Calculating Loss

A disaster presents the possibility of more than just loss of materials, collections, or your workspace.

If your organization must close for several hours, several days, or even weeks or months due to an emergency or disaster, you may lose the ability for your audience or patrons to engage with your artists or collections.

You can help to mitigate this loss, or make it less severe, by having a disaster plan and team, and having insurance, which is discussed in another unit.

To illustrate the need for planning and insurance to your Administration, Board, or audience, it can help for you to calculate loss of visitors and revenue.

The Performing Arts Readiness project has a tool which can help organizations to calculate their loss if they must close, even temporarily, due to a disaster. The tool allows you to:

  • Estimate the number of seats or paid tickets that are available at your venue.
  • Take the average cost of your tickets.
  • Multiply those figures by the number of performances which might have to be postponed or cancelled due to the disaster.

This will give you a rough estimate of your organization’s potential loss of income from a minor emergency or major disaster.

Performing Arts Readiness has created a Loss of Income Calculator to help arts organizations understand the potenial loss that could occur due to cancelled performances. You can try it out at the link below!

Loss of Income Calculator