Market Analysis for Digital Archive Creator Device

Delivered March 17th, 2018. Contributors: Shannon L., Kari P., Jennifer P. and

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Digital Archive Device Market - TAM Fraternities and Sororities

The total addressable market (TAM) for fraternities and sororities in the United States is approximately 765,000 students. The average budget for fraternities is $98,416 and for sororities is $185,165. A look at my findings is below.
MethodologyTAMAs the information was preexisting, there was no need to triangulate the TAM for fraternities and sororities. However, there was a slight discrepancy between three sources with two different totals. The New Jersey Institute of Technology indicates there are 750,000 undergraduate members of fraternities and sororities in 12,000 chapters across 800 campuses in the U.S. 

The North American Interfraternity Conference, though, puts the number of fraternity undergraduates at 384,193 in 2016 and USNews says there were 380,565 sorority undergraduates in 2015 (the most recent year for which data is available). When added together, these two sources provide a total number of fraternity and sorority members of 764,758, which I rounded to 765,000. I believe that the 750,000 number is either a low approximation or is from an out-of-date source. As there is no indication of the date of the data provided by the New Jersey Institute of Technology, I elected to use the numbers from the North American Interfraternity Conference and USNews to calculate the TAM.
ChaptersThe total number of chapters across the United States is unknown. Despite searching trusted media sites, research reports, and university fact sheets, I was only able to identify the total number of fraternity chapters. The New Jersey Institute of Technology indicates there are 12,000 chapters, but I was unable to verify this number independently without examining all 800 participating schools' Greek life reports. However, I believe the 12,000 is likely a close estimate because I was able to find that there were 6,233 fraternity chapters in 2016. If there were an equal number of sorority chapters, this would total just over 12,000 (6,233 + 6,233 = 12,466). Therefore, I believe 12,000 U.S. chapters is a reasonable estimate.
budgetLikewise, the actual average budget of all fraternities and sororities in the U.S. was unavailable. Even though I searched through fraternity and sorority audit reports, financial statements, and other IRS documents, I was unable to find budgetary information for a sufficient number of chapters to provide an average. However, I did find an article from OmegaFi, a company that provides "financial, fundraising and communication solutions for fraternities and sororities," that gives the average budget for the fraternities and sororities it serves. This article indicates the average budget for fraternities is $98,416 and for sororities is $185,565. Unfortunately, there is no indication of how many fraternal organizations are members of OmegaFi, so it is unknown whether these average budgets are truly representative of all sororities and fraternities in the U.S.

I also located a Fortune article that mentions the fact that fraternities are routinely handling budgets of $100,000 or more. This amount would be in line with the averages documented by OmegaFi, although the Fortune article also says that the University of Georgia chapter of Phi Kappa Tau has a semester budget of $150,000, which would mean an annual budget of $300,000 ($150,000 x 2). This is significantly higher than the averages from OmegaFi, but I believe this chapter is being used for illustrative purposes only and not as an example of an average chapter. Therefore, I am using the assumption that OmegaFi's data is a better representation of budgetary averages for U.S. fraternities and sororities.
FindingsUsing the definition of total addressable market (TAM) as the "total market demand for a product or service," the TAM for fraternities and sororities in the U.S. is approximately 765,000 students. This represents the total number of undergraduates that belong to sanctioned fraternal organizations. Unfortunately, there is no data available for the number of graduate students who belong to fraternities or sororities, but the total number of alumni and undergraduates that identify as members of fraternities and sororities is more than 9 million. However, it is my assumption that this request specifically refers to the undergraduate population. Thus, the TAM of 765,000.

The average budget for fraternity chapters in the U.S. is $98,416 and the average budget for sorority chapters in the U.S. is $185,565. According to Fortune, 40% of budgets go to rent and of a $150,000 budget, $36,000 is allotted to social events, which represents 24% of the budget ($36,000 / $150,000). This leaves 36% (100% — 40% — 24% = 36%) of the budget for liability insurance, national organization dues, and "miscellaneous costs." 
ConclusionThere are approximately 765,000 undergraduate students in fraternities and sororities in the United States. This represents the TAM of university fraternal organizations.

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Digital Archive Device Market - TAM Religious Organizations

According to the most recent information available, the total addressable market for U.S. religious organizations is about 251,799,000 people. This represents the calculated number of people who belong to religious organizations in the united States. In addition, there are approximately 350,000 congregations across the country and the average religious organization budget is about $300,000 per year. The details of my findings are below.
MethodologyFor the purposes of this research, a religious organization is defined using the U.S. government's definition, which is "'religious organization' includes, but is not limited to, churches, mosques, synagogues, temples, nondenominational ministries, interdenominational and ecumenical organizations, mission organizations, faith-based social agencies, and other entities whose principal purpose is the study, practice, or advancement of religion." 

Despite extensive research into research reports, there is little current information on the number of people who belong to religious organizations in the United States. The most recent data I was able to find is from 2014, although this information is still being used in more recent articles from 2016 and 2017. Since other reputable outlets are still referencing this data from the Pew Research Center, I feel it is acceptable to use this data for triangulation purposes.

