Balance — Arts Institutions

 
 

Obviously, the more income received as a result of an institution’s own Program Service (PS) effort, the less they need to rely on Donations.  Each ofthe top 10 earn more than 50% from PS, with an average of 59%.


Unusually, the top 10 cover 80% of their PS expense.


The top 10 may have an advantage in size, averaging $6 million in Program Service revenue, compared to the bottom 10 which average one-ninth of that, $673 thousand.


As might be expected, the bottom 10 CANS, earning only 2% of their revenue from PS, obtain the greatest revenue from Donations.  But they earn also earn 25% from Business activities.  That average is skewed by 3 of the 10 having a large asset base (endowment) averaging $458 million.



 

These charts relate the sources of CAN income among the three categories: Program Services, Donations, and Business activities respectively. 


The top pie of the first pair, for example, shows that the 10 CANs with the greatest income from Program Services average 59%.


Those in the top ten obtain the remaining 33% of their income from Donations and 8% from Business, on average.


Similarly, the CANs earning the least from Program Services, 2% on average, earn 73% from Donations and 25% from Business respectively.


The next charts show where the the top and bottom earners in the Donation and Business categories obtain  the remainder of their income.


Links to related pages:



Back up to Sustainability page which displays the top and bottom 10 in each income category. Connect there to others:


       

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Also see the Models page for deeper analyses of financial figures.


 

Program Services

CANs that rely on donations rely heavily on donations, an average of 93%, ranging from 96% to 100%.  The top 10 only obtain 1% of their funding from Program Services and Businesses.  The average Donation level is $24 million.



The bottom 10, however, have a somewhat more balanced mix with 70% coming from Business and 23 from Program Services.   On average, the 7% amounts to $15 million in revenue.  These are obviously rich organizations.



Notably, although not in this group, New York’s Metropolitan and Musuem of Modern Art receive 53% and 63% respectively from Business and financial sources, mostly investments and store operations.

Donations

The top 10 obtain  84% of their income from Business, reflecting major endowments.  On average, an additional 12% of the top 10’s income comes from Donations.  These rich CANS obtain only 4% of their revenue from Program Services.


Those with the least Business revenue, rely most heavily on Donations.


With large Business or Donation income, there is no need to sustain operations with Program Services.  These institutions are self-sustaining regardless of whether they are demonstratively serving the public.  In such cases, some method other than financial figures must be used to assess effectiveness.

Business

Program Services

59%

Donations

33%

Business

8%

Business

25%

Program Services

2%

Donations

73%

Business

1%

Program Services

1%

Donations

98%

Donations

7%

Program Services

23%

Draft 4 June 09

Business

84%

Donations

12%

Program Services

4%

Donations

86%

Business

1%

Program Services

13%