Arts and cultural organizations have traditionally been regarded as shoe-string operations, run by those long on enthusiasm and commitment, but short on business sense and organizational skills. While this image may once have been based on fact, it is less and less the case. In recent years, arts groups have had to professionalize their operations and adopt business principles to survive. This paper reports on continuing research being conducted in northeastern Pennsylvania on the non-profit arts and culture industry. It includes a description of how business concepts are being utilized by arts groups, and a review of the reasons for the increased complexity of arts organizations. These reasons include competition among arts groups for funding, the new expectations of corporate and public patrons, and the reduced availability of state and federal funding.

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