National Endowment for the Arts

All America’s a Stage:

Growth and Challenges in Nonprofit Theater
The National Endowment for the 

Arts’ new report, All America’s 

a Stage, provides a concise 

overview of the nation’s vital 

and extensive nonprofit theater 

network. Rather like a good play, 

the report presents surprises, 

revelations, and insights. It 

chronicles the enormous 

growth and general financial stability of the U.S. 

nonprofit theater community, and it outlines the 

considerable challenges the field faces in developing 

audiences. The report also provides an unanticipated 

perspective on ticket pricing and sales. 

All America’s a Stage lives up to its title. The 

expansion of nonprofit theater has not been limited 

to traditional cultural centers. There are now 

nonprofit theaters in every section of the United 

States, including traditionally rural areas. On a per 

capita basis, Vermont and Alaska now lead the U.S. 

in nonprofit theaters—outranking New York—with 

Maine and Montana right behind. The sharpest 

growth rates have been in previously underserved 

states like Nevada, Arkansas, Utah, Colorado, 

and Idaho. 

Has the nonprofit theater sector expanded too 

quickly? Seemingly not. Despite the broad and rapid 

expansion of nonprofit theaters, these organizations 

have generally healthy finances. Their balance 

sheets are strong, with assets growing and liabilities 

remaining flat. Nonprofit theaters have also effectively 

diversified their sources of support. Individual 

patrons have collectively increased their already 

high levels of giving, providing over 40 percent of 

contributed revenue.

The only area for concern in the healthy financial 

profile of the nonprofit theaters is their historical 

vulnerability to large economic downturns. During 

Photo by Vance Jacobs

both of the last two major recessions, total revenue 

and contributions fell markedly. This vulnerability 

could create issues for the nonprofit theater 

community in the current recession.

There is one significant and persistent problem facing 

American theater—attendance for spoken theater 

has steadily deteriorated. Since 1992, the percentage 

of the U.S. adult population attending non-musical 

theater has declined from 13.5 percent to 9.4 percent. 

As these trends worsened in the last six years, even 

the absolute size of the audience has declined by 

16 percent. 

These audience declines do not seem primarily 

dependent on high ticket prices. Audiences appear 

willing to pay higher prices for events they want 

to attend. Although further research is needed to 

explore the issue, the audience drop-off may be more 

related to issues like lower media coverage, declining 

arts education, and expanded in-home entertainment 

options rather than ticket price. 

In a sense, the dilemma of nonprofit theater can be 

simply summarized—supply has outstripped current 

demand. The remarkable growth and professional 

management of theatrical organizations across the 

nation has not yet been matched by equally robust 

growth in audiences. 

America has created a magnificent national 

network of nonprofit theaters. These two thousand 

organizations represent a huge civic and cultural 

investment. Our challenge now is to use them 

ambitiously to bring the power of theater to our 

citizens, students, and communities. 

Dana Gioia

Chairman, National Endowment for the Arts

Preface
“The stage is not merely the meeting place of 

all the arts, but is also the return of art to life.”

—Oscar Wilde

Data and Methodology

This brochure examines developments in the growth, geographic distribution, and finances of American nonprofit theaters 

during the 1990s and in the first decade of the new century. The study draws from four data sets: IRS Form 990 filings by taxexempt theaters; Theatre Communications Group (TCG) member survey data; the U.S. Census Bureau’s Economic Census data; 

and Survey of Public Participation in the Arts data from the National Endowment for the Arts.

The tax form data were collected by the Urban Institute’s National Center for Charitable Statistics and reported in “core 

files” (1989–2005) and “digital data files” (1998–2003). Most tax-exempt organizations with receipts of at least $25,000 are 

required to file Form 990 annually.10 This NEA research brochure examines filings by tax-exempt theaters with revenues of 

$75,000 or more. This approach yields a nonprofit theater count similar to that reported by the Economic Census.

Theatre Communications Group’s member survey data are proprietary, and were shared with the NEA’s Office of Research & 

Analysis for research purposes only. No information identifying individual member theaters has been conveyed.

As a group, TCG member theaters tend to have larger budgets than the nonprofit theater industry captured by IRS Form 990

data. Theatre Facts 2005, for example, reports an average annual budget of $4.2 million for “profiled” theaters.11 By contrast, 

average revenue was $929,000 for the 2005 IRS Form 990 filers.

