an economic impact as defined in this study, they clearly have an enormous
impact by helping the City of Eugene's nonprofit arts and culture organizations function as a viable indusay°. Ails
cif Economic Prosper iry N reveals a sipificant contribution to nonprofit arts and culture organizations as a result
ofvolunteerisrn_ During 2010, a total of 3,315 volunteers donated a total of 175,724 hours to the City cf Eugene's
participating nonprofit arts and culture Drganizatiens. This represents a donation of time with an estimated
aggregate value of $3,753,465 (Independent Sector estimates the dollar value of the average 2010 volunteer hour
to be $21.36).
The 29 pailicipatirrf, organizations mperrted an tavenage of 53.0 volRintcers who voltinterred an average of 114.3
hou.r5, for a rocal of 6,059 hours per ocganiz- ition.
The Value of Ire -Kind Contributions to Arts Organizations
Ilia participating organizations were asked about the sources and value of their in -kind support. In -kind
contributions are non -cash donations such as materials (e.g., office suppliers from a local retailer), facilities (e.g.,
rent), and services (e.g., printing costs from a local printer). The 29 participating nonprofit arts and culture
organizations in the City of Eugene re=ported that they received in -kind contributions with an aggregate value of
$848,261 during fisc=al year 2010. Theses contributions were received from a variety of sources including
corporations, individuals, local and state arts agencies, and government,
"At Aetna, we encourage our employees to be active volunteers. It's good
for the employee, good for the community, and a source of corporate
pride. The :research also males clear that employees who are engaged in
the community are more engaged at the workplace --and that is good for
business. Arts organizations are part of the fabric of healthy community,
so we are delighted to provide incentives to our workers to be regular ate
volunteers.Ae
— Floyd W. Gran, III
Head of Community Relations and Urban marketing
Aetna
fists & L 1 C0rP0 1c Pr0$perUY 1V I Arnerer ons for ehe Arts 7
Economic Impact of Spending by Nonprofit Arts and Culture AUDIENCE
in the City of Eugene
The rwnpro it arts and culture industry, unlike most industries, leverages a significant amount of event - related
spending by its audiences. For example, when patrons attend a cultural event, they may pay to park their car,
purchase dinner at a restaurant, shop in nearby staves, eat dessert after the show, and pay a babysitter upon their
return home. Attendees from out of town may spend the night in a hotel. This spending ,generates related
commerce for local businesses such as restaurants, parking garages, retail stores, and hotels.
To treasure the impact of nonprofit amts and culture audiences in the City of Eugene, data were collected 110M
1,069 event attendees during 2011. Researchers used an audience- intercept methodology, a standard technique in
which patrons complete a written survey about their event - related spending while attending the event. In the City
of Eugene, arts attendees spend an average of $ 17.18 per person, per event as a direct result of their attendance to
the event, Local businesses that cater to arts and cuhuic audiences reap the rewards of this economic activity.
The 29 participating nonprofit arts and culture organizations reported that the aggregate attendance to their events
was 936,330 during 2010. `Chese attendees spent an estimated total of $16.1 million, excluding the cast of event
admission. The following table demonstrate the total impacts of this spending,
TOTAL EconomIe Inu paact of Sperrding IN Nanprofii Art.9 arnd Culture AU DIENCE
in the City of Eugene (excluding the cost of event adr ission *)
Why exclude the cost of admission?'use admissions paid by art mdees one excluded frcatn the analysis because those dollars are
eaptured in the operating budges of the participating monprvfit arts and culture organi.Tallons tend, in turn, are spent by the
organization. This methodology avoids" rini,ble- counting" those dollars in the study analysis.
Arts & ,Econom c Arasperly tV 1 Arnerieans for the f',rls
Medina of
8inli1rrr Study Regioan3
City of Eugene
Pei, 160,000 do 249,9
Nationtrl Median
Direct Expenditures
S16,C84,%9
$13,601,839
$21,573,435
Pull-'rime Equivalent Jobs
491
364
643
Resident H ausehold income
510,790,000
$7,2K500
$12.823,000
Local Government Revenue
S6941,001)
$7(34,500
$1,084,000
State Government Reveriuc
$197,004
$714
$1.334,000
Why exclude the cost of admission?'use admissions paid by art mdees one excluded frcatn the analysis because those dollars are
eaptured in the operating budges of the participating monprvfit arts and culture organi.Tallons tend, in turn, are spent by the
organization. This methodology avoids" rini,ble- counting" those dollars in the study analysis.
Arts & ,Econom c Arasperly tV 1 Arnerieans for the f',rls
Cultural Tourists Spend More
The 1,069 audience surrey respondents were asked to provide the ZIP code of their primary residence, enabling
researchers to determine which attendees were local residents (live within Lane County) and which were non-
residents (line outside mane County). 111 the-City of Eugene, resourchersmli mate: that 85.0 porecat ofthe 936,3301
nonprofit arts attendees were residents, 15.0 percent were non- residents.
Noel- resident attendees spend an average of 192 percent more per person than local attendees ($38.92 vs. $13.33)
as ar result of their attendance to cultural events. As would be expected from a traveler, higher spend rig was
typically found in the categories of lodging, meals, and transportation. When a community attracts cultural
tourists, it harnesses significant economic rewards.
