Category Archives: Fundraising

Untangling the “Other” Revenue Stream

In the colorful tapestry of history-focused organizations, every thread of revenue has a role to play in the success of the organization. Perhaps the most unique collection of these threads is the “Other” revenue category. This singular “Other” thread houses a miscellany of revenue sources that don’t fit into the categories of “Investment Income”, “Program Service Revenue”, and “Contributions and Grants”. At first glance, this classification may appear insignificant, yet it often proves to be a silent contributor that underpins the fiscal health of History-Focused Organizations [Museums (NTEE A50), History Museums (A54), History Organizations (A80), and Historical Societies & Historic Preservation (A82)].

Understanding this “Other” revenue can be like deciphering an ancient dialect. It is made no easier by the fact that IRS Form 990 at times uses the terms revenue and income interchangeably. While some categories of this revenue such as royalties and inventory sales may be familiar, “miscellaneous” often contains difficult to parse odds and ends such as third-party events, insurance proceeds, ATM fees, and revenue from hosting satellite towers. Most often this miscellaneous revenue is unspecified and simply named “miscellaneous” or “other” which can make it difficult to get the full picture of a particular institution’s revenue sources. We advise limiting the classification of your total revenue as “miscellaneous” to no more than 1%. While judicious use of this category can help define your other revenue streams more clearly, overuse could lead to a lack of clarity about a significant portion of your revenue. It is crucial to maintain a comprehensive understanding of your financial situation.

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New NEH Interpretive Planning Grant for Small Organizations

Scholars reviewing the archives at the Haas-Lilienthal House.

The National Endowment for the Humanities, a federal granting agency, recently announced a special grant program to support interpretive planning at small organizations for up to $25,000, no match required.

What does “small” mean? You need to meet at least two of the following:

  • Annual operating expenses of less than $1,000,000
  • Located in a community with less than 300,000 residents
  • A staff of less than 50 people
  • Rely primarily on volunteers or part-time staff.
  • A mission to interpret under-told stories or serving a non-traditional audience

Hmm…that describes most history organizations in the US, so if you’re reading this post, you’re probably eligible.

Now, what will it support? Nearly anything that improves or enhances the interpretation of your collection, site, or community, such as:

  • help you think creatively about the hidden strengths of your collections or historic site
  • generate new ideas for engaging with the community
  • train staff and volunteers on interpretive methods and techniques
  • develop a framework for developing public programs
  • creating interpretive plans for exhibitions, tours, or school programs
  • visiting other historic sites or museums to sharpen skills and knowledge
  • evaluating existing tours or exhibitions
  • testing new programs for their ability to engage new audiences
  • conducting historical research to support new interpretive themes

Projects must include at least one scholar from a humanities discipline (e.g., history) or one consultant specializing in interpretation to the public (Engaging Places can help you with this), as well as at least one expert on your local community. 

Applications are due June 28, 2023 for one to two year projects beginning between March 1 and May 1, 2024. You will need all of that time to prepare an application and NEH will read draft applications submitted by May 24. Remember to register in advance with the System for Award Management (SAM) and Grants.gov—those are steps you cannot do at the last minute.

For more details, scan the overview or jump right to the 35-page grant application instructions (officially called a Notice of Funding Opportunity).

What Drives Revenue at History-Focused Organizations?

If a well-managed museum has robust programming, a large endowment, and a profitable gift shop, should they still rely on contributions and grants? Often regarded as a fundraising burden to reduce or eliminate, instead we might want to consider these revenue sources as one of the best ways to sustain and expand an institution. Sixty-six percent of History-Focused Organizations [Museums (NTEE A50), History Museums (A54), History Organizations (A80), and Historical Societies & Historic Preservation (A82)] depend on contributions and grants for at least half of their annual revenue and nearly forty percent rely on contributions and grants for more than three-quarters of their revenue (see Figure 1 below).

To maximize revenue, museums must navigate fundraising in the present and future. Understanding the donor and engagement pyramids simplifies fundraising and ensures focus. Small history-focused organizations, in particular, must invest their limited bandwidth strategically to achieve success.

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How can History-Focused Organizations Invest in Stability?

