The Economic Impact of Nonprofit Arts Organizations

• 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.

• Nonprofit arts organizations generated an estimated $53.2 billion in economic activity in 2002, a 45% 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 tax revenues
• $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 tax revenue
• $4.3 billion in state government revenue
• $4.2 billion in local government revenue

• Nonprofit arts organizations support 2.09 million full-time equivalent jobs.  Of this amount, 1.14 million jobs are a result of direct expenditures by arts organizations — representing close to 1% 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

Source: Arts & Economic Prosperity, Americans for the Arts, 2002