The Economic Impact of Nonprofit Arts Organizations

Nonprofit arts organizations annually generate an estimated $53.2 billion in economic activity, a 45 percent increase over the $36.8 billion generated in 1992.

This economic activity has a measurable impact on the treasuries at the federal, state and local levels. Nonprofit arts organizations return:

• $5.6 billion in federal income taxes
• $3 billion in state government revenue
• $2.4 billion in local government revenue

Nonprofit arts organizations leverage a significant amount of event-related spending by their audiences. Attendance at arts events generates related commerce for hotels, restaurants, parking garages and more. Arts attendees spend an average of $22.87 per person, not including the price of admission. This annually results in:

• $80.8 billion of event-related spending by arts audiences
• $4.9 billion in federal income taxes
• $4.3 billion in state government revenue
• $4.2 billion in local government revenue

Nonprofit arts organizations support 2.09 million jobs.  Of this amount, 1.14 million jobs are a result of direct expenditures by arts organizations—representing close to one percent of the U.S. workforce.  This percentage gains significance when compared to other fields:

• Accountants and Auditors - 0.67 percent
• Lawyers - 0.47 percent
• Physicians and Surgeons - 0.41 percent
• Professional Athletes - 0.04 percent

The nonprofit arts industry generates $134 billion in total economic activity. This impact sends a strong message to communities that when they support the arts, they not only enhance the quality of community life but also invest in its economic well being.