- Sector Scan
Nonprofit Theatres Face Ongoing Financial Pressures as Pandemic Relief Wanes
- Posted Mar 03, 2025
4-minute read
The 44th edition of Theatre Facts, produced by Theatre Communications Group (TCG) in partnership with SMU DataArts, provides an in-depth analysis of the attendance, financial health, and overall performance of the nonprofit theatre sector in the United States. This annual report highlights the artistic, educational, and economic contributions of nonprofit theatres while identifying key challenges and opportunities as organizations continue to navigate post-pandemic recovery.
In 2023, nonprofit theatres contributed $3.6 billion to the U.S. economy and welcomed over 27 million audience members to performances nationwide. Based on data from TCG’s Fiscal Survey and SMU DataArts’ Cultural Data Profile (CDP), Theatre Facts 2023 is the only comprehensive report that examines the financial realities and long-term sustainability of the nonprofit theatre field.
Theatre Facts 2023 captures the evolving financial landscape of nonprofit theatres, focusing on key indicators such as earned and contributed income, expenses, audience engagement, and liquidity. With the expiration of pandemic relief funding and rising operational costs, the report sheds light on how organizations of all sizes are adapting to a new economic reality.
The 2023 analysis reflects fiscal years ending between October 2022 and September 2023, capturing a period of rebuilding, shifting audience behaviors, and financial recalibration across the sector.
Three Levels of Analysis:
- The Universe – A broad overview of the estimated 2,258 nonprofit theatres operating in the U.S., providing a high-level snapshot of the sector.
- Trend Theatres – A longitudinal study of 137 theatres that participated in the TCG Fiscal Survey or CDP annually from 2019 to 2023, offering insights into pre- and post-pandemic shifts.
- Profiled Theatres – A detailed look at 213 nonprofit theatres that submitted a Cultural Data Profile in 2023, with findings segmented by budget size to capture financial variations across different types of organizations.
Key Findings
- Earned income has not fully recovered. While ticket revenue increased 94% from 2022 to 2023, it remains 25% lower than in 2019, after adjusting for inflation.
- Contributed revenue declined in 2023. Following a peak in pandemic-related relief, total contributed income fell 15% year-over-year, emphasizing the need for new funding strategies.
- Expenses outpaced revenue growth. Rising costs, particularly in payroll and production expenses, resulted in many theatres reporting negative Change in Unrestricted Net Assets (CUNA) for the year.
- BITOC (Black, Indigenous, and Theatres of Color) theatres faced distinct financial challenges. These organizations were more reliant on foundation and government support, while non-BITOC theatres generated more income from ticket sales and subscriptions.
- Long-term sustainability remains uncertain. Without a continued increase in earned revenue and diversified funding sources, many theatres face challenges in maintaining financial stability.
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Theatre Communication Group’s Theatre Facts 2023 was written by Daniel Fonner, associate director for research, SMU DataArts; Rebecca Roscoe, senior research associate, SMU DataArts; Wenhua Di, research director, SMU DataArts; Jen Benoit-Bryan, professor and director of SMU DataArts at Southern Methodist University (SMU); Rachel Hip-Flores, communications associate, TCG; and Corinna Schulenburg, director of communications, TCG.
ABOUT THEATRE COMMUNICATIONS GROUP
Theatre Communications Group (TCG) exists to strengthen, nurture, and promote professional theatre in the U.S. and globally. Since its founding in 1961, TCG’s constituency has grown from a handful of groundbreaking theatres to over 700 Member Theatres and affiliate organizations and nearly 10,000 Individual Members. Through its Core Values of Activism, Artistry, Diversity, and Global Citizenship, TCG advances a better world for theatre and a better world because of theatre. TCG offers its members networking and knowledge-building opportunities through research, communications, and events, including the annual TCG National Conference, one of the largest nationwide gatherings of theatre people; awards grants and scholarships, approximately $2 million per year, to theatre companies and individual artists; advocates on the federal level; and through the Global Theater Initiative, TCG's partnership with the Laboratory for Global Performance and Politics, serves as the U.S. Center of the International Theatre Institute. TCG is North America’s largest independent trade publisher of dramatic literature, with 17 Pulitzer Prizes for Drama on the TCG booklist. It also publishes the award-winning American Theatre magazine and ARTSEARCH®, the essential source for a career in the arts. In all of its endeavors, TCG seeks to increase the organizational efficiency of its Member Theatres, cultivate and celebrate the artistic talent and achievements of the field, and promote a larger public understanding of, and appreciation for, the theatre. www.tcg.org.