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Fall 2004 nema news earned income

  1. 1. Volume Twenty-Eight Number One Fall 2004Earned IncomeIn the new economic climate, museums are taking a fresh look at potential sources of earned income. In this issueof NemaNews, we bring together articles on several of the most popular vehicles for earned income: facilityrentals, food services, and museum stores. In addition, we address some of the topics that are important to anyearned income program, including marketing and Unrelated Business Income Taxation. The Museum Meets the In-Laws: Developing a Successful Facility Rental ProgramA meeting space that sits unused after hours, a desire to • What contracts and other documentation, includingincrease earned income and expand audiences…these insurance and permits, will be required?circumstances prompt many museums to initiate or • How will the museum facility support the rental pro-expand a facility rental program. Rentals can provide an gram (with kitchen space, tables, AV equipment, park-important stream of earned income and offer a museum ing spaces, etc.)?many ancillary benefits, including the opportunity toattract new audiences and increase its involvement in • How will the rental program affect other areas ofthe local community. museum operations? • How much will it cost the museum to make the facilityWoe to the museum that thinks this is “easy money,” available for the event?however! As an extension of the museum’s publicdimension, and for their potential impact on other pro- To explore these issues, NEMA interviewed functiongrams and services, facility rentals require the same managers at seven museums of art, history and science—degree of forethought and care given to other museum museums of different sizes, located in different settings.programs. continued on page 4All the components must first be in place to ensure asuccessful event. While a museum may initially thinkonly in terms of the space it has available and the NEMA Annual Conferencepotential income, there is, in fact, a wide range of issuesto consider. By the first strains of the “Macarena,” themuseum will have made, by deliberation or default, the The Museum, the Baby & the Bathwaterfollowing decisions: Authenticity in the Information Age• What spaces will be available for rent? During what hours, and at what charge?• What types of events will the museum host?• What activities will be permitted (alcoholic bever- Burlington, Vermont ages, dancing, etc.) and under what conditions?• What relationship will the museum have with caterers October 27-29, 2004 and other vendors? For program and registration information see page 13.• Who will staff the events on behalf of the museum? 1 NemaNews/Fall 2004
  2. 2. Developing a Successful Facility Rental Program continued from page 1Instead of polling them on how they run Q. 2. What 2 or 3 innovations in mu- museum. The facility fee covers the costtheir facility rental programs, we asked seum staffing have made the rental of of a security guard, so that the onlyquestions that get at the heart of why your facility a success? (This could museum staff who are directly involvedthey do what they do. There is no “one include the number of staff on duty, in the rental are the receptionist who the power they have to make deci-size fits all” set of policies and proce- schedules the function and the mainte- sions, or their scheduling.)dures for facility rentals. But by gaining The museums we contacted offer nu- nance staff.insight into the decision-making pro- merous models of staffing events, yet Q. 3. What is the most important thingcess at these seven museums, other all have paid attention to three key as- you do to prepare clients, their guests,museums may find it easier to develop pects of staffing that promote a suc- or vendors for a successful event?or expand their own successful rental cessful function: “Communication” is the obvious an-programs. swer. A museum should have a set of 1. Maintaining good communication on-Q.1. What persons or policies guide site between staff, clients and vendors policies for facility rentals that are clearlyyour museum in deciding which 2. Staff training written and addressed to both the clientgroups or events the museum will 3. Empowering staff to make decisions and the vendors, and the museum shouldhost? on-site obtain a signed contract from the clientIn some museums, the board of direc- stating that s/he agrees to abide bytors has set guidelines concerning what At the Portland Museum of Art, which these policies. (The NEMA office hastypes of events the museum will host. averages one rental per week, the func- sample policies and agreements thatFor other museums, city and state ordi- tion manager attends every event and are available via its Policy Loan Ser-nances dictate the use of their facility. serves as the liaison between vendors vice). These policies and agreementsOther institutions have no set policy; and museum staff, including security should be reviewed and amended peri-instead, the director considers rental and maintenance. At Strawbery Banke, odically.requests on a case-by-case basis. the function manager also attends ev- ery event; additional staff are drawn As Amy Sherwood, Events and FacilityWhether or not there is an established Rentals Manager of Strawbery Bankepolicy, function managers rely on their from other museum