F E B R U A RY 2 0 1 5

BUILDING THE CASE FOR INVESTMENT IN THE ARTS

Research conducted by the Strategic Counsel

Canadians are engaged in the arts & business is taking note

RESEARCH GOALS

• Understand the extent to which Canadian businesses support the arts, and value the arts • Understand what Canadians think about the arts, how they engage in the arts, and who engages in the arts• Understand perceptions of the Canadian public and Canadian businesses towards the role of government

BUILDING A CASE FOR THE ARTS: THE RESEARCH PROGRAM

• A literature review of research relating to the role and impact of arts and cultural engagement

• A survey of small and medium sized business administered by phone (n=239):• The extent of support for the arts • Reasons for support or lack of support• Responses to values and attributes associated with the arts

BUILDING A CASE FOR THE ARTS: A RESEARCH PROGRAM

• A survey of larger businesses administered on line (n=57) (annual revenues in excess of $50 million) • Reasons for support or lack of support for the arts• Identification of factors that would enhance support

• A survey of public engagement with the arts (n=1500) • Identification of the various forms of engagement• Profile of those engaged • Identification of values associated with the arts • Identification of factors that enhance support for the arts

QUESTIONS FOR ROUNDTABLE PARTICIPANTS

• What aspects of this research would you like to see us further explore in 2016, with business and/or with the general public in Canada?

• Are there questions that we missed that you would like to see asked?

• Are there other stakeholders you would like to see us survey, including arts, business and the general public? (i.e. healthcare workers, teachers, etc.)

HOW ENGAGED ARE CANADIANS IN THE ARTS?

ARTS ACTIVITIES(BY AGE AND LOCATION)

Listen to Music (Daily)Read a Novel (Weekly)

AT HOME

OUTSIDE HOME (Attended/Visited) in last year)

Museum/Art Gallery 56%

Rock/pop/blues 37%Theatre 38%

Artists Studio 35%Opera/classical 15%

58%42%

LEVELS OF ARTS ENGAGEMENT OUTSIDE THE HOME

NONE

LOW MED HIGH

% % % %

TOTAL 16 44 24 17

AGE

12-24 10 48 25 18

25-34 14 42 24 19

35-44 20 43 18 19

45-54 15 41 28 16

55-64 16 48 24 12

65+ 17 43 23 16

HH INCOME ($1,000’s)

Under $40 21 43 21 15

$40-$79 17 46 23 14

$80-$124 16 43 26 15

$125+ 8 39 25 28

While all age groups are

engaged in the arts, income does

play a role in participation

LEVELS OF ARTS ENGAGEMENT OUTSIDE THE HOME

NONE

LOW MED HIGH

% % % %

TOTAL 16 44 24 17

EDUCATION

HS or less 24 52 26 8

Some College/University

17 44 24 15

College 14 52 24 11

Undergraduate Degree

15 38 28 19

Post Graduate 8 31 26 35

ETHNICITY

Visible Minority 17 35 29 19

Non Visible Minority 16 45 23 16

Education plays the largest role.

CANADIANS ARE ENGAGED IN THE ARTS

Half of Canadians are involved in some kind of art-making

• 50% of Canadians are engaged in making or creating art in a variety of different genre (spread equally across income and education groups)

• Those who report participating in some kind of art-making from crafts to social dancing, are more likely to report attending multiple arts activities

Arts Sports Both Equally

Neither/Don’t Know

34%

29%

23% 14%

WHEN ASKED WHAT TYPE OF EVENT THEY WOULD PREFER TO ATTEND, RESPONDENTS PREFERRED:

PARENTS ESPECIALLY VALUE THE ARTS FOR THEIR CHILDREN

76% of Parents report their children are engaged in an arts activity

THE ARTS

Music

Dance

Acting

Art

Instrument

Play music

been in a playWritten stores

Other

None

37%33%

16%25%

39%21%

31%27%

3%24%

Music Lessons

Dance LessonsActing Lessons or Theatre

ClassArt Lessons

Learn an InstrumentPlay music in a group or

bandBeen in a play or musical

Written stories or poetry

Other

83%of parents

believe that engaging

children in the arts is

important for their

developmentNone

PARENTS ESPECIALLY VALUE THE ARTS

WHERE ACTIVITIES UNDERTAKEN

186

2630

3764

6052

44

3717

2827

3820

2540

11

4577

4743

261615

744

Music

Dance

Acting

Art

Instrument

Play music

been in a …

Written …

Other

Music Lessons

Dance Lessons

Acting Lessons or Theatre Class

Art Lessons

Learn an Instrument

Play music in a group or band

Been in a play or musical

Written stories or poetry

Other

At School Both at school and outside

Outside of school

%

DO CANADIANS VALUE BUSINESS INVESTMENT IN THE ARTS?

CANADIANS SUPPORT COMPANIES WHO INVEST IN THE ARTS

More than half of Canadians feel more favourably towards businesses that support arts and culture, including:

52%

of all respondents

80%

of those who donate to the

arts

69%

of those who frequently attend arts

events

IMPORTANCE OF BUSINESS INVESTMENT IN THE ARTS

Helping to make the arts more accessible for all is important

Businesses have an important role to play in supporting the arts

Many arts and cultural organizations require donations from businesses in order to function

TOTAL

PUBLIC BUSINESS

ATTEND 2+ ARTS EVENTS

DONATE TO ARTS ALL ATTEND

SUPPORT ARTS

71%

81%

79%

49%

53%

70%

62%

68%

80%

40%

48%

73%

72%

75%

82%

50%

52%

60%

IS BUSINESS INVESTED IN THE ARTS?

