Final Summary
Economic Impact Survey
Cultural Council of Greater Jacksonville
Northeast Florida Center for Community Initiatives
University of North Florida
December 8, 2003
Dr. Jeffry Will, Director, CCI
Tim Cheney, Assistant Director
T. Mason Brown, Research Assistant
I
EXECUTIVE SUMMARY
Arts and culture are powerful tools in the economic and cultural development of public
spaces. Numerous economic impact studies have shown that the arts can have a strong
positive influence on the development and revitalization of downtown areas, as well as
contributing to the tax revenue base, the public image of an area and the business and
cultural diversity in a community. Consequently, an economic impact evaluation is an
important tool for highlighting the continued success and positive effects of the arts in
any given area. This study represents information from 34 cultural organizations
located in Duval County, Florida. The results were collected from March 2003 through
July 2003 and represent each organization’s most recently completed fiscal year.
In order to investigate the economic impact of arts and culture in the greater
Jacksonville area, the Northeast Florida Center for Community Initiatives, at the
request of the Cultural Council of Greater Jacksonville, conducted an economic impact
study of a number of cultural organizations located within Duval County. These
organizations provided data about their operations, such as how many employees they
have, how much income they generate and how income is used. The results indicate:
•
In all, these organizations reported almost 1.4 million admissions, a number that
is almost two times the number of people living in the city of Jacksonville and its
Beaches (2000 census);
•
Cultural organizations in Jacksonville had incomes of over $42.9 million;
•
Nearly $42 million of expenses were reported by cultural organizations, most of
which was spent in the local economy;
•
Cultural organizations in Jacksonville directly supported 354 full-time and 376
part-time jobs;
•
7,682 volunteers donated more than 166,000 hours to cultural organizations;
•
An economic impact of over $82.42 million, using a final spending multiplier of
2.0 and subtracting out funds not spent locally.
1
II
INTRODUCTION
Art museums, theaters, galleries, and zoos in any given city enhance the lives of
residents by offering entertainment and recreation, as well as providing educational
opportunities.
Improving the quality of life in an area can attract not only new businesses looking to
relocate, but also tourists and the potential profits they represent. Arts and cultural
events improve and enhance the quality of life and thus the attractiveness of any given
city to companies considering relocation of corporate headquarters or business facilities
(Neiman, 1994). Also, in today’s economy, many cities rely on tourist dollars to survive.
The arts and other cultural activities are a major factor in attracting out-of-town visitors
(Moses, 2001). Visitors then spend money outside of art-related activities, on items
such as food, lodging and parking, just to name a few (Moses, 2001).
The arts stimulate the local economy through the jobs they create and the money the
organizations spend. The arts are often labor intensive and as such they create many
full and part-time jobs for local residents. One estimate from 2000, noted over 250
separate occupations that are dependent on the arts (Cameron, 2000). Additionally,
money is returned to the local economy as the organizations purchase various goods.
The salaries and operating expenses paid out by local cultural organizations infuse
money into the local economy in a way that short-term or one-time events cannot
match. Once a year events have strong, but quickly subsiding effects on a local
economy. These events have the greatest impact soon after the event ends and do not
provide a permanent stimulus for the local economy in the way year-round activities do
(Perry, 1990).
Non-profit cultural organizations generate tax revenue, despite the fact that they are
exempt from taxation. These taxes include federal income taxes, employer social
security contributions and state taxes on income and sales (Economic impact of the
non-profit arts and cultural industry in Connecticut, 1997). It is estimated that
2
nationwide, non-profit arts organizations contributed $7.3 billion to state government
revenue and $10.5 billion in federal income tax revenue for the year 2000 (Americans
for the Arts, 2003).
Perhaps the most impressive numbers are national estimates of the economic impact of
the arts. A 2003 report by the Americans for the Arts utilizing data from 91
communities across the nation found that America’s non-profit arts industry generated
$134 billion in economic activity during 2000, including $53.2 billion in spending by
non-profit arts organizations and $80.8 billion in event-related spending by audiences
across the U.S.
