This document summarizes data from 81 arts organizations in Central Florida. It finds that while revenues for the arts universe were $59.5 million in 2012-2013, expenses were $55.9 million. Most arts organizations have small endowments, relying more on donations, grants, and earned revenue. The data also shows that arts organizations have relatively low overhead but need to improve board governance and management practices to increase long-term sustainability.

1. Pu#ng
Knowledge
to
Work:
The
State
of
Arts
Organiza<ons
December 2012
Using aggregate data from the
Community Foundation
Knowledge Base to understand
the health of Central Florida’s Arts
Community

2. Michelle Chapin
Vice President
Community Investment
Mark Brewer
Chartered Advisor in Philanthropy ®
President/CEO

3. essential information. smarter decisions. powerful change.
Empowering Philanthropy…
…Transforming Communities

5. This is NOT A Report Card!

6. Arts Sub-Sector Analysis – 2012
Turning Data into Knowledge
The Universe
• 76 Reviewed Portraits
• Data from 81
available for this
Report
Data was collected from the Community Foundation
Knowledge Base as of September 2012.

7. Context for the Data

8. Revenue & Expenses Index Sample (300)
From All Nonprofit Organizations in Central Florida
State of the Whole Nonprofit Sector
2,000,000,000
1,500,000,000
Revenue
1,000,000,000
Expenses
500,000,000
0
2007
2008
2009
2012-13
Revenue: $ 1,913,069,000
Expenses: $1,945,586,000

9. Revenue & Expenses for 81 Arts Organizations
Only The Arts Universe
120,000,000
100,000,000
80,000,000
60,000,000 Revenue
40,000,000 Expenses
20,000,000
0 Expenses
Revenue
Revenues: $59,559,000
2012-13 is a projection. Expenses: $55,881,000

10. Then … and Now – A New World!
Growth, Expansion, Year over Year
Funding
Capacity and Sustainability
Driven by Philanthropy
“Maybe in some mythic past it was possible to think first about strategic impact
goals, and then about how to raise the money…”
Nonprofit Sustainability: Making Strategic Decisions for Financial Viability
Jeanne Bell, Jan Masaoka, and Steve Zimmerman

11. Local Retail Market Conditions
Orlando Metro Charitable Giving for the Entire Nonprofit Sector
• Ranks 41 out of 366 Metros for giving
• Total Contributions last year: $697.9 Million
• Median Contribution: $2518
• Under 30: 41.7% Millennials
• 30-44: 20.6% Gen X
• 45-64: 25.4% Baby Boomers
• 65 and up: 12.3% Silent and GI
Source: Chronicle of Philanthropy 2011

12. Center of the Arts Universe 32789
For the Entire Sector
• Ranks 658 out of 28,725 Zips for giving
• Total Contributions last year: $37.5 Million
• Median Contribution: $6199
• Under 31: 36.3% Millennials
• 30-44: 16.8% Gen X
• 45-64: 30.3% Baby Boomers
• 65 and up: 16.6% Silent and GI
Source: Chronicle of Philanthropy 2011

13. National State of Arts Giving
Arts Only - Adjusted for the Central Florida Region
• National Arts Giving up 6.9% this Month
• Arts Giving 4% of total - about $15 Billion
• Arts Giving Expected to be up about
3.9% Next Year
Source: Atlas of Giving – October 30, 2012

14. Definitions Behind the Data
• Capacity is infrastructure, tools, and resources
necessary to do the job identified in the mission
and/or strategic plan.
• Sustainability is an “orientation, not a destination.”
– Doing what is required “to meet the needs of the present
without compromising the ability of future generations to
meet their own needs.” United Nations Definition
– “The Capacity to Endure.” Wikipedia
Source: Blue Avocado.org

