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.Continue reading