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Using Data to Foster Thriving Arts Organizations

www.smu.edu/artsresearch

Zannie Voss
Director, NCAR
Professor and Chair of Arts Management
and Arts Entrepreneurship
Meadows School of the Arts &
Cox School of Business

Using Data to Foster Thriving Arts Organizations

NCAR + TACA

DALLAS ARTS ORGANIZATIONS:


A NATIONAL
COMPARISON
www.smu.edu/artsresearch
Zannie Voss
Director, NCAR
Professor and Chair of Arts Management
and Arts Entrepreneurship
Meadows School of the Arts &
Cox School of Business

SMU National Center for Arts Research (NCAR)


Advancing the arts through evidence-based knowledge

Vision Statement
To act as a catalyst for the transformation and sustainability of the
national arts and cultural community

Mission Statement
To be the leading provider of evidence-based insights that enable arts
and cultural leaders to overcome challenges and increase impact

Partners
IRS 990s on 40,000+ arts
organizations

Indices &
Dashboard
Creation

400+ theaters nationally

14,000+ arts &


cultural
organizations

Strategy

Data

Modeling the Arts & Culture Ecosystem

Arts & Cultural


Organizations
Operating characteristics,
Decisions & Outcomes

Cultural Data Project


Theatre Communications Group
NCCS IRS 990s

Community
Arts Dollar Activity*
Arts & Culture Providers*
Other Leisure Activities
Socioeconomic & Demographic
characteristics
Census Bureau
Cultural Data Project

*These form the basis of our Arts Vibrancy Index metrics

Public Arts Funding*


NEA
IMLS
NASAA

Cultural Data Project

SMU National Center for Arts Research (NCAR)


Advancing the arts through evidence-based knowledge
Mission Statement
To be the leading provider of evidence-based insights that enable arts and
cultural leaders to overcome challenges and increase impact

What are the Important Questions to Ask about Health & Impact?
Contributed
revenue

Earned
revenue

Balance Sheet

Expenses

Community
Engagement

Marketing
Impact

Program
Activity

Bottom Line

Staffing

What outcomes should we examine in order to answer the questions?


Do we have data on those outcomes?

Dallas County compared with all 3,144 U.S. counties

Dallas County compared with all 3,144 U.S. counties


A ranking of 95 means Dallas County is in the top 5%. That means
there are about 157 counties that rank higher.

Dallas County, TX (95)


(100=top market)

Arts dollars ranking:

97 Program revenue:
Contributed revenue:
Total expenses:
Total compensation:

97
97
97
95

Arts providers ranking:

92 Arts organization employees:


Independent artists:
Arts & entertainment employees:
Arts organizations:

96
74
93
84

Government grant activity: 65 State government dollars:


State government number:
Federal government dollars:
Federal government number:

21
52
82
77

Dallas-Plano-Irving Metro Division

MSAs are delineated geographic areas consisting of one or more counties that have high social and economic integration
with an urban core. Focusing on MSAs captures the network of suburbs that rise up around a city. Where the OMB breaks
down 11 very large MSAs (population cores of 2.5 million or more) into Metropolitan Divisions, we do the same.
Metropolitan Divisions function as distinct social, economic, and cultural areas within the larger MSA, kind of like MSAs
within MSAs. Our Metro Division is Dallas-Plano-Irving.

Dallas-Plano-Irving Metro Division compared with


937 U.S. MSAs and Metro Divisions

Ranking of 91 means there are about 87 MSAs that rank higher.