As the economic impact of the arts is based on regional characteristics, such as the
number and size of arts organizations in a particular city, each area must be studied on
an individual basis to obtain accurate estimates. In order to investigate the economic
impact of the arts in Jacksonville, the Northeast Florida Center for Community
Initiatives conducted a similar economic impact study of a number of arts organizations
located within Duval County. Data from the organizations was used to provide
estimates of the economic impact of the arts on the local economy.1
1
In the following discussion we report on the economic impact only of the arts organizations responding to the
survey. No estimate can be given with regard to the overall economic influences in the Jacksonville area over the
past several years.
3
III
METHOD
The Cultural Council Economic Impact surveys were distributed in the spring of 2003 to
44 organizations in the Jacksonville area. Distribution of the survey was split into two
parts. The Cultural Council was responsible for distributing and receiving surveys for 25
organizations who were part of their re-granting program. The Cultural Council was
able to make the survey required for grant compliance for these 25 organizations,
resulting in 24 of the 25 returning the survey. The Center for Community Initiatives
(CCI) was then responsible for the distribution and collection of surveys from 19
additional organizations. Several rounds of follow-up phone calls, e-mails and even
personal visits were conducted, resulting in responses from 10 additional organizations.
The extensive follow-up effort on this survey was done to ensure a representative sample
of arts and cultural organizations in Jacksonville2.
The terms respondents and organizations are used interchangeably throughout this
report. While reading it, therefore, it is important to keep in mind that the report
summarizes data for only 34 organizations3, and thus represents only a lesser portion
of the overall impact of the Arts and Culture Community in Jacksonville. Were we
able to obtain such information on all arts agencies, galleries, special events, arts
groups, guilds, outside promoters, and organizations within Jacksonville, the overall
economic and social impact would be significantly higher than reported here.
2
Of the 10 organizations that did not complete the survey, two maintained that the survey did not apply to
them, either because they were not involved in any shows or activities during the previous fiscal year, or
because the organization was not actively involved in public arts activities. Three organizations indicated
that they were too busy to complete the four-page survey, and another indicated that they do not disclose
income and expenditure information. The remaining four organizations failed to respond to the survey
and follow-up efforts for reasons unknown.
3
Results published in the 2002 Study are displayed when applicable as a reference point for this years study.
Further, charts for the 2002 Study are given in Appendix B.
4
IV
ORGANIZATIONAL DEMOGRAPHICS
The respondents represent a variety of cultural organizations in the Jacksonville area;
they vary in size, age and cultural discipline. Some are small non-profit organizations
that have no paid employees, whereas others are large institutions with over 100 paid
employees and many more volunteers. Of those organizations reporting an
incorporation date, nearly 47 percent are well-established within the community and
have been in business for 20 or more years, whereas others (39.2 percent) are less than
10-years-old.
The types of organizations that responded to the survey encompass many disciplines
within the arts. When asked to self-describe the primary activities for the organization,
the most popular areas organizations reported were music, museum, theatrical,
presenter, and educational activities. These accounted for three-quarters of all
organizations. Dance and historical activities were the next most commonly reported.
Organization Primary Type
Theater, 15%
Other, 16%
Educational, 12%
Museum, 15%
Historical, 3%
Presenter, 15%
Music, 18%
Dance, 6%
5
V
ORGANIZATION SIZE
Clearly, there is a wide assortment of the types and sizes of organizations sampled in
this survey. To facilitate meaningful discussion of the results, the respondents were
broken down according to size, based on yearly income. Organizations with annual
operating revenues of more than $750,000 were classified as Level I; those with income
between $250,000 and $750,000 were classified as Level II; and those with income less
than $250,000 in a fiscal year were classified as Level III. Three organizations failed to
respond to the fiscal questions of the survey and as a result are not included in figures
based on organization size.
