Nonprofit Numbers: What does it take to sustain an orchestra? – Abby Coffey, Executive Director

In the evolving landscape of arts funding, arts nonprofits everywhere face challenges as they balance high-quality products that benefit the community with a ticket cost that invites participation. The very nature of a nonprofit creates this disconnect between earning enough in product or ticket sales to run the organization. If this were possible, a for-profit organization would do it! Donations from individuals, foundations and government entities have become more crucial than ever for sustaining local cultural institutions that play a vital role in preserving and promoting classical music.

The Financial Landscape

According to the League of American Orchestras’ 2023 Annual Report, orchestras are experiencing significant financial pressures. The COVID-19 pandemic accelerated existing financial challenges, with many organizations reporting: an average 35% decrease in ticket revenue compared to pre-pandemic levels, increased operational costs, and growing competition for philanthropic dollars across nonprofit sectors.

The Impact of Donations

Donations are not just supplemental income—they are the fundamental support system for orchestra nonprofits. In 2024, individual contributions represent approximately 40% of orchestras’ annual budgets, according to Americans for the Arts. Even when arts organizations are financially responsible and diversify their revenue portfolio, all nonprofit organizations must rely on the support of donations as an important source of income.

Key Donation Statistics

– Average individual donation to arts organizations: $782

– Corporate sponsorships: 22% of total nonprofit arts funding

– Foundation grants: Approximately 18% of organizational support

Operational Costs of Arts Nonprofits

Understanding the financial requirements of running an orchestra nonprofit reveals the critical importance of donations. Even small regional orchestras like Arizona Philharmonic have hefty expenses that go into creating the excellent concert experiences and important outreach programs that uplift and benefit Prescott’s arts and culture scene.

The average orchestra concert cycle creates approximately $40,000 in expenses! Over 70% of this concert budget goes towards providing our musicians and conductor with appropriate compensation that matches their skill level and supports a living wage.

A single concert ticket contributes less than 1% of the revenue needed to operate an orchestra concert.Even with a sold-out concert, we would still need nearly $10,000 in financial support to break even for the concert, let alone yield a profit.

While this financial situation might be viewed as the exception to the rule, it is actually the standard for all arts and culture nonprofits in America. No matter the organization, community, or service offered, all nonprofit organizations will never be able to fully support their organization’s mission and product by sales alone.

Donors are the lifeline of all nonprofit organizations!

As we move through 2024 and into 2025, donations remain the critical lifeline for all nonprofits. Each contribution, regardless of size, plays a pivotal role in preserving this rich cultural heritage and ensuring musical experiences for future generations. When you support nonprofit organizations financially, you provide stability for programming and projects that benefit and uplift the community.

Supporting your local orchestra is more than a donation—it’s an investment in cultural preservation.

Sources

1. League of AmericanOrchestras, 2023 Annual Report

2. Americans for theArts, Arts Funding Research (2024)

3. National Endowment for the Arts, Arts Philanthropy Study

4. Nonprofit ArtsFinancial Survey, 2024 Edition