In addition, the data for the number of congregations is taken from the 2010 census, which again, appears to be the latest data available. However, since the request was more focused on TAM than the number of religious organizations and given the fact that recent articles are still referencing this data, I feel comfortable providing this data for purposes of estimation.

Finally, religious organizations seem to be fairly secretive about their budgets. Although this information might be available to congregational members, it does not appear that many organizations publish this information on public websites. Fortunately, I was able to find a 2016 presentation that provides an average church budget, but it does not provide a methodology as to how this average was obtained or where the original data came from. However, in the absence of other data, I elected to use this information as an estimation of the average budget for an American church. Please note that this presentation does not state whether this budget is for all religious denominations or just for Christian churches, but using the assumption that all religious organizations have similar expenses, I believe it is representative of all religious organizations.
Calculations and triangulationsThe Pew Research Center found that in 2014, religious organizations were broken down as follows:

Christian: 71% 
Jewish: 1.9% 
Muslim: 0.9% 
Buddhist: 0.7% 
Hindu: 0.7% 
Other World Religions: 0.3% 
Other Faiths: 1.5% 

The report used the U.S. total population number of 245,000,000 to calculate the number of Christians in the U.S. This totaled 173,000,000. I used this same formula to determine the number of people practicing other religions as follows:

Christians: 173,000,000 
Jewish: 4,655,000 (245,000,000 x 1.9%)
Muslim: 2,205,000 (245,000,000 x 0.9%)
Buddhist: 1,715,000 (245,000,000 x 0.7%)
Hindu: 1,715,000 (245,000,000 x 0.7%)
Other World Religions: 735,000 (245,000,000 x 0.3%)
Other Faiths: 3,675,000 (245,000,000 x 1.5%)

Total: 187,700,000 TAM in 2014 (all numbers added together)

Assuming the percentages for each religion have remained the same over the past 3-4 years, we can estimate the 2018 TAM as follows based on the current rounded U.S. population of 327,000,000.

Christians: 232,179,000 (327,000,000 x 71%)
Jewish: 6,213,000 (327,000,000 x 1.9%)
Muslim: 2,943,000 (327,000,000 x 0.9%)
Buddhist: 2,289,000 (327,000,000 x 0.7%)
Hindu: 2,289,000 (327,000,000 x 0.7%)
Other World Religions: 981,000 (327,000,000 x 0.3%)
Other Faiths: 4,905,000 (327,000,000 x 1.5%)

Total: 251,799,000 TAM in 2017 (all numbers added together)
FindingsTAM FOR U.S. RELIGIOUS ORGANIZATIONS
Based on the definition of total addressable market, which says that TAM is "the total market demand for a product or service," we have calculated the total number of people who belong to religious organizations of any denomination in the United States. Using the data from the 2014 Pew Research Center study, the TAM for U.S. religious organizations is estimated to be 251,799,000 for 2018. However, please note that the number of Americans who consider themselves religious is declining, so this TAM could be a little high. However, in the absence of more recent data, it is a close approximation.

NUMBER OF RELIGIOUS ORGANIZATIONS IN THE U.S.
The 2010 U.S. census found that there were about 350,000 congregations in the United States, representative of all religions. However, the Hartford Institute for Religion Research admits that "there is no official directory for all the congregations in the country, so sociologists of religion have to rely on statistical estimates extrapolated from surveys." In addition, "thousands of new churches open each year, while thousands of others close," which complicates the count. Therefore, we cannot say for sure how many congregations there are in the country. However, Hartford Institute "estimates there are roughly 350,000 religious congregations in the United States... Of those, about 314,000 are Protestant and other Christian churches, and 24,000 are Catholic and Orthodox churches.  Non-Christian religious congregations are estimated at about 12,000."

AVERAGE BUDGET FOR U.S. RELIGIOUS ORGANIZATIONS
As mentioned in the methodology, there was very little information available on actual church budgets, likely because they are not required to disclose this information. However, a 2016 presentation titled, "Church Budget — Between the Lines," provides the average American church budget as follows:

Staff Compensation: $118,601 
Facilities: $54,194 
Missions: $45,259 
Church Programs: $24,675 
Administration and Supplies: $17,853 
Denominational Contributions/Fees: $11,539 
Other: $25,430 

Total: $297,550 (all amounts added together) rounded to $300,000
ConclusionThe total addressable market for religious organizations in the United States is estimated to be about 251,799,000, which represents all people in the U.S. who belong to any religious organization, regardless of denomination. The average annual budget for U.S. religious organizations is approximately $300,000.

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Digital Archive Device Market - TAM Historical Societies

The total addressable market for historical societies in the US consists of 3,573 historical societies currently on record. Average operating budgets for these societies can range anywhere from millions of dollars to as little as $25,000 per year depending on the size of the organization and its funding.

