A different model, arts non-profit

Nonprofit arts organizations are generally able to earn only half of the money it takes to sustain their operation. The other half of their revenue must be raised through contributions and grants. Even small fluctuations in contributed revenue can mean deficits for many organizations.

• Earned income is the largest source of revenue for the typical nonprofit arts organization. Yet most people are unaware of the funding challenges that must be met to keep America’s arts organizations in operation.
• Support for the nonprofit arts is a mosaic of funding sources—a delicate balance of earned revenue, government support, and private sector contributions. The pie chart above provides a snapshot of what the average revenue picture looks like for a nonprofit arts organization in the U.S.
1. Earned income represents roughly half of the pie (ticket sales, sponsorships, and fundraising events, for example)
2. Private sector philanthropy is the next largest portion (corporate, foundation, and individual giving)
3. Finally, the smallest of the three is government support. (Note that federal arts support includes NEA, Kennedy Center, Smithsonian, and other direct arts funding—a total of about $1.4 billion annually.)

Source: Americans for the Arts, 2004.

http://www.artsusa.org/pdf/get_involved/advocacy/research/2007/revsources.pdf