BUSINESS INVESTMENT PER ARTS ORGANIZATION

Average Corporate Support Per Organization*

* Excluding In-Kind

2008 2009 2010 2011 2012 2013 201450

52

54

56

58

60

62

64

66

68

70

$56

$69

($ T

hou

san

ds)

Average corporate support has grown to $69,000 per org. since

2008

Source: This analysis is based on data from CADAC (Canadian Arts Database/Données sur les arts au Canada) as compiled by the Research and Evaluation Section of the Canada Council for the Arts.

TYPES OF CORPORATE SUPPORT

2008 2009 2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

13 13 13 14 11 12 13

32 34 35 35 43 35 30

55 53 52 52 47 53 57

Corporate Donations In-Kind Goods & ServicesSponsorship

CANADIAN BUSINESSES ARE STRONGLY COMMITTED TO SUPPORTING ARTS AND CULTURE

38%

of small to mid-sized companies

invest in the arts**

13%

Percentage of giving directed to

the arts from companies with revenues over

$25M*

25%

Percentage of giving directed to

the arts from small to mid-sized companies**

71%

of companies with revenues over $25M

invest in the arts*

of businesses that don’t invest in the arts have never been asked.**57%

PUBLIC SECTOR INVESTMENT PER ARTS ORGANIZATION

* Excluding In-Kind

2008 2009 2010 2011 2012 2013 2014325

330

335

340

345

350

355

360

365

370$367

$352

($ T

hou

san

ds)

Average Public Sector Support Per Organization

Source: This analysis is based on data from CADAC (Canadian Arts Database/Données sur les arts au Canada) as compiled by the Research and Evaluation Section of the Canada Council for the Arts.

DOES CANADA’S BUSINESS COMMUNITY THINK GOVERNMENT SUPPORT OF THE

ARTS IS IMPORTANT?

THE IMPORTANCE OF GOVERNMENT SUPPORT?

• Businesses of all sizes believe government support of the arts is important.• 100% - large businesses• 92% - medium businesses• 90% - small business

• 23% of large companies say they would increase support if there were government cuts to the arts. • 53% would maintain current level; • 23% don’t know

If know arts group receives government funding:Expectation of direction of govt. arts funding:Response to potential decline in govt. support for arts

Series1 9%

15%

4%

82%

41%

90%

5%

33% 12%

7%

Increase likelihood of donation

Have no impact

Decrease likelihood of

donating

Increase Stay about same

Decrease DK

Increase level of support Maintain same level DK

SMALL AND MID-SIZED BUSINESSES RESPONSE TO HYPOTHETICAL CUT BACK OF GOVERNMENT FUNDING

DO CANADIAN BUSINESSES MEASURE THEIR INVESTMENT IN THE ARTS? HOW?

MEASURING RETURN ON INVESTMENT

While traditional return on investment measurements are important to business, increasingly the social return on investment is noted as an interest.

• While 63% of large businesses say ROI is important, 88% say that SROI is important

• 17% of these businesses say they measure SROI

BELIEVABILITY ABOUT THE IMPACT OF THE ARTS

PUBLICBUSINESS

89% 100%Assists in improving creativity

Has a positive impact on health and well-being

80% 88%

PUBLICBUSINESS

79% 84%

Helps children from

disadvantaged communities

succeedMakes for more integrated and

healthier communities

75% 86%

Improves children’s academic

performance

80% 86%Creates greater empathy and understanding

74% 78%

HOW BUSINESSES MEASURE IMPACT

• Most businesses currently use ROI to measure the return on their investment• 47% brand reputation• 47% the number of employees who participate• 43% press coverage/profile• 40% depth of relationships built with potential

clients• 33% making a difference in solving community

problems* (social return)• 30% numbers coming to on-site activations

RATING REASONS FOR SUPPORTING THE ARTS

Reasons for support, ranked by Cdn businesses:• 95% “arts education has been shown to assist in

the intellectual development of children” (34% excellent reason)

• 88%: “Youth engagement with the arts helps reduce youth crime and alienation

• 87%: “Engagement with the arts contributes to personal well-being”

• 83% Reason for support: “Communities with an active arts scene are vibrant places to live and work”

• 74% The arts make a significant contribution to the economy of a community (17% excellent reason)

FACTORS THAT WOULD INCREASE INVESTMENT

Large businesses would invest more in the arts:• 50% If an arts organization was active in

providing arts education programs and outreach to disadvantaged• 47% If it was demonstrated that the arts can

promote employee engagement• 40% If it was demonstrated that engagement

with the arts enhances the wellbeing of individuals and the community• 37% If a direct impact on the company’s bottom-

line could be shown

REASONS FOR NOT INVESTING IN THE ARTS

65% of small and 52% of medium sized businesses do not support the arts; WHY?

• More important areas to donate to (81%) [health, education, social services top]• Never been asked 61% (small), 43% (medium)• Lack of perceived business benefit 61% (small),

43% (medium)• No perceived need 31% (small), 29% (medium)

KEY STRATEGIC IMPLICATIONS & FOCUS GOING FORWARD

STRATEGIC IMPLICATIONS - BUILDING THE CASE FOR INVESTMENT

Towards building a case for business investment in the arts:

If business is interested in supporting health, social services and education as top priorities, should we make a strong case that investing in the arts, is also investing in health, social services and education? What is the best way to do this?

Should we work on providing a national SROI number for the arts like we do for economic impact of the arts? - helpful in making the case?

Is it important that each arts organization be able to show their individual SROI ? should we work on providing a SROI framework to help make these calculations?

QUESTIONS FOR ROUNDTABLE PARTICIPANTS

What aspects of this research would you like to see us further explore in 2016, with business and/or with the general public in Canada?

What questions do you wish we had asked of the general public and/or Canadian businesses/arts that we didn’t?

Who else would you be interested in having us survey? (i.e. teachers, health care workers, etc.)