MOST RECENT SURVEY FOR THE ORANGE COUNTY BUSINESS COMMITTEE FOR THE ARTS REPORTS THAT ECONOMIC IMPACT OF THE ARTS FOR 1997 ROSE TO A NEW HIGH OF $281.6 MILLION, CREATING JOBS FOR 4,725, MAKING NONPROFIT ARTS ORGANIZATIONS THE COUNTY'S 8TH LARGEST NON-GOVERNMENT EMPLOYER.
The fourth Economic Impact of the Nonprofit Arts, released October 29, 1998, was prepared jointly by the OCBCA and the A. Gary Anderson Center for Economic Research at Chapman University. The report compares data for nonprofit arts groups in Orange County covering the years of 1989, 1993, and 1997.Fifty of the largest nonprofit arts organizations in the county submitted extensive survey data on which the study was based. The total economic impact of the responding nonprofit arts groups in Orange County was $281.6 million. Leading the nonprofit arts organizations in economic impact are those in the performing arts category, with a total impact of $199.1 million. The county's museums accounted for $27.0 million, while other arts groups contributed $55.5 million.
Results of the economic impact were released at a news conference by Donald P. Kennedy, then chairman of the OCBCA, and Dr. James L. Doti, president of Chapman University. They were joined by Dr. Esmael Adibi, director of Chapman University's A. Gary Anderson Center for Economic Research.
Doti stated, "It has been exciting to be partners with the Orange County Business Committee for the Arts in a project that quantifies the growing positive economic impact of nonprofit arts organizations."
Employment and Future Outlook
Nonprofit arts organizations employed a total of 4,725 paid positions, making these organizations taken as a whole Orange County's 8th largest non-government employer.The report applauded the work of volunteers who contributed 592,000 hours of non-paid service for the arts organizations, the equivalent of 285 paid positions. "The role of volunteers in all the nonprofit arts organizations can't be overemphasized," said Betty R. Moss, founding executive director of the OCBCA and coordinator of the report. "They, along with generous and thoughtful corporate supporters, are the heart of the nonprofit arts organizations' success in Orange County." The report also noted the contributions of 894 directors and board members sitting as volunteers on the various art organization boards.
Optimism was expressed by participating organizations for 1998 and the coming 10 years. They anticipated a 4.1 percent net increase in revenues from 1997 to 1998. Virtually every group reported an optimistic growth outlook in the coming 10 years, and the largest single concern for the future is the growing importance of the role of volunteers for future planning.
Comparison of the 1989, 1993, and 1997 Studies
A comparison of all arts organizations shows that the economic impact in the current report increased by 11.6 percent over the figure reported for 1993. However, the economic impact of nonprofit arts organizations expanded by 35.0 percent ofer the 1989-93 period. The smaller increase since 1993, was attributed to a lower level of indirect audience spending in 1997.
The effects of the recent recession in Orange County are clear as paid admissions for the arts organizations declined 3.4 percent since 1993. However, there was a sharp increase reported in free children's admissions since 1993, from 236,373 to 727,029 for 1997 - an increase of 208 percent.
Contributions increased from $28.3 million in 1993 to $35.1 million in 1997. This increase of 24 percent compares to an increase of 36.1 percent during the 1989 to 1993 period. Over the entire 1989 to 1997 period, the annual percentage increase in contributions was 6.8 percent. This compares over the same period to an average percentage increase in Orange County's personal income of 4.7 percent.
Total income increased to $81.0 million in 1997, an increase of 15.9 percent from $70.0 million generated in 1993. This rate of increase is roughly half the rate of growth that occurred between 1989 and 1993.
As in the case of total income, the growth rate in total expenditures between 1993 and 1997 was roughly half the rate of growth that occurred between 1989 and 1993.
About OCBCA
The Orange County Business Committee for the Arts, now in its 19th year, is a not-for-profit organization committed to supporting the arts and to encouraging new and increased support from the business community, and to providing business with the resources and services needed to develop partnership with the arts. The committee's members are local corporate and business leaders who support county nonprofit arts organizations. Underwriters in the study are First American Title, Los Angeles Times, Orange County Edition, the California Arts Council, Boeing, Deloitte & Touche LLP, Fluor Corporation, The Orange County Register and the US Trust Company of California.
Orange County Business
Committee for The Arts
Executive Director Betty R.Moss
695 Town Center Drive Suite
1200 P.O. Box 7050, Costa Mesa, CA 92626
Phone: (714) 754-0866