1. The Rise of the Individual
Introduction
How individual donors are driving the Greater Philadelphia cultural sector and beyond

2. Most of the data you’re going to learn about today comes from a research report released last fall called the 2011 Portfolio.
It’s the third publication of its type, similar reports released in 2008 and 2010
Based on data from the Pennsylvania Cultural Data Project, Portfolio has broken new ground in measuring the size and health of the cultural sector.
The PA Cultural Data Project, a joint effort of foundations and arts service groups across the state to create a reliable, ongoing, repository of data about the nonprofit cultural sector.

3. The Nonprofit Arts & Cultural Sector in Greater Philadelphia
Revenue: just over $1 billion
Total Employment Positions: more than 24,000
Total Attendance: almost 17 million visits
Total Revenue: just over $1 billion
Total Employment Positions: more than 24,000
Total Attendance: almost 17 million visits
Just over $1 billion in total revenue
More than 24,000 employment positions
17 million visits to arts and cultural organizations each year

4. Attend 3 performances an hour Take 27 public classes per day
Visit 98 exhibitions each week
Watch 138 films each month
To take advantage of all that our sector has to offer:
Attend 3 performance an hour
Take 27 public classes per day
Visit 98 exhibitions each week
Watch 138 films each month

5. Sector Is Operating in the Red
Operating Margin: Unrestricted Revenue vs. Expenses, Excluding Investments
2007
And yet, with all of the arts and culture opportunities Philadelphia has to offer, the sector is operating in the red.
There is no getting around the fact that the recession had a serious financial impact on the cultural sector.
In the 2006 and 2008 issues of Portfolio, we found that cultural organizations were operating on thin margins.
Well now those margins have gone from thin to negative.
As you can see from this chart, in 2007, before the recession, the overall operating margin for cultural organizations was +2%. After the recession hit, in 2009, it was -9%
Break Even
+2%

6. Sector Is Operating in the Red
Operating Margin: Unrestricted Revenue vs. Expenses, Excluding Investments
2007
2009
Break Even
+2%
-9%

7. -19% Contributed Income The problem was on the revenue side.
Both contributed and earned income fell sharply.
What we found is that contributed income fell 19%
Contributed Income

8. Contributed Income 2009 (Revenues)
And it happened due to reductions across-the-board in ……corporate……foundation, and…….. government giving……..
Break Even
-$12.1M
-$10.1M
-$40.1M

9. Contributed Income 2009 (Revenues)
Individual giving was the exception.
Break Even
-$12.1M
-$10.1M
-$40.1M

10. 5%
What stands out about this year’s Portfolio findings is the extent to which organizations adapted to tough times, and the way Philadelphia’s residents responded.
In the teeth of a recession, with discretionary income shrinking, people actually attended cultural events more frequently.
We saw a 5% increase in attendance between 2007 and 2009.
Attendance

11. As I mentioned earlier there were 17 million cultural visits last year.

12. 5% 5% Bucking the Trend Attendance And it’s not just attendance;
we sold almost ¾ million memberships and subscriptions an increase during the middle of the recession of 8%. That works out to one membership or subscription for every three households in the region. 5%
Attendance

13. Membership & Subscriptions
Bucking the Trend 8%
Membership & Subscriptions 5%
Attendance 8% 5%

14. Membership & Subscriptions
Bucking the Trend
20%
Individual Giving 8%
Membership & Subscriptions 5%
Attendance
And individuals also stepped up to donate to their favorite organizations.
When we reached out to our patrons and board members, they answered the call.
Between 2007 and 2009, personal giving to arts and culture expanded a staggering 20%.

15. Categories of Revenue from Individuals
Increased $47million
Total
$339.1m
Overall, between single admissions……subscriptions……. and contributions individuals are responsible for an increase of $47 million to our sector.
If you need any evidence that arts and culture matters to the citizens of this region, you’ve got it.
Admissions, Tickets,
& Tuitions

16. Categories of Revenue from Individuals
Increased $47million
Total
$339.1m
Memberships &
Subscriptions
Admissions, Tickets,
& Tuitions

17. Categories of Revenue from Individuals
Increased $47 million
Total
$386.0m
Total
$339.1m
Overall, between single admissions……subscriptions……. and contributions individuals are responsible for an increase of $47 million to our sector. If you need any evidence that arts and culture matters to the citizens of this region, you’ve got it.
Individual Contributions
Memberships &
Subscriptions
Admissions, Tickets,
& Tuitions

18. So how do we capitalize on this new philanthropic trend
So how do we capitalize on this new philanthropic trend? What are some creative ways to engage individual donors further?
In the last few years, arts organizations across the country have adopted online giving platforms similar to Kickstarter, where individuals can search for, connect with, and donate to projects that spark their interest.
In late 2010, the Arts & Science Council of Charlotte-Mecklenburg’s launched power2give.org, which allows community members in Charlotte, Miami, Kentucky and South Indiana to browse nonprofit arts, science and history projects in need of funding.
And to engage new donors, power2give.org offers gift cards which active users can send to friends or loved ones to give them an opportunity to find and fund a project of their choice.

19. 3,800 individual contributions $1,408,704 in individual donations
Another model is the Pittsburgh Foundation’s Pittsburgh is Art Day of Giving, which gave individuals the opportunity to contribute to 147 different arts and culture organizations over a single 24-hour period.
Beyond just engaging individual donors, this model also used individuals to lead the way and set a bar for foundational giving—which, as we discussed, has declined in recent years, along with corporate giving. More than 3,800 individual contributions were received, totaling $1,408,704, and organizations like The Heinz Endowments and The Buhl Foundation then contributed matching funds of $475,000, for a grand total of approximately $1,883,704.
3,800 individual contributions
$1,408,704 in individual donations
$475,000 in matching funds
Grand total: $1,883,704

20. As we’ve seen in the Greater Philadelphia cultural sector, many individuals are stepping up and answering the call for donation on their own, but incentivizing individual donors certainly can help. As they build their donor base, organizations like Oklahoma’s Allied Arts also build an engaged arts and cultural community by offering donor benefits like performance discounts and invitations to hands-on arts experiences.