Economic Impact Report Released By Theatre Washington

Theatre Washington, the leading service organization for the D.C. metropolitan arts community, has released its first economic impact report, providing a comprehensive assessment of the Washington, D.C., region's theater industry. Analyzing publicly available IRS Form 990 data, the study offers a detailed snapshot of the industry's financial scale, operational scope, and economic value.

The organization stated that the analysis reinforces that D.C. theater is not only "artistically essential but economically significant." The industry acts as a "powerful economic engine," collectively managing over $1 billion in combined assets and employing thousands of individuals.

Key Economic Takeaways

The report’s major findings underscore the extensive financial footprint of the theater community:

• Employment and Compensation: Theaters annually pay nearly $70 million in compensation to artists and staff, representing an average of 42% of their total operating budgets.

  
  

• Philanthropy: Theaters collectively receive over $100 million in direct annual philanthropy.

  
  

• Government Funding Return on Investment (ROI): The study analyzed the efficiency of public funding, finding a calculated basic ROI where every $1 of government grant support generates $2.78 in community spending. For large legacy institutions alone, this return rate jumps to $70 per dollar invested.

  
  

• Grant Support: Fifty-one theaters (57% of the organizations analyzed) reported receiving nearly $19 million in federal, state, and local grant support.

Scale and Reach of the Industry

The study defined the size and geographic spread of the regional theatre community:

• Geographic Scope: Eighty-nine professional theaters operate within 30 miles of downtown D.C., including 52 located in D.C. proper, 20 in Maryland, and 17 in Virginia.

  
  

• Anchor Institutions: Thirteen organizations were designated as "anchor institutions" with annual operating budgets ranging between $5 million and $26 million.

  
  

• Audience and Education: The nearly 90 theaters, 90% of which are 501(c)(3) nonprofits, reach an estimated two million audience members annually. Furthermore, nearly a third of these institutions run educational programs that serve over 10,000 students each year.

The report concluded with a call for increased public investment in companies of all sizes, noting that sustained, targeted support for smaller and mid-tier theaters could "stabilize the ecosystem and unlock long-term regional growth." The data will be used by Theatre Washington to strengthen advocacy efforts and emphasize the collective impact of the arts on the region’s health and vitality.