Organization Size by Annual Operating Income
Level I (More
than
$750,000)
26%
Level III (Less
than
$250,000)
51%
Level II
($250,000 $750,000)
23%
6
VI
INCOME
Contributed Income- Over 85 percent of the organizations received funding from
private or membership contributions, although the amounts varied greatly between
them. Individual organizations reported varying levels of private contributions ranging
from $100 to just under $1 million. The total amount of private contributions for the
organizations was just over $4,400,000. In addition, over 67 percent of the
organizations received funding from corporate memberships or sponsorships.
Corporate funding ranged from $800 to well over $1 million. When totaled, the
corporate funding accounted for more than $2,400,000.
Almost 62 percent of organizations received foundation grants ranging from $500 to
over $300,000. Among the respondents, the total amount received from foundation
grants was more than $980,000.
Contributed Income
Dollar Amount
Private/Membership Contributions
$4,412,632.82
Corporate Memberships/Sponsorships
$2,470,939.98
Foundation Grants
$981,267.67
TOTAL
$7,864,840.47
Public Funding- Public funding through the Cultural Services Grant Program was
received by more than 61 percent of respondents, totaling more than $2.9 million. Just
over 20 percent of organizations received public funding from the Jacksonville
Children’s Commission. Those that obtained funding from this source received amounts
ranging from $450 to $7,500 and totaling $25,666.
Four organizations received funding from the Duval County School Board in amounts
from $20,000 to over $260,000, totaling $492,498.
Funding by federal agencies, such as the National Endowment for the Arts (NEA) or the
National Endowment for the Humanities (NEH), was a significant source of income for
7
three of the respondents. The three organizations that did receive funding were
awarded $10,000, $56,000, and $825,927. Two organizations obtained funding from
the Tourist Development Council in amounts of $800 and $5,492. No organizations
received funding from the Department of Housing and Urban Development (HUD)
during the reporting year.
The State of Florida provided funding to 38 percent of the respondents. Organizations
received from $2,559 to over $680,000, totaling more than $1.4 million.
In addition to the private and public funding specified on the survey, over one-third of
the organizations received additional public funds from other sources, such as the City
of Jacksonville and a variety of local foundations. Though no direct correlation can be
drawn from the amount the City gives to arts organizations and the amount of economic
impact, it should be noted that the City of Jacksonville allocated approximately $4
million dollars to all arts organizations.
Of those who received other funds, nearly all received less than $75,000 (11). Two
respondents received much larger amounts, ranging from just over $100,000 to more
then $1.2 million. Overall, the organizations received more than $1.6 million from other
public funds.
Public Funding Sources
Dollar Amount
Cultural Services Grant
$2,901,313.00
Children’s Commission
$25,666.00
Tourist Development Council
$6,292.00
School Board
$492,498.00
HUD
$0.00
Federal (NEA, NEH, etc.)
$891,972.00
State of Florida
$1,479,086.00
Other
$1,674,195.00
TOTAL
$7,471,022.00
8
Endowments- Ten respondents reported having an established endowment. While
the combined value of these endowments was more than $36 million, the worth of each
endowment varied greatly from $2,600 to well over $20 million. Eight of these
organizations indicated that they generated income from their endowments. The
amounts of generated income varied from $779 to more than $1.6 million.
Earned Revenue- In addition to private and public funding, another source of
revenue for the organizations was admission fees. Twenty-one organizations (61.8
percent) generated income through admissions. Those who profited from admissions
earned from $2,100 to over $2.4 million, with three organizations reporting admissions
revenue over $1 million. The respondents earned a total of $6.7 million in admissions.
Many respondents (55.9 percent) also received revenue from contracted services, such
as rental income or performance fees. The amounts earned from this source ranged
from $425 to over $730,000. Of those that received income from contracted services,
14 reported earning less than $100,000. Five others earned more than $175,000. Total
income earned through contracted services was over $1.9 million, down from over $4
million last year.