Event Related Spending by Arts find c Event Att endees To $1 million
Resideals
in the City of Hu gene (.UcIudIag the c(mt of event admission)
Event AItendees
ltcl'rc.sh.munWSnacks. During Event
All
S3W
city orEtrgene
Residents Non- Residents
Rvent Attendees
Tool AdendamG 795,5016 140,874
936,331)
Percent of Attendees 85.0 percent 15.0 percent
100 percent
Average Dollars Spent Per attendee $13.33 $3tt.92
$1 ?.18
Direct Event- Related Eapandltures S10 $5,AR0,872 516,084,M
Nonprofit tarts and culture Event A tendees Spend an Average of 517. IS Per Person
in the city of Eugene (excluding the cast of event admission)
All
City of Eugene
Total Per Person Spending $13.33 $ 8.42 $17.18
Arts & Econamac Prosps,rfry IV I Americans for the Arts
Resideals
Non - Residents
Event AItendees
ltcl'rc.sh.munWSnacks. During Event
' 277
S3W
$2.$2
Meals BerordAfter By-cat
$6,20
$ 13.19
$7 -25
Scuwenirs and Gifu
$1.63
$3.69
$1,95
clolhing and Acces�oria
$0,76
$1,65
$0.90
Csrounrl Timnspnrla Pion
$ 1,03
$4.19
$1,50
Event Relatcd Child. Care
$4.09
$0.41
$11.14
Overnight Lodging (came night only)
W28
$9.14
$1.61
Other
$0.55
$3.55
$1.01
Total Per Person Spending $13.33 $ 8.42 $17.18
Arts & Econamac Prosps,rfry IV I Americans for the Arts
Cultural Events attract New Dollars and Retain Local Dollars
The City of Eugene's nonprofit arts and culture sector provides attractions that draw visitors to the community. In
fact, 54.4 percent of all non - resident survey respondents reported that the primary reason for their trip was
"specifically to attend this arts/cultural event."
In addition, 11.9 percent of the City of Eugene's non - resident survey respondents r eprited that they will spend at
least one night away from home in the City of Eugene as a direct result of attending the cultural event. Non -
ncsident attendees who stay overnight in paid lodging spend an average: of 33.98 per person as a result of their
atlendance- -significantly more than the overall per person averaSQ for all non-resident attendees to events in the
City of Eugene $38.92.
Finally, the audience survey respondents were asked, "If this event were not happening, would you have traveled .
to another community to attend a similar cultural experience?"
31.3 percent of the City of Ergene's resident cultural attendees report that ehey would have Traveled to a
different comonunity in order to attend a similar cultural experience.
46.6 percent of the City of Eugene's nca- resident cultural attendees report the sauce.
These figures demonstrate the economic impact of the nonprofit arts and culture in the purest sense. if
community does not provide a variety of artistic and cultural experiences, it evil I fail to attract the new dollars of
cultural tourists, It will also lose the discretionary spending of its local residents who will travel elsewhere to
experience the rails.
"As a banker, T have visited businesses in almost every city and town in
Oklahoma. Then: is a visible difference in places with a vibrant arts
community. t see people looping for places to park, stores staying, open late,
and restaurants packed with diners ... the business day is extended and the
cash registers are ringing."
Ken Fergeson
Chairman & CEO, NBanC
Fast President, American Bankers Association
Cultural Attendees are Artists!
■ 59.8 pet -cent of the City of Eugene's arts attendees report that they actively participate in the creation o f
the arts (c.g., sung in a chair, act in a community play, paint. or draw, play an instalment).
10 Arts & EconorrriC Prospv y 1V j Ammicans for the Arts
Conclusion
The nonprofit arts and culture are a $45.6 million industry In the City of Eugene—
one that supports 1,739 full -time equivalent jobs and generates $2.4 million in local
and state government revenue. Nonprofit arts and culture organizations, which spend
$29.5 million annually, leverage a remarkable $16.1 million in additional spending by
arts and culture audiences --- spending that pumps vital revenue into local restaurants,
hotels, retail stores,, parking garages, and other businesses. By demonstrating that
investing in the arts and culture yields economic benefits, Arts & Economic
Prosperity IV lays to rest a common misconception: that communities support the arts
and culture at the expense of local economic development. In fact, they are investing
in an industry that supports jobs, generates government revenue, and is a cornerstone
of tourism. This report shows conclusively that the arts mean business!
"Disney has a rich legacy in animation, film and storytelling, so
naturally we consider the arts to be an essential part of our business, as
well as an essential element of our communities. We have seen how the
arts not only enrich American life, but also support millions of fobs
across the country, generate billions of dollars in economic impact, and
Delp drive the family - vacation industry. By investing in the arts, we
plank seeds for the future and male our communities better places to
1 ive."
Meg Crofton, President
Walt Disney World Darks & Resorts Operations, U.S. and France
Arts & Economic Pwsperity?V I Awncans for the Arts 11
"A vibrant ails environment stimulates and sustains a richer quality
of life and economic health. In Delaware, where the arts are among
our top 10 employers, we see how the arts contribute to the
renaissance of downtown areas, enhance our educational system,
and attract new businesses and residents to the state."
— Governor Jack A. Markell
Chair, National Governors Association
12 Arta & ft ornic ProsperFfy iV I Amedraris far [he Arts
The Arts & Economic Prosperity IV C alculator
To make it easier to co npare the economic impacts of different organizations within the City of Bugene, the
project researchers calculated the economic impact per $100,000 of direct spending by nonprofit arts and culture
organizations and their audiences.
Economic Impact Per $100,000 of Direct Spending by ORGANIZATIONS
For every $100,GDO in direct spending by a nonprofit arts and culture organization in the City of Eugene, there
was the following total economic impact.