15. Turning Data Into Knowledge

16. Capacity - Governance Measures
Indicates Volunteer Leader Capacity
• Average Number of Board Members 13 (same as
2010)
• Average Board Meeting attendance (76% up from
74% in 2010)
• Average Board Investment 75% (down from 76% in
2010)
» Board Term Limits – 39%, 21% UD, 40% No
Sample: 81 Arts Organizations,
September, 2012

17. Capacity - Management Measures
Indication of the strength of Management
• 57% of CEOs get an annual performance review (up from 53% in 2010
• 40% conduct an annual performance
review of senior staff (up from 38% in 2010)
• Annual CEO Compensation
31% Under $50,000 (up from 26% in 2010)
14% $50,000 to $75,000 (up from 10% in 2010)
9% $75,000 to $100,000 (up from 1% in 2010)
5% Over $100,000 (up from 1% in 2010)
41% Volunteer Led (same as 2010)
• Average CEO compensation is $48,000 vs. $67,000 for the whole
Nonprofit Sector in Central Florida.
Sample: 81 Arts Organizations, September, 2012

18. Capacity - Management Measures
Indication of the strength of infrastructure
70
60
50
40
30 Yes
20 No
10 Under Development
0
Sample: 81 Arts Organizations, September, 2012

19. Sustainability – Capital
Access to Capital is a key to Sustainability
Large Print Disclaimer
Lawyers and Accountants Never Agree
Note: Many nonprofits report “endowment” that does not qualify under legal
parameters, accounting rules, or UPMIFA in order to qualify for grants or meet
funder requirements. The following data reflects actual Permanent Endowment as
reported in audited financial statements, which must be permanently restricted by a
donor and cannot be invaded. Some of this money is held and managed by the
nonprofits themselves, by third parties in Trust instruments, or is at the Community
Foundation. Many organizations refer to Board Restricted funds as “endowment,”
however this is technically Reserve, because what a Board restricts, it can un-
restrict or invade.

20. A profitable Annual Campaign supports a growing Reserve. The Strategic Plan
should focus the organization toward Effective Outcomes that create a profit. This
money comes from all sources. The profit is moved to Reserve.
Annual
Campaign Donor Focus
Goal + 10%
Best Practice
Arts
Organization
Business
NO Donor Philanthropy
Interest Model
Reserve
90-Days Cash Endowment
This portfolio is usually managed by the Board and Permanent Endowment is donor restricted or
an Investment Committee, and can grow or shrink to held at the Community Foundation, sending a
match planning and economic expectations. This is credible signal of sustainability to funders and
the number of days of cash-on-hand the organization donors. Boards concentrate on the mission of
has to run the business. raising endowment assets for the organization,
and overseeing the use of those funds.

21. Sustainability - Capital
Access to Capital
• Endowment – 17 (not including Dr. Phillips Center for the Performing
Arts) have $13 million in endowment, which provided $590,000 in
support against $33 million in operating expenses. These organizations
have added $813,000 in new endowment over the last two years.
• Capital Campaigns – 7 = $9 million with $5 million raised to date.
Including the Dr. Phillips Center for the Performing Arts , $192 million
with almost $98 million raised. 20 anticipate a future campaign.
Disclaimer Invoked!
Sample: 81 Arts Organizations, September, 2012

22. Sustainability - Revenue/Overhead
Key Strategic Measures Watched by Investors
• Total Government Funding – Almost $9 million
• Total Funding from Individuals - $7.5 million
• Earned Revenue - $16.5 million
• Special Events - $2 million
• In-Kind – $4.5 million
• Average Overhead 9.8%
• Average Fundraising Cost 3.8%
• Average Staff Retention is 67%
Sample: 81 Arts Organizations, September, 2012

23. Top Three Questions Boards are asking
in Strategic Planning Sessions
• How has our “business model” changed in the last
three years?
• What does “engagement” mean to us? How do we
engage donors, constituents, our volunteer leaders,
and community leaders?
• What part of our work is
“transformative?” Why?
CFCF 2012 Research Conversations

25. essential information. smarter decisions. powerful change.
Empowering Philanthropy…
…Transforming Communities