Approximately 29 percent of organizations generated revenue from tuition, class, or
workshop fees, earning between $2,300 and $262,550. Just over 44 percent of the
respondents earned revenue by auxiliary or guild fundraisers. More of these
organizations (nine) earned less than $45,000; however, six organizations earned
between $100,000 and $550,000.
Income from interest or investments was also a source of revenue for many
organizations (70.6 percent). In general, these organizations earned less than $40,000
from investments; however, three organizations earned between $155,000 and $1.65
million.
Restricted Income- About 30 percent of respondents received restricted income for
capital purchases. Half of these organizations (five) received less than $30,000, while
9
the other half received more than $600,000 each. Overall, income for capital purchases
totaled more than $13.5 million, a large increase from last year’s $2.6 million.
Other Income- Two respondents reported earnings through other methods. These
organizations indicated earnings ranging from $2,780 for compact disc sales to over
$208,000 from ticket service charges, concessions and other miscellaneous items.
Source of Income
Dollar Amount
Admissions
$6,757,548.54
Contracted Services
$1,963,701.00
Tuition, Class, or Workshop Fees
$623,094.50
Auxiliary or Guild Fundraisers
$1,740,888.00
Interest or Investments
$2,730,623.00
Restricted Income
$13,568,723.00
Other
$211,499.00
TOTAL
$27,596,077.04
Sources of Income
Restricted
income
31%
Contributed
income
19%
Earned income
33%
Public funding
17%
10
VII
EMPLOYEES, VOLUNTEERS AND INTERNS
Types of Positions- Thirty percent of the organizations reported employing
performers during the previous year. Level III groups with performers averaged
approximately six per organization, whereas Level II organizations averaged
approximately 102 performers and Level I groups averaged 65.
Most organizations reported administrative positions including directors, managers and
coordinators. Only seven Level III organizations indicated that they employed no
administrators. Level III and Level II organizations tended to employ between one and
four administrators, whereas Level I organizations employed an average of nearly 13.
Approximately two-thirds of respondents employed support staff. Those that did not
tended to be Level III organizations. Of those with support staff, Level II and Level III
organizations reported employing five or fewer, with the exception of one Level III
organization that employed 12. Level I organizations with support staff employed
significantly more, averaging 25.
Employees, Volunteers and Interns
Amount
Full-time Employees
354
Part-time Employees
376
Independent Contractors
260
Volunteers
7,682
Interns
128
TOTAL
8,800
Nearly 70 percent of organizations employed independent contractors during the last
fiscal year. The number of contractors varied according to the size of the organization.
Level III organizations employed an average of five independent contractors, Level II
11
organizations employed an average of 19, and Level I organizations averaged almost 14
contractors.
About 21 percent of respondents employed other individuals, such as journalists,
laborers, docents, molders and historians. Most of these organizations hired fewer than
15 employees in this category; however, one Level I organization employed 44.
Full and part-time Employees- Over 60 percent of the respondents reported that
they had paid full-time employees. Three-fourths of those with paid full-time employees
reported having 25 or fewer full-time employees. The majority of Level III organizations
had no full-time employees and all Level II organizations employed seven or fewer.
Level I organizations tended to employ more than 10 people and as many as 120.
Part-time employment patterns were similar to full-time employment patterns. Almost
two-thirds of the respondents had part-time employees. Close to 88 percent of those
with part-time staff had fewer than 25. Forty percent of the Level III organizations had
part-time employees and employed fewer than eight of this type of employee. Level II
organizations tended to employ four or fewer individuals on a part-time basis. Level I
organizations employed part-time individuals and generally employed more than 20
and as many as 150 part-time workers.
Volunteers- The number of volunteers was noticeably higher than the number of paid
employees. Ninety-four percent of the organizations reported having volunteers. These
organizations reported having from 15 to over 1,600 volunteers, with the number of
volunteered hours ranging from 100 to over 25,000. Number of volunteers varied
according to organization size, with Level III organizations reporting an average of 82
volunteers, Level II organizations averaging just over 89 (down from 300 the previous
year), and Level I organizations averaging almost 729 volunteers per group. The
number of board members tended to vary according to organization size. Level III
organizations averaged 14 board members, while Level II organizations averaged close
to 21, and Level I organizations averaged almost 32. A total of close to 166,000 hours
were volunteered overall.
