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EXECUTIVE SUMMARY:- The role of Community-Based Creative Enterprises in Montana’s Economy

The economic impact study titled “The Role of Nonprofit Arts in Montana’s Economy“ was sponsored by the Montana Arts Council and conducted by the Bozeman research firm ArtsMarket, Inc.

The study surveyed Montana nonprofit arts organizations to assess how arts and cultural programs contribute to the state economy. Financial data collected on 137 Montana nonprofit arts institutions was used to calculate impacts.

This data was provided by the Internal Revenue Service and supported by surveys conducted in the fall of 2002 by ArtsMarket, Inc. For a complete copy of “The Role of Nonprofit Arts in Montana’s Economy” please contact the Montana Arts Council by email with your request and your mailing address. [email protected]. The report is 84 pages. Questions concerning this research can be directed to Sean Becker,

ArtsMarket Inc.
*Awarded for the best overall research conducted for cities population 50,000-200,000

EXECUTIVE SUMMARY AND KEY FINDINGS

Like a cool summer breeze or the electricity that gives light to our homes, the arts are often taken for granted until their absence is felt. In as much as we all know it is easier to fill a pond before it is empty, it makes sense that we need to keep Montana’s arts afloat, to prevent the dissolving of Montana’s arts, particularly during questionable economic times.

Consider how much the arts add to the quality of life we enjoy, the education our children receive and the communities we share. The arts positively affect and unite Montanans in hundreds of ways. The arts also flow into our businesses, our jobs and our bank accounts in just as many ways. This research has been conducted to illustrate just a few of the ways the arts affect our economy through arts organization and audience spending. Here are a few key findings.

* 137 Montana nonprofit arts institutions have a total economic impact of $85 million on the Montana economy

The multiple impacts of the arts are a critical component of Montana’s economy. The arts affect Montanans in so many ways that it is difficult to plumb the full depth of their impact. Even when only evaluating the impact Montana’s individual nonprofit arts organizations and their attending audience has on the economy, the findings are robust. This study found that Montana’s arts organizations spent $22.2 million on programming and operations during the 2001-2002 fiscal year. The total economic impact of the 137 organizations and their attending audience was $85.1 million, generating the following:

* 1,949 full-time jobs paying an average of $18,275 per job

* $35.8 million in payroll income

* $13.5 million in tax revenues with $4 million staying local

* 260,000 out-of-state visitors

Montana’s arts organizations invest in the Montana community. Last year, local arts organizations allowed only 12 percent of their annual operating budgets to leak from the state’s economy yet attracted over 17 percent of their audience from out of state.

* 88 percent of dollars spent by arts organizations are spent locally

* One-sixth of the Montana nonprofit arts audience travels from out of state

The arts draw upon an altruistic component of our communities that rarely exist in any other industry. The arts potentially provide the largest non-reimbursed workforce in the state with each of the 6,600 volunteers giving an average of 30 hours a year.

* 6,600 volunteers contributed 200,000 hours to the arts

o This is the equivalent of donating 200 full-time employees

o Or donating $1.8 million in payroll*

Montana’s arts organizations are a great investment for the state. Close to one-third of the tax revenue stimulated by arts organization and audience expenditures stays in Montana and is used by local and state government agencies.

* $100,000 in tax revenue is generated by an average Montana arts organization for the federal government, the State of Montana and the local municipality or county

* $13.5 million in tax revenue is generated by Montana’s nonprofit arts

o $4 million in tax revenue stays in Montana

o $9.5 million in tax revenue goes to the U.S. Government

An average nonprofit arts organization is exceptionally efficient and effective – serving thousands of people with an average operating budget of $160,000. Montana’s arts organizations are resourceful in touching the most lives possible. In order to do this, the Montana Arts Council’s budget of $1.5 million provides seed money towards the arts activities of 154 organizations. In 2002 alone, 331 grants were awarded that affected thousands of children and adults.

* 10,000+ people were served by the average Montana nonprofit arts organization in the last year

* 1,500,000 audience members were touched by 137 Montana arts organizations

* 123,000 children were served by Montana Arts Council grant recipients in 2002

Montana’s nonprofit arts industry is a significant component of the state’s economy. The total full-time equivalent employment impact of the arts of nearly 2,000 jobs generated would put the arts above 33 other Bureau of Economic Analysis sectors in Montana including data processing (832 jobs), waste management (808 jobs), fishing (893 jobs) and petroleum and coal products manufacturing (942 jobs).

* Montana’s arts have a greater employment impact than one-quarter of the state’s top 100 industries

* 1,959 full-time jobs arts generated by the impact of 137 arts organizations

o 990 jobs are generated by arts organization operations

o 969 jobs are generated by audiences attending arts events

INDIVIDUAL CITY KEY FINDINGS

BILLINGS
The nonprofit arts in Billings have a $15.83 million dollar impact generating $2.5 million in tax revenue and 365 jobs from $4.1 million in operating budgets and 22,000 volunteer hours.

BOZEMAN
The nonprofit arts in Bozeman have a $11.25 million dollar impact generating $1.8 million in tax revenue and 259 jobs from $2.9 million in operating budgets and 14,380 volunteer hours.

BUTTE
The nonprofit arts in Butte have a $2.65 million dollar impact generating $420,000 in tax revenue and 61 jobs from $0.7 million in operating budgets and 3,720 volunteer hours.

GREAT FALLS
The nonprofit arts in Great Falls have a $11.99 million dollar impact generating $1.9 million in tax revenue and 277 jobs from $3.1 million in operating budgets and 10,000 volunteer hours.

HELENA
The nonprofit arts in Helena have a $15.67 million dollar impact generating $2.5 million in tax revenue and 361 jobs from $4.0 million in operating budgets and 4,300 volunteer hours.

KALISPELL – WHITEFISH
The nonprofit arts in Kalispell – Whitefish have a $2.05 million dollar impact generating $325,000 in tax revenue and 48 jobs from $527,000 in operating budgets and 33,000 volunteer hours.

MISSOULA
The nonprofit arts in Missoula have a $15.07 million dollar impact generating $2.4 million in tax revenue and 347 jobs from $3.9 million in operating budgets and 20,000 volunteer hours.

REST OF MONTANA EXCEPT THE TOP SEVEN CITIES
The nonprofit arts across the rest of Montana have a $10.6 million dollar impact generating $1.7 million in tax revenue and 241 jobs from $2.9 million in operating budgets from 53 organizations with the help of 84,000 volunteer hours – nearly ½ of the volunteer hours in the state valued at $770,000 in donated payroll.

ALL OF MONTANA
The nonprofit arts in Montana have an $85.1 million dollar impact generating $13.5 million in tax revenue and 990 jobs from $22 million in operating budgets with the help of 200,000 volunteer hours.**

* The estimate of $1.83 million in payroll is calculated by multiplying the average wage supported by the arts ($18,275) by the number of full-time equivalent positions volunteered (100). This number is not part of the total impact of $85.1 million that was generated by nonprofit arts organization and audience expenditures only. The impact of individual artists and the arts volunteer workforce is outside the scope of this study.

**Volunteer hours have not been included in this study as having any economic impact other that noting in the executive summary that the full-time equivalent reimbursement for donated time could equal $1.8 million.

http://www.art.state.mt.us/resources/resources_artseconomic.htm

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