By Aliyah Harrison

In the heart of Virginia, the nonprofit arts and culture sector is enriching lives and driving significant economic growth and social impact. A recent study by Americans for the Arts, commissioned by CultureWorks, illuminates the extensive impact of these organizations on the Richmond and Tri-Cities region. This detailed report, part of the Arts & Economic Prosperity 6 (AEP6) study, showcases the substantial economic contributions and social benefits provided by nonprofit arts and culture activities.

Methodology and Scope

The AEP6 study is one of the most comprehensive in its field, encompassing 373 diverse communities across all 50 states and Puerto Rico. In the Richmond and Tri-Cities region, extensive financial and attendance data were gathered from 93 nonprofit arts and culture organizations. Furthermore, 2,356 audience surveys were conducted to gain valuable insights into spending patterns and social impacts. 

The Arts as an Economic Engine

In 2022, the nonprofit arts and culture industry in Richmond generated an astounding $329.9 million in economic activity. This comprises $213.2 million in spending by nonprofit organizations and an additional $116.7 million in event-related expenditures by audiences. This surge in spending supported 6,742 jobs and contributed $82.7 million in local, state, and federal tax revenue. The impact of this sector is akin to that of a Fortune 500 company, driving substantial economic activity that benefits local merchants and supports crucial community services.  

The Tri-Cities communities of Colonial Heights, Hopewell, and Petersburg also enjoyed significant economic benefits. In these areas, nonprofit arts and culture organizations, together with their audiences, generated $16.4 million in total expenditures. This spending supported 288 jobs and produced $555,229 in local and state tax revenue. Notably, the average attendee in the Tri-Cities spends $35.88 per event, underlining the substantial economic contribution of cultural activities. This economic activity showcases the dynamism and significance of the arts sector in our community.  

Furthermore, this spending helps sustain many jobs and personal income in the region. The arts and culture sector supports 6,742 jobs and contributes $266.6 million in personal income to residents. This includes employment for artists, administrators, vendors, and other professionals whose livelihoods depend on the thriving sector. The report emphasizes that nonprofit arts and culture activities have significantly contributed to local, state, and federal tax revenue, highlighting the essential role of the arts in supporting public services and infrastructure.

Audience Spending Insights
The vibrant cultural scene in the Richmond and Tri-Cities region is reflected in the spending patterns of arts and culture audiences. Attendees contribute to the local economy by spending an average of $30.45 per person at each event, supporting businesses in the area. Additionally, nonlocal attendees spend even more, at an average of $58.21 per event, which further enhances the economic vitality of the region.  

Social Impact  

Beyond economic contributions, AEP6 for the first time delved into the social impact of arts and culture. The study revealed that 87.7% of respondents in Richmond agreed that cultural venues and activities are a source of neighborhood pride, and 85.8% would feel a significant loss if these resources were no longer available.  

In the Tri-Cities, the social benefits were equally pronounced. Surveyed attendees expressed strong appreciation for the role of arts and culture in their communities, with 85.3% acknowledging that cultural activities inspire neighborhood pride, and 83.6% attending events to ensure their preservation for future generations.   

AEP6 broke new ground by prioritizing equity, community engagement, and inclusivity. Recognizing the systemic biases that have historically marginalized BIPOC (Black, Indigenous, and People of Color) and ALAANA (African, Latino, Asian, Arab, Native American) communities, the study emphasized the need for sustained support for these groups. These findings underscore the crucial role of arts and culture in cultivating a sense of community, pride, and continuity.

The Path Forward  

CultureWorks is committed to leveraging these findings to advocate for increased funding and support for the arts. By demonstrating the significant economic and social returns of investing in arts and culture, we aim to influence public and private sector leaders to prioritize these investments. The arts are not just a source of enjoyment; they are essential for driving economic growth and enhancing community well-being.

Discover more about the AEP6 study and other cultural initiatives in the vibrant Richmond and Tri-Cities region here.