12
Interns- Approximately 36 percent of respondents indicated that they had unpaid
volunteer interns, while only one organization reported having a paid intern. Level I
organizations tended to utilize interns more often than Level II and Level III
organizations.
13
VIII
PERFORMANCES AND ADMISSIONS
Performances- Over 97 percent of respondents had events during the past year. The
majority (88.2 percent) of those reported having fewer than 60 events. One Level II and
three Level I organizations hosted more than 60 events, with one Level I hosting as
many as 784. Many of the respondents hosted multiple performances of their events.
Level II and III organizations tended to host under 100 performances, while Level I
groups were more likely to host over 100.
Admissions- Over 52 percent of organizations had some full-price admissions within
the past year. The Level III organizations with full-price admissions tended to average
slightly more than 4,030 full-price admissions. Level II organizations ranged from 600
admissions to more than 65,000. Level I organizations had the most full-price
admissions, with an average of more than 131,000 admissions, and reported totals up to
327,000.
Approximately 32 percent of respondents offered reduced-price admissions.
Throughout the year, Level I, Level II and Level III organizations offered from 20 to
over 159,000 reduced-price admissions.
Nearly three-quarters of respondents offered free admissions. Level III organizations
offered an average of 1,745 free admissions, down from 4,300 last year. Both Level II
and Level I organizations offered more free admissions than Level III organizations,
each averaging just under 9,000, down from 21,000 last year and 54,610, up from
40,000 last year, respectively. This difference may be due to more performances or
showings with larger audiences.
Admission Type
Attendance
Full-price
783,384
Reduced-price
195,482
Free
407,847
TOTAL
1,386,713
14
IX
EXPENSES
Respondents completed a table detailing their operating expenses, including personnel
expenses, operating expenses, marketing/promotion expenses and capital expenditures.
Personnel Expenses- The organizations surveyed spent over $16 million on full and
part-time personnel. Of those with paid employees, Level III organizations averaged
approximately $33,162 per organization on personnel expenses; whereas Level II
organizations averaged more than $180,000 and Level I organizations averaged over
$1.8 million.
A total of more than $3.4 million, a significant amount of money, was spent on
contracted and outsourced personnel for three-quarters of the organizations. Of those,
the amount spent varied with the size of the organization, with Level III organizations
spending the least (approximately $22,000 per organization) and Level I organizations
spending the most (averaging nearly $372,500 per organization). Level II organizations
spent just over an average of $96,000 per organization.
Personnel Expenses
Dollar Amount
Full-time and Part-time
$16,054,849.00
Contracted and Outsourced
$3,453,041.00
TOTAL
$19,507,890.00
Operating Expenses- Rental expenses were broken down into space, equipment and
other rental expenses. Space rental was the most commonly reported rental expense,
incurred by more than 60 percent of the respondents. Close to 63 percent of Level III
organizations reported space rental expenses, compared to nearly 86 percent of Level II
organizations and half of the Level I organizations. Level III organizations tended to
spend less money on space rental fees than Level II or Level I organizations.
15
Respondents spent just over $518,000 on space rental, which represents an increase of
140,000 over last year. Approximately one-third of respondents reported equipment
rental expenses. Level I organizations were the most likely to rent equipment (62.5
percent). Level II organizations tended to spend less than $3,000, whereas Level I
organizations tended to spend upwards of $7,500, and as much as $54,000. A total of
over $138,000 was spent on equipment rentals. Three organizations reported rental
expenses other than those for space or equipment, totaling over $12,000.
Over 85 percent of respondents spent money on supplies and materials, totaling over
$2.3 million, the bulk of which (over $1.2 million) was spent by one Level I organization.