TABLE 11'
Ratios of Economic tmpnet Per 310,000 of DIrect Spending by Nonprolit Arts and Culture QrgankEtions
in the City or Eugene
State government RevimuD $1,853 $4,491 $4,656
An Example of How to Use the Organizational Spending Calculator'Cable (above):
An administrator from a nonprofit arts and culture organi7vioti that has total expenditures of $250,000 %+rants to
determine the organization's total economic impact can full -time equivalent (FTE) employment in the City of
Eugene. The administrator would:
1. Determine the amotint spent by the nonprofit arts and culture organization;
2. Divide the total expenditure by 100,D00; and
3. Multiply that figure by the FTE employment ratio per $100,000 for the City of Eugene.
Thus, $250,000 divided by 100,000 equals .5; 2.5 braes 4.22 (from the top raw of data on Table I above) equals
a total of 10.6 full -time equivalentiobs supported (both directly and indirectly) within the City of Eugene by that
nonprofit arts and culture organization. Using the some procedure, the estimate; can be calculated for resident
household income and local and state government revenue.
Arts 4 ZCW0 i0 Pros 011 1V I Amencans for the Arts 13
Median of
Similar Study Regions
{pity [►f Ea1;eno
Pop, w 100, 000 to 249,999
Nntiunn] Median
Full - "rime Equivaknt Jobs 4,22
169
3.46
Resident Household Income 381,502
$82,457
$82,034
Local Government Revenue 33
:$3,821
$3,81y
State government RevimuD $1,853 $4,491 $4,656
An Example of How to Use the Organizational Spending Calculator'Cable (above):
An administrator from a nonprofit arts and culture organi7vioti that has total expenditures of $250,000 %+rants to
determine the organization's total economic impact can full -time equivalent (FTE) employment in the City of
Eugene. The administrator would:
1. Determine the amotint spent by the nonprofit arts and culture organization;
2. Divide the total expenditure by 100,D00; and
3. Multiply that figure by the FTE employment ratio per $100,000 for the City of Eugene.
Thus, $250,000 divided by 100,000 equals .5; 2.5 braes 4.22 (from the top raw of data on Table I above) equals
a total of 10.6 full -time equivalentiobs supported (both directly and indirectly) within the City of Eugene by that
nonprofit arts and culture organization. Using the some procedure, the estimate; can be calculated for resident
household income and local and state government revenue.
Arts 4 ZCW0 i0 Pros 011 1V I Amencans for the Arts 13
Economic Impact Pcr $100,000 of Direct Spending by AUDIENCES
The economic impact of event- related spending by arts audiences can also be derived far individual or gaups of
a unprofit arts and culture organizations Arid events in the City of Eugene.
The first step is to determine the total estimated event - related spending by arts and culture event attendees
(excluding the cost of admission). To derive this figure, multiply the average per person event- related expenditure
in the City of Eugene by the total event attendance. The ratios of economic impW per S100,000 in direct spending
can then be used to determine the total cconotnic impact of the total estimated audience spending,
TABLE 2:
Average Per Person Fveaat- Rebited Spending by All Arts and Culture went Alteridees
in tine City of l,ugene (excluding the Cast ofevenL admission)
TAB LK 3:.
Rntios of Economic Impnet Per $100,000 of Direct Spending by Nonprofit Arts and Culture Audiences
in the City of Eugene
Median of
Similar Softly [legions
City of'Eugene POA = 109,t7d M20,999 NatioNal lk[edinn
hull -'Lime Equivalent Jobs 107 2.94 2.69
Resident Household inuorrnea $67,081 $59,133 $57,140
Local Government Rovenue '$4,315 $5,155 $5,100
State Govertlmeltt Revenue 51,225 $5,689 $5
14 Arts & Ecco aO Pwspefify L1' I A1M9icans for Ihe,VF,
Median or
Similar Study Regions
City of Eugene
Prrfr. - 100 090 to 249,999
NaliowAl Median
Refresh men WSn Fick s touring Event
5182
.$2,45
$:1.02
Meals BortrOA fter Event
$7.25
$8.61
510.12
Souvenirs and Gifts
31.95
$2.06
$2.74
Clolhing and Accessorles
SO.9Q
$1,02
$1.31
scan u ild Tr4n spu rtatic n
$ 1.51)
$1.7 {)
$2.0
Event - Related Child Care
$0.14
SO -27
J6
Overaight Lodgirg Bone aighl only)
51.61
$1.52
$3.51
Other
$ 1.01
$U,4
S0.89
Total Per Person Spending
$17.18
X19.07
$24.60
TAB LK 3:.
Rntios of Economic Impnet Per $100,000 of Direct Spending by Nonprofit Arts and Culture Audiences
in the City of Eugene
Median of
Similar Softly [legions
City of'Eugene POA = 109,t7d M20,999 NatioNal lk[edinn
hull -'Lime Equivalent Jobs 107 2.94 2.69
Resident Household inuorrnea $67,081 $59,133 $57,140
Local Government Rovenue '$4,315 $5,155 $5,100
State Govertlmeltt Revenue 51,225 $5,689 $5
14 Arts & Ecco aO Pwspefify L1' I A1M9icans for Ihe,VF,
A n Example of How to Use the Audience Spending Colcnlater Tables (on the preceding page):
An administrator wants to determine the total economic impact of the 25,000 total attendees to Ids/her
organization's nonprofit arts and culture events on full -time equivalent (F rE) employment in the City of Eugene.
