Geography Trends Data 2014 - 2017

• When examining all organizations for which we have trend data, we see that trustee contributions were lower in 2017 than in 2014 in inflation-adjusted figures in New York, Chicago, Small and Very Small Markets. However, we know that outliers in numerous markets skew both the market average and the trend over time.
• Unrestricted trustee contributions and total expenses were skewed by one or two large organizations in New York, Chicago, San Francisco, and Large Markets. With or without the outliers, the average trustee gift in New York is roughly twice that of the next highest average reported in San Francisco, but the total expenses in New York are much higher than expenses for organizations in San Francisco, which brings the trustee contribution index level much lower in New York than in San Francisco each year from 2014 to 2017.

In some cases, eliminating the outlier leaves the magnitude of the average lower but the direction and intensity of the trend intact.  This is the case in Chicago, where average trustee giving would be $56,950 in 2017 for remaining organizations, and in San Francisco, where the average would be $135,000.

In other cases, leaving out the outlier changes both the magnitude of the average and the direction of the trend.  In Large Markets growth would fall 6% short of inflation and the 2017 average would be $51,800.  In New York, eliminating the outlier would leave 14% growth in trustee contributions above inflation and a 2017 average of $316,000.

• Expense growth outpaced inflation in all markets except New York, with or without the New York outlier included.
• The greatest growth in total expenses was in Los Angeles, where organizations’ budgets grew 18.3% more than inflation, followed by San Francisco at 15.1%. In these two markets, as well as in Medium Markets, expense growth was more robust than growth in trustee giving, leading to a slight decline in the Trustee Contributions Index.

• Growth in unrestricted corporate contributions outpaced inflation for the average organization in all markets except New York, Los Angeles and Larger Markets. This finding is not due to the presence of outliers.
• The greatest growth in unrestricted corporate contributions was in D.C., where it rose 32.7% more than inflation, followed closely by Chicago organizations at 30.6%. The DC figure is skewed by one organization. Eliminating this organization would leave growth in corporate contributions at 1% for remaining organizations.  Chicago’s growth, on the other hand, is not driven by an outlier.
• The highest average corporate contributions occur in New York and the lowest in Los Angeles. However, the average budget size in New York is more than double that of the market with the next highest level, even when eliminating an outlier. As a result, New York organizations tend to cover less of their expenses with corporate contributions than organizations in other markets.
• Expense growth outpaced inflation in all markets except New York.
• The greatest growth in total expenses was in Los Angeles, where organizations’ budgets grew 18.3% more than inflation, followed by San Francisco at 15.1%.

• Growth in individual contributions outpaced inflation for the average organization in all Markets.
• New York organizations had the highest 4-year growth in individual contributions at 35.9%, followed closely by Very Small Markets at 32.7% whereas San Francisco organizations had the lowest growth at 0.2%.
• One Los Angeles organization heavily skews the average level of individual contributions, particularly in 2016. Eliminating this organization would leave average individual contributions and average expenses for remaining organizations at roughly half the levels reported in the table each year. However, the Individual Contributions Index level and te trends remain remarkably similar regardless of whether we include the outlier.
• For organizations in L.A. and D.C. markets, the increase in individual contributions was eclipsed by the increase in total expenses leading to the negative growth in the Individual Contribution Index at 0.4% and 0.3% respectively.

• Growth in unrestricted foundation support outpaced inflation for the average organization in all markets except New York and Medium markets. New York organizations saw the biggest decline in unrestricted foundation support at -23.4%, adjusting for inflation.
• The greatest growth in unrestricted foundation support was in Small Markets, where it rose 40.7% more than inflation over time. The average organization in D.C., Chicago, L.A., and Very Small Markets also experienced double digit growth in foundation support after adjusting for inflation. D.C. was the only one of these markets with an outlier that skewed the trend, reporting exceptional 2017 foundation support.  Eliminating this outlier would still leave growth in foundation support exceeding inflation by 1% for remaining D.C. organizations.
• Organizations in New York have the highest average foundation support annually and those in Very Small Markets the lowest. It is likely that local and regional foundations that support arts and culture are relatively scarce in Very Small marketplaces.
• Two outliers caused a spike in average foundation support for Small Markets in 2016.
• Expense growth outpaced inflation in all markets except New York.
• The greatest growth in total expenses was in Los Angeles, where organizations’ budgets grew 18.3% more than inflation, followed by San Francisco at 15.1%.

• New York organizations tend to have the highest average annual level of government support. Even after eliminating from the analyses an outlier that accounts for nearly one-third of that market’s government support, the average for remaining organizations is still 5-fold that of any other market.
• Growth in unrestricted government support lagged inflation for the average organization in Chicago, Medium, Small and Very Small Markets.
• The greatest growth in unrestricted government support was in Los Angeles, where it rose 32.3% more than inflation, followed closely by D.C. at 26.4%. Despite the high growth rate for Los Angeles organizations, their average government support was the lowest of all markets every year. Neither L.A. or D.C. had an outlier skewing the rate of growth high.
• Local support is the greatest source of government arts funding for organizations. All but Very Small Markets receive more than half of all government support from local public agencies, ranging from 51% in Small Markets to 83% in New York. In Very Small Markets, state funding accounts for half of total government funds.
• Expense growth outpaced inflation in all markets except New York.
• The greatest growth in total expenses was in Los Angeles, where organizations’ budgets grew 18.3% more than inflation, followed by San Francisco at 15.1%.

Geography Data for 2017