New Study Shows That Donations to Arts Nonprofits Drop When Audience Numbers Rise

A new study conducted on several arts non-profits suggests the common theory that donors will provide higher levels of contribution when they see improved results is inaccurate. According to the study, the findings actually suggest the opposite; when donors witness signs of improvement, such as higher levels of audience attendance and retention, they interpret these happenings as signs that the organization is more successful than before and, as a result, better equipped to sustain itself independently, at least from a financial standpoint.

Conducted through the analyzation of data from the DataArts (formerly the Cultural Data Project), the study was published in the Public Performance and Management Review, and contains information that can help organizations remain accountable when they are seeking funding. Although it is widely believed that donors make their decisions regarding support based on quantifiable results, this study suggests that more subjective markers should be taken into account when assessing an organizations level of need.

To read the study in full, click here.