The administrator would:
1. Determine the total estimated audience spending by multiplying the average per person expenditure for
the City of Eugene by the total attendance to nonprofit arts and crrltuI'e events°,
2. Divide the resulting total estimated audience spending, by 100,00; arid
3. Multiply thct Figure by the FTE employment ratio per ;$ 100,01)0 for the City of Eugene.
Thus, 25,000 tithes $17.18 (from the bottom row of data on Table 2 on the pmeeding page) equals $429,500;
$429,500 divided by 100,00 equals 4.30; 430 times 107 (from the tap row of data on Table 3 on the prmeding,
page) equals a total of 13.2 frill -time equivalent jolts supported (both die -ectiy and indirectly) within the City of
Eugene by that nonprofit aria and culture nrganization. Using the same procedure, the estimate can be calculated
for° resident household income and local and state ; government revenue,
Making Comparisons with Similar Study Regions
For the purpose of this research project, the geographic region being studied is defined as the City of Eugene, OR,
According to the most recent data available from the U.S. Census Bureau, the population of the Cl[y of Eugene
was estimated to be 150,1114 during 20111. For comparison purposes, more than 300 pages of delai led data tattles
containing the study results for all 182 participating study regions are located in Appendix B of the National
Statistical Report, The data tables are stratiriied by pOpulatirrri, making it easy to compere the findings for the City
of Eugene to the findings for similarly populated study regions (as well as any [ether participating study regions
that are considered valid comWison cohons).
All of the national study publications are available budi by download (tree) and hardiopy (I'+ar purchase);rt
wwiv. AmericransFor •TlieArts.org/Economic Impact.
Arrs & economic P eaty W i Amen:�ans iar iha Arts 15
"The success of my family's business depends on finding and cultivating a
creative and innovative workforce. I have witnessed firsthand the power of the
arts in building these business skills. When we participate personally in the auks,
we strengthen our 'creativity muscles,' which makes us not just a better
ceramicist or chorus member, but a more creative worker— better able to identify
challenges and innovative business solutions. This is one reason why the arts
remain an important part ofrny personal and corporate philanthropy."
— Christopher Forbes, Vice Chairman, Forbes, Inc.
16 arts $ Ecenorrric PRmperMy IV I Arne rk;ans for the Arm
About This Study
The Arts & Economic Prosperity IV study was conducted by Arinericans for the Arts
to document the economic impact of the nonprofit arts and culture industry in 182
communities and regions (139 clues and counties, 31 multi -city or multi - county
re and 10 states, and two individual arts districts)— representing . all 50 U.S.
states and the District of Columbia..
The diverse communities range in population
(1,600 to four million) and type (rural to turban).
The study focuses solely on nonprofit arts and
culture organizations and their audiences. Public
arts counolls and public presenting
facilities /institutions are included as are select
programs embedded within another organization
(that have their own k udget and play a substantial
role in the Cultural life cif the community). The
study excludes spending by individual artists and
the For -profit arts and cntertal,ftment sector (e.g.,
l3roadway or [lie mutian picture idustry). Detailed
expenditure data were collected Pram 9,731 arts rind
culture organizations and 151,862 of their
attendees. The project economists, from the
Georgia Institute of Technology, customized input-
output analysis models for each study region to
provide specific and reliable economic impact data
about their nonprofit arts and culture industry,
specifically full -time equivalent jobs, household
income, and local and state government revenue.
The 182 Local, Regional, and
Statewide Study Partners
Arncricuins for [lie arts PUblished a Call for
Participants in 2014 seeking communities interested
in participating in the Arls dr ,Ecorwin c Prosperity
1V study. Of the more than 200 potential partners
drat expressed interest, 182 agreed to participate
and complete four participation criteria: (1) identify
and code the universe of uonprvlit arts and culture
orgarizat om 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 modest cast- sharing fee (no community
was refused participation for an inability to pay).
The Amts and Business Alliance at Eugene
responder) to the 2010 Call for Participants, end
agreed to complete the required participation
criteria.
Surveys of Nonprofit Arts and
Culture OR ANIZATtONS
Each of the 182 study regions attempted to identify
its comprehensive universe of nonptctit arts and
culture ❑rpnizations using the Urban Institute's
National Taxonomy of Exempt Entity (NT EE)
cading system as a guideline. The NTEE system —
developed by the National Center for Charitable
Statistics at the Urban Institute —is a definitive
classification system for nonprofit organizations
recognized as tax exempt by the Internal Revenue
Code. This system divides the entire universe of
nonprofit organizations into 10 f0ajor catcgorics,
including "Arts, Culture, and Humanities." The
Urban Institute reports that 113,000 nonprofit arts
and culture organisations were registered with the
IRS in 2010, up from 94,450 in 2005.
