Every four years America gets another chance to make its voice heard. And every four years the American arts community, in a way, gets a bit of a fiscal makeover.
How is that? Well, it has to do with how the nonprofit arts in America are funded and how policy affects those funding sources. And every four years, no matter who wins elections across our country, there are new policymakers in town.
Roughly 10 percent of the $61 billion aggregate budgets of the nonprofit arts in America comes from government—mostly local and then state government and finally federal sources. Yes, this is a tiny portion of the whole, and it is actually a lot smaller than many people, including many politicians, think. This 10 percent is indeed a small amount compared to the 30 percent the private sector—(mostly) individuals—chips in and the 60 percent that comes from earned and investment income.
But that 10 percent is critical in what is a very conservative funding model for arts in our country. I call this model conservative because a very modest government investment leverages more than 60 times as much private and earned revenue to create a whole industry and support millions of jobs. How?
A $146 million investment from the federal government directly leverages close to $5 billion more in local and state government investment, which in turn helps leverage another $50 billion to create the $61 billion nonprofit arts industry in America.
This model has helped grow an industry from a handful of organizations in 1965—when the federal cultural funding agencies like National Endowment for the Arts (NEA) and National Endowment for the Humanities (NEH) came into being—to more than 110,000 arts businesses today. Read the rest of this entry »