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and does not allow for differences in the characteristics of those industries. Using an economic activity multiplier usually results in an overestimation of the economic impact and therefore lacks reliability. Why are the admissions expenses excluded from the analysis of audience spending? Researchers assume that any admissions dollars paid by event attendees are typically collected as revenue for the organization that is presenting the event. The organization then spends those dollars. The admissions paid by audiences are excluded because those dollars are captured in the operating budgets of the participating nonprofit arts and cultural organizations. This methodology avoids"double-counting"those dollars in the analysis. How is the economic impact of arts and culture organizations different from other industries? Any time money changes hands there is a measurable economic impact. Social service organizations, libraries, and all entities that spend money have an economic impact. What makes the economic impact of arts and culture organizations unique is that, unlike most other industries,they induce large amounts of related spending by their audiences. For example,when patrons attend a performing arts event,they may purchase dinner at a restaurant,eat dessert after the show,and return home and pay the baby-sitter. These expenditures have a positive and measurable impact on the economy. Will my local legislators believe these results? Yes,this study makes a strong argument to legislators,but you may need to provide them with some extra help. It will be up to the user of this report to educate the public about economic impact studies in general and the results of this study in particular. The user may need to explain(1)the study methodology used; (2)that economists created an input-output model for each community and region in the study;and(3)the difference between input- output analysis and a multiplier. The good news is that as the number of economic impact studies completed by arts organizations and other special interest areas increases,so does the sophistication of community leaders whose influence these studies are meant to affect. Today,most decision makers want to know what methodology is being used and how and where the data were gathered. You can be confident that the input-output analysis used in this study is a highly-regarded model in the field of economics(the basis of two Nobel Prizes in economics). However,as in any professional field,there is disagreement about procedures,jargon,and the best way to determine results. Ask 12 artists to define art and you may get 12 answers;expect the same of economists. You may meet an economist who believes that these studies should be done differently(for example, a cost-benefit analysis of the arts). How can a community not participating in the Arts and Economic Prosperity 5 study apply these results? Because of the variety of communities studied and the rigor with which the Arts& Economic Prosperity 5 study was conducted,nonprofit arts and cultural organizations located in communities that were not part of the study can estimate their local economic impact. Estimates can be derived.by using the Arts& Economic Prosperity 5 Calculator(found at www.AmericansForTheArts.org/Economiclmpact). Additionally, users will find sample PowerPoint presentations,press releases, Op-Ed, and other strategies for proper application of their estimated economic impact data. 28 AMERICANS FOR THE ARTS(Arts&Economic Prosperity 5 SPI -