The Income Analysis provides a detailed revenue breakdown to demonstrate the role of private sector support, including revenue sources, fundraising expenditure and predictions on future revenue mix.
The total value of industry turnover in the arts and cultural sector was estimated to be $2.7 billion in the 2019 calendar year and 2019/20 financial year.
Most income was earned through box office and sales (37% of revenue), although organisations reported that government grants (33% of revenue) and private sector support (23% of revenue) played an equally important role in the funding mix.
Private sector support is anticipated to become a larger percentage of their overall revenue by an increase of 3% in five years’ time. The largest share of private sector support remains among New South Wales organisations, who accounted for 34% of all private sector support raised by arts and cultural organisations.
Arts and cultural organisations are spending more to raise funds with the Return on Investment (ROI) for every $1 spent only $2.72 was raised, compared to Giving Attitude in 2018 the ROI was $3.50 for each dollar spent.
billion total value of industry turnover in the arts and cultural sector
million total value of private sector support for the arts and cultural sector (11% decline from Giving Attitude 1)
million increase in cash contributions from donations and sponsorships
43% of the overall turnover that organisations reported in the survey during the financial reporting period was through government sources. Earned income accounted for 34% of overall turnover, while private sector support accounted for 20%.
While New South Wales received the highest amount of private sector support compared to other Australian states, this was a decline of 10% on 2018 figures, which were $206.1 million.
of income earned through box office and sales
of income earned through Government grants
of income earned through private sector support
A rise in cash contributions in Giving Attitude $377.6 million from $351 million in Giving Attitude 1, which resulted in a significantly higher 70% share of overall private sector support. This rise in cash support helped organisations withstand a more substantial decline in other types of private sector support.
There is also an expectation that the industry will rely more on private sector support, with this to also take a higher share of their overall funding (+3%) in five years’ time, growing it from 23% to 26%.
A total of 273,490 volunteer hours were reported to have occurred in the Giving Attitude 2 reporting period, equating to a total value of $97,193,746. The average value of volunteer hours is based on an estimate of $35.25 per hour, as recommended by the Handbook on Non-Profit Institutions in the System of National Accounts.
For the entire arts and cultural industry, a total of 327,426 volunteer and pro bono support hours were reported to have occurred in the Giving Attitude 2 reporting period, equating to a total value of $124.3 million. And on average, 60% of organisations received more than 100 hours of volunteer or pro bono support.
This remained relatively constant with the previous reporting period. In this new reporting period, business sponsors dropped 3% from a previous share of 7%, to a current share of 4%.
38% of business sponsors were with the organisation for more than five years; 33% of individuals or trusts/foundations have been donating for more than five years.
The total costs incurred in raising private sector support increased 14% from $175 million to $199 million in the current study period.
Arts and cultural organisations are spending more to raise funds with the Return on Investment (ROI) for every $1 spent only $2.72 was raised, compared to Giving Attitude 1 the ROI was $3.50 for each dollar spent.
The survey found that larger-sized organisations had a greater likelihood of a higher ROI. Extra-large organisations had the highest ROI at $3.90, while large organisations had the second-highest ROI at $2.33.
Aside from Salaries accounting for majority of expenses at 53%, event expenses is the second highest contributing expense at$33.9 million .
With a $23.4 million increase on the last reporting period, when expenses totalled $175.4 million, marketing cost haverisen nearly $4.5 million
Despite the increase in event expenses and marketing costs, general expenses incurred in raising private sector support declined by $6.9 million, as did other associated costs, which declined by $4.9 million.
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