Theatre Facts 2023 - Lecture Notes

Introduction

Annual report by Theatre Communications Group (TCG) on U.S. professional not-for-profit theatre.
Covers finances, attendance, performance details, and operations for fiscal years ending between October 2022 and September 2023.
Data sourced from TCG’s Fiscal Survey and SMU DataArts’ Cultural Data Profile (CDP).
Follows Federal Accounting Standards Board (FASB) guidelines.

Executive Summary

Reflects on the ongoing impact of COVID-19.
Highlights the decline in ticket income, reduced federal funding, and challenges in maintaining revenue.
Examines the transition period as government relief wanes.

The Universe

Overview of the U.S. professional not-for-profit theatre field for 2022/2023.
Comprises 2,258 theatres including TCG Member Theatres and others filing IRS Forms 990.

Trend Theatres (2019-2023)

Analysis of 137 theatres' financial and operational data over four years.
Showcases changes in earned and contributed income, attendance, and expenses.
Inflation adjustment based on Consumer Price Index.

Highlights:

Expenses increased significantly in 2022 and continued growing in 2023.
Earned income remains below 2019 levels; contributed income fluctuated.
CUNA (Change in Unrestricted Net Assets) reached a low in 2023.
Attendance and ticket sales have not fully recovered; a 22% drop in attendance over four years.
Federal funding peaked in 2022, declined by 70% in 2023.
State and local support improved but not enough to cover federal shortfalls.

Profiled Theatres (2023)

Focuses on 213 theatres completing CDP in 2023.
Detailed financial questions reveal nuanced health profiles by budget size.

Key Insights:

Smaller theatres rely more on government funding; larger theatres cover more expenses with earned income.
Single ticket income dominates earned revenue across all sizes.
Contributed income covers a larger percentage of expenses for smaller theatres.
CUNA was negative across most budget groups, especially for theatres with budgets $5-$10 million.

BITOC Analysis

Comparison between Black, Indigenous, Theatres of Color (BITOC) and non-BITOC theatres.
BITOC trailed in earned income but excelled in contributed income, especially from foundations.
Higher working capital and positive CUNA for BITOC.

Conclusion

Theatres are struggling with rising costs outpacing revenue growth.
Contributed income is crucial but declining without federal relief.
BITOC organizations are more liquid but dependent on contributed income.
Future strategies must focus on sustainable revenue, audience engagement, and community alignment.

Methodology

Data collected through TCG’s Fiscal Survey and SMU DataArts Cultural Data Profile.
Inflation adjustments for financial analyses.
regression models applied for Universe section estimations.

Appendix

Detailed tables of profiled theatres by budget groups.
Lists 2023 profiled theatres by state and budget group.

Key Definitions

Contributed Income: Unrestricted donations and grants.
Capital Campaign: Fundraising drive for specific purposes.
CUNA: Change in Unrestricted Net Assets, indicating fiscal health.

These notes aim to provide a comprehensive overview of the Theatre Facts 2023 report, capturing essential data trends and financial insights crucial for understanding the current state and future challenges of the not-for-profit theatre sector in the U.S.

2023 Theatre Industry Financial Insights