The total dollars spent by your nonprofit arts and cultural organization and its audiences; event-related spending by cultural audiences is estimated using the average dollars spent per person, per event by cultural attendees in similarly populated communities.
The total number of full-time equivalent (FTE) jobs in your community that are supported by the expenditures made by your arts and cultural organization and/or its audiences. An FTE job can be one full-time employee, two half-time employees, etc. Economists measure FTE jobs, not the total number of employees, because it is a more accurate measure that accounts for part-time employment.
The total dollars paid to community residents as a result of the expenditures made by your arts and cultural organization and/or its audiences. Household income includes salaries, wages, and entrepreneurial income paid to residents. It is the money residents earn and use to pay for food, shelter, utilities, and other living expenses.
The total dollars received by your local and state governments as a result of the expenditures made by your arts and cultural organization and/or its audiences. Government revenue includes revenue from local and state taxes (e.g., income, sales, lodging, real estate, personal property, and other local option taxes) as well as funds from license fees, utility fees, filing fees, and other similar sources. Local government revenue includes funds to governmental units such as city, county, township, and school districts, and other special districts.
This calculator is based on the findings of the Arts & Economic Prosperity 5 (AEP5) national economic impact study. Conducted by Americans for the Arts, AEP5 is the largest study of its kind ever conducted. To derive the most reliable economic impact data for this specific community, input-output analysis was used to measure the impact of expenditures by nonprofit arts and cultural organizations and their audiences. This highly-regarded type of economic analysis has been the basis for two Nobel Prizes in economics. The input-output models are systems of mathematical equations that combine statistical methods and economic theory in an area of study called econometrics. The analysis traces how many times a dollar is re-spent within the local economy before it leaves the community, and it quantifies the economic impact of each of those rounds of spending. Project economists customized an input-output model for this unique community based on the local dollar flow among 533 finely detailed industries within its economy. This was accomplished by using detailed data on employment, incomes, and government revenues provided by the U.S. Department of Commerce (County Business Patterns, the Regional Economic Information System, and the Survey of State and Local Finance), state and local tax data, and the survey data collected from participating arts and cultural organizations and their audiences. More information about the Arts & Economic Prosperity 5 study can be found online at www.AmericansForTheArts.org/EconomicImpact including the customized findings for this community, the national reports, the comprehensive study methodology, detailed findings for all 341 participating communities, and a sample PowerPoint presentation.