departments, and everyone is asked to participate at some noted, however, “most issues arise whenown experience with different types of the parties aren’t ‘up front’ about theirclients to guide them in accepting rent- point during the year. This has the ad- vantage of enlisting the support of the expectations.” In this area, documentsals. Having a policy in place shouldn’t are no substitute for personal contact.prevent a museum from saying “no” to entire museum community in the facility rental program, but it also requires re- The function manager at Blithewolda particular request. Mansion, Gardens, and Arboretum, training staff in event procedures andThe Worcester Art Museum stopped can place some stress on individual which hosts a large number of wed-hosting private parties for young people departments. dings, spends a great deal of time work-when they had more than one bad expe- ing with clients face-to-face and overrience and museum staff realized that At the Museum of Science, Boston, a the phone. (One function manager esti-they were unable to gain the informa- function coordinator provides supervi- mated that each 5-hour wedding takes ation they needed in advance to ensure sion for each event. Although these 20-hour investment of time beforehand,the safety of the facility. The museum’s individuals work in the museum in vari- and some brides visit a site two or threeeducation department runs children’s ous capacities, they maintain a high times before their wedding day.) Meet-birthday parties in a separate space level of training in event policies and fire ings with museum staff often includewhere clean-up is easier to manage. safety, and they supervise functions on both the client and the vendors. As Sara a regular basis.Museums that are initiating a facility Murphy, Manager of Marketing andrental program and have not previously In contrast to these models, the Higgins Special Events at the Higgins Armoryhad a high demand for their space can Armory Museum maintains a corps of Museum noted, “a good caterer is worthdo targeted marketing to the groups 20 part-time staff who work only at func- its weight in gold!”they think they would like to host. At tions. Each week they receive, via email, Several function managers emphasizedthe Wenham Museum, Director Emily an updated calendar of events that con- the importance of creating a floorplan ofStearns used this approach to enter the tains their assignments. They also re- each event and doing a walk-through ofrental market in a measured way. She ceive a rental staff contact list, to locate the function space. As Janet Rosetti,distilled the information she received a replacement if they are unavailable for Director of Special Events and Facilitiesfrom her staff concerning various types a particular date. All of these staff mem- Rentals at the Worcester Art Museumof groups and steadily formalized a bers have been trained to work at func- observed, “the floorplan gives the imagi-policy that she brought to the board of tions; three or four of them have been nation a home.” Guests can visualizedirectors for approval. trained as managers. The Wenham the set-up more easily, and are prompted Museum provides function space that to ask questions such as, “Why is the clients can access separately from theNemaNews/Fall 2004 4
  3. 3. buffet table located here?” Having a their rental program, but there is novisual aid makes it easier to say “no” to single type of event that they all think itsome requests, because clients can see is important to pursue. Museums that Servicesthat the museum is not making an arbi- already host a large number of wed- & Publicationstrary decision. dings see room for growth in corporate rentals, as long as there is a concentra- New & Recent AdditionsMuseum directors and function manag-ers should follow their instincts in agree- tion of businesses in their area. Since 2004 Product & Serviceing to work with potential clients. One most weddings take place on weekends, Directoryfunction manager, early in her career, corporate business allows museums to The P&S Directory specializes in compa-had a strong sense that a particular rent their facilities during the week. nies and individuals that are located or mosbridegroom was not going to respect Other museums that typically provide often work in New England. The P&S Di- rectory offers help with a wide range ofthe museum site. Her instincts were groups with access to the their galleries projects such as the search for a newconfirmed when he became heavily in- and programs, such as the Museum of director, audio tours, storage materials ortoxicated before the reception even be- Science, see the potential to attract more systems, capital campaigns, interpretationgan and caused such a disruption that private social events. These rentals are plans, etc. 35 pages.the police were required. usually organized around the use of the $7.50 NEMA Members, $10 non-mem- bers. function space alone.Q. 4. What aspect of renting a facilityis the most time consuming? As you can see, there are tremendous The Employers Handbook: A Guide differences in the way museums con- to Personnel Practices & PoliciesThis depends on the size of the museum for Museumsand the type of business it attracts. duct facility rentals. The “moral” of the The revised June 2004 HandbookWeddings and other social functions story is that the museum is in the driver’s