“Our institutional theatres 

reflect transformational 

ideas of the 20th century: the 

notion that citizens of every 

community deserve access to 

high-quality arts and culture; 

that artists should be able to

live with dignity as citizens of communities large 

and small; that cities can take pride and derive 

an identity from the arts they support; and that 

our civic institutions, our schools, community 

centers, and our citizens benefit from the 

presence of well-supported arts institutions.”

—Susie Medak

President, League of Resident Theatres (LORT)

“Over the course of U.S. history, 

the American theatre field 

has grown to reflect the true 

diversity of our nation, giving 

the public access to a wide range 

of theatrical storytelling, from 

European classics to young

Asian American voices, from traditional modes 

of staging to explorations of new performance 

technologies. Resident theatres are stimulating 

economic development in urban centers and 

rural townships; touring ensembles engage the 

imaginations of audiences across the U.S. and 

sometimes overseas. Innovative partnerships 

between theatres and schools are providing 

young people with unprecedented opportunities 

to develop their creativity and self-confidence. 

In short, these theatres have become central to 

American community life.”

—Teresa Eyring

Executive Director, Theatre Communications Group (TCG)

Photo by Rich EdwardsPhoto by Rivka Katvan
1.	 The number of nonprofit theaters in the United 

States has doubled over a 15-year period.

n	 In 2005, there were 1,982 nonprofit theaters 

with annual budgets of at least $75,000.

n	 This total is up exactly 100 percent from the 

991 counted in 1990.1

2.	 Although theaters continue to cluster in 

high-population states, the number of 

theaters in small and mid-sized population 

states has grown substantially.

n	 The states with the highest per capita 

concentration of theaters now include: Vermont, 

Alaska, Maine, Montana, Rhode Island, Oregon, 

Connecticut, New Hampshire, and Minnesota.

n	 Half of all theaters are located in the seven most 

populous states: California, New York, Texas, 

Florida, Illinois, Pennsylvania, and Ohio. 

n	 New York far exceeds the other six states 

in theater counts—even after adjusting 

for population.

n	 From 1990 to 2005, the sharpest growth rate 

occurred in states with small numbers of 

theaters: Nevada, Arkansas, Utah, Colorado, 

Idaho, and Mississippi. 

n	 Growth in theaters coincided with rapid 

population growth in all of those states, except 

Arkansas and Mississippi.

Rank State Theater growth

1 Nevada 6.0 X

2 Arkansas 

Utah

4.0 X 

4.0 X

3 Colorado 3.0 X

4

Idaho 

Mississippi

2.0 X 

2.0 X

5

Alaska 

Montana

1.8 X 

1.8 X

6 Missouri 1.6 X

7

Alabama 

Nebraska 

Virginia

1.5 X 

 1.5 X 

 1.5 X

8 Minnesota 1.4 X

9

Delaware 

Oregon 

Wisconsin

1.3 X 

1.3 X 

1.3 X

10 Texas 1.2 X

Top 10 States Ranked by Growth in Number 

of Nonprofit Theaters, 1990–2005

Rank Number of theaters 

per 100,000 people

Index to 

U.S. base

Population

(in millions)

United States 0.7 1.0 297.0

1 Vermont 2.2 3.4 0.6

2 Alaska 1.7 2.5 0.7

3 New York 1.3 2.0 19.3

4 Maine 1.2 1.8 1.3

5 Montana 1.2 1.8 0.9

6 Rhode Island 1.1 1.7 1.1

7 Oregon 1.1 1.6 3.6

8 Connecticut 1.0 1.5 3.5

9 New Hampshire 1.0 1.5 1.3

10 Minnesota 1.0 1.5 5.1

Top 10 States Ranked by Number of Nonprofit Theaters 

Per Capita in 2005

Data sources: National Center for Charitable Statistics at the Urban Institute; 

Population Division, U.S. Census Bureau

Data sources: National Center for Charitable Statistics at the Urban 

Institute; Population Division, U.S. Census Bureau

Number of Nonprofit Theaters

Data source: National Center for Charitable Statistics at the Urban Institute

The count is restricted to IRS Form 990 filers with annual budgets of $75,000 or greater.

Key Findings
3.	 Nonprofit theaters generally have maintained a 

healthy balance sheet. Growth in their assets has 

outpaced growth in their liabilities.

n	 Between 1990 and 2005, real assets (assets 

adjusted for inflation) grew by nearly 60 percent, 

while liabilities remained flat.

n	 Much of that growth came from fixed assets, 

which rose by nearly 40 percent.2 Normally, 

these assets cannot be used as cash to finance 

theater operations.

