Updated at 3:26 p.m.
PROVIDENCE – A group of 50 members of the local nonprofit community converged on the Providence Public Library Tuesday to hear about the value of nonprofit arts and culture organizations to the City of Providence’s economy as measured in the results of Arts & Economic Prosperity 5, compiled by Washington, D.C.-based Americans for the Arts.
“Investing in arts and culture is investing in economic development,” said Bonnie Nickerson, City of Providence department of planning + development director, in her opening remarks.
With the help of Mayor Jorge O. Elorza and his administration, Stephanie P. Fortunato, Arts, Culture + Tourism department director, works to make arts and culture “more equitable” in Providence.
“The arts aren’t just nice, they’re necessary,” said Fortunato.
Established in 2003, one of the first priorities for the department of Arts, Culture + Tourism was working on the Arts & Economic Prosperity 3 study throughout 2005 and 2006. The city queries their local organizations and then passes the information to Americans for the Arts for analysis. This research, said Fortunato, is “a unified message we can provide over and over again” about the impact and value of nonprofit arts and cultural organizations in the local economy.
In the most recent iteration of the study, for which local data was published Tuesday, Americans for the Arts surveyed 341 study regions: 113 cities, 115 counties, 81 multi-city or multi-county regions, 20 states and 12 arts districts – which represented all 50 states as well as Washington, D.C.
Locally, researchers contacted 217 Providence arts and cultural organizations, 56 of which responded and submitted data. In addition, researchers conducted 400 audience intercept surveys at a range of arts and cultural events in Providence.
Randy Cohen, Americans for the Arts vice president of research and policy, served as keynote speaker Tuesday morning. In his remarks he categorized the nonprofit arts and cultural industry as “a powerful economic block in the community” and are involved in a wide variety of sectors across the economy.
AEP5 found Providence’s sector stands head and shoulders above many comparable cities’, populations from 100,000 to 249,999, and the national medians.
Providence’s local arts and culture organizations has an economic impact of $205.8 million ($93.8 million spent by organizations and $111.9 million in event-related spending by audiences) whereas the median for similar cities was $31.4 million and the national median $35.8 million.
“That is ‘big-industry’ economic activity,” said Cohen regarding the total $205.8 million.
There are 5,115 full-time equivalent jobs supported by Providence’s nonprofit arts and culture organizations, whereas the median for similar cities was 1,046 and national median was 1,131.
FTE is a “more accurate measure of employment,” said Cohen, even though the industry relies on a lot of part-time employees.
“Arts are good for the soul and for putting food on the table,” said Cohen of what he called a “very labor-intensive,” “highly-local” industry.
Nearly 10 times higher than the median $1.3 million local government revenue raised and $1.5 million raised for state government in comparable cities, Providence’s industry delivers $20.9 million in local ($10 million) and state ($10.9 million) government revenue. Providence also exceeds the national medians of $1.4 million raised for local government and $2.0 million for state government.
“The arts aren’t a black hole you pour money into,” said Cohen. “Arts return to the community jobs and government revenue.”
According to the study the government spends $5 billion on arts and cultural organizations nationwide, but the industry returns $27.5 billion to the government.
“A good return for the government,” said Cohen of the exchange.
Audiences are also spending much more in Providence than their national counterparts. In the “Creative Capital” event-goers spent $111.9 million whereas similar regions spent $15.1 million and nationally $18.9 million. Average per person spending is $29.16 per event.
National data published in June show the nonprofit arts and cultural industry made up a $166.3 billion industry in 2015, $63.8 billion in spending by the groups on top of $102.5 billion in event-related spending by audiences, the most recent data analyzed by American for the Arts.
Together, U.S. nonprofit arts and culture organizations provided 4.6 million jobs that year and $27.5 billion in local, state and federal government revenue.
“A yield well beyond their collective $5 billion in arts allocations,” the report read.
In a city like Providence, said Cohen, investment in the arts brings in people looking to spend money, improves grade point averages among young students and is beneficial for healthcare by reducing hospital visits, the length of a patient’s stay, use of pain and anxiety medicine and occurrence of depression.
He also invited the community to access the Arts & Economic Prosperity 5 calculator which allows organizations to estimate their economic impact.
Emily Gowdey-Backus is a staff writer for PBN. You can follow her on Twitter @FlashGowdey or contact her via email, gowdey-backus@pbn.com.
