Index-Specific Drivers Earned Revenue
What Drives Earned Revenue (before capital gains)?
Earned Revenue (before capital gains)
What organizational characteristics affect this performance?
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Earned revenue increases with organizational age, square footage, budget size, the number of programmatic offerings, number of local premieres, median ticket price, the amount spent on marketing and on programming, the number of subscribers/members, total in-person attendance, targeting kids, and being awarded NEA or IMLS grants.
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When organizations receive higher levels of support from local or state government, present higher numbers of world premieres, or target Asian-Americans, African-Americans, or Hispanics/Latinos, earned revenue tends to be lower.
How do community arts and leisure characteristics affect performance?
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Earned revenue tends to be higher for organizations in communities with higher levels of total arts dollar activity and more public broadcast dollar activity.
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The more organizations in the arts education, community, and symphony orchestra sectors, the higher earned revenue for all organizations in each sector. By contrast, more sector competitors in music, opera, PACs, theatre, or ‘other’ museums drives down earned revenue for organizations in each of these sectors.
How do socio-demographic characteristics of the community affect performance?
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Earned revenue is higher for organizations in communities where total population is higher, the percentage of the population that is under 18, African-American, or Asian-American is higher, and the socioeconomic level is higher.
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As the median age or percentage of the population either Asian-American or African-American increase, earned revenue levels go down.
What impact does cultural policy have on performance?
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Government grant activity in the market had no effect on earned revenue.
What Drives Total Expenses (before depreciation)?
Total Expenses (before depreciation)
What organizational characteristics affect this performance?
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Higher total expenses — i.e., larger budgets — tend to occur for older organizations, those with high levels of funding from local or state government, with more members and/or subscribers, and with larger staffs. Total expenses also are higher for those organizations that spend more on marketing, offer more programming, and present more local premieres.
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Expenses tend to be lower for organizations that target Asian-Americans.
How do community arts and leisure characteristics affect performance?
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Total expenses are higher for organizations in communities with high levels of total arts dollar activity, total number of arts providers, more public broadcast dollar activity, and more leisure activities, which in this case act as complements.
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The more art museums or ‘other museums’, the smaller the budget tends to be for the organizations in each of these two sectors. By contrast, having more arts education organizations in a market tends to mean larger budgets for those competing organizations.
How do socio-demographic characteristics of the community affect performance?
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Total expenses are greater in communities with a higher percentage 18-24-year olds, larger population, or higher socio-economic level.
What impact does cultural policy have on performance?
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Higher levels of state and federal government grant activity in the local market tend to result in higher total expenses.