4.	 Nonprofit theaters have achieved a good balance 

between earned and contributed income. 

n	 Earned income made up 52 percent of all 

nonprofit theater revenue in 2005. The 

remainder was mostly contributed.3

n	 As a share of all revenue, earned income fell 

13 percentage points since 1990. Contributed 

income, and other types of revenue, grew 

proportionately.

n	 This change has allowed a more even mix of 

revenue sources—a condition associated with 

surpluses.4

Number of Nonprofit Theaters by State in 2005

Average Fixed Assets: Land, Buildings, and Equipment

Data source: National Center for Charitable Statistics at the Urban Institute

Data are from the NCCS’ Digital Database, and were available only for the years reported.

Data source: National Center for Charitable Statistics at the Urban Institute
5.	 Individuals and foundations remain the 

biggest contributors to nonprofit theater—and 

theaters now rely on them for an even greater 

share of financial support.

n	 In 2002, the most recent year for which reliable 

data are available, individuals donated 40 

percent of all contributed revenue—up 8 points 

from 15 years earlier.

n	 Foundation giving made up 22 percent in 2002, 

about 3 points higher than in 1987. 

6.	 NEA funding has been shown to be a 

catalyst in drawing sizeable contributions 

from other sources.

n	 Each dollar in NEA grant support is associated 

with an additional $12 from individual donors, 

$1.88 from businesses, and $3.55 from 

foundations.5

n	 Although more research is needed to identify 

the underlying mechanism for this relationship, 

high-quality performances and programs may 

be considered a common factor among theaters 

successful in winning support from the NEA and 

multiple funders.

7.	 Between 1990 and 2005, nonprofit theater 

revenues fluctuated sharply with business 

cycles in the U.S. economy.

n	 Following declines in the early 1990s, real 

average revenue grew from 1993 through 2001, 

when it climbed by 9 percent.

n	 On the strength of rising contributions, this 

increase mirrored an overall growth trend in the 

U.S. economy.

n	 After the 2001 economic recession, nonprofit 

theater revenue sank by nearly 12 percent in 

2002 (the sharpest downturn recorded for the 

1990-2005 time period). Revenue continued to 

fall, albeit slowly, from 2002 through 2005.

n	 In the case of the first recession, ticket sales fell 

more rapidly than contributions. The second 

time, the reverse was true.

Contributions 

from: 1987 1992 1997 2002

Percentage point 

change ‘87-’02

Individuals 32.1% 30.6% 35.6% 40.2% +8.1

Foundations 18.9% 22.0% 23.9% 21.7% +2.8

Businesses 20.5% 19.8% 19.0% 17.0% -3.5

Government 26.3% 24.4% 17.5% 15.7% -10.6

Other 2.2% 3.3% 4.0% 5.4% +3.2

Share of Contributed Revenue by Source, 1987–2002

Data source: Economic Census, U.S. Census Bureau

Attracting Donations to Nonprofit Theaters

Data source: Theatre Communications Group

Results are based on a regression analysis of TCG member survey data from 1998 through 2005.

The estimates are significant at 95% or higher confidence.

$1 in grants from:

(period=previous year)

Attracts additional theater funding from:

(period=current year)

Individuals Businesses Foundations

National Endowment 

for the Arts +$12.70 +$1.88 +$3.55

Nonprofit Theater Budgets Reflect the U.S. Economy 

Data source: National Center for Charitable Statistics at the Urban Institute

Dollar amounts are adjusted for inflation.
8.	 Audience trends are flat or in decline.

n	 Although the number of musical theater 

attendees has grown, they remain largely 

constant as a percentage of the population.

n	 Preliminary survey results show a decline in 

the number and percentage of non-musical 

theater attendees from 1992 to 2008. 

n	 The survey asked American adults whether they 

had attended any play in the last 12 months, 

with the exception of elementary and high 

school performances.7

9.	 Attendance trends do not seem primarily 

related to ticket prices.

n	 Theater ticket sales do not appear to respond 

strongly to price changes. Statistical models 

predict that a 20 percent price hike in low-end 

subscription or single tickets will reduce total 

attendance by only 2 percent.8

n	 These data suggest that total attendance does 

not rise or fall in proportion to ticket price 

changes. Therefore, other factors are likely 

affecting the demand for theater.

n	 For that matter, nonprofit theaters have goals 

beyond maximizing box-office revenue. In 2005, 

for instance, the average TCG theater served 

more than 18,000 people through education and 

outreach activities.9

n	 Whether or not they improve box-office sales, 

programs with a clear civic interest can be 

key to raising public and private contributions. 

