The economic impact of local nonprofit arts
The Arts Partnership led the Greater Fargo-Moorhead-West Fargo’s participation in the Arts and Economic Prosperity 6, an economic and social impact study of the nation’s nonprofit arts and culture industry.
The study is conducted by Americans for the Arts, working with local organizations, to provide an understanding of how the arts contribute to both the national economy and local ones.
The Chamber of Fargo, Moorhead and West Fargo, FM Convention and Visitors Center, and Arts Midwest supported our participation in the study.
Over the course of one year, we worked with 41 local nonprofit arts and culture organizations to get information about how their work contributes to the fiscal health of our community. In addition, a total of 531 audience surveys were collected from attendees at in-persons arts-and-culture events.
Local arts contribution to local economy: $55.4 million
The Greater Fargo-Moorhead-West Fargo’s nonprofit arts and culture industry generated $55.4 million dollars in economic activity – 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.
Nonprofit arts and culture drives commerce to local business
Nonprofit arts and culture drives commerce to local business
The arts and culture sector employs people locally and includes both those who work in the sector and those whose work supports arts and culture consumers, such as waitstaff in local restaurants.
Those same employees purchase supplies and services from local businesses, pay rent or mortgages, and consume personal goods and services such as gym memberships, health care, groceries, car maintenance, and other needs of daily living.
AEP6 study backed by rigorous research 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.
Nationally, the sector generated $151.7 billion of economic activity in 2022. That economic activity supported 2.6 million jobs, provided $101 billion in personal income to residents, and generated $29.1 billion in tax revenue to local, state, and federal governments. The full national report can be found here.