includes expanded sections on personnelsuch as showers and retirement parties, seat in developing a rental program. For policies, orientation and evaluation,which have strong emotional signifi- one thing, every museum is unique, with employee benefits, and discipline andcance, require function managers to its own capabilities to host an event. No termination. Information on state and museum should feel pressured to host a Federal employment laws has beenspend a great deal of time working with updated. HR professionals from throughoutclients prior to the event. The amount of type of event that they do not believe New England have offered their expertiseexperience that the clients have with they can carry out successfully. The to ensure its accuracy. A complimentaryevent planning also affects the amount satisfaction and safety of the guests— copy was mailed to all Institutionalof time function managers need to spend not to mention the museum’s reputation Members. 90 pages.with them. and resources—are on the line. $15 NEMA Members, $25 non-members.Function staff should never underesti- Properly structured, a facility rental pro- Loan Policy Servicemate the importance of internal museum gram can be a tremendous asset to a NEMA has broadened and expanded itscommunication, or the amount of time museum. It can provide much needed Loan Resources. This service givesrequired to ensure that every depart- income; create new relationships with Institutional Members access to more than potential visitors, donors, and volun- 16 categories of policies and reportsment that will be affected by an event created by museums of all sizes andstays up-to-date with any changes that teers; promote greater staff involvement disciplines. The complete list is availableoccur. As Janet Rosetti remarked, “It in the public dimension of the museum; on the NEMA website. If you would likemakes a big difference when facilities even encourage a museum to strengthen advice on which ones to choose, call thestaff demonstrate to other departments other areas of its operation, from the NEMA office for personal assistance.that they respect their place and author- website to visitor safety. As museums Academic Membership Programsity. I try to make sure that other depart- continue to gain experience in this area NEMA has created two new membershipments know what I know as soon as I and share their knowledge and sugges- packages for universities and collegeshave new information.” tions with one another, they will be able with programs that promote the education to expand their programs with more and of future museum professionals. PleaseAnother time-consuming aspect of fa- contact Jane Coughlin, Operations Man-cility rentals is often answering requests more confidence and greater success. ager & Membership Coordinator, for detailsfor information from people who may be Many thanks to the museum profession- at 781-641-0013.interested in the site. Many museums als who graciously gave their time to be New Membership Categorymake their rental program brochures interviewed for this article: Dana Devoe, NEMA has created a new Corporate Mem-available in an .html or .pdf version; this Blithewold Mansion, Gardens, and Ar- bership category for Independent Museumsaves money on printing and postage. boretum; Jen Harmon, Portland Mu- Professionals, with Corporate benefits tai- seum of Art; Sara Murphy, Higgins Ar- lored to meet the needs of these col-Q. 5. What do you consider to be the leagues, including the opportunity to ap-greatest area of potential growth in mory Museum; Janet Rosetti, Worcester pear in the On-Line Product & Serviceyour facility rental program? Art Museum; Amy Sherwood, Strawbery Directory. Please visit our website forAll of the museums we interviewed had Banke Museum; Emily Stearns, Wenham further details.considered how to expand the range of Museum; and Sheryl White-Vincent, Museum of Science, Boston. 5 NemaNews/Fall 2004
  4. 4. The Museum and the Caterer: A Value-Added Relationship By Jim LawlerA generation ago, most museums would borne by the museum. In particular, An effective visitor food service canhave considered it somewhat undigni- smaller properties can outsource their also bring significant ancillary benefits.fied to aggressively pursue event rental entire marketing effort, subject to ap- Food service can increase the length ofand catering business. Today, even fa- propriate contractual guarantees. In stay, which will enhance per capitacilities with modest attendance have most cases, a caterer must agree to a spending in the museum shop and willdiscovered that these activities can of- minimum site-specific marketing com- be a factor in promoting membership.fer a significant annual income stream, mitment as part of its contractual obliga- Restaurant discounts or member reser-regardless of the economic climate. tions. vation policies can be part of the addedMany museums with an annual atten- The issue always arises as to whether value package for donors. With the ex-dance of fewer than 100,000 realize six- an exclusive caterer can provide the ception of the highest attendance facili-figure income. The two major income creativity and the range of price points ties, visitor food service, whether it bestreams are rental fees and catering com- to satisfy a diverse market. In part, this a snack bar, a café, or a table servicemissions. Often, other