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 December 22, 2003 Arts groups see brighter picture After two brutal years, the Guggenheim Museum is daring to be hopeful again about its future. Slumps in donations and tourist traffic had forced the museum to slash its operating budget in half to around $24 million and lay off a third of its 350-employee workforce. This year, though, the museum saw visitor traffic increase 5% and its retail sales jump 75% above budget to $1.9 million. Corporations are expressing interest in making contributions again. "We've been pleasantly surprised by our finances this year," says Anthony Calnek, the museum's director of publications. Nonprofit leaders think the worst may finally be over for the city's beleaguered arts sector, according to a semiannual survey conducted by Crain's and consulting firm DHR International Inc. A DHR confidence index rose to 57 from 30 in the spring. Almost 80% of the city's cultural groups feel that the city's economic recovery will have a positive impact on the industry over the next six months. More than three-quarters, or 79%, expect a moderate improvement. It is the first significant increase in optimism among New York arts leaders since 1999. All of the theaters, and 86% of the nonprofit museums and galleries, reported at least a moderate increase in admissions and sales. Moreover, 41% of all the polled organizations reported an increase in fund raising. "Over the past six months, arts leaders have seen a marked improvement in all components of their business: fund raising, admissions and sales," says James Abruzzo, managing director of DHR's nonprofit practice. "They are more optimistic about their future and the future of their industry. " Even though nonprofit executives are more optimistic, most plan to maintain lean budgets through most of next year. "Donors really respond to old-fashioned strict budget management," Mr. Calnek says. "A carefully managed budget gives them the confidence to be more generous." ##### |