Dallas-Plano-Irving (91)

Dallas County, TX (95)

(100=top market)

(100=top market)

Arts dollars ranking:

97 Program revenue:
Contributed revenue:
Total expenses:
Total compensation:

97
97
97
95

Arts dollars ranking:

94 Program revenue:
Contributed revenue:
Total expenses:
Total compensation:

93
94
94
91

Arts providers ranking:

92 Arts organization employees:


Independent artists:
Arts & entertainment employees:
Arts organizations:

96
74
93
84

Arts providers ranking:

84 Arts organization employees:


Independent artists:
Arts & entertainment employees:
Arts organizations:

94
68
84
78

Government grant activity: 65 State government dollars:


State government number:
Federal government dollars:
Federal government number:

21
52
82
77

Government grant activity: 57 State government dollars:


State government number:
Federal government dollars:
Federal government number:

20
54
75
62

Market Clusters: 5 Individual Markets*


Population: 14.1 million
Ave. Expenses: $3.3 million
Population: 7.3 million
Ave. Expenses: $1.4 million
Population: 1.5 million
Ave. Expenses: $1.9 million
S.F.

New York

Chicago
DC
Population: 4.6 million
Ave. Expenses: $3.3 million

L.A.
Population: 10 million
Ave. Expenses: $1.9 million

The characteristics we chose for determining similar markets were population, density and size of arts and
cultural organizations, state grant dollars in the market, and median income in the community. These 5
markets did not cluster with anyone else.
*CDP Markets, only

Market Clusters: Other Large Markets*, Dallas, and Chicago


Minneapolis/
St. Paul.

59.5%
38.3%

Chicago

Riverside
Santa Ana
San Diego

Phoenix

Atlanta
Dallas
Houston

There is annual data on 401 organizations in Chicago, 40 in Dallas, and 345 total from the 7 Other Large
Markets (an average of 49/market).
*CDP Markets, only

7 Other Large Markets


(ave. pop. 3.8 million)

Dallas
(pop. 4.4 million)

Chicago
(pop. 7.3 million)

Market Clusters: Other Large Markets*, Dallas, and Chicago


Minneapolis/
St. Paul.
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0

$39,086

$39,080 $40,578

40

35

34

30

59.5%
38.3%

20
10
Chicago
0

Median Income

Riverside
Santa Ana
San Diego

35

Median Age

Phoenix

Atlanta
Dallas
Houston

*CDP Markets, only

7 Other Large Markets


(ave. pop. 3.8 million)

Dallas
(pop. 4.4 million)

Chicago
(pop. 7.3 million)

Market Clusters: Other Large Markets*, Dallas, and Chicago


Income Distribution, Education
22%21% 22%

25%

18%
17%
16%

20%
15%
10%

Minneapolis/
St. Paul.

7%

10%
8%

59.5%
38.3%

5%
0%
Percentage of
households with
median income
>$200k

Riverside
Santa Ana
San Diego

Percentage of
households in
poverty

Percentage of
population with a
bachelor's
degree or higher

Chicago

Phoenix

Atlanta
Dallas
Houston

*CDP Markets, only

7 Other Large Markets


(ave. pop. 3.8 million)

Dallas
(pop. 4.4 million)

Chicago
(pop. 7.3 million)

Market Clusters: Other Large Markets*, Dallas, and Chicago


Ethnic/Cultural Diversity
35%

34%

30%
25%

18%

20%
15%
10%

8% 6% 8%

10%

20%

Minneapolis/
St. Paul.
25%

22%

59.5%
38.3%

5%
0%

Chicago

Percentage of the Percentage of the Percentage of the


pop.
pop. Africanpop. AsianHispanic/Latino
American
American

Riverside
Santa Ana
San Diego

Phoenix

Atlanta
Dallas
Houston

*CDP Markets, only

7 Other Large Markets


(ave. pop. 3.8 million)

Dallas
(pop. 4.4 million)

Chicago
(pop. 7.3 million)

Market Clusters: Other Large Markets*, Dallas, and Chicago

Millions

25%
$3
20%
$2
15%
$2
10%
$1
5%
$1
0%
$0

Average
Organizational
Expenses &
Income
Distribution, Education
Revenues
22%21% 22%
$2.34$2.25
18%
17%
16%
7%

10%
$1.37 $1.31$1.36
59.5%
8%
$.73

$1.12

$.86
38.3%
$.67

Percentage of
Percentage of
Percentage of
population
with a
households
in
households
with Ave.
Ave. earned
unrestricted
Ave. total
bachelor's
poverty
median income
revenue
(before
contributed
expenses
(before
degree
or higher
>$200k
cap. Gains)
revenue
depr.)

