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Definition
-Direct correlation
-Effects are clear & especially obvious in an economic downturn
-Changes in: Disposable income levels, Inflation rates, Interest rates, Investment opportunities, Employment levels, Tax rates and areas |
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Definition
| After correcting for inflation, population increases and income growth, found little actual growth since 1929 |
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| Measured DPI spending on arts -found it rose in ‘80s due to price increases |
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Term
| NEA audience demographic study |
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Definition
| Audience for "high culture" has remained a relatively small segment of the population –white collar, high education, higher income |
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Term
| B&B predicted financial difficulties for arts groups will worsen over time because of “the productivity issue” |
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Definition
-To stay ahead of inflation, which is a constant increase in price levels, businesses have to increase productivity
-Technology -increases productivity in most sectors
-Limits to productivity increases in the arts lead to an ever-increasing “Income Gap” |
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Definition
| Arts productivity will decline over time as other segments of the economy become more productive |
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Term
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Definition
| production, distribution, and consumption of all things people use to achieve a certain standard of living |
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Definition
| study of how people use the scarce resources they possess |
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Definition
| designated interaction of buyers and sellers |
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Definition
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| Costs related to programming that change depending on plans |
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Definition
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Term
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Definition
| the cost of the additional inputs needed to produce that output |
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Term
| Arts managers (for profit & nonprofit) need skills... |
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Definition
| controlling costs, setting prices & estimating demand |
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Term
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Definition
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Term
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Definition
| Prices for goods (tangible things –a painting) & services (intangibles –a concert) are directly related to demand& supply |
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Term
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Definition
-describes relationship between the amount of a good/service buyer desires vs. the price charged
-As prices go up, demand goes down and as prices go down, demand goes up (when price is the only factor) |
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Term
| factors that can affect demand |
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Definition
| Price/availability of similar, substitute goods; Complementary goods; Shifts in income; Expectations about price shifts; Personal Tastes |
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Term
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Definition
-Suppliers will supply larger quantities of a good at higherprices than at lower prices.
-It benefits supplier to supply more tickets at a higher price to generate the most revenuebecause the cost of producing the event is constant. |
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| Factors/Determinants affecting supply side |
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Definition
| Rise or fall in price of resources used in creating goods/services; Number of suppliers; Limited supply product -a “star” |
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Term
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Definition
| The point where the supply curve and the demand curve intersect –represents the price where the quantity of the good/service buyers demand and purchase is equal to the quantity suppliers supply and sell. |
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Term
| Arts Managers can use this information to help determine pricing & maximize revenue: Scaling Ticket prices with multiple levels |
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Definition
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Term
| Economic Impact of the Arts |
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Definition
Directly: Through the creation of jobs, which pay salaries & the use of goods/services in the community; The Multiplier Effect:stimulating the economy as the dollars expended ripple through the economy
Indirectly: Attracting business and individuals to locations with a strong cultural presence; Creative class |
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Term
| The Multiplier Effect in Action |
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Definition
| When someone goes to a concert they may: Spend money on a babysitter; Get gas; Go out to dinner, Purchase additional item –CD, t-shirt, poster; Pay for parking |
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Term
| Arts Attendees Spend $____ extra Per Person Per Event |
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Definition
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Term
| Cultural Tourism:from Travel Assoc. of America (TIA) surveys: |
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Definition
-Two-thirds of American adult travelers included a cultural, arts, heritage or historic activity in their travels
-This is 4% higher than in 1998 (cultural tourism growing)
-Adds time to trips which translates into more $ |
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Term
| ood advocacy argument for the impact the arts have economically for communities –it is a _____ impact that can be _____ in numbers. |
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Definition
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Term
| Spoleto Festival & Piccolo Festival |
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Definition
-Over 150,000 visitors in 2000
-Spent $43.1 million
-38% of attendees live outside of S.C.
