Museums have suffered funding crises over the past decade that has resulted in budget modifications to all aspects of their operations. Past economic slowdowns caused museums to make temporary modifications to budgets while the institutions waited out the slowdown. The current economic situation seems to be more long lasting and broader in scope as it relates to museums. Institutions that have cultivated multiple funding sources are the most able to cope with the current situation, but they too must cope with the reality of reduced revenue. Museums with single funding sources suffer the most if they are publicly funded or are dependent on the growth and interest from endowments which have shrunk significantly-the American Association of Museums reports that 63% of museums saw a decline in investment income in 2009 according to a survey of 481 AAM institutional members in January of 2010.  The AAM survey stated that there are indications that individual donations were less likely to be reduced as opposed to government and corporate support. Although this would seem to be a difficult time to find new sources of income, adversity can and should inspire museum leaders to become creative in their thinking, in their strategic planning, fund development cultivation, program evaluation and staffing.

    Visitor services, membership development and programming keep the museum in the public eye and therefore are natural conduits for revenue generation. But admissions provide only a small portion of the total revenue needed to operate an institution, and despite increases in museum attendance as a result of people staying closer to home, so many other sources of revenue have been affected that it is difficult to keep up. But keep up they must in order to maintain public and member support. Streamlined operations, on-line publications, social networking to advertise their offerings, aggressive marketing and a greater reliance on volunteers and part time employees are good strategies for coping with the downturn. Some techniques that may be instituted to reduce costs include creating fewer but more focused programs; honestly evaluating the true costs and effectiveness of all programs; lengthening the time that temporary exhibitions stay in place; consolidating departmental responsibilities; and collaborations with other institutions. Reducing hours or services to the public may prove to be the most costly solutions as they tend to erode confidence in the museum, and this lack of confidence may result in dropped memberships, donations and corporate donations and sponsorships. Keeping the “front end” of the museum intact is vital to sustaining public support and surviving what may be a long term economic crisis. For publicly funded institutions the confidence of the public must be maintained and the strategic development of additional and/or alternate funding sources must be a priority for future success.

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