The following NTEE " Atts, Culture, and
Humanities" subcategories were included in this
study:
Arts & Ecanamfa Prow vdy JV I Arnoncans for the Arts 17
• AM - ,Allinnecsand Aduocaty
■ A02 - Mnnugement and Teelrnical Assirtanee
'
A03 - Professional SocMe cs and ,Associalt om
■ A05 - Kesearch InstiNtim turd Public Pliny Analysis
■ A I I - Siaigle Orgmixatiair Supprut
A 12 - Fund Raising and Fund Digtrihution
' Al 9 - Sup porl (not elsewhere c1w,- ;irLvd)
' A70 -Arts and Collure (general)
` A23 - Cultural and Ethnic Awarenm
■ A24- Folk Aas
■ A25- AASEducaiioa,
' A26 - Arts and ] "lumamities Councils acrd Agcnics
■ A27 - Community Celetratinns
■ A30- Madia and t OMInunitWiuns(gencrrll)
a A31 — Film and Video
■ lA32- "re]evisinn
• A33 - PriatiRg and Publishing
• A34 —Radio
' A4O — Visual Arts (general a
' ,DSO - Museums (generul)
' A51 - Arl.Museums
• A52- CUldreu'sMmseu=
■ A53 -Folk Arls Museums
■ ,454 - History Museums
• A56 - Natural History and Na4trral Science MUSCutns
' A57 - Science and Teehnolegy Muscurns
` A6O - Pcrfarniing ,Arts Wriorat)
` A61- PeriNorming Arts Centers
' .A62 - Dar
■ A63 - ®alter
A65 - Tlicalre
• A69 - Symphot7 y Drehc;clras
■ MA -Operm
' M13 - Singing and Choral Groups
■ A6C - Bud4 and 1' nset b [cs
IF ME - Peefon lmr, Arts Schools
• A70- Humanities (general)
` ASO Historical Organiaaiions (general)
• A92 - Historical Societies and Hislorie Preservation
• A94 — Carnmemorative Events
■ A90 - Arts Services (gcneral)
■
A99- Awns, Cullure, anal Humaiiil:ies (mimellrvneouq)
In addition to [lie organization types above, the
study pailners were encouraged to include other
types of eligible organizations ifthey play a
substantlat role in the cultural life of the community
or if tlicir primary" purpose is t promote participation
in, appreciation far, and understanding of the visual,
performing, Folk, and media arts. These include
governmeni -owned or government-operated cultural
racilitics and instltutians, municipal arts agencies -anal
councils, private cuminunity arts organizations,
tlnint?orporated arts groups, living collections (such
as zoos, aquariums, and botanical gardens),
university presenters, atad arts programs that are
embedded under the umbrella of a rion - arts
organization or facility (such as a community center
or church). In short, if it displays the charncteristics
of n nonprofit arts and culture organization, it is
included. For- profit bu sinesses and individual ailisis
were excluded f um this study.
Nationally, detailed information was collected from
9,721 eligible oi ganlzatiuns about their fiscal year
2010 expenditures in more than 40 expenditure
categories (e.g., labor, local and non -local artists,
operations, materials, facilities, and asset acclOsiflon)
as well as about their event attendance, in -kind
contributions, and volunteerism. Responding
crganizatiGns had budgets ranging from a lo►v of $0
to a high of $234.7 rnilliott. Response rates for the
182 communities averaged 43.2 percent and ranged
from 5.3 percent to 100 percent. It is important to
note that each study reg oa's results are based solely
on the actual survey data collected. No estimates
have been made to account for rion respondents.
Therefore, the less -than -100 percent response rates
suggest an understatement of the econornic impact
findings in most of tile individual study regions.
I the city or Eugene, 29 af'tlae approNimittety 94
total eligible nonprofit rang anti culture
organizations identi tie d by the Arts alnd Business
Alliance of Eugene participated in this ,stuctv--�an
overall participation rate of 31 percent.
1 ar1s 61=c0, -fomrcPmspoMyjV I Amarrcam for th Arts
Surveys of Nonprofit Arts and
Culture AUDIENCES
Audience - intercept surveying., a, corn on and
accepted research method, was conducted in all 192
of the study regions to measure event-relatcd
spending by nonprofit arts arkd culture audiences,
Patrons were askod to eomplote a short survey
while attending an. event. Notionally, a total of
151,802 valid and usable attendees completed the
survey fray an average of 834 sur veys per study
regirxn. The randomly selected respondents
pi�ovided itemized expenditure data on attendance -
related activities such as meals, souvenirs,
transportation, and lodging. Data were collected
throughout 2011 (to guard against seminal spikes
or drop -gaffs in attendance) as well as at a broad
range of both paid and free events (a night at the
opera will typlca[ly yield more spending then a.
weekend children's theater production or a free
community music festival, for example). The
survey respondents provided irtfori- ration ablaut the
entire panty with whore they were attending the
event. With an overall average travei party size of
2.69 people, these data actually represent the
spending patterms of more titan 408,000 attendees.
In the City of Eugene, a total of 1,063 valid and
usable audience- intercept surveys were collected
from attendees to arts and enIture performances,
even is, and exhibits during 2011.
Economic Analysis
A common theory of corn mttnit) growth is that an
area knust export goads and services if it is to
prosper economically. This theory is called
economic -base theory, and it depends on dividing
The economy into two sectors: the export sector and
the local sector. Exporters, such as automobile
manufacturers, hotels, and department stores, obtain
income from. CtIstorners outside of the community.
This "export income" then enters the local ecDnomy
in the form of'salaries, purchases of materials,
dividends, and so forth, and hecornes income to local
residents. Much edit is re -spent locally; some,
however, is spent for goods imported from outside of
the cortmmunityr. The dollars re. spent locally have an
or,unomic impact as they continue to circulate
through the local economy. This theory applies to amts
organizations as well as to other producers.
Studying Economic Impact Using
Input - Output Analysis
To derive the most reliable economic impact data,
input - output analysis is used to measure the impact of
experditures by norproCt atis and culture
organizations and their audiences. This is a highly
re�4arded type of economic analysis that has been the
basis for two Nobel Moos.. The models are systems
of mathematical equations that combine statistical
methods and economic theory in an area of study
caller) eccnometri . They trace how many times a
dollar is re -spent within the local economy before it
leans Taut, and it quantifies the econoric impact of
each round of spending, 'phis form of eeonornic
analysis is well suited for this study because it can be
custotnfzed specifically to each study region.