Such programs often include exposing new or 

underserved audiences to performances by 

offering discounted tickets.

Percentage of U.S. Adults Attending Theater over 

a 12-Month Period

Potential Impact of Ticket Price Increases on Nonprofit 

Theater Attendance

1992 2002

Early results

2008

Musical theater

17.4%

(32 million 

people)

17.1%

(35 million 

people)

16.7%

(37 million 

people)

Theater 

(non-musical)

13.5%

(25 million 

people)

12.3%

(25 million 

people)

9.4%

(21 million 

people)

Data source: Survey of Public Participation in the Arts, National Endowment for the Arts

Data source: Theatre Communications Group

Results are based on a regression analysis of TCG member survey data from 1998 through 2005.

Unless otherwise noted, estimates are significant at 95% or higher confidence.

20% price increase in: Attendance per performance:

Total Subscription Single ticket

Low-price subscriptions -2.0% -0.8%* -0.1%*

High-price subscriptions +1.8%** +6.3% -0.9%*

Low-price single tickets -1.6% -1.1%* -1.3%***

High-price single tickets +3.0% +2.1%* +7.4%

** = statistically significant at 94%

*** = statistically significant at 93%

* = not statistically significant

1

 This count excludes theaters that did not file IRS Form 990. When theaters filing the tax form 

are counted regardless of budget size, a near-doubling still occurs: 3,416 in 2005 versus 1,751 

in 1990.

2 Fixed assets are defined as land, buildings, and equipment, minus accumulated depreciation.

3 IRS Form 990 captures all types of contributions, including what are referred to as “restricted 

contributions,” often reported separately on financial statements. 

4

 This finding is based on a correlation analysis of the earned income ratio (earned income 

relative to all income) and the incidence of surpluses of revenues over expenses. The analysis 

suggests that a favorable mix is when 45 percent to 55 percent of nonprofit theater income is 

earned, with most of the remainder contributed.

5

 The models generating these results controlled for theater earnings, fundraising expenses, 

ticket expenses, and public relations outlays. Even when the relationship is modeled for 

“fixed effects,” which control for individual theater characteristics, additional donations from 

individuals are almost $8 for every NEA grant dollar.

6

 Technically reported as “program service revenue,” these figures consist largely of ticket 

sales, but they also include related items such as touring contract fees.

7 The 2008 Survey of Public Participation in the Arts, designed by the NEA and conducted by the 

U.S. Census Bureau, obtained a response rate of 82 percent, for a total of more than 18,000 

adults. Full results of the survey will be available later in 2009.

8 Further, increases in attendance per performance appear to be linked with increases in the 

highest ticket prices that theaters offer. See the related table. These results characterize the 

aggregate nonprofit theater industry, based on Theatre Communications Group data. The 

findings may not apply to individual theaters. 

In 2005, the average high-priced subscription ticket was $29.89, while the average low-priced 

subscription ticket was $12.80. Among single tickets, the average high-end price was $40.53; 

low-priced was $17.14.

9

 Theatre Communications Group, Theatre Facts 2005. This finding refers to TCG “trend” 

theaters, respondents to annual TCG financial surveys for each of the previous five years.

10 Department of Treasury, Internal Revenue Service. Compliance Guide for 501(c)(3)Tax-Exempt 

Organizations. Publication 4221 (09-2003), catalog number 37054E.

11 “Profiled” theaters are defined as those responding to TCG financial surveys in any given year.

This brochure was produced by the NEA’s Office of Research & 

Analysis in consultation with Bill O’Brien, director of Theater & 

Musical Theater. The analysis is based on research commissioned 

by the NEA from Thomas M. Smith, Emory University, and Thomas 

H. Pollak, National Center for Charitable Statistics at the Urban 

Institute. Zannie Giraud Voss, Southern Methodist University, gave 

valuable technical advice.
A Great Nation Deserves Great Art.

1100 Pennsylvania Avenue, N.W.

Washington, DC 20506-0001

(202) 682-5400

www.arts.gov

Not for sale–Available for free at www.arts.gov

Cover photo: Phylicia Rashad in a 

scene from Lincoln Center Theater’s 

production of Bernarda Alba. 

Photo by Paul Kolnik.