In the world of small museums, location and audience significantly influence expenses, rendering a one-size-fits-all approach ineffective. However, gaining insight into the various types of expenses museums incur can shed light on common challenges and their causes. The non-profit financial Form 990 categorizes expenses into five areas, providing a framework for understanding spending patterns. Our goal is to simplify the concept of museum spending and guide museums toward prudent budget management by exploring these key expense categories.
Continue readingCategory Archives: Historic preservation
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.
Continue readingHistoric House Museum Summit This Week
In 2007, I helped organize the Forum on Historic Site Stewardship in the 21st Century, which resulted in an influential issue of Forum Journal that laid out the major challenges and opportunities, including the need for financial sustainability, a willingness to change in response to the needs of the community, and a balance between the needs of buildings, landscapes, collections, and the visiting public. It also recognized that museum standards may not be the best practices for historic sites and that the profession “must develop new measures, beyond attendance, that document the quality of visitor engagement at sites and the extent of community outreach beyond the bounds of historic sites.”
So what has happened in the 16 years that followed? We’ll find out this week as the American Association for State and Local History hosts a virtual summit on the Sustainability, Relevance, and the Future of Historic House Museums on July 11-12. Sessions will address measuring the impact of house museums, broadening interpretation, care of buildings and landscapes, and the evolution of mission statements.
Continue readingImpact, Sustainability, and Non-Profit Programs
For small non-profit organizations operating on less than a million dollars annually, programs are often the beating heart of the operation. The best programs balance mission and financial sustainability to serve their audiences. Program revenue (admissions, events, and membership dues) can be a vital means of maintaining financial stability and growth. For History-Focused Organizations [Museums (NTEE A50), History Museums (A54), History Organizations (A80), and Historical Societies & Historic Preservation (A82)] as overall revenue grows, so does the share of program revenue. This means as your organization grows, so should the prominence of your programs as a true revenue driver (see figure 1 below).
As small history-focused organizations expand, it’s crucial to manage their programs wisely to increase income while keeping the mission in mind. For small groups, program decisions can be very personal, often influenced by board or staff interests. Taking a strategic approach to these decisions can boost the organization’s growth and success.
Continue readingHow can History-Focused Organizations Invest in Stability?
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.
Continue readingShould Local History and Historic Preservation Dominate the Museum Field?
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.
Continue readingIndiana Historical Society blending Conservation with Comic-Com
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an Diego’s Comic-Con, the international conference “dedicated to creating awareness of, and appreciation for, comics and related popular artforms,” has morphed into one of the biggest events in the nation with attendance topping 130,000 people. It’s also spawned local versions around the country, including Indianapolis at the end of this month.
The Indiana Historical Society has cleverly combined its mission to connect “people to the past by collecting, preserving and sharing the state’s history” with the interests of the Comic Con audience by creating “Comic CONservation.” Participants will “learn how professionals use science and technology to restore and care for comic books” plus they get to play vintage arcade games and see original Ray Bradbury cover art from the nearby Center for Ray Bradbury Studies at IUPUI. Wow! IHS collections consists primarily of documents and photographs, plus they have a team of conservators working in a state-of-the-art paper conservation lab (The forceps are strong with this one), so they are drawing on their strengths to reach a new audience. Can’t wait to hear how this turns out (especially if people can dress as their favorite comic book character!).
Do you have a clever idea for using conservation or preservation to reach a new audience? Please share it in the comments below.
Review: Historic House Museums in the US and UK by Linda Young (2017)
Historic House Museums in the United States and the United Kingdom: A History by Linda Young. Lanham, MD: Rowman & Littlefield, 2017. v + 299 pp.; bibliography, index; clothbound, $85.00; eBook, $80.00.
Historic house museums are one of the most popular ways that the public experiences history in the United States, although we only have a fragmentary understanding of their history. Linda Young tackles this topic not only for the United States but also the United Kingdom, with occasional examples from her homeland in Australia.
Linda Young is a senior lecturer in cultural heritage and museum studies at Deakin University in Melbourne, trained as a historian focused on nineteenth-century Britain. She has also worked as a curator at several house museums. After completing a survey of house museums in Australia, she expanded her scope to include the United Kingdom and United States in order to develop transnational comparisons that would reveal patterns in the motivations for transforming private houses into public museums (a process she calls ‘‘museumization’’). Furthermore, she wanted to distinguish house museums from other types of museums, giving them a distinctiveness and prominence that the museum field rarely considers. In a sense, she is giving house museums their own history and identity.
Her research into guidebooks, directories, Wikipedia entries, articles, and books, as well as field trips, convinced her that there are Continue reading
Seminar for Historical Administration underway in Indianapolis
Seminar for Historical Administration 2017 in Indianapolis
This year’s Seminar for Historical Administration (SHA) is meeting in Indianapolis and all of our hard work in selecting participants and presenters over the past months is coming to fruition. For three weeks in Indianapolis, a dozen people in the history field will be discussing the leading issues facing leaders and debating their solutions. I’ve assembled the schedule and directing the program, so I’m particularly excited to see how it unfolds each day. A big thanks to the dozens of people who are helping to make this extraordinary experience happen.
SHA opened on Sunday with Erin Carlson Mast, the President and CEO of President Lincoln’s Cottage, laying out the trends in the field. She noted how much has changed in the last ten years and that our work is more important than ever. I was particularly intrigued by her insistence that the mission and vision of the organization need to be manifested not only in the public programs and activities but also in the budget and operations. For example, their interpretation of slavery during Lincoln’s era motivated them to examine modern-day slavery (human trafficking) through their award-winning SOS program for teens AND make choices about the restoration materials used in the Cottage. Afterwards, we visited the library and archives at the Indiana Historical Society and had dinner together at a local restaurant.
Yesterday, David Young, Executive Director at Cliveden and Tim Grove of the National Air and Space Museum discussed the opportunities and challenges for making history relevant. It seems that everyone is struggling to make this happen, either through their programming or evaluation, and perhaps the most important discovery is that we need to learn more about our audience’s interests, motivations, and needs.
Today, Pamela Napier and Terri Wada at Collabo Creative will lead us through a short workshop on “design thinking” and then we’ll visit the Indiana State Museum to meet their new CEO Cathy Ferree and visit collections, and return to the Indiana Historical Society to learn about conservation.
Update: Standards for the Treatment of Historic Properties
The National Park Service has issued an updated version of the Secretary of the Interior’s Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring, and Reconstructing Historic Buildings (whew!). Last revised in 1992, it was recently updated as part of NPS’s “A Call to Action: Preparing for a Second Century of Stewardship and Engagement”.
The revised standards more fully develop topics in the previous editions, address the treatment of buildings of the last half of the twentieth century (which introduced new materials and systems, such as composites and curtain walls), include building code-required work, and eliminated energy efficiency (which is now addressed in 2011 in the Guidelines on Sustainability for Rehabilitating Historic Buildings). The Standards provide guidance for the maintenance, care, or remodeling that might occur through an illustrated set of recommended or discouraged practices easily understood by architects, contractors, staff, and board members. A big thanks to NPS and Anne Grimmer for providing these new guidelines. They’re free online and every house museum in America should adopt these Standards to help preserve and maintain their buildings and structures.
The Standards are designed to guide work on buildings listed on the National Register of Historic Places, but I’ve used them Continue reading
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