Riverside
Santa Ana
San Diego

Minneapolis/
St. Paul.

Phoenix

Chicago
Distribution of Arts Organizations by Size
Large (over $1
million)

100%

Dallas
Medium ($250,000

60%

to $1 million)

Houston

Small (under
$250,000)

*CDP Markets, only

7 Other Large Markets


(ave. pop. 3.8 million)

80%

28%

25%

31%

29%

41%

46%

Other
Large
Markets

Dallas

Atlanta

20%

40%
20%

14%

66%

0%

Dallas
(pop. 4.4 million)

Chicago

Chicago
(pop. 7.3 million)

To what extent do Earned Revenue and


Unrestricted Contributed Revenue cover Total
Expenses?
0%

Other Large
Markets

Dallas

Chicago

20%

40%

48.0%

38.3%

48.6%

Earned revenue (less capital gains)

60%

80%

100%

56.0%

59.5%

53.5%

Unrestricted contributed revenue

Other Large Markets: Minneapolis, Atlanta, Houston, Phoenix, Riverside, San Diego, Anaheim-Irvine-Costa Mesa

Dallas arts organizations support more expenses with contributed revenue and less expenses with
earned revenue than arts organizations in Other Large Markets and Chicago.

To what extent do Earned Revenue and


Unrestricted Contributed Revenue cover Total
Expenses?
0%

Other Large
Markets

Dallas

Chicago

20%

40%

48.0%

38.3%

48.6%

Earned revenue (less capital gains)

60%

80%

100%

56.0%

59.5%

53.5%

Unrestricted contributed revenue

Other Large Markets: Minneapolis, Atlanta, Houston, Phoenix, Riverside, San Diego, Anaheim-Irvine-Costa Mesa

Dallas arts organizations support more expenses with contributed revenue and less expenses with
earned revenue than arts organizations in Other Large Markets and Chicago.

To what extent do programmatic and nonprogrammatic earned revenue and capital gains
cover expenses?
60%

50%

40%

48.0%

6.3%

6.4%

48.6%

9.1%
38.8%

3.8%

6.0%

0.8%

30%

20%

38.5%

42.9%
34.4%

10%

0%

Other Large Markets

Dallas

Chicago

Capital gains
Non-programmatic (i.e., rentals, interest income, etc.)
Program Revenue (i.e., all revenue earned because people participated in your programs)

Dallas arts organizations support less expenses with each area of earned revenue than arts
organizations in Other Large Markets and Chicago.

To what extent do programmatic and nonprogrammatic earned revenue and capital gains
cover expenses?
60%

50%

40%

48.0%

6.3%

6.4%

48.6%

9.1%
38.8%

3.8%

6.0%

0.8%

30%

20%

38.5%

42.9%
34.4%

10%

8.4%

12.4%

8.4%

0%

Other Large Markets

Dallas

Membership &
Subscription
Revenue

Chicago

Capital gains
Non-programmatic (i.e., rentals, interest income, etc.)
Program Revenue (i.e., all revenue earned because people participated in your programs)

The opposite is true of membership/subscription revenue.

To what extent does unrestricted support from


each of these sources cover expenses?
0%

10%

20%

30%

40%

Trustees
Individuals
Corporations
Foundations
Government
Special Events

In-kind

8%
7%
7%

3%
4%
2% 4%
4%
5%
6%
2%
5%
4%
3%
5%

United Arts, Parent, and


Related Org. Support
3%
3%
3%

60%

56.0%
59.5%
53.5%

Unrestricted contributions
4%
6%
4%

50%

3%
14%
4%

NARTR

Other Large Markets

21%
15%
19%

Dallas

Chicago

Dallas organizations tend to cover more of their expenses with trustee giving, united fund and
related organization support than Other Large Markets or Chicago, ...