Most Level II and all Level III organizations spent less than $30,000 on supplies,
whereas most Level I organizations spent more than $30,000.
Most respondents had utilities and telephone expenses, although three Level III and one
Level II organizations reported no expenses in this area. The Level III organizations
that reported these expenses all spent less than $12,500. Level II organizations spent
between $1,000 and $20,000. Level I organizations tended to spend more than
$25,000 in this area, and as much as $283,000. Total expenses for utilities and
telephone service were over $1 million.
More than 82 percent of respondents had postage and shipping expenses, totaling over
$227,000. Of these, each Level III organization paid an average of approximately $800,
and Level II and Level I organizations paid averages of just over $3,380 and $24,000,
respectively.
Over $162,000 was spent on travel expenses, most by Level I organizations.
Approximately 31 percent of Level III organizations had travel expenses, whereas 57
percent of Level II and 100 percent of Level I organizations had expenditures in this
area. Of those with travel expenses, Level III organizations averaged just over $1,110,
whereas Level II and Level I organizations averaged slightly more then $2,600 and
$18,200, respectively.
16
Insurance expenses constituted an important portion of the budget for close to 83
percent of organizations. Level III organizations generally spent less than $6,500 on
insurance. Level II organizations spent between $1,325 and $20,000. Level I
organizations spent significantly more, tending to spend more than $20,000 and as
much as $150,000. A total of more than $569,000 was spent on insurance.
Fundraising expenses were specifically reported by 47 percent of respondents, totaling
over $563,000. Level III organizations with fundraising expenses spent an average of
more than $11,000. Level II organizations reported fundraising expenses less than half
the average of Level III respondents at just under $3,850. Level I organizations with
fundraising expenses spent the most, averaging close to $94,000 per organization, with
one respondent spending over $219,000.
Most of the respondents (67.6 percent) had other operating expenses, such as
maintenance fees, consulting fees, printing fees, communications, dues and
subscriptions, and exhibition expenses. These other expenses totaled over $4.2 million.
Of those with other operating expenses, Level III organizations averaged just under
$14,000, Level II organizations averaged almost $49,000 (down from $108,000 last
year) and Level I organizations averaged over $639,000.
17
Operating Expenses
Dollar Amount
Space Rental
$518,066.00
Equipment Rental
$138,210.00
Other Rental Expenses
$12,121.00
Supplies and Materials
$2,377,736.76
Utilities and Telephone
$1,022,549.00
Postage and Shipping
$227,861.22
Travel
$162,002.10
Insurance
$569,184.40
Fundraising Expenses
$563,368.00
Other Operating Expenses
$4,246,298.00
TOTAL
$9,837,396.48
Marketing and Promotional Expenses- The majority of the respondents (73.5
percent) had advertising expenses. Of these, Level III organizations spent an average of
over $3,300 (down from $7,500 last year) and Level II organizations spent an average
of nearly $22,000. Level I organizations spent significantly more on advertising,
averaging almost $144,000 with amounts as high as $416,000. The total spent on
advertising was close to $1,200,000.
More than half of the organizations (53 percent) had promotional expenses. Most
organizations with these expenses spent less than $50,000, with the exception of one
Level I organization. This respondent spent significantly more, approximately
$390,000. Total spent on promotions was over $508,000.
Approximately one-third of respondents had other marketing expenses, such as food
and entertainment, totaling over $518,000. These expenses ranged greatly from $80 to
over $390,000.
18
Marketing and Promotional Expenses
Dollar Amount
Advertising
$1,186,085.97
Promotions
$508,331.33
Other Marketing Expenses
$518,319.74
TOTAL
$2,212,737.04
Capital Expenditures/Purchases- Just under half of the organizations had capital
expenditures. All Level I organizations reported expenditures, while only four Level II
and four Level III organizations reported making capital purchases. This is a slight
increase over the last study where only two Level II and zero Level III organizations
reported making a capital purchase. The seven Level I organizations all had higher
expenditures than any of the Level II or Level III organizations and six of the seven
Level I organizations individually expended totals more than all of the Level II and III
organizations combined. Costs ranged from slightly less than $3,000 to over $3.3
million, and totaled over $7.9 million.