components of is a contractual question, dependent restaurant is a loss leader economically,events, such as rented equipment, mu- upon the museum’s assessment of the although a superior café or restaurantsic, and flowers are also commissionable. resources within its marketplace. There may prove to be an important adjunct toIn the past, many museums allowed a are many off-premises caterers that can the museum’s development activities.wide variety of caterers to use their operate at a broad variety of price points, Typically, visitor food service is a lossfacilities because they believed that this provided that the contract with the in- leader from the caterer’s perspective aspolicy removed a deterrent to rentals for stitution allows them to do so and that well, although he or she may receivethose clients with a marked caterer pref- they receive clear direction from the business from other events that are helderence. In practice, however, clients in client. after hours, elsewhere on the museumsearch of alternate venues clearly select grounds, or in conjunction with localthe venue first and the caterer second. events. There are institutions that pro- Visitor food service is anMost museums believe that working vide food and beverage service for equally vital part of thewith an exclusive caterer or maintaining themed candlelight dinners; car, boat, equation... Any museuma very short list of approved caterers or antique shows; and concession with a length of stay of anleads to the most effective stewardship stands at community festivals. Whether hour or more will find thatof museum property. They also believe or not these events are commissionable, visitors demand some typethat these relationships offer an incen- museums may also benefit, since par- of refreshment.tive to caterers to share revenue. ticipation in these events often repre-Museum policies concerning eligibility sents outreach to a diverse community.and rental fees will often determine the In-house Catering Most museums are considering the bestmagnitude of the catering opportunity. Internal catering offers museums major ways to utilize the real estate value ofLife cycle events, particularly weddings, benefits. It must be clearly understood their space when the exhibits are closedoffer the highest sales volume to cater- that the client institution is the most to the public. Implementation of an ag-ers, but by their nature they are high favored nation. Our firm generally ne- gressive rental program is a particularlymaintenance business. Other important gotiates a combination of discounts for effective strategy. We have worked withcategories in many markets include ga- smaller events and, for galas and larger a variety of clients to develop yieldlas for other not-for-profits and con- events, sets the price at cost plus a small management programs similar to thosevention or meeting business. For a mu- percentage. The annual savings can be used by the on-premise catering andseum, the economic impact may be sig- considerable. airline industries.nificant, even as the events it chooses Visitor food service is an equally vital In summation, these revenue streamsto host influence its community pres- part of the equation, although it does are “low hanging fruit” in comparison toence. not drive the income stream. Any mu- multi-year development efforts. TheCommissions ranging from 10% to as seum with a length of stay of an hour or impact of a well-conceived event rentalhigh as 25% (depending upon operat- more will find that visitors demand some and catering program can be an incomeing circumstances and the sales base to type of refreshment. With a two-hour stream that is self-renewing with littlewhich the percentage is applied) often length of stay, some food service be- respect to the business cycle.equal or exceed rental revenues. In ad- comes essential to prolong the visitor experience. In fact, tour operators will Jim Lawler is president of JGL Managementdition, an exclusive caterer frequently often consider restaurant, café, or box Services—food and beverage consultantsassumes the cost of marketing the rental with specialization in the arts. He can befacility, covering both production and lunch programs as important elements reached at 609-683-1227 or by email atmedia charges that otherwise would be in the development of their packages. jglmgtserv@msn.com.NemaNews/Fall 2004 6
  5. 5. Vending Machines Provide Food, Beverages and Possibly Profits By Arthur M. ManaskVending machines are a cost-effective— and other venues that offer high visibil- machines with your own staff, collect-and possibly income-producing—way for ity for their product line. ing the sales and using the sales to paymany museums to provide refreshments Sometimes local bottlers will rent cold the machine rent. Not counting the costto visitors. This article addresses how to beverage machines to an institution and of labor, storage and inventory, this isobtain and maintain this equipment for the sell the institution the product (sodas, probably the best first option to con-institution’s greatest benefit. bottled water, juices, etc.). The institu- sider. This option is generally not avail-There are two primary sources for vend- tion stocks the machines and collects able for snack (candy, chips, danish,ing machines: local soda bottlers (Coca- the revenue, profiting when money is cookies, etc.) machines.Cola and