For Arts and Cultural Organizations

Most arts organizations grew last year. The sector average still fell 25%.

Both are true, and the gap between them is the most useful thing in the data. Gratefully reads the patron and donor records you already keep and tells your team who to reach this week.

Before anything else, most arts organizations should not buy software

SMU DataArts collects the Cultural Data Profile from arts and cultural organizations across the country. Of the 6,513 organizations in the six-year sample, 4,092 have an annual budget under $500,000.

An organization that size does not have a development officer, a donor database or a stewardship programme, and it should not spend money solving a problem that a person with a spreadsheet and a good memory is currently solving fine. We would be a poor purchase and we would rather say so here than in a demo.

The rest of this page is for organizations with a development function: roughly the 1,608 in the sample above $1 million, and some of the 813 between $500,000 and $1 million.

Is arts and culture funding actually falling?

This is where most coverage of the 2025 report goes wrong, so it is worth being careful.

The headline is that average total revenue fell 25% from 2023 to 2024, below pre-pandemic levels for the first time since 2021, and down 36% across 2019 to 2024 once inflation is accounted for.

But two things in DataArts' own methodology complicate that.

The sample changes every year. Organizations reporting fell from 5,011 in 2019 to 2,914 in 2023 and 1,486 in 2024. DataArts deliberately include everyone who completed a profile in a given year rather than only those present across all six, to reduce selection bias. So the 25% figure compares one set of organizations against a different, much smaller set. It is not like for like, and the widely quoted "more than 6,500 organizations" is the six-year total rather than the 2024 sample.

In the matched comparison, most organizations grew. DataArts ran it themselves on the 1,288 organizations that reported in both 2023 and 2024, and found that 62% experienced an increase in revenue. Their conclusion is that losses were "concentrated among a subset of organizations and not a universal experience".

So the honest answer is that the sector average fell sharply, driven by concentrated losses most likely at larger organizations, while most individual organizations in the matched set did better than the year before. If your own numbers went up last year, you are not an outlier.

Which funding sources fell the most?

Averages again, with the same caveat, but the direction here is consistent and matters.

SourceWhat happened in 2024
FoundationsFell 25%. The largest source of contributed revenue, below pre-pandemic levels
GovernmentFell 26% from 2023, as pandemic relief funding wanes
All contributed sourcesEvery single one fell below pre-pandemic levels
Earned revenueAveraged 40% of total revenue
Contributed revenueAveraged 59% of total revenue
Note on the last two rows: DataArts calculate these as averages of each organization's own percentages, so they are not expected to total 100.

The pattern worth noticing is that the two most institutional sources, foundations and government, fell hardest and fell together. When institutional money contracts, individual giving has to carry more of the load, and individual giving is the part that depends on somebody maintaining relationships. For most organizations that means the annual fund carries more weight than it did two years ago, with the same people or fewer running it.

What happened to arts staffing in 2024?

This is the part of the data with no methodology asterisk, and for a development office it is the part that matters most.

FindingFigure
Staff countsLowest point in six years
Part-time employeesDown an average of two positions
Full-time employeesDown an average of two positions
Expense budgetsTightened by an average of 23%
Personnel expensesDipped 23%
Payments to artistsFell only 11%
Artist expenses as a share of personnel costs37%, up from 36% in 2023
Average number of artists paidFell 18%
Average distinct programs per organization150 in 2023, down to 83 in 2024
Average paid attendanceRose 13%
Average free attendanceRose 22%

Two of those rows together tell you where development sat in the priority order. Overall personnel expenses fell 23%, while payments to artists fell only 11%. Organizations protected the art and cut around it, which is defensible and probably correct, but it means the people who maintain donor relationships are part of what got thinner.

And attendance rose while the number of programs nearly halved. Fewer things, better attended, run by fewer people.

How many arts organizations are running a deficit?

FindingFigure
Organizations running a deficit in 202444%, the highest in six years
Median surplus1% of total expenses
Working capital4.2 months of expenses, a third consecutive annual decline
Organizations with three months of working capital or lessFour in ten

Working capital is still above its 2019 level, which DataArts attribute to the lingering effect of pandemic relief. The trend is the concern rather than the absolute number.

A median surplus of 1% is the number to sit with. It means the typical organization in this data has almost no margin for a surprise, and a lapsed major donor nobody noticed is exactly the kind of surprise that shows up late.

