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Cultural Groups Responding to New Environment: Programs, Collaborations Continue With Smaller Budgets & Staff
December 16, 2010 Philadelphia, PA – According to TempCheck, a periodic survey released today by the Greater Philadelphia Cultural Alliance, the region’s nonprofit cultural organizations are adjusting to a new reality. While many have stabilized financially, they now operate in a different environment, one in which they produce more programs with less money, fewer staff, and increasing pressure. Productive collaborations and partnerships with other cultural organizations are key to thriving in this new economy. As one respondent noted, “We have put great effort into forming long-term partnerships with organizations with whom we can combine marketing and audience engagement efforts. We have been very energized by the fact that organizations are eager to partner with us.” Overall, 46% of organizations surveyed either have or are expecting to do collaborate with others. This figure has remained consistent over the past year. Another respondent indicated that, “collaborations have really helped. We will sing with a local symphony in November; they will provide musicians for our December concert. Performing a new work brought us about one third new audience attendees.” Income investment has rebounded from its initial drop at the start of the recession, but this only impacts the largest cultural organizations. Staffing has also stabilized, but at new, lower levels. One organization summarized the new reality for most with this sentiment: “We are attempting to do more programming with fewer dollars to sustain interest in the museum during these difficult times. The organizations which endure the short term struggles will become the long time survivors.” Other key findings of the survey include: Individuals continue to lead the way. Single Ticket Sales and Admissions have remained level (47%) or slightly increased (31%) for the majority of cultural organizations. Subscriptions and memberships are also holding steady, with 63% of organizations reporting no change, and 21% reporting increases over the past six months. Individual giving continues to be a bright spot of financial support, with more than three quarters (80%) of all cultural organizations reporting stable or increased giving. This figure is up slightly from 75% six months ago, and 74% one year ago. Other contributed income remains uncertain. Just over half (54%) of all cultural organizations report relatively stable foundation support, while nearly a quarter (23%) report decreases. This is improving from six months ago, when almost one-third (30%) of all organizations reported declines in foundation support. Corporate support remains relatively flat, with 65% of all organizations reporting steady support from six months ago. The notable exception to this trend is among medium and large organizations, close to a third of whom (34% and 36%, respectively) report decreases. One year ago, 37% of all organizations reported decreases in corporate support; today, that figure has dropped slightly to 23%. Government funding continues to decline, with 49% of all cultural organizations reporting decreases. This figure remains consistent with those reported six months (49%) and one year ago (49%). The current concern is particularly acute for support and service organizations, 29% of whom report declines of more than 25% in government support. Overall, cultural organization budgets are beginning to stabilize. A majority of cultural organizations (68%) completed their most recent fiscal year in the black. Of those with a deficit, the bulk (60%) report a shortfall of only 1-10%. One year ago, 53% of organizations reported finishing in the black, and less than one-third (29%) of those with a deficit reported a shortfall of 1-10%. Three-quarters of cultural organizations (77%) are not expecting a deficit at the end of the current fiscal year, compared with just 47% at this time last year. Organizations are beginning to address the issue of capitalization, as well, an area that has benefited from recent studies and analysis by The Pew Charitable Trusts, The William Penn Foundation, Grantmakers in the Arts, Nonprofit Finance Fund, and other organizations. In keeping with capitalization theory that nonprofits need to establish flexible capital, nearly half (46%) report savings worth four or more months of expenses. Last year, this figure was at 37%. Cultural organizations have shifted their programming mix in response to the new reality. While many organizations are maintaining their programming activity, they are doing so with the belt tightened. Three out of every five cultural organizations (61%) have produced programs with lower budgets, compared to half (51%) one year ago. Among service and support organizations, the current figure rises to more than four out of every five (89%). Slightly more than half of all cultural organizations surveyed (54%) have actually increased programming in an effort to increase revenue. Six months ago, 43% of organizations had or expected to increase programming. These results reflect the experience of one hundred and one organizations representing a wide range of budget sizes and disciplines who responded to a questionnaire assessing the effects of the economy on their fundraising, programming, and other activities. The Cultural Alliance plans to field TempCheck on a regular basis to measure shifts over time. The survey was first administered in October 2008, and will next be administered in April 2011. The public can learn more about the Cultural Alliance’s research and advocacy efforts by signing up to receive advocacy alerts from the Cultural Alliance’s Online Action Center at www.philaculture.org For more information about the results, please contact John McInerney, Vice President of Marketing and Communications, at 215-399-3515 or johnm@philaculture.org. The Greater Philadelphia Cultural Alliance is a leadership organization of over 400 nonprofit arts and cultural institutions located primarily in the five counties of southeastern Pennsylvania. Its mission is to make Greater Philadelphia one of the foremost creative regions of the world. More information at www.philaculture.org The public can learn more about the Cultural Alliance’s research and advocacy efforts by signing up to receive advocacy alerts from the Cultural Alliance’s Online Action Center at www.philaculture.org For more information about the results, please contact John McInerney, Vice President of Marketing and Communications, at 215-399-3515 or johnm@philaculture.org. The Greater Philadelphia Cultural Alliance is a leadership organization of over 375 nonprofit arts and cultural institutions located primarily in the five counties of southeastern Pennsylvania. Its mission is to make Greater Philadelphia one of the foremost creative regions of the world.
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The work of the Greater Philadelphia Cultural Alliance is made possible through the generous support of committed individuals and institutions. |
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