Other Expenses- Approximately two-thirds of the respondents listed additional
expenses, such as program costs, outside services and depreciation. These expenses
totaled over $2.4 million, excluding re-grant funding allocated by the Cultural Council.
Total Expenses
Dollar Amount
Personnel
$19,507,890.00
Operating Expenses
$9,837,396.48
Capital Expenditures
$7,909,708.00
Advertising/Promotions
$2,212,737.04
Other
$2,473,804.69
TOTAL
$41,941,536.21
19
Expenses
Other
6%
Advertising /
Promotions
5%
Capital
expenditures
19%
Personnel
46%
Operating
expenses
24%
20
X
DISCUSSION/CONCLUSION
Within the study period, almost 1.4 million people participated in the arts and cultural
activities in Duval County. This number is almost two times the number of people living
in Jacksonville and the Jacksonville Beaches area. Over 44 percent of these admissions
were on a free or reduced price basis.
An interesting illustration of the importance of the arts in a local area is to compare the
attendance at arts activities to attendance at local sports events. The city of Jacksonville
hosts two professional sports teams: the Jacksonville Jaguars of the National Football
League and the Jacksonville Suns baseball team of the Southern League. In the past
year4, more people attended arts and cultural events than attended both Jaguar and
Suns games combined. This suggests that the arts are an attraction that draws a
significant number of people and serves as an essential local activity.
Yearly Attendance at Jacksonville Events
1,600,000
Number of people
1,400,000
1,386,713
1,200,000
1,000,000
800,000
450,216
600,000
400,000
359,979
200,000
0
Arts and Cultural
Events
Jaguars Games
4
Suns Games
Figures for the Jacksonville Jaguars reflect total attendance for 2002-2003 home games. Figures for the
Jacksonville Suns reflect total attendance for 2003 home games.
21
In the past fiscal year, the Jacksonville cultural organizations surveyed in this study had
a total income of over $42.9 million and expenses of just under $42 million. Most of the
nearly $42 million spent was infused into the local economy, with the exception of
money spent on travel and insurance premiums. When these costs are subtracted, a
total of over $41.21 million was spent locally.5
The economic impact of money spent locally increases when the multiplier concept is
applied. The Bureau of Economic Analysis (BEA) of the U. S. Department of Commerce
has developed a method from which regional multipliers can be estimated. Based on
this system, local economists have suggested a final spending multiplier of 2.0 for funds
spent by cultural organizations. This means that every dollar of spending in a local
economy by an arts organization would generate another dollar of spending over time.
Using this final spending multiplier of 2.0, spending by only these 34 cultural
organizations6 in Jacksonville is estimated to have had an economic impact of over
$82.42 million on the local economy in the period recorded in this study.
The arts industry in Duval County represent one of the major economic influences
within our community. As an “industry,” the arts are a major employer; as an
investment, the arts represent perhaps the best return on the dollar. If 34 providers
represent over $82.42 million in direct and indirect economic support of the
community, the impact of all of these cultural activities must be staggering. Given this
influence, Jacksonville would be well served to increase support for the arts and culture.
5
It is important to consider that the current study did not include ancillary spending by audiences, such
as dining, lodging, parking, babysitters, and transportation in its estimate of economic impact. In
addition, the current study did not assess the tax revenue created by cultural organizations through
income and social security taxes, and state taxes collected on sales such as concessions or gift shops.
6
It is also important to note that many providers of events and services (including out-of-town concert
promoters, private galleries, City and Beaches sponsored events, etc) were not included in this survey.
22
References
Arts and Economic Prosperity. (2003). Americans for the Arts.
Cameron, B. (2000). A letter to the President. American Theatre, 17, 4.