To complete the analysis for the City of Eugene,
project economists customized an input - output model
based on the local dollar flow between 533 llnely
detailed industries within the economy of Lane
County. This was accomplished by using detailed
data on employment, incomes, and government
revenues provident by the U.S. Department of
Commerce (County Business Patterns, the regional
Economic Information System, and the Survey of
State and Local .Finance), iocal tax data (sales taxes,
properly taxes, and miscellaneous ]owl option taxes),
as well as the survey data from the respnanding
nonprofit arts and culture organizations and their
audiences,
Arts & Econcm1cP?oVaarty t4/ I Arnaricans, for IM Ans 19
The Input- Output Process
The input- output model is based on a table of 533
finely detailed industries showing local sales and
purchases. The local and state eccrttorny of cacti
community is researched so the table can be
customized for each community. The basic
purchase patterns for local industries are derived
fi -orn a similar table for the U.S. economy for 2007
(the latest detailed data available from the U.S,
Depadment of Curnmerce }, The table is first
reduced to reflect the unique size and industry mix
of the local economy, based on data from C ouWy
Business patterns and the Regional 1lcvnomie,
Information System of the U.S. Department of
Commerce. It is then adjusted so that cnly
transactions with local businesses are recorded in
the inter - industry part of the table. This technique
compares supply and demand and estimates th+e
additionaJ imparts or exports required to make total
supply equal total demand. The resulting table
shows the detailed sales and purchase patterns of
the local industries. The 533 - industry table is then
aggregated to reflect the ,general activities of 32
industries plus local households, creating, a total of
33 industries. To trace changes in the economy,
each column is converted to shore the diYuet
requirements per dollar of gross output for each
sector. This direct- requirerrnants table represents the
"recipe" for producing the output of each industry.
The economic impact figures for Arts & liccortrsmi
Prospei rIVwere computed using what is called
an "iterative" procedure. This process uses the sum
of a power series co approximate thu solution to the
economic model. This is what the proxess looks liJke .
in matrix algebra:
T = IX + ABC + A2X + AI X + .., + An-X.
T is the solution, a column vector of changes in
each industry's outputs caused by the changes
represented in the column vector X. A is the 33 by
33 direct - requirements matrix. This equadon.. is used
to trace the d ire ul expenditures attributablc to
nonprofit ails organizations and their audieenees. A
mult.iplicr effect table is produccd that displays the
results of this equation, The total column is T, The
initial expenditure to be traced is IX (i is the identity
matrix, which is operationally equivalent to the
number 1 in ordinary algebra). Round I is AX, the
result of multiplying the matrix A by the erector X
(the ot;tPuts required of each supplier to produce the
goods and services purchased in the initial change
birder study). Round 2 is A2X, which is the result of
multiplying the matrix A by Round I (it answers the
carne question applied to Round 1: "What are the
outputs required of each supplier to produce the
goods and .services purchased in Round 1 of this
chain of events ? " ). Each of columns l through 12 in
the multiplier effects table represents ,one of the
elements in the continuing but diminishing chain or
expoDditures on the right side of'ihe equation. Their
sum, T, represents the total production required in the
local econoiny in response to arts activities,
Calculation of the total impact of the nonprofit arts
on the outputs of other industries (T) can now be
converted to impacts an the final incornes to local
residents by multiplying the outputs produced by the
ratios of hOrlsehold income to output and
employment to output. Thus, the employment impact
of changes in outputs due to arts expenditures is
calculated by multiplying elements in the column of
total outputs by the ratio of crnployrnent to output for
the 32 industries in the region, Changes in household
incomes, local government rcvcnues, and state
goverranertt revenues due to nonprofit arts
expenditures are similarly transformed. The same
process Is also wed to show the direct nnpact on
incornm and revenues associated with the column of
direct local expenditures.
A comprehensive description of the methodology
used to complete the national study is available at
iN wtr.America nsFat •TheArts.orgtEcortnmictmpact,
20 arts & EOWWmic rarasp -9rrfy W I Arnevicans far the A is
Frequently Used Terms
This section provides a glossary of economic impact terminology.
Cultural Tourism
Travel directed towa.LA expeiienc1ng the arts, heritage, and spec la. l character of a place.
Direct Economic Impact
A measurc of the eco"amie effect of the initial expenditure within a community. For example, when the
symphony pays its players, each musician's salary, the associated government taxes, and full -time equivalent
employment status represent Lbe direct economic impact.
Direct Expenditures
The first round of expenditures in the economic cycle. A paycheck from the symphony to the violin player end a
ballet curnpany s purchsse of dance shoes are examples of direct expenditures.
Econometrics
The process of using statistical methods and economic theory to develop a system of mathematical equations that
measures the flow of dollars between local irLdustrim The input - output model developed for this study is an
example of an econometric model.
Ecortornetrician
An economist who designs, builds, and maintains econometric models.
Full -Time Equivalent (FTE) Jules
A term that describes the total amount of labor employed.. Economists measure FTE jobs —neat the total number of
employees because it is a more accurate measure of total employment. It i5 a manager's discretion to hire one
full -time employee, two half -time employees, four quarter- -time employees, etc. Almost always, more people are
affected than are reflected in the number of FTE jabs reported due to the abundance of part -time employment,
especially in the nonprofit arts and culture industry.
