A financial review of more than 1,300 History Museums in 2017 reveals that nearly 90 percent operate on less than $1 million annually, and nearly half on less than $100,000 (see Figures 1 and 2). History museums are financially fragile, but an annual increase in revenue of $5,000 to $10,000 could have a tremendous impact on their capacity and impact. How might this be achieved? Hints of potential solutions are revealed in the changing revenue patterns of larger museums.
A closer look shows that most History Museums derive about 60-70 percent of their revenue from “unearned” sources (i.e., contributions, grants, investments, fundraising events, membership dues), but the mix changes according to size. Museums with less than $10 million in revenue received 4 to 6 percent of their income from investments, which doubled or tripled in the largest museums to 11 percent. While asking for support from people and foundations (i.e., contributions and grants) remained steady, there seems to be increased attention on making money from money (e.g., interest, dividends, sale of securities, drawing funds from endowments).Continue reading