What this data does and does not imply about software

Most of what these findings point to is not a software problem, and we would rather say so.

A 25% fall in foundation support and a 26% fall in government funding are not things a tool fixes. Neither is rebuilding a reserve, nor deciding whether to run fewer programs, nor the question of whether your earned revenue model still works. Those are board and leadership decisions, and anyone selling you software as the answer to them is selling you something.

Two things here are different, because they are retrieval problems rather than strategy problems.

Knowing which relationships are going quiet while there is still time. With a median surplus of 1% and four in ten organizations holding three months of working capital or less, the cost of noticing a lapsed supporter late is higher than it was. That is a question with a correct answer sitting in records you already own.

Keeping what your team knows when the team shrinks. Staff counts are at a six-year low, down two part-time and two full-time positions on average. Each departure takes relationship context with it, and there are fewer people left who remember.

If the choice is between a tool and keeping a development post, keep the post. If the people you have are spending their week working out who to contact rather than contacting them, that is the gap this closes.

What Gratefully does for an arts development office

Grace, the assistant inside Gratefully, reads your records, documents, notes and correspondence, builds a private knowledge graph your organization owns, and works through them overnight.

What you getWhat it means in practice
A ranked daily action listWho needs attention now, with the reason on each card and one-click next steps: draft an email, prepare a call brief, log an interaction, or snooze
Stewardship moments surfacedGiving anniversaries, unacknowledged major gifts and timely welcomes for first-time donors
Answers with citationsAsk in plain language and get an answer grounded in your actual records, cited and specific
Calculated figures, not estimated onesReports use exact numbers from your data, never approximations
Living donor segmentsEvery donor is automatically classified as Champions, Loyal, New, At-Risk, Lapsed, Lost and more, from the recency, frequency and value of their giving. Scores refresh nightly and after every import
Lapsed recurring gifts flaggedA stopped recurring gift is often the first sign a supporter is drifting, and it rarely surfaces on its own
Board and trustee contextBoard commitments pulled out of your documents, and board or volunteer connections that were noted once and forgotten
Drafted outreach in your organization's voiceFirst drafts grounded in real giving history, which a person edits and sends
Handover dossiersWhen someone leaves, a branded package per donor with giving history, relationship stage, recommended next steps and risk flags, exportable as PDF

What it actually catches, and what it does not

Since this page is about a sector running on 4.2 months of working capital, it would be dishonest to overstate what a tool changes.

It does not raise money. It does not replace a foundation grant, and it will not tell you whether to cut a program.

What it catches is the thing that goes wrong quietly. On a Monday the list is already built: the supporter whose recurring gift stopped in September, the household that moved from $500 to $5,000 and got the same acknowledgement as everyone else, the giving anniversary falling on Thursday, the first-time donor from a fortnight ago who has heard nothing since, the board member who mentioned a connection two years ago that nobody followed up.

Each carries the reason it surfaced and the records behind it, so the morning goes on deciding what to say rather than working out who to say it to. For a team that lost two positions last year, that is the difference between a stewardship programme that runs and one that gets postponed.

A person still writes the notes. That part should not change.

What we do not do

No membership, subscription or renewal features. This matters in arts more than anywhere, so it should be plain. Gratefully has no subscriber renewal cycle, no membership lapse logic and no ticketing or box office data. Segments are built from the recency, frequency and value of giving, not from attendance or subscription status. If renewals are the core of what you need managed, your patron system does that job and we do not.

No event management. Special events are a real part of arts income and we do nothing with them.

No wealth screening and no capacity ratings. We do not buy or append external wealth data and we do not score capacity. Where something like a board appointment or a business sale surfaces, it is because a colleague wrote it in a note and it was forgotten. If you need capacity ratings across your whole file, a screening vendor is built for that question and we are not a substitute.

No prospect research on people who are not yours. We read your records. We do not find new names.

Not a CRM and not a patron system. We sit on top of what you already run.

Does it work with Tessitura, Spektrix or PatronManager?

Not directly, and this is the most likely reason we are the wrong fit for an arts organization today.

Our direct connectors are Salesforce Nonprofit Cloud and NPSP, Bloomerang and Little Green Light, plus Mailchimp. None of those is an arts patron system. If you run Tessitura, Spektrix, PatronManager or similar, you are working through CSV export and document upload rather than an automatic overnight sync.

That is a real limitation rather than a detail. It works, and it is how most organizations would start, but it is a manual step. Worth testing with a single export before you decide anything.

