20120929
The other market for arts presenters
In addition to the value proposition for individuals who directly consume the experiences of not-for-profit arts presenters, a separate and important value proposition exists for the institutions that subsidize performing arts presentations. The largest private contributor to the performing arts after individuals donations are foundations, providing 9 percent of presenter revenues. Foundations typically exist to promote a particular constituency or mission providing grants to organizations that are able to serve its purposes. Presenters are also supported by businesses in exchange for advertising or promotion of their image as a good community neighbor. Governments like foundations also make grants to presenting organizations and represent just 2 percent of presenter revenues. It should be noted that local and state governments often subsidized the performing arts through secondary and post secondary institutions, community centers and civic-ally owned performing arts centers. Foundations, businesses and governments are primarily interested in the instrumental benefits and economic activity associated with arts presenting. These benefits are available from other non-presenting activities indicating that costs must be less than or comparable to other alternative activities. Measurements for this customer group include market share of grants and support available, annual renewal of support, new institutional support acquired, and profitability of services provided for support.
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