operating costs

Operating costs pay for items and people to generate the ongoing activities of the business. Typical operating costs of arts organizations and groups include items such as: 

• Artistic, technical and administrative personnel
• Marketing and fundraising personnel and materials
• Employee benefits
• Professional services (e.g. accountants, payroll services)
• Phone, internet, web hosting, yearly domain registration
• Facility rent, property taxes, utilities
• Property and liability insurance
• Annual depreciation or amortization costs related to capital expenditures

 [related definitions: Capital Expenditures, Direct Project Costs]