Pepsi Cola) for cold beverage left after paying for the machine rental There are other ways to maximize themachines, and route vending machine and beverages. return on vending machines, by makingcompanies that offer a variety of ma- Route vending machine companies nor- sure that they are placed in popularchines with different beverages and mally provide museums with the equip- locations and attractively maintained.food. The local bottlers will usually pro- ment and always provide the product In particular, if you are a small institu-vide, fill and maintain the cold beverage and related services, as well as collect tion and vending machines representmachines at no cost to the institution. the revenue. Depending on the total your primary visitor food service, putThey also collect the revenue and, de- revenue versus the number of machines, them in highly visible places—high traf-pending on the total sales volume gen- the company may pay a percentage of fic paths, visitor entrances and exits,erated, pay a percentage of the revenue the revenue to the institution. staff/volunteer areas and outdoor tour-to the institution. ing spaces are ideal locations. Commissions from either bottlers orLocal bottlers may be interested in an route vending machine companies run The machines certainly don’t have toexclusive rights agreement if your insti- at about 10% of revenue. However, this look ugly. Some vending machine pro-tution has a high profile in the commu- percentage may be less, or zero, de- viders allow exteriors to be customizednity, hosts a large number of special pending on the revenue generated in (with color and even personalization) toevents or facility rentals, and/or wel- comparison to the company’s capital fit in with your interior or exterior décor.comes many children as visitors. The investment for the machines, service, Enclosures can be made to hide the top,agreement usually stipulates that the repairs and maintenance. If the machines sides and back of the machines, so visi-bottler’s product line will be used exclu- are in a highly visible location and tors see only the front product display.sively at your institution for all food 100,000 visitors per year each spend an A small seating area or tables and chairsservices, both visitor service and spe- average of 50 cents ($50,000), the ma- and trash receptacles near the machinescial events. In exchange, your museum chines could return about $5,000. make them more inviting.will receive cash and/or in-kind contri- Keep outdoor machines in weatherproofbutions, corporate sponsorship, mar- If your institution is very small (visitor count and paid/volunteer staff) it is im- enclosures, and if necessary, install se-keting, or promotion. An annual cash curity doors. Place a sign on the ma-donation could amount to approximately portant to talk to the local vending ma- chine providers to determine their mini- chines stating that cash is emptied daily.$5,000 if your institution has about200,000 visitors annually. mum (sales) requirements. Normally With careful planning, and for a modest vending machine suppliers will require investment of resources, vending ma-Before entering into any agreement, care- each individual machine to do a mini- chines may prove to be the answer forfully review the bottler’s pricing for all mum weekly $ amount of sales in order many museums that wish to expandproducts and supplies (cups, etc., if to justify having it onsite. This may visitor services, increase the averagenecessary). Have the pricing reviewed mean in a seasonal location, that the length of stay, and improve the comfortby the companies that cater the special machine will require a subsidy (out of of visitors and staff alike. In many situ-events at your museum and, if appli- pocket payment by your institution to ations, vending machines represent ancable, by the visitor food service opera- the vending machine company) during opportunity for increasing the museum’stor. Vendors should provide market- some months and in busier (visitor) corporate support and earned income;competitive pricing for all products and months you may earn income that will at the very least, a bit of additional rev-services. The prices should not be el- offset the subsidy. enue is icing on the (packaged) cupcake!evated and returned to you as a dona-tion, rebate, or corporate sponsorship. Potentially the most cost-effective ap- © 2003 Arthur M. Manask. Manask is presi- proach for an institution that primarily is dent/CEO of Arthur M. Manask & Associ-Most Coca-Cola and Pepsi bottlers are interested in beverage (juice, water and ates and author of the book The Completevery familiar with these agreements and sodas) vending, would be renting the Guide to Foodservice in Cultural Institu-usually like entering into them, espe- machine(s) from the local Coca-Cola or tions: Keys to Success in Restaurants, Ca-cially at museums of science and natural Pepsi-Cola bottling company, purchas- tering, and Special Events. He can be reachedhistory, children’s museums, aquariums ing the product from them, filling the at 800-686-8813, or by e-mail at artm@manask.com. 7 NemaNews/Fall 2004
