The Arts in New Jersey Is a Multimillion-dollar Business

On Jun 20, 2017

According to Arts & Economic Prosperity 5 – a national economic impact study released Saturday – the nonprofit arts and culture sector is a $519.8 million industry in the State of New Jersey, supporting 14,342 full-time equivalent jobs and yielding $41 million in local and state government revenue.

The most comprehensive study of its kind ever conducted in the United States, Arts & Economic Prosperity 5 was conducted by Americans for the Arts, the nation’s leading nonprofit organization for advancing the arts and arts education. ArtPride New Jersey, the state’s largest cross-discipline arts service organization, worked with Americans for the Arts and five local partners–Cape May, Cumberland, Mercer and Morris counties and the City of Newark–to examine the financial power of NJ’s cultural community.

Results show that state nonprofit arts and culture organizations spent $296.1 million during fiscal year 2015. This spending is far-reaching: organizations pay employees, purchase supplies and contract for services. Those dollars, in turn, generate $340 million in household income for local residents and $41 million for state and local coffers.

“New Jerseyans know that the arts, humanities, cultural and entertainment venues help drive economic activity around the state. People want to live, shop, tour, eat and raise a family near arts-related industries,” said Rep. Leonard Lance. “The arts are a good federal investment and taxpayers win when vibrant communities see rising tax revenue. This study is good news for those who appreciate the arts, work in related industries and all taxpayers.”

In addition to spending by organizations, the nonprofit arts and culture industry leverages nearly $224 million in event-related spending by its audiences. Cultural event attendees often eat dinner in local restaurants, pay for parking, buy gifts and souvenirs and pay a babysitter, and those from out of town often stay overnight in a local hotel.

“Bank of America truly believes the arts have the ability to connect people to their communities and help economies thrive and prosper,” said Bob Doherty, New Jersey Market President for Bank of America and Chairman of the NJ Chamber of Commerce. “Arts organizations create jobs, complement school curricula and generate substantial revenue for local businesses. For decades, we’ve been proud to partner with so many organizations to help bring cultural experiences to life in NJ because the arts matter.”

The Arts & Economic Prosperity 5 study was conducted by Americans for the Arts and supported by The Ruth Lilly Fund of Americans for the Arts. In New Jersey, the study was funded by the Geraldine R. Dodge Foundation, the New Jersey State Council on the Arts/Department of State and an anonymous donor. Financial information from organizations was collected in partnership with DataArts™ using a new online survey interface.

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