To what extent does unrestricted support from


each of these sources cover expenses?
0%

10%

20%

30%

40%

Trustees
Individuals
Corporations
Foundations
Government
Special Events

In-kind

8%
7%
7%

3%
4%
2% 4%
4%
5%
6%
2%
5%
4%
3%
5%

United Arts, Parent, and


Related Org. Support
3%
3%
3%

60%

56.0%
59.5%
53.5%

Unrestricted contributions
4%
6%
4%

50%

3%
14%
4%

NARTR

Other Large Markets

21%
15%
19%

Dallas

Chicago

Dallas
organizations
to cover
more ofcover
theirmore
expenses
with trustee
united
fund
and
whereas
Other Largetend
Markets
and Chicago
government
support giving,
and NARTR
than
Dallas.
There was 1%related
or lessorganization
difference in individual,
corporate,
special
and in-kind
support.
support than
Other foundation,
Large Markets
orevent,
Chicago,
...

What percentage of Unrestricted Contributed


Revenue comes from each Government source?
0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

6.0%
3.2%

Local

5.6%
3.2%
State

0.5%
1.5%

NEA/IMLS

0.6%
0.3%
2.0%
Other Large Markets

Dallas

Chicago

Dallas arts organizations have comparatively less support from all levels of government,
particularly local and state.

What is the Fundraising Return on Investment


and Marketing Return on Investment*?
$9

$8.88

$8.63

$8.49

$8

$7.12
$7

$6.09
$6

Other Large Markets


$5
Dallas
$4
Chicago

$3.68

$3
$2
$1
$0

Return on Fundraising

Return on Marketing

*Return on marketing includes all revenue earned due to people participating in program activity.

Return on Fundraising is very similar for organizations in Dallas and Other Large Markets and
higher in these markets than in Chicago.

What is the Fundraising Return on Investment


and Marketing Return on Investment*?
$9

$8.88

Non-personnel costs only

$8.63

$8.49

$8

$7.12
$7

$6.09
$6.21

$6

Other Large Markets


$5
Dallas
$4
Chicago

$4.34
$3.68

$3

$2.90

$2

Includes
personnel
costs

$1
$0

Return on Fundraising

Return on Marketing

*Return on marketing includes all revenue earned due to people participating in program activity.

Return on
Fundraising
is very similar
organizations
in every
Dallas
and spent
OtheronLarge
Markets
and
However,
Dallas
arts organizations
earn lessfor
program
revenue for
dollar
marketing
than those
in Other Large Markets orhigher
Chicago,
and they
spend proportionally
less on marketing personnel.
in these
markets
than in Chicago.

How much Marketing Investment does it take to


bring in one person, and how much Program
Revenue is earned per attendee?
$0

Other Large
Markets

$5

$15

$20

$25

$3.76
$16.35

$7.98

Dallas

Chicago

$10

$23.19

$3.29

Marketing Expenses per Attendee

$19.28

Program Revenue per Attendee

Dallas organizations spend twice as much to bring in each attendee than organizations in Other
Large Markets or Chicago but they then earn more per attendee once someone attends.

How much Marketing Investment does it take to


bring in one person, and how much Program
Revenue is earned per attendee?
$0

$5

$10

$15

$20

$25

$12.59
Other Large
Markets

$3.76
$16.35
$15.21
$7.98

Dallas

$23.19
$15.99

Chicago

$3.29

Marketing Expenses per Attendee

$19.28

Program Revenue per Attendee

The
result
is that Chicago
organizations
earntomore
revenue
attendee than
Dallas
organizations
spend
twice as much
bringnet
in program
each attendee
thanper
organizations
inthose
Otherin
Dallas,orwhich
earnbut
more
Other Large
Large Markets
Chicago
theythan
thenorganizations
earn more perinattendee
onceMarkets.
someone attends.

