The arts are fundamental to our humanity. They ennoble and inspire us—fostering creativity, empathy, and beauty. The arts also strengthen our communities socially, educationally, and economically—benefits that persist even during a pandemic that has been devastating to the arts. The above 10 reasons show why an investment in artists, creative workers, and arts organizations is vital to the nation’s post-pandemic healing and recovery.
AEP6 is the sixth economic impact study of the nonprofit arts and culture industry in the U.S. This study is conducted approximately every five years to gauge the economic impact (on employment, government revenue, and household income) of spending by nonprofit arts and culture organizations and the event-related spending by their audiences. Previous studies were published in 1994, 2002, 2007, 2012, and 2017. (Due to the unique nature of the realities of the global COVID-19 pandemic, the AEP6 study was postponed for 16 months.)
In 2017, the previous study, AEP5, documented that the nonprofit arts and culture industry generated $166.3 billion in economic activity (spending by organizations plus the event-related spending by their audiences) which supported 4.6 million jobs and generated $27.5 billion in government revenue. The AEP series demonstrates that an investment in the arts provides both cultural and economic benefits.
Local and state research partners continue to collect audience-intercept surveys from attendees to in-person arts and culture events taking place in their community. This process will continue for 12 months from May 2022 through April 2023. As of November 1, Americans for the Arts has received a total of 50,171 audience surveys.
To make it easier to compare the economic impacts of different organizations located in Riverside County (or to calculate updated impact estimates in the five years ahead), 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 NONPROFIT ARTS AND CULTURE ORGANIZATIONS.
For every $100,000 in direct spending by a nonprofit arts and culture organization in Riverside County, there was the following estimated economic impact during fiscal year 2022.
An administrator from a nonprofit arts and cultural organization that has total expenditures of $250,000 wants to determine the organization’s total economic impact on employment in Riverside County. The administrator would:
1. Determine the amount spent by the nonprofit arts and cultural organization (in this example, $250,000)
2. Divide the total expenditure by 100,000 (in this example, $250,000 divided by 100,000 equals 2.5)
3. Multiply that figure by the employment ratio per $100,000 for Riverside County