The “Income Gap” and the Health of Arts Nonprofits

This article addresses the widening gap between costs and revenues for many arts nonprofits; it examines the most common explanations for the problem, categorizes possible solutions, and suggests practical strategies for implementation. This study suggests that a critical difference exists between large and small arts firms, which in turn implies a different set of strategies for each. Whereas large organizations do well to leverage technological innovations, diversify product lines, and expand audiences through educational outreach, smaller organizations tend to see greater returns from efforts to expand their philanthropic base.