The Durability of Millennial Nonprofit Arts Organizations

We explore the formation and durability of new arts enterprises in the late twentieth century with special attention to the rapid entry of arts nonprofits in the late 1990s. Drawing on theories of population ecology, organization life cycle, and competitive markets, we examine Business Dynamics Statistics and NCCS Core and Business Master Files. The late 1990s continued a trajectory of vigorous entry into the arts nonprofit and commercial sectors. New arts ventures were quicker to both form and to exit from administrative data than entrants in other industries. More than half of “Millennial” arts and culture nonprofits exited administrative databases before the age of 20. We introduce a program-based classification of arts nonprofits, and show that durability varied, with collections least likely to exit and visual arts most likely. Across all categories, compliance with filing requirements improved durability. We discuss vitality, resilience, and effectiveness as characteristics of durable organizations, and Porter’s five forces as a helpful model for evaluating competitive environments. We offer suggestions for follow-on research at the local level.