-53% live outside of Charleston
-72.4% of spending associated with the festivals comes from those living outside of Charleston
-2002 --Economic impact of $46.4 million |
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Term
| SCAC Study says on average in 2000 and 2001: |
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Definition
-The arts in SC supported $700 million in wages and salaries
–Supported 30,000 jobs
–Resulted in 1.9 billion in economic output
–Of every $100 of wages and salaries earned in SC, $1.30 are linked to the cultural industry
–Of every 100 jobs, 1.6 are linked to the arts |
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Term
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Definition
| A strong cultural industry can provide an edge in attracting new businesses; A diverse cultural industry can attract retirees with disposable income; The cultural industry adds to the general “quality of life” which makes a place more desirable (CC) |
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Term
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Definition
| Raises questions about effectiveness of Economic Impact Studies: Economic impact hard to measure, leads to overstatement; Questioning the multiplier itself; Don’t consider opportunity costs, substitute goods |
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Term
| President & CEO of Americans for the Arts |
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Definition
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Term
| Why is Financial Management Important to Nonprofits? |
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Definition
-Efficiency & effectiveness
-Mission
-Donations
-Stewardship |
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Term
| Types of Accounting used by Nonprofits |
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Definition
-Cash-Based Accounting
-Accrual-Based Accounting |
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Term
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Definition
| Transactions are reported when cash is paid or received |
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Term
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Definition
| the most commonly used accounting method, which reports income when earned and expenses when incurred. |
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Term
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Definition
| a debtor's accounts of money he owes; normally arise from the purchase of products or services |
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Term
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Definition
| a creditor's accounts of money owed to him; normally arise from the sale of products or services |
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Term
| The two primary financial statements are: |
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Definition
-The statement of position (balance sheet)
-The statement of activities (income statement) |
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Term
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Definition
Net Assets equal Assets minus Liabilities NE = A –L
other way to state it:
-Assets equal Liabilities plus Net Assets
A = L + NE |
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Term
| Net assets are also called |
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Definition
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Term
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Definition
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Term
| Statement of Position (Balance Sheet) |
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Definition
-Snapshot of an organization’s financial position at a particular point in time
Key sections: Total assets, Total liabilities, Total net assets |
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Term
| Total net assets are divided into: |
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Definition
| unrestricted, temporarily restricted, and permanently restricted |
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Term
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Definition
money owed or funds committed;
reduces overall worth |
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Term
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Definition
| property or resources ownedby the organization; increases overall worth |
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Term
| Net Assets (equity in for-profits): |
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Definition
| what’s left over -may be classified as permanently restricted, temporarily restricted or unrestricted |
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Term
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Definition
| No donor-imposed restrictions; May be designated by board |
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Term
| Temporarily Restricted Net Assets |
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Definition
| Purpose or time restrictions placed on the contribution by the donor |
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Term
| Permanently Restricted Assets |
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Definition
| Funds must be maintained permanently |
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Term
| Permanently Restricted Assets |
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Definition
| Funds must be maintained permanently |
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Term
| Statement of Activities(Income Statement) |
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Definition
| Summary of revenues received and expenses incurred; Is prepared monthly and at the end of the year; On a monthly basis it allows for a comparison of financial performance to date with budget projections. |
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Term
| Income Statement -Monthly |
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Definition
| Shows actuals for current month vs. budget and year to date projections |
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Term
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Definition
| Financial Manager works w/Board to develop effective investment strategies specific to the organization |
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Term
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Definition
| short-term interest earning accounts |
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Term
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Definition
| longer-term investment approaches |
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Term
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Definition
| -income derived directly from goods and services: Ticket sales; Concessions; Merchandise |
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Term
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Definition
| -income contributed to an organization, charitable contributions: Grants; Donations; Gifts |
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Term
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Definition
| The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives |
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Term
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Definition
something lacking that is necessary for a person’s physical, psychological or social well-being
-Food, shelter, clothing |
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Term
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Definition
something that is lacking that is desirable or useful
-Intrinsic to individual’s personality, experience & culture |
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Term
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Definition
| related to tangible features of the product |
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Term
| PsychologicalSatisfaction |
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Definition
| intangibles; often related to self-image |
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Term
| The goal of marketers is to gain a competitive edge by providing greater |
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Definition
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Term
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Definition
| combination involving product, price, place and promotion to provide satisfaction to consumers |
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Term
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Definition
| artistic and/or service product of organization |
