The financial margins are getting thinner for arts organizations nationwide. With revenue falling 25% and expenses down 23%, the median surplus for organizations was only 1% of total expenses in 2024. More concerning: 44% of organizations ran deficits—higher than any point in the previous five years and well above the 36% who were in deficit before the pandemic. Meanwhile, the financial cushion created by relief funding continues to shrink. Working capital fell to the equivalent of 4.2 months of expenses in 2024, with 42% of organizations having three months or less in savings. The pandemic relief surge appears to be over, leaving many organizations walking a financial tightrope with less and less room for unexpected expenses or strategic pivots. While working capital levels are still better than 2019, when the median was 2.3 months, the trend is clear: the sector is operating on increasingly thin margins with diminishing financial flexibility. Read the full analysis 🔗 https://culturaldata.org/national-trends/national-trends-2025/bottom-line/ #nationaltrends2025 #artsresearch #artsandculture #supportthearts #smu #smudataarts (fb)

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