CREATIVE MANY MICHIGAN

CREATIVE STATE MI 2016 NONPROFIT REPORT –DRAFT FINDINGS

February 2, 2016

In February Creative Many will release the 2016 Creative State Michigan Nonprofit Report, the fifth edition in this annual report series, detailing the economic and social impacts of Michigan’s nonprofit arts and cultural organizations using certified data from the DataArts (formerly Cultural Data Project).

This report represents Fiscal Year 2013 data from 406 nonprofit arts and cultural organizations – representing an estimated 16% of the sector. The Creative State Michigan report shows that these 406 organizations contributed over 610million dollars ($610,299,896) in direct expenditures to Michigan’s economy in 2013 – a 2.5% increase from the prior year. In 2013, these 406 nonprofit arts and cultural organizations welcomed 24,869,747 attendees, enough to sell out Comerica Park 595 times. 65 % of visits to arts and cultural venues and events were FREE (16,215,299).

  • Other report highlights include:
  • 406 nonprofit arts and cultural organizations
  • $610,299,896 in annual direct expenditures (e.g. rent, programs, travel and salaries) – an increase of 2.5% over the prior year.
  • Of the total direct expenditures, 70% was allocated to programs ($427,029,265), 23% was allocated to general operations ($140,829,564), and 7% was allocated for fundraising ($42,441,067) – reflecting a high level of support for programs serving Michigan’s communities, residents, visitors and youth.
  • Organizations paid $208,544,630 in salaries, supporting 25,490 jobs – a 4.4% increase in total salaries. Total jobs decreased by 2% due to decreases in independent contractors.
  • Organizations contributed $16,120,189 in payroll taxes – a 5.6% increase over the prior year.
  • $191,871,172 in private donations (board giving, donors, corporate and foundation support).
  • Already raised $145,660,546 in successful capital campaigns, nearly 70% of the target amount of $211,465,961.
  • 3,290,203 schoolchildren experienced arts and cultural venues and events – a 12% increase over the prior year -- including 20,081 youth and school group visits to cultural venues and 26,090 cultural visits in schools.
  • These 406 nonprofit arts and cultural organizations produced over 130,657 live productions, exhibitions, workshops, films and other programming.
  • Arts and cultural destinations generated more than $2.8 billion in state tourism revenues in FY 2013 – 20% of the state’s total tourism revenues. This is more than professional sporting events, golf, boating and sailing, hunting and fishing, hiking and biking COMBINED ($2.3 billion).From 2012 to 2013 alone, cultural tourism increased by $386.8 million.
  • In 2015, Michigan was home to 19,694 arts-related businesses that employed 72,706 people – 3.7% of total businesses in Michigan and 1.6% of total employment in Michigan. Nationally, 702,771 businesses are involved in the creation or distribution of the arts and employ 2.9 million people – 3.9% of total businesses in the US and 1.9% of total US employment. (Americans for the Arts, 2015 Creative Industries in Michigan, January 2015.)

Composition by Organization Discipline

Performing Arts187 organizations (46%)

Museums, Visual Arts, History, Science & Nature100 organizations (25%)

Support & Advocacy49 organizations (12%)

Community Arts28 organizations (7%)

Education26 organizations (6%)

Broadcasters, Producers, TV, Film & Digital Media16 organizations (4%)

Proportion of Festival Organizations by Discipline Type

Broadcasters, Producers, TV, Film & Digital Media31% of 16 organizations (5)

Community Arts21% of 28 organizations (22)

Performing Arts7% of 187 organizations (13)

Museums, Visual Arts, History, Science & Nature3% of 100 organizations (3)

Composition by Organization Budget Size

<$100K129 organizations (32%)

$100K to $250K89 organizations (22%)

$250K to $1M102 organizations (25%)

$1M to $10M75 organizations (18%)

>$10M11 organizations (3%)

Between 2010 and 2013, organizations with budgets in the $1M to $10M range increased by 24%, with organizations in the $100K to $250K range increased by 6%. Organizations with budgets in the low, mid and high ranges experienced decreases in the last year with $10M-plus organizations decreasing by 10%.

Revenue Distribution

Michigan’s nonprofit arts and cultural organizations report fairly even distribution of earned and contributed income.

Total Revenue$648,737,815 (3.6% decrease over prior year)

Total Earned Revenue

Total Contributed Revenue$304,363,734 (11.1% increase over prior year)

Trustee/Board$13,551,360

Individual$79,113,671

Corporate$25,987,432

Foundation$73,218,709

Government$44,699,428

Other$67,793,134

Volunteers and board members, full – and part-time staff, independent contractors and interns/apprentices

Full-time staff3,473

Part-time staff8,926

Independent contractors 13,091

Volunteers59,602

Board members 5,381

Interns/Apprentices987

Total91,460

Summary

The 2016 Creative State Michigan report demonstrates the incredible impacts that Michigan’s nonprofit arts and cultural organizations bring to our state’s economy, the vibrancy of our communities, education of our children, and audiences of all ages with 2013 Michigan CDP data from 406 nonprofit organizations. With over $610 million in total expenditures, including $208 million in salaries supporting 25,490 jobs, and more than $2.8 billon generated toward state tourism revenues, arts and culture is a critical contributor to Michigan’s economic reinvention.From 2012 to 2013 alone, cultural tourism increased by $386.8 million. Moreover, organizations across the state brought cultural learning experiences to over 3.2 million schoolchildren and offered 65% of nearly 25 million visits free to the public – benefiting audiences of all ages. Michigan’s arts and cultural venues and attractions inspire residents and visitors alike, making communities across our state vibrant and attractive places to live, work, learn, explore and invest.

Thanks to Creative State Michigan, businesses, nonprofit organizations, community leaders and elected officials have gained a deeper understanding of the contributing role of the arts, culture and creative economy as vital players in the reinvention of Michigan and its communities and the importance of reinvesting in Michigan’s arts and cultural assets. The report positioned Creative Many to make the case for an increased investment in state funding for arts and culture.

Thanks in large part to the leadership of Governor Snyder, the Michigan Legislature committed steady funding at $10.15 million in state arts and cultural funding for FY 2016 - up from a low of $2.56 million allocated in FY 2012 - providing greater access to needed program, operations, arts education and capital improvement grants through the Michigan Council for the Arts and Cultural Affairs (MCACA) for arts and cultural organizations, artists and communities. This is a significant step toward restoring the state’s investment in creativity, which previously exceeded $25 million annually.