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