Rural counties hold their own on measures of arts vibrancy.

In June, we released a list of 30 rural counties that score in the top 5% nationally for arts vibrancy, which we measure using 13 indicators of supply, demand, and public support, adjusted for cost of living and population size.

A closer look at these counties revealed key factors driving their success:

• Seasonal attractions drawing visitors and boosting local engagement.
• A high concentration of small and medium arts organizations that form a thriving ecosystem.
• Unique funding sources dedicated to arts and culture.
• The presence of an anchor institution that serves as a cultural hub.

Geoffrey Kershner of Small Town/Big Arts who examined the data and interviewed community leaders, noted, “In less advantaged communities, dedicated efforts by the community and supportive initiatives can bridge the gap, demonstrating that arts vibrancy can be attained through persistent collective action.”

This demonstrates that rural communities can achieve and sustain arts vibrancy through resourceful leadership, collective commitment, and a focus on local strengths.

Despite progress, people of color—particularly Black and Hispanic/Latinx individuals—remain underrepresented in the arts and culture workforce.

A report conducted by SMU DataArts in partnership with the LA County Department of Arts and Culture highlights persistent disparities in workforce diversity within LA County’s arts and culture sector. While 49% of the workforce identifies as Black, Indigenous, or People of Color (BIPOC), this remains significantly lower than the county’s 75% BIPOC population. The largest gap exists for Hispanic/Latinx workers who represent only 13% of the arts workforce despite comprising 49% of the population.

The study also revealed unequal access to positions of power and decision making. BIPOC representation is notably higher in roles related to project or exhibition execution, facilities, and constituent-facing functions than in leadership and board positions—a trend echoed in multiple studies conducted by SMU DataArts.

Still, modest gains were observed between 2019 and 2023. Among a subset of organizations surveyed in both years:

• BIPOC workforce representation grew from 40% to 45%, while White representation declined from 57% to 51%.
• BIPOC board representation increased from 32% to 46%.
• BIPOC supervisory staff rose from 34% to 45%.

These findings signal progress in both workforce diversity and access to positional power in Los Angeles, but significant gaps remain, particularly for Hispanic/Latinx individuals.

States with lower poverty rates tend to rank higher in arts vibrancy—with notable exceptions.

In general, states with lower poverty rates tend to rank higher on our Arts Vibrancy Index. However, New York defied this trend, ranking as the most arts-vibrant state in 2023 and 2024 despite its above-average poverty rate. New York’s arts sector thrives even amid significant economic disparities; the state also ranks among those with the highest income inequality, according to the Economic Policy Institute.

New York’s unique ability to sustain a highly vibrant arts ecosystem—despite economic challenges—underscores the complex relationship between poverty, inequality, and cultural vitality.

Government and foundation support were critical to the arts sector’s survival throughout the pandemic, but the landscape is likely to keep shifting.

From 2019 to 2023, government support for arts and cultural organizations more than doubled, driven by unprecedented pandemic relief funding. Federal aid programs alone delivered $17 billion dollars directly to the arts and culture sector, with additional funds redistributed through local agencies. This surge in funding was essential to the survival of organizations during the crisis, but the vast majority of relief funding has been awarded, with only a few programs continuing to distribute funds through 2026.

While foundation support also emerged as a bright spot—outpacing inflation alongside government funding—other revenue streams, such as earned revenue have yet to fully rebound. As of 2023, earned revenue remained below pre-pandemic levels when adjusted for inflation and continued to cover a smaller share of organizational expenses.

This dynamic has been particularly acute for BIPOC organizations, for whom: 

• Trustee and individual giving declined below pre-pandemic levels by 2023.
• Government support grew by 285% (inflation adjusted dollars).
• Foundation giving increased by 76% (inflation adjusted dollars).

These institutional funding sources are now even more critical for BIPOC organizations than they were pre-pandemic. However, despite the significant increases listed above, BIPOC organizations still received substantially less funding from government sources and similar amounts from private foundations on average compared to their non-BIPOC counterparts.

Arts organizations faced deficits in 2023, marking a turning point since the pandemic.

For the first time since 2020, nationwide data showed that the average arts organization operated at a small deficit in 2023, as inflation drove expenses beyond revenues. This marks a shift from the pandemic years, when reduced expenses during closures and unprecedented government relief helped many organizations build significant financial reserves to the tune of a median of 9.8 months of working capital in 2021, more than double the median amount in 2019. 

As programs and services ramped up during reopening rising costs meant that organization’s previous expenditures were not enough to provide the same programs they had before the pandemic.  While foundation and government support kept pace with inflation, most other revenue streams lagged behind. Even as inflation currently slows, it’s unclear when revenue sources will catch up and many organizations face tough decisions: if pandemic-era savings are depleted to cover rising costs, the hard-earned reserves built during those years could quickly dwindle, leaving many in a precarious financial position.

Honorable Mentions

• Artist payments by nonprofit arts organizations have not kept pace with inflation, even as overall payroll expenses have risen. Our analysis of staffing trends highlights ongoing challenges in balancing employment costs with fair compensation for artists.

• Local Arts Agencies (LAAs) demonstrated agility in distributing federal COVID-19 relief funding, employing shared strategies with promising implications for the future. Our examination of 11 local communities revealed innovative practices that could inform and strengthen LAA operations moving forward.

Reflecting on 2024’s findings, it’s evident that the arts and culture sector is navigating a rapidly evolving landscape. By continuing to leverage arts research, we can work together to build a future that is more vibrant, inclusive, and sustainable for all.

As we look to 2025, we are excited to explore new questions, uncover deeper insights, and contribute to the ongoing resilience and growth of the arts sector.