Indirect Economic Impact
Each time a dollar changes hands, there is a measurable economic impact, When people and businesses receive
money, they re -spend much of that money locally. Indirect impact measures the effea of this re- spending on jobs,
household income, and revenue to local and state government. It is often referred to as secondary spending or the
dollars "rippling" through a community. When. funds are eventually spent non - locally, they are considered to have
"leaked" out of the corttmuriity and therefore cease to have a local economic impact. Indirect impact includes the
impact of all rounds of spending (except for the initial expenditure) until the dollars have ccornpletely "leaked out"
of the local economy.
Ads6Ecmom!cProspmtyW I ArnericanstarMe Arts . 21
Input-Output Analysis
A system of mathematical eeluatiow thal c+umbines statistical methods and economic theory in an area
economic study called econometrics. Ecunornists use this model (occasionally called an inter -industry mode[) to
measure low many times a dollar is re -spent in or "ripples" through, a community before it "leaks out" of the
local economy by being spent non - locally (see Leakage bclow). The model is based on a matrix that tracks the
dollar flaw between 533 finely detailed industries in encii voymmunity. It allows researchers to determine the
economic impact of local spending by nonprofit arts and culture organizations cn jobs, household income, and
government revenue.
Leafage
The money that community members spend outside of the local economy. This non-local spend ing has no
econonue impact within the community. A ballet compan purchasing shoes froth a non -local manufacturer is an
example of leakage. If the shoe company were lvral, the expenditure would remain within the ccantmimity and
create another rotund of spending by the shoe company.
Multiplier (often called Economic Ar,11vity - Multiplier)
An estimate Hof the number or times that a dollar changes hands within the community before it leaks Out of the
community (for example, the thm -ter pays the actor, the actor spends money at the grocery store, the grocery sure
pays its cashier, and so on). This estitnate i:s quantified as one number by which all expenditures are multiplied.
For example, if the Arts are a $10 trillion industry and a multiplier of three is used, then it is estimated that these
ails organizaLions have a total economic impact of $30 million. The ccnvcnicnce of at multiplier is that it is one
simple number; its shortcoming, however, is its reliability. Users rarely note that the multiplier is developed by
making gross estimates of the industries within the local economy with no allowance for differences in the
characteristics of those industries, usually resulting in an overestimation of the economic impact. In contrast, the
input- output rnodeI employed in 4rts & Economic Prosperity Ift is a type ofeconotnic analysis tailored
specifically to each comm tin ityr and, as such, provides more reliable and specific economic. impact re suits .
Resident Household Yn+eome (often called Personal Income)
The salaries, , wages, and entreprenourial income residents earn and "so to pay for food, mortgages, and rather
living expenses. It is important to note that resident household income is notiust salary. When a business receives
money, for example, the owner usually takes a percentage of the profit, resetting in income for the owner.
Revenue to Local and State Government
Local and state government revenue is not derived exclusively from income, property, sales, and other tars_ It
also includes license fees, utility fees, user fees, and fling fees. Local government revenue includes funds to city
and county government, schools, and special districts.
22 Ads & aggomr g Prosperity ib I AMeFicans for dho Arts
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
Why are the admissions expenses excluded from the analysis ofattdiencc
spending?
Researchers make the assumption that any admissions dollars paid by event attendees are typically collected as
mvenue for the organization that is presenting the event. The crgani tion them spends those dollars. The
admissions paid by audiences are excluded because those dollars are captured in the operating budgets of the
participating nonprofit arCs and culture organizations, This rrietJlodelogy avoids "double - counting" those dollars in
the analysis.
How is the economic impact of arts and culture organizations different from
other Industries?
Any time money changes hands there is a measurable euoncrnic impact. Social service organizations, libraries,
and all entities that spend money have an economic Impact. Wliat makes the economic impact of arts and cultrne
organizations unique is that, unlike most other indLigries, ihey induce large amounts of related spending by their
and iences. For example, when palrons attend a performing au•ts event, they may purchase dinner at a restaurant, eat
dessert after the shorn, and return home and pay the baby - sitter. All of these expenditures have a positive and
measurable impact on the economy.
Will my local legislators believe these results?
Yes, this study makes a strong argument to legislators, but you may need to ptovide them with some extra help. It
will be up to the user of this report to educate the public about economic impact studies in general and the results
of (his study in particular. 'I "he user may need to explain (1) the study methodology used; (2) that economists
created an input- output model far each enmmunity rind region in the study; and (3) the dif" MFIce between input-
output analysis and a multiplier. The good news is that as the number of economic impact studies completed by
ruts organizations and other special interest areas increases, so does the sophistication of community leaders
whose influence these studies are meant to affect. Today, most decision makers want to know what methodology
is being used and how and where the data were gathered.
You can be confident that the input- output analysis used in this study is a highly regarded model in the field of
economics (the basis of two Nobel Prizes i n economics). However, as in an prof field, there is
disagree,nrit about procedures, jargon, and the hest way tai determine results. Ask 12 artists to define art and you
may get 12 answers; expect the same of economists. You may meet an economist who believes that these studies
should be done d'rffierently (for example, a cost- benerit analysis of the arts).
How can a commuinity not participating in the Alerts and Economic Prosperity t
study apply these results?