HISTORICAL SOCIETIES
According to the Preservation Directory, there are 3,573 historical societies and preservation organizations located across the United States. Of this number, 759 are in the Northeast, 616 are in the MidAtlantic, 331 are in the southeast, 554 are in the Mid-Central US, 366 in the Upper Midwest, 229 in the Lower Midwest, and 718 in the West. This is a very large number, so I have also researched the top 10 historical societies in the US. This ranking is based on the amount of information and exhibits that are available to the public from the societies. The top ten historical societies in the US are: Western Reserve Historical Society, Maine Historical Society, The Preservation Society of Newport County, Preservation Society of Charleston, The Grove City Area Historical Society, Atlanta History Center, Oklahoma Historical Society, Chicago History Museum, American Historical Association, and Bergen County Historical Society.

AVERAGE BUDGETS
Budget information for individual historical societies is not typically available. There is not currently a compiled national average for these organizations; however, I have found budget examples for different sizes of historical societies. 

As an example of a large organization, the Wisconsin Historical Society had a yearly budget of $21,918,600 for 2014-2015, which is the most recent year the state is reporting on. 

For medium-sized historical organizations I found three different budget examples. The Glendale Historical Society in the city of Glendale, CA spent $112,000 in 2017. The budget for the Rock County Historical Society in Wisconsin increased from $203,000 in 2012 to $530,000 in 2017. Finally, estimates from the Vermont Community Foundation give an average budget of $303,301 for a local organization in the state, with $6,500 available for program expenses. 

Small organizations often lack websites, reporting, or public information; therefore the most recent information I could find as an example comes from 2012. In the state of Utah, over 50% of their 150 historical organizations had a budget of $25,000 or less. 

FUNDING
Historical societies are typically nonprofits and therefore secure large portions of their funding through grants and donations. According to the Nonprofit Research Collaborative, nonprofit organizations receive a median donation total of $100,000-$249,999 per year, with an average single donation amount between $25,000 and $100,000. This figure varies based on nonprofit size and is not specific to historical societies, but since most historical societies operate as nonprofits it could be helpful for determining budgets, especially when they are unavailable.

CONCLUSION
In conclusion, there are just over 3,500 historical societies on record in the United States. Average budgets have not been compiled, but large organizations could range in the millions of dollars, medium-size organizations between $100,000 and $500,000, and small organizations as low as $25,000 or less. Since budget information isn't always available, it may also be helpful to look into funding requests from historical organizations to help determine their budgets. Together this information provides the total addressable market for historical societies. 

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Digital Archive Device Market - TAM Small Museums

While no direct data was available on thesize of the total addressable market (TAM) of small museums in the US, we were able to estimate the size of this market using available information.  Using a triangulation based on the total revenue for museums of all sizes in the US, and the proportion of museums with a budget of up to $1 million, we determined that the total addressable market for small museums is approximately $4.16 billion. Below, we outline the figures and calculations used to determine this information.
METHODOLOGYFor our research, we defined small museums as those with annual budgets of under $1 million, noting that staff at these small museums typically held multiple roles, and many key staff functions were often performed by volunteers. We first attempted to locate direct data on the small museum market, examining industry reports, government databases, and other relevant media sources, and found that it was not available. Given this lack of direct data specifically related to small museums, we then determined the best route to estimate this would be to determine the percentage of the overall US museum market size comprised of small museums using figures on revenue and budget. 
CALCULATIONSIn order to estimate the TAM for small museums, we began with the TAM for the broader market of museums of all sizes in the US.  A report on the size of the museum market in the US for 2018 notes that the revenue represented by museums of all sizes is currently $13 billion. This report defined museums as “encompassing a wide variety of institutions, including art museums and galleries, historical museums, military museums, science museums and wax museums, that are engaged in the preservation and exhibition of objects of historical, cultural and educational value”, which leads us to believe this figure includes even the smallest museums.  

Then, using our definition of small museums as those with annual budgets of under $1 million, we located a information released by the American Alliance of Museums that noted the distribution of museums by budget, finding that those that had a budget of $350,000 represented 8% of all museums, $350,000–$499,999 represented 6%, and $500,000–$999,999 represented 18% all of all museums. 

Adding these figures together, we can estimate that 32% of museums are in the small range (Calculation: 8% + 6% + 18%).  Using this figure and the overall museum market size in the US, we can then determine that the total addressable market for small museums is approximately $4.16 billion (Calculation: $13 billion x 32%).
HELPFUL FINDINGSIn the next five years, steady growth in the museum industry is anticipated, “fueled by rising per capita disposable income and increasing travel activity.”

For institutions and organizations applying for museum accreditation, the accreditation success rate is 97%. This is especially relevant for small museums, as these are the most likely to have atypical structures, meaning that most small organizations or locations applying for museum status will likely be successfully accredited as a museum, regardless of size. 

 11.4% of institutions in the museum space operate on a commercial basis, meaning they generate income via paid admission and membership or subscriptions. Art museums represent the largest segment of the museum industry.

CONCLUSIONSo in conclusion, while limited direct data was available on this market, we used a calculation that involved triangulating the TAM of small museums in the US by using the total museum revenue in the US, and percentage of total museums in the US that are deemed small using a maximum $1 million budget as our criteria, to determine that the TAM for small museums is approximately $4.16 billion.