you, your org, and/or your industry?"
Margot H. Knight
President & CEO
United Arts of Central Florida, Inc.
2009 Observations and Overview
Business people I have spoken with anticipate 2-3 years before our economy bounces back. The issues with the nation’s financial markets have both immediate and long-term implications for philanthropy and sponsorships.
For the first time since our UA’s inception in 1989, the organizations we fund are PROJECTING negative growth, e.g projected budgets for FY09 are LESS THAN FY08 year-end estimates.
Next year’s government support and attendant challenges will make this year’s look like a walk in the park. The state’s looming $3.5 billion deficit for 09-10 will add to the dilemma local governments are facing.
Dr. P. Phillips Orlando Performing Arts Center will, conservatively, be twice the size of any extant cultural organization. Scheduled to open in 2012, it is reasonable to expect that production costs for its resident companies (Orlando Ballet, Opera, and Philharmonic and Festival of Orchestras) will triple or quadruple.
State funding for cultural organizations in central Florida via the Division of Cultural Affairs was reduced by 52% ($992,606 vs. $473,615)
Reductions from local governments via United Arts of nearly 15% ($2,285,615 vs. $1,942,819) contributed to a 11% aggregate reduction in grants. This takes us back to 2002 levels.
Doesn’t take Nostradamus to tell us we are in for a challenging time—both for earned and contributed income streams. We’re in for a few years of tough choices.
State of the Arts and Cultural Sector
The aggregate FY08 operational budgets (or GROSS CULTURAL PRODUCT) of the non-profit cultural community in central Florida is about $43 million. That is about half the size of Tampa’s, one-third the size of Charlotte, and about one-fourth the size of Atlanta, Seattle, and Kansas City.
On average, this is comprised of 53% earned income and 30% contributed income. The rest is attributable to local, state or federal government resources.
About 1/3 of the $12.5M in aggregate contributed income is provided via the United Arts campaign. In FY08, United Arts provided 12.5% of the cultural communities’ budgets through grants and contracts.
PLEASE NOTE—These figures are shifting daily so ANY use of them after TODAY should be confirmed with Margot H. Knight.