Because of the variety of communities studied and the rigor with wkich the Ans & Economic Prosperity Itf study
was conducted, nonprofit arts and culture organizations located in communities that kuere not part of the study can
estimate their local economic impact, Estimates can be dertved by using; the Arn & E prosperity IV
Calculator (found at www „gmericansForl beArts.oWEcotiomiclrnpact). Additionally, users will find - sample
PowerPoint presentations, press releases, Op -Ed, attd other strategies fbr groper application of their estimated
economic impact data,
24 AFts & EwgQrrrj�”, PrMerRy 141 l americans tflr Ina Arts
Acknowledgments
Americans for the Arts expresses its gratitude to the many people and organizations
who made Ans & Economic Prosperity I V: The Economic Impact of Nonprojit Arts
and Culture OrganL-rations and Their Audiences in the City. of Eugene possible and
assisted in its coordination and production. Generous funding for this project was
provided by the Arts and Business Alliance of Eugene (a project of the Eugene Area
Chambcr of Commerce), which also served as the local project partner and as such
was responsible for the local implentation and data collection requirements of the
study.
Spcclal thanks to the John D. and Catherine T.
MacArthur Foundation and The Rtith Lilly Fund of
Amer icans for the Am for their financial suppoii of the
national implementation OrArts & Econamte
.Prosperity It
Thanks also to the Cultural Data Project (CDP), a
collaborative project of the Greater Philadetphia
Cultural Alliance, The Greater Pittsburgh Arts Council,
Pennsylvania Council on the Arts, The Pew Charitable
Trusts, VIC Williatin Perin Futindation, and The Heinz
Endowments (in each pariici.pating State, the CUP is
also the result of a collaborative partnership of public
and private furiders and advocacy agencies). The CDP
was created to strengthen arts and culture by
docurnenting and disseminating information an the arts
tired C111tLiTe sector. CDP data were L[Sed in the
economic impact analysis for all stud y regions located
in Arizona, California, Illinois, Maryland,
Massachusetts, Michigan, New York, Ohio,
Pennsylvania, and Rhode Island. For more information
about the Cultural Data Project, visit
www.culturaWata.org,
The City of Eugene's Participating
Nonprofit Arts and Culture
OrgitnizLions
This study could trot have been completed without the
cooperation of the 29 nonprofit arts and c"Iture
organizations in the City of Eugene, listed below, that
provided detailed financial and event atic-ndarice
i n fa rma(ion about their organization.
Actor's Cabaret 41' 'k%aftu; Arnazm Cc an n uni Ly Center; A rLq
Vmhrutia, City of Eugene Parks and Open Spaces D vision: Fugenu
Ralld COMPUlly; FuMp Coneca Choir; Fugpne OFom H'ugenr,
Public Library; Eugene Symphony Association, Inc.; Free
S hak-espoAm in the Parse; Hulk Center for the Pei ing A-rIs;
Jagabs Gallul; Jan Sbdit% Lano Arts Cuurwd-, Lauu Cvualy
Rd rVou rids & Lone Events Center; Lane Count;- Histod c a] Society
& Museum; Lord Leebrick Theatre Company; MECCA, Materials
K=barige. Center ror Community Arts; New Zone Artists
Collective; Pvtman Bar" Saturday Market fric.; Scroi nun di:
Lesbian Chorus ofEugene; Sparkplug barice Clducotianial
Rcwurces; Unlyersky of Orcpn dbia. Onegen Bad Festival;
Ulliversily of Ofegon Museum ofNatunil & Cultural History; U0
INILural Fartim;'UO Department of Dance; UQ Jordan Schitzer
museum or Art; and Young Wrilm, Aswciafion,
The City of Eugene's Participating
Nonprofit Arts and Culture Patrons
Additionally, this study could not have been coin pleted
without the cooperation ofthe 1,069 ants and culture
audience members who generously took the time to
cumpleto the audience-intercept survey while attending
a pllrfbrmanue, event, or exhibit within the City of
F,ugcnr,.
Arts& FowomjcPmsuaQy1V I Arnerkans for the Arts 25
26 rifts & Ee - omfc PrQsperr�y I'1 I Americans fer the Arts
"One of'the keys to building and sustaining communities and promoting
high quality economic development is support and funding of the arts, We
have witnessed, in some states, decreased support of the arts, which is
counterproductive and a major step backward. We reed to emphasize that
potential employers look at enrichment of lives as well as schools,
hospitals, libraries, and other essential services for the communities in
which they want to locate, We need to continue—and increase —our
support for the arts. In today's competitive marketplace, it has never been
truer that supporting the arts means lousiness."
Senator Steve Morris
President, National Conference of Mate Legislatures
"The Committee Encouraging Corporate Philanthropy (CECP), which is active
in measuring trends and best practices in corporate giving to the arts, values the
far - reaching research and leadership of Americans for the Arts, demonstrated in
the Arts & Economic Prosperity 10 series,"
— Charles H. Moore
Executive Director, Committee Encouraging Corporate Philanthropy
Thefbf,'ow?ng national or_qumzut;om partnef with Amerycaosful the Arts to
hpippubhc a ryd rrf ovate setur kaders cinders tzind the econcmic and soeW
benefits that the arts bring to th8ir communiVes, states, and the i7ation.
N A I'l (I
Su %I natm Civic
L*aderAlp C*Mef
AudW4 Cn W A-mM
4 Giant makers in I hw Arts NAigONAL C0H11KLPAC(' 99@&
STATE LF(,.191AV64FLF5 qqmpqmpmqw
A. od— NffaaiOLP".4i uldWis
Destination k ,
Marketing I'll ECON Fl?R EN( v, I t4.m it 13
AMERICANS
kr VOL A FR O TS."I
i uou Ve r wo nt Aw n u c. Nw, 6 h Floor
Washington, DC 20005
1 202
F 2 37
1E fese cerc h@ arts usa.e rg
www.Amedcan!5ForTiheArts.org