What does Gratefully cost?

Start on the Free plan at $0 for one person, free forever, no card. Every new account begins with a 14 day trial of Advanced, our top plan, and moves to Free when the trial ends rather than locking. Paid plans are $79, $399 and $799 a month. Full detail on the pricing page.

The Free plan is permanent rather than a countdown, but it is metered: one person, five things to do each week and ten AI answers a month, with your donors kept in sync throughout. Enough to judge whether it suits you. Not enough to run a development office on.

Given the working capital figures above, that matters. You can find out whether this is useful without committing budget you may not have.

Is it safe to put patron data into AI tools?

Patron and donor records carry giving histories, household relationships and staff notes about people who never agreed to any of it being typed into a chatbot. Consumer AI plans do not come with the agreements that kind of data needs.

Identifying details are removed before anything reaches a language model, your data never trains anyone's AI, and each organization sits in an isolated tenant. If you are writing rules for your own team first, our AI acceptable use policy template is free and ungated. Our PII redaction whitepaper sets out how the redaction actually works, if your board or your IT lead wants the mechanism rather than the assurance.

Frequently asked questions

Did arts revenue really fall 25% in 2024?

On average, yes, but the comparison is not like for like. SMU DataArts include every organization that completed a profile in a given year, and the number reporting fell from 2,914 in 2023 to 1,486 in 2024. In their matched sample of 1,288 organizations reporting in both years, 62% saw revenue increase. The average fell because losses were concentrated, not because most organizations lost money.

What percentage of arts organizations are running a deficit?

44% of US arts and cultural organizations ran a deficit in 2024, the highest in the six years covered by SMU DataArts National Trends 2025. The median surplus was 1% of total expenses, and four in ten organizations hold three months of working capital or less.

Which arts funding source fell the most?

Foundations fell 25% and government fell 26% from 2023, according to SMU DataArts National Trends 2025. Foundations are the largest source of contributed revenue for arts organizations, and every contributed source finished 2024 below pre-pandemic levels.

What happened to arts staffing?

In 2024, staff counts at US arts and cultural organizations fell to their lowest point in six years, with part-time and full-time headcount each down an average of two positions, according to SMU DataArts National Trends 2025. Personnel expenses dropped 23% while payments to artists fell only 11%, so organizations protected artistic budgets and cut elsewhere.

Do we have to move off Tessitura or Spektrix?

No, and you could not move to us if you wanted to, because we are not a patron system or a CRM. Your system stays the record of truth. We have no direct connector to arts platforms, so you would work through CSV export and document upload.

Does it handle membership renewals or subscriber lapses?

No. There is no renewal cycle, membership lapse logic or ticketing data in Gratefully, and we would rather say that plainly than let you discover it later. Our segments are based on giving behaviour. If membership renewal is the core problem, your patron system is the right tool.

Is this wealth screening?

No. We do not rate capacity, append external wealth data or tell you what a patron could give. We rank the people already on your file by what they have actually done, and show the reasoning.

We are a small organization with one development person. Is this worth it?

Possibly, and the Free plan costs nothing if you want to find out. But if your annual budget is under $500,000, which describes most organizations in this data, our honest answer is probably not. At that size the constraint is usually time and staffing rather than knowing who to call.

Half our contributed income comes from foundations and government. Does this help?

Not with those. We do not track grant pipelines, reporting deadlines beyond what is in your documents, or institutional funder relationships as a specialism. Where it helps is the individual giving that has to grow when institutional money contracts, which the 2024 data suggests it has.

What happens when our development director leaves?

That is what handover dossiers are for. The knowledge graph belongs to the organization, not the person, so notes, correspondence and history stay and can be handed on. With staff counts at a six-year low, a single departure takes a larger share of the institutional memory than it used to.

How is this different from your other sector pages?

Different data and a genuinely different situation. Our pages for higher education, schools and religious organizations all show dollars rising while donor counts fall. Arts is the one sector where the averages fell outright, and where the capacity to do anything about it fell at the same time.

Sources

  • SMU DataArts, National Trends 2025: Analysis of the Nonprofit Arts and Culture Sector. Built from the Cultural Data Profile, covering fiscal years 2019 to 2024, with 6,513 organizations across the six-year sample and 1,486 reporting in 2024. Methodology, data tables and all figures used here are published free at culturaldata.org/national-trends/national-trends-2025/