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Definition
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Definition
| distribution and its channels, and commercial venue of the product |
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Definition
| advertising, public relations, publicity |
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Term
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Definition
| newspapers, magazines, radio, TV, direct mail, email, website, phone, fliers, word-of-mouth, billboards, speaking to community groups, hot air balloons, dancing pizza slice |
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Term
| Evolution of Modern Marketing:3 Eras |
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Definition
1)Fulfilling Basic Needs
2)Rise of the Salesperson
3)Modern Marketing |
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Term
| Current Era of Modern Marketing |
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Definition
| Consumer-driven; research and testing of products & consumer (using technology); application of psychological theories; developing a long-term relationship with the consumer |
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Term
| Revolution of Modern Marketing |
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Definition
| Computers store & quickly sort large amounts of information -revolutionized marketing; Tracking point-of-purchase sales w/bar codes -immediate info about what sold; From this info adjust product, price, promotion, placement based on what works |
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Term
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Definition
| consumers will favor the product that offers the most quality, features |
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Definition
| consumers must be coaxed into buying; do not change product |
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Term
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Definition
| systematically studying customers needs and wants, perceptions and attitudes, preferences and satisfactions to maximize exchanges with targeted audience |
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Definition
| the ultimate marriage of programming & marketing |
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Term
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Definition
| a group of buyers who have similar wants and needs |
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Term
| After identifying marketing segments: |
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Definition
| you can do target marketing |
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Term
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Definition
| developing a mix of the four Ps aimed at a particular segment |
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Term
-To do this you need detailed info about potential arts consumer
-Demographic (age, income, gender, education, race)
-Psychographic (beliefs, values, attitudes, activities) |
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Definition
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Term
| Effective target marketing requires |
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Definition
| detailed consumer information |
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Term
| The Nine American Lifestyles |
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Definition
| Mitchell’s “The Nine American Lifestyles,” 1983 |
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Term
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Definition
| Values & Lifestyles Segment |
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Term
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Definition
| hired Mitchell to look at performing arts audiences |
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Term
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Definition
| created system using a mix of census data to create info/mailing lists (clusters) |
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Term
| Potential Rating Index for Zip Markets (PRIZM): |
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Definition
| zip code analysis of neighborhood types |
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Term
| Claritas found 2 clusters for classical music |
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Definition
| Blue Blood Estates -median incomes $113,000; Executive Suites -$58,000, espresso makers, dry cleaning, Cooking Light magazine |
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Term
| ways to research your community /audience |
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Definition
| Surveys, focus groups, interviews; Tracking & analyzing info from ticketing /attendance records /promo efforts; Info from other arts organizations |
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Term
| Marketing Planning Process |
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Definition
.
Begin with organizational profile
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Do environmental analysis
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Look at challenges and opportunities
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Develop goals & objectives; quantifiable
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Develop specific strategies
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Outline your process
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Include controls and evaluation |
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Term
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Definition
•
For the greater good
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Belief in mission
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Guilt
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Social status
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Because someone asked |
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Term
| Why do organizations need to fund-raise? |
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Definition
| Average Earned to Unearned Income split for arts and cultural orgs: 54%-46% |
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Term
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Definition
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Individuals
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Businesses/Corporations
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Foundations
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Government
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Federal
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State
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Local |
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Term
| ______ make up the largestper share of annual giving |
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Definition
Individual donors:
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1997 –76%
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2003 –74%
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2008 –75% |
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Term
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Definition
| giving regular, unrestrictedfunds |
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Term
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Definition
| Money from corporations, foundations and government |
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Term
| Corporate Giving is based on: |
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Definition
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Term
| Definition of Foundation: |
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Definition
| Nonprofit, non-governmental organization with a principle fund or endowment of its own that maintains or aids charitable, educational, religious or other activities serving the public good, primarily by making grants to other organizations. |
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Term
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Definition
.
People give to People
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Make it personal
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Planning and Research
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Data management |
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Term
| Make campaigns donor-driven bc... |
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Definition
| Give to us because we put together great exhibitions vs. Your giftwill help a child experience the wonder of art |
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