Philadelphia's cultural sector is optimistic for the future

In a survey of cultural organizations conducted this summer by the Cultural Alliance, responding nonprofit cultural groups were generally optimistic about the future, with 51% believing business conditions will improve in the next fiscal year and 3 out of 4 groups reporting that they have either increased programming recently or plan to do so in the future. The survey received 102 responses from a diverse mix of disciplines and budget sizes.

“Despite ongoing challenges in the broader environment, these findings are positive indicators, not just for cultural groups, but for the region as a whole,” said Maud Lyon, Cultural Alliance President.

Key findings of the survey include:

Cultural groups are optimistic about the future

• The majority of organizations (51%) believe business conditions will improve in the next fiscal year
• Programming is stable and increasing, with more than 3 out of 4 groups (71%) reporting that they have either increased programming recently or plan to do so in the future
• A significant majority (84%) have not decreased staff nor do they have plans to do so in the immediate future
• Almost 3 in 4 groups (71%)  have recently increased marketing budgets or plan to do in the immediate future and half of respondents (50%) report that they have recently increased fundraising budgets or plan to do in the immediate future
• Approximately one third (33%) of groups reported a deficit in their last completed fiscal year, but only 22% expect to have a deficit at the end of their current fiscal year.

Revenue has increased for many groups in the last 12 months

• Two out of five groups (38%) reported increased revenue from single ticket sales and general admissions revenue, with 9% of all groups reporting increases in revenue of greater than 25%. Conversely, 42% saw no change in sales revenue and 19% saw decreases in revenues.
• The majority of groups (52%) have recently increased prices of ticketing, memberships or subscriptions or plan to do so in the immediate future
• Individual giving increased for the majority of groups, with 51% reporting increases in individual giving and 10% of groups reported increases in individual giving revenue of greater than 25%. Only 13% of groups in the survey reported declines in individual giving. This is particularly notable given that, according to the 2014 Portfolio, individual giving revenue had declined 13% from 2009-2012.

Groups are continuing to adapt to the changing business environment

• Three out of four organizations say that changes in funding, both positive and negative, are driving change in their organization.
• Approximately two out of three organizations (62%) are exploring strategic collaborations and 1 in 3 (31%) are considering changing their business model

These results reflect the experience of 102 organizations representing a wide range of budget sizes and disciplines that responded to a questionnaire assessing the effects of the economy on their fundraising, programming and other activities.

About the Greater Philadelphia Cultural Alliance

Established in 1972, the Greater Philadelphia Cultural Alliance is the region’s leading arts and cultural advocacy, research and marketing organization. Our mission is to “lead, strengthen and give voice to a diverse cultural sector that is making Philadelphia a world-class region to live, work, and play.”  Our membership includes over 450 organizations ranging from museums and dance companies to community art centers, historic sites, music ensembles and zoos.

Our members, as well as the cultural community as a whole, count on the Alliance for signature research reports on the health and growth of the sector; grantmaking in partnership with the Pennsylvania Council on the arts; robust professional development and membership services; marketing and audience development through our signature consumer marketing programs, Phillyfunguide.com and Funsavers; and leadership in policy and community engagement through our GroundSwell advocacy initiative and STAMP teen program. For more information on the Cultural Alliance, please visit www.philaculture.org.