How many people are engaged per offering and


what is the amount of total unrestricted operating
revenue generated per program offering?
$28,636
585

654

$25,141

People per offering

$18,788

Revenue per offering


286

Other Large Markets

Dallas

Chicago

Organizations in Other Large Markets and Chicago engage twice as many people per
programmatic offering than do organizations in Dallas. They also generate higher revenue per
offering.

How much is the total cost of serving each


person (not including virtual attendance)?
$0

Other Large Markets

$10

$20

$30

$40

$50

$70

$80

$42.36

Dallas

Chicago

$60

$67.27

$45.73

Dallas organizations spend 1/3rd more in total on programming, fundraising, and general
administrative expenses for every attendee than organizations in Other Large Markets and
Chicago.

How much revenue is directly invested in


programs, considering all direct costs related to
programs and then only the costs of paying artists
and program personnel?
80%
70%

68.8%

60%
50%

Investment in
Program

60.2

58.6%

40%
30%

Investment in
20%
Program Personnel

53.0%
40.1%

36.2%

10%
0%

Other Large Markets

Dallas

Chicago

Dallas organizations spend more resources on program than those in Other Large Markets and
Chicago. They invest much more in artists and program personnel.

What is the Bottom Line relative to Expenses?


8.0%
6.0%

6.0%
4.6%

4.0%

1.2%

2.0%

0.3%
0.0%
-2.0%

-1.3%

-1.4%

-4.0%

-2.0%
-3.5%

-6.0%
-8.0%

Other Large Markets

Dallas

-7.0%
Chicago

Unrestricted net surplus/deficit


Operating surplus/deficit (before depr.)
Operating surplus/deficit (after depr.)

Dallas organizations average a negative bottom line regardless of how it is calculated. The effect
of depreciation expenses heavily impacts organizations in Other Large Markets and Chicago.

What is the Bottom Line relative to Expenses?


8.0%
6.0%

6.0%
4.6%

4.0%

1.2%

2.0%

0.3%
0.0%
-2.0%

-1.3%

-1.4%

-4.0%

-2.0%
-3.5%

-6.0%
-8.0%

Other Large Markets

Dallas

-7.0%
Chicago

Unrestricted net surplus/deficit


Operating surplus/deficit (before depr.)
Operating surplus/deficit (after depr.)

However, Small and Medium organizations in Dallas average a positive bottom line across all
measures. Across all markets: 1) Small organizations ran a positive average bottom line, and 2)
the larger the organization, the more likely it is to run a deficit.

How many months of working capital does the


organization have? What is the relationship
between its access to readily available cash and
its annual budget?
19.8

20.0

165%
15.0

11.2
10.0

94%
5.0

3.6

3.1

1.6

30%

26%
0.0

-5%

13%
-0.6

-5.0

Other Large Markets


Months of Working Capital

Dallas

Chicago

Months of Available Cash

Dallas organizations have fewer months of working capital and access to available cash than
organizations in Other Large Markets and Chicago.

SUMMARY OF KEY TAKE-AWAYS


Dallas arts organizations in the CDP:

Benefit from higher trustee giving and related organization (i.e. TACA) funding.

Have lower public funding at every level and lower NARTR, so less funding given in
a prior year for future activity. Generate higher return on fundraising than Chicago
but lower return on marketing than either Chicago or Other Large Markets.

Spend twice as much to bring in each attendee than organizations in Chicago or


Other Large Markets and earn more per person once someone attends. Chicago
organizations net more program revenue per person than other markets.

Attract fewer people per offering and revenue per offering, and serve fewer people
relative their budget size.

Invest more of their budgets in program and program personnel.

Struggle to break even, keep up with cash flow needs and maintain access to cash,
especially large organizations.

FOOD FOR THOUGHT


It is great to have TACA in Dallas. What could we imagine for the arts
in the city if we had TACA funding AND strong public arts funding?
The marketing nut is critical to crack.
What are the opportunities for programming that is compelling to
Hispanics/Latinos, African-Americans and Asian-Americans in our
community? They are the majority.

These areas presents big opportunities for growth.

Thank you!

www.smu.edu/artsresearch