Figure 1. History-Focused Organizations command large portions of the museum field’s revenue and institutions. Source: Internal Revenue Services and National Center for Charitable Statistics.

Over the past year, Engaging Places has been looking over individual segments of the museum field. While these segments are unique in specific ways, as demonstrated by the data, several of them do share a common theme and mission: an overall goal to promote history. These four segments are History Museums (A54), History Organizations (A80), Historical Societies & Historic Preservation (A82), as well as the broad Museums (A50) category. By combining these segments we can focus on the history-centric portion of the museum field that makes up close to half of its revenue and consists of a whopping 89% of its institutions (see Figure 1). This block of museums is incredibly dominant within the field and a major focus of Engaging Places’ work. For ease of reference, we will be referring to them as History-Focused Organizations.

It is important to remember that as an aggregate these History-Focused Organizations still trend small. Over 90% operate on less than $1 million in revenue annually, with contributions and grants bringing in over half of that vital revenue. For these smaller museums, financial security is a constant and essential priority. While many of these History-Focused Organizations are unable to achieve large pools of investment to stabilize operations, unlike some of their larger counterparts, they can develop practices to move them in this direction. 

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Should Local History and Historic Preservation Dominate the Museum Field?

Figure 1. Historical Societies & Historic Preservation (A82) organizations have an outsized presence in the field. Source: Internal Revenue Service and National Center for Charitable Statistics.

Of all the organizations in the United States devoted to arts, culture, and humanities, Historical Societies & Historic Preservation (NTEE A82) organizations have an outsized presence.   More than a third of all organizations “sponsor activities which celebrate, memorialize and sometimes recreate important events in history such as battles, treaties, speeches, centennials, independence days, catastrophes that had an important impact or other similar occasions.” “Historical society,” “historical association,” “heritage society,” “preservation,” and “restoration” are in the name of nearly 80 percent of institutions in this category.  They are also focused on local history—only one in twenty institutions appear to have a geographic scope larger than the county level.

While preserving and interpreting local history is their primary interest, these organizations are the smallest by revenue.  More than 90 percent operate with less than $1 million in revenue annually and have a median revenue near $64,000 (yes, the median is $64,000 annually for all A82 organizations for 2011-2017—half of these organizations operate with less than this amount).  Only Historical Organizations (A80) produce similar financials, albeit with slightly higher figures.

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Reimagining House Museums: Fall 2019 Release

collage book contents.pngThis blog has been fairly sparse this past year because Ken Turino and I were editing and assembling two dozens essays for Reimagining Historic House Museums: New Approaches and Proven Solutions, an anthology to be published by Rowman and Littlefield as part of the AASLH series. I’m delighted to announce that it is now off my desk and in the hands of the publisher; we expect it will be released in fall 2019.

One of the biggest consequences of the under-resourced and over-stretched community of house museums is that it is difficult for them to share their successes with others—they just don’t have time. The field doesn’t learn about them except through publications, blog posts, or conference sessions—that’s one of the major reasons we assembled this anthology. There’s lots of good work happening in house museums but we’re simply not aware of it. Our hope is that this book is a good place to grab a hold of the current thinking about reinventing house museums so that they are more relevant, sustainable, diverse, inclusive, equitable, and accessible, hopefully broadening and deepening the current conversations in the field.

The book is a result of a 2014 conference, How are Historic House Museums Adapting for the Future? sponsored by the Historic House Museum Consortium of Washington, DC and the Virginia Association of Museums at Gunston Hall Plantation in Virginia. They invited to give presentations to the 120 participants and noticed that while historic site practitioners and their boards recognized that the world of historic houses has changed dramatically, they weren’t sure how to go about reimagining or reinventing themselves.

With the support of the American Association for State and Local History and local funders, we embarked on a series of workshops in subsequent years to lay out a “reinventing process” that has taken us to Missouri, New Hampshire, Vermont, Kansas, Pennsylvania, Wisconsin, and Illinois with more to come (Washington, DC in June; New York City in October). The one-day workshop, Reinventing the Historic House Museum includes an analysis of the most important opportunities and threats facing historic sites in America based on the latest Continue reading →

Combining Theory and Practice in GW’s Museum Studies Courses

GW’s Museum Management class in the midst of a whirlwind tour of the Smithsonian on a hot and humid day in Washington, DC.

