Our latest ABA Executive Benchmark explored the state of art and cultural organizations’ overall budgets and projections for the new year, as well as the health of endowments, and how organizations report on different funds and reserves.
Highlights from the survey include:
While a majority of organizations expect to end their most recent reporting year with an overall budget deficit, 21% overall anticipate a surplus. For those with deficits, drawing from cash reserves is the most common plan to fund this gap.
Contributed income is anticipated to suffer the greatest drop in the coming year, whereas arts and cultural leaders expect to see larger boosts in individual donations and single-ticket revenue.
Most organizations with endowments drew 4-6% of these funds for use in the most recent financial reporting year.
The most commonly held reserve structures at arts and cultural organizations are operating reserves.
