National Arts and Culture Report Losses of over $4 Billion
From Anne B. Pope, Executive Director –
The Americans for the Arts Research Team published an update on human and financial losses to artists and the nonprofit arts sector resulting from COVID-19.
National survey responses indicated that national financial losses to the nonprofit arts organizations are estimated to be $4.8 billion (as of April 21)—up from $3.2 billion on March 16. Nonprofit arts organizations have lost an estimated $201 million in admissions due to canceled or postponed events. (Based on 13,600 survey responses.)
- 95% canceled events.
- 32% reduced artistic staff.
- 24% reduced staff—42% report that it is “likely” they will reduce staff.
- 26% reduced salaries/payroll.
- 33% used financial reserves.
- 66% expect this crisis to have a “severe” impact on their organization (26% expect an “extremely severe” impact).
Total Financial Losses
- Organizations: $4.8 billion
- Audience spending: $6.4 billion
- Total: $11.2 billion
Economic impact of $11.2 billion loss
- Jobs: 315,000
- Government Revenue: $1.9 billion
COVID-19 impacts on ARTISTS nationally (10,600 survey respondents):
- 62% have become fully unemployed because of COVID-19.
- 95% experienced income loss from COVID-19.
- Income expected per-artist for 2020 was $41,288 prior to COVID-19 and has dropped, to date, to $14,185 (-$27,103).
- 80% experienced a decrease in creative work that generated income (61% “drastic decrease”)
- 66% experienced an inability to access the supplies, resources, spaces, and/or people necessary for their artistic practice.
- 4 greatest needs for artists to sustain their work during the pandemic:
- unemployment insurance
- Forgivable business loans
- Food/housing assistant
- Affordable healthcare.
Many Tennessee arts organizations and artists have responded to the Americans for the Arts (AFTA) surveys. The data from the surveys helped inform congress on the impact of COVID-19 on the arts and culture sector in the U.S.
Data from the American for the Arts COVID-19 impact survey to date shows that Tennessee has a financial impact of -$8,455,242. Based on survey results from 215 organizations, the median financial impact per organization is -$20,000. Total financial losses including admissions and non-admission related losses total -$7,049,520 with unanticipated expenses totaling -$210,850.
To date, the total number of lost attendance is 1,235,391 and 96% of organizations have canceled events. The pandemic has resulted in the layoffs of 446 staff while 259 staff have been furloughed. Ongoing financial concerns include using savings/cash reserves, a reduction in philanthropic giving, canceled contracts and the inability to pay bills or payroll.
According to an article published in the Boston Globe, “…More than $800 billion arts and culture contributed to the US economy, according to a Bureau of Economic Analysis study released last March. … More than 5 million people (are) employed in the sector, who collectively earn nearly $400 billion annually. … Arts and culture’s annual economic contribution to the country outweighs construction ($745.5 billion) and transportation and warehousing ($577.4 billion). It’s one of the heavyweights of the new economy, growing larger as the old one dwindles. The arts economy is more than double that of mining, agriculture, forestry, and fishing combined.”
We encourage you to continue sharing the links to these surveys with all of the arts organizations and artists in your community. Return to the survey links and fill it out again every few weeks, so that they have the most current information possible.
- Survey for Organizations (nonprofit, for-profit, and government): This tool tracks and helps measure the economic impact of the pandemic on the arts industry.
- Survey for Individuals (artists, creative workers, educators, and entrepreneurs): This survey was created by Americans for the Arts for Artist Relief and captures the financial impact of the pandemic on creative workers.