As I enter my second semester as a full-time faculty member in the Museum Studies Program at George Washington University, I’ve adopted a “flipped classroom” format and am fully integrating theory with real-life experiences.  It’s been an incredible amount of work to revise my syllabi this summer, but so far, the students seem to be learning and enjoying their classes more (we’ll see how the evaluations look at the end of the semester!).

In my museum management class, students will complete an abridged version of a MAP Organizational Assessment for a museum, relying on information available from the website, newspaper articles, IRS Form 990, and the AAM Standards. I assigned the museums based on a random selection to represent the diversity of museums in the United States.  We work through the Standards and as we discuss each topic in class, such as governance or collections, we’ll talk about how their particular museum has approached it. This week we’ll be discussing mission so they’ll be evaluating the mission statements for the 25 museums we’re examining in class to determine a set of criteria and identify model mission statements.

New this semester is my course on project management in museums. Our core readings are: Continue reading →

Looking to Get Started with an IMLS Application?

This fall I’ll be teaching a project management class in the Museum Studies Program at George Washington University (GW) and the final project will be writing a grant application to the Institute of Museum and Library Services (IMLS). The final project gives graduate students a real-life experience and provides museums with a foundation for an Institute of Museum and Library Services (IMLS) grant application.

If you’ve been thinking about applying for IMLS grant to improve the care of your collections, better engage your community, or improve learning through your museum but have been too busy or unsure where to begin, GW graduate students may be able to help. It’s part of our effort to serve the museum field, especially smaller institutions that are often juggling too many responsibilities without sufficient resources.

IMLS’ Museums for America (MFA) is one of the best federal grant programs available because it supports “projects that strengthen the ability of an individual museum to serve its public.”  That’s pretty flexible but projects do need to focus on one of three areas: Continue reading →

Making History Matter in a Shopping Bag

The frontside of the New-York Historical Society shopping bag.
The backside of the New-York Historical Society shopping bag.
The frontside of the New-York Historical Society shopping bag.
The inside of the New-York Historical Society shopping bag.
The side of the New-York Historical Society shopping bag.
The bottom of the New-York Historical Society shopping bag.

When I recently visited the NY History Store at the New-York Historical Society, they provided me with a sturdy bag to carry my newly purchased books, but also an engaging history game. On one side of the bag are a dozen questions, such as

  • Who kept live whales in Manhattan?
  • Who were the Death Avenue Cowboys?
  • When did slavery end in New York state?
  • Why is Broadway on an angle?
  • Who gave New York its famous nickname: The Empire State?
  • What is New York’s first museum?

To find the answers, to either have to Continue reading →

Can You Create a Mission-Related Petting Zoo?

A clever storage area for odd-shaped tools and equipment at Strawbery Banke.

I just returned from leading a historic house management workshop for AASLH at the Strawbery Banke Museum in Portsmouth, New Hampshire. It’s always an opportunity to pick up some good ideas from the host institution and at Strawbery Banke, there was no shortage. Most intriguing was their Heritage House Program which restores and leases fifteen underutilized properties, creating a virtual endowment fund to support their educational programs. It’s an outstanding combination of mission and financial sustainability, earning it an award from the New Hampshire Preservation Alliance and a feature on NPR’s “All Things Considered.”

In my workshop, we discuss the importance of combining mission and sustainability using one of my favorite tools: the Double-Bottom Line.  I often joke that if historic sites just wanted to increase attendance, they might as well become petting zoos of puppies and kittens. Incredibly, Strawbery Banke has figured out how to make a mission-related puppy zoo in an event called, “Baby Animals.”  For one week, visitors can learn about a dozen heritage breeds such as Jacob sheep, Nigerian goats, and Gloucester Old Spot pigs.  No, they can’t be petted but families can watch lambs, kids, and piglets play, eat, and sleep.  For those who are really interested, there are a couple lectures and a “meet the animals” program for children ages 4 to 8 where they can have a snack, feed the animals, and create a take-home gift for $25.  What a clever idea! I’ve attached the brochure on Baby Animals at Strawberry Banke with more details.