Economic impact of the non-profit arts and cultural industry in Connecticut. (1997).
Connecticut Commission on the Arts.
Moses, N. (2001). Have a plan, and make the most of arts and culture. Public
Management, vol. 83, issue 11.
Neiman, J. (1994). Jobs, the arts, and the economy: The Arts are a sound investment.
Public Management: September, 13-18.
Perry, J. M. (1990). The economic impact of a National Football League team on the
Northeast Florida economy.
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APPENDIX A
PARTICIPATING ORGANIZATIONS
Atlantic Beach Experimental Theatre
Jacksonville Museum of Modern Art
Beaches Area Historical Society
Jacksonville Symphony Association
Beaches Art Center
Jacksonville Zoological Gardens
Beaches Fine Arts Series
Karpeles Manuscript Library Museum
Cathedral Arts Project
Mandarin Museum and Historical Society
City Kids Art Factory
Museum of Science and History (MOSH)
Cultural Council of Greater Jacksonville
Players-by-the-Sea
Cummer Museum of Art and Gardens
Ritz Theatre and LaVilla Museum
Delius Association of Florida
River City Playhouse
The Don Thompson Chorale
Riverside Avondale Preservation
First Coast Wind Ensemble
Riverside Fine Arts Association
FCCJ- Wilson Center for the Arts
St. Johns River City Band
The Florida Ballet
Shoshannah Arts
Florida Theatre Performing Arts Center
Teal Sound Youth Arts Organization
Jacksonville Centre of the Arts
Theatre Jacksonville
Jacksonville Children's Chorus
Theatreworks
Jacksonville Masterworks Chorale
WJCT Public Broadcasting
24
APPENDIX B
2002 SURVEY METHODS AND ORGANIZATIONAL CHARTS
METHODS
The Cultural Council Economic Impact surveys were mailed during the winter of 2001 to 49
organizations with which the Cultural Council has ongoing relationships. Three rounds of
follow-up phone calls were conducted, resulting in responses from a total of 25
organizations7. In addition to the 25 returned surveys, the Cultural Council provided
information for one additional organization. The extensive follow-up effort on this survey
was done to ensure a representative sample of arts organizations in Jacksonville.
Of the 23 organizations that did not complete the survey, three maintained that the survey
did not apply to them, either because they were not involved in any shows or activities
during the last fiscal year, the organization closed, or because the organization was not
actively involved in public arts activities. Four organizations indicated that they were too
busy to complete the four-page survey, and two others indicated that they do not disclose
income and expenditure information. The remaining 14 organizations failed to respond to
the survey and follow-up phone calls for reasons unknown.
The terms respondents and organizations are used interchangeably throughout this report.
While reading it, therefore, it is important to keep in mind that the report summarizes data
for only 26 organizations, and thus represents only a small portion of the overall impact of
the Arts Community in Jacksonville. Were we able to obtain such information on all arts
agencies, galleries, special events, arts groups, guilds, outside promoters, and organizations
within Jacksonville, the overall economic and social impact would be significantly higher
than reported here.
7
This economic impact report includes information and data on Cultural Council programs. Income and expenses
related to the Cultural Services Grant Program have been recorded by the recipient organizations which participated in
this study. Therefore, it has not been recorded again through the Cultural Council’s data.
25
ORGANIZATIONAL CHARTS
2002 Survey Organization Type
Other
12%
Theatre
15%
Presenter
8%
Dance
4%
Music
27%
Museum /
Education
30%
Historical
4%
2002 Survey Organization Size by Income
Level I (More
than $750,000)
29%
Level III (Less
than $250,000)
51%
Level II
($250,000 $750,000)
20%
26
2002 Survey Sources of Income
Restricted
income
8%
Contributed
income
19%
Earned income
45%
Public funding
28%
2002 Survey Sources of Expenses
Other
16%
Advertising /
Promotions
4%
Personnel
50%
Capital expenditures
11%
Operating expenses
19%
27