Passing the buck: Local nonprofit arts sector a huge but often-ignored economic driver


I confess. I like numbers and statistics. I believe spreadsheets are right up there with sliced bread, and I love analyzing what numbers mean.

That’s why I’m so excited about the results of the recently released Arts & Economic Prosperity 6 (AEP6) study. The national study, conducted by Americans for the Arts, measures the economic and social impact of the arts. The Arts Partnership coordinated our community’s response to the study, working with 41 of the more than 100 nonprofit arts and culture organizations in Fargo, Moorhead and West Fargo.

Respending a dollar_Final (1).png

Contributed / TAP

The national results are more than impressive. America’s nonprofit arts and culture sector is a $151.7 billion industry—one that supports 2.6 million jobs and generates $29.1 billion in government revenue.

The results for the Greater Fargo-Moorhead-West Fargo’s nonprofit arts and culture industry are pretty darned impressive, too. The arts generated $55.4 million dollars in economic activity in our community in 2022 – dollars that support jobs (1,384) and generated $10.1 million in tax revenue, which then supports the services that benefit our community’s residents. And those are just the results from 40% of our nonprofit arts sector.

Local art supports local business and more

AEP6 graphic 2.png

Contributed / TAP

Why should you care about this study’s results? Because it proves that the arts are not only good for the well-being and social vitality of our community, though they are certainly that. Very importantly, the arts also strengthen our local economy and a strong local economy benefits every single one of us who make this community our home.
Spending by arts and culture organizations and their audiences generates valuable commerce to our community’s local merchants, a value-add with which few other industries can compete.

ADVERTISEMENT

Salaries, wages and entrepreneurial income generated by arts spending totaled $37.2 million. This is the money individuals earn and use to pay for living expenses such as mortgages, food, health care and more, which feeds local economy.

AEP6 study supported by rigorous standards

The study represents a reset from the previous versions, conducted every five years. The methodology changed, including using region-specific data to allow for more accurate analysis. Basically, $50 spent in one city is not the same as $50 spent in another city, even within the same region.

In addition to analyzing the financial impact of the 41 participating nonprofit organizations, more than 531 audience surveys were collected from in-person arts events. Eight of every 10 attendees agree that the arts are important to our community. Nearly 90% affirmed that they would feel a great sense of loss if this activity or venue were no longer available.

Of the 1.2 million attendees at arts events reported by the participating organizations, 16% were nonlocals. More than 86% of those nonlocal attendees noted that the primary purpose of their visit to the community was specifically to attend the performance, event, exhibit or venue: where they were surveyed. These “arts tourists” spend twice as much as local audiences beyond the cost of admission, thereby supporting local restaurants, retailers and hotels.

A message local tourism and business leaders support: local art matters

Our community’s participation in the AEP6 was supported in part by the Fargo-Moorhead-West Fargo Chamber of Commerce, the Fargo-Moorhead Convention and Visitors Bureau and Arts Midwest.

“Our commitment to the arts in FMWF will continue to pay dividends in the form of attracting visitors and future residents to our area, stimulating spending and economic growth, creating communities for our people to find their place and thrive in, and fostering a vibrant atmosphere that businesses and individuals want to be a part of,” Shannon Full, president and CEO of the Fargo Moorhead and West Fargo Chamber, said.

Charley Johnson, president and CEO of the Fargo Moorhead Convention and Visitors Bureau, was not surprised that the survey confirmed that the arts drive tourism. “We have always known that the arts are important to the community,” he said. “But this report reminds us of the impact it has on direct visitor spending, jobs supported, and visitation to the metro. Without the arts, our community would not be what it is today.”

ADVERTISEMENT

Tania Blanich is the executive director of The Arts Partnership, Fargo, Moorhead and West Fargo’s local arts council, a nonprofit serving our community since 1970.

This article is part of a content partnership with The Arts Partnership, a nonprofit organization cultivating the arts in Fargo, Moorhead and West Fargo. For more information, visit

theartspartnership.net.


Leave a Reply

Your email address will not be published. Required fields are marked *