  6. 6. Achieving Success in Your Museum Store By Judy Flam and Arch HorstPerformance in the retail industry con- How Much Money Can The have approximately one square foot fortinues to be lackluster and the impres- Museum Store Make? every 175 visitors. A store that is toosive growth experienced in the museum How much money a store can contribute small will not be able to reach its salesretail field in the late 1990’s will be diffi- to the museum’s operating funds de- potential; a store that is too large willcult, if not impossible, to achieve in the pends on five factors: merchandise se- either look barren or have excessivelynear future. And now, more than ever, lection, the number of visitors, store high inventory costs just to keep it fullymuseums need to optimize earned in- size, store location and the store’s man- merchandised.come to support their programs. In a agement practices. The location of the store within theperiod of slow (or no) retail growth, how Merchandise selection has a profound museum will also have a significant ef-does a museum administrator or store impact on gross sales and on the extent fect on its performance. We have seenmanager assess whether their store is a to which a store achieves its mission of too many stores that are relegated to offsuccess, providing a reasonable amount “extending” the museum visit. As dis- the beaten path, left-over space. Tooof earned income, or whether there is cussed in greater detail below, a store few visitors find these stores and nopotential for further growth? without merchandise to appeal to all of amount of clever merchandising canThe Attributes of a Successful its market segments will not live up to its overcome their bad location. The storeMuseum Store financial potential. Nor will a poorly should be located near the main en-Success for a museum store is threefold. merchandised store reflect well on its trance/exit so that visitors will notice it institution. It is essential that the shop upon entering and stop to shop when• “Extending” the visitor’s experience manager and buyers constantly seek leaving. In the ideal location, the store by offering merchandise that is ex- out new products that relate to both the does not overly influence the visitors’ pressive of the museum’s holdings, museum’s mission and the interest of first impressions of the museum but is exhibits, and programs. the visitors. easily accessible to the visitor after expe-• Providing an important (and expected) riencing the exhibits or to the destination The more visitors who attend a museum, visitor amenity that reinforces the shopper who is not a museum visitor. the greater is the potential for gross visitor’s positive impression of the sales and net revenue. The most com- Finally, because a museum shop is a museum’s image. monly used standard of performance in business, its success is also dependent• Generating funds that support the museum retailing is gross sales per visi- on good management practices, par- museum’s programs. tor, and it varies with the type of insti- ticularly buying and pricing procedures.There are many successful museum tution. MarketPlace Associates has The museum store manager must buystores that have met the three criteria of worked with over 90 museums, cultural larger quantities of fast moving items sosuccess. Each store featured a merchan- institutions and park stores, and has as to never be out of stock, set the pricedise mix that reflected the museum mis- tracked the museum retail industry for of merchandise to realize the maximumsion and visitor experience, covering a over 20 years. We believe that the fol- profit and put the “dogs” on sale tovariety of price ranges as well as prod- lowing sales ranges are indicative of make room for new, more profitableucts that were enticing to those who well performing stores: merchandise.visited the museum. Each store was an • Aquariums and Children’s Museums: Because the variables influencing fi-attractively designed and merchandised $1.50 to $3.00/visitor nancial performance are complex, therevisitor amenity that reflected well on the • Fine Art Museums: $2.50 to $4.00/visitor is not a simple rule-of-thumb for estab-museum. And each store had converted • History Museums: lishing a reasonable net profit (afterthese qualities into a financially suc- $3.00 to $5.00/visitor accounting for all of the store’s operat-cessful operation. • Science Museums: ing costs) for a successful museumWe believe that these three attributes of $2.00 to $3.50/visitor store. The net profit in a successfula successful museum store are mutually store in a small museum might be only There is not a gross sales per visitorsupportive and very achievable. But 10%, while a successful store in a large figure that works for all museums withinhow does one assess what is a “suc- museum (over 500,000 visitors) can real- a given category; but these ranges per-cessful” museum store in times of gen- ize a net profit in excess of 25%. mit one to judge whether a store iserally stagnant retail performance? Here grossly under performing or surpassing Is the Store Serving theare our answers to the questions that industry standards. Museum’s Market?can lead a museum and its store manager The size of the store also influences Given the importance museums placeto a more complete understanding of a success. A store in a small museum on their mission, it is natural to think thatstore’s potential and to the strategies should have approximately one square all decisions affecting a museum storerequired to sustain or achieve success. foot for every 75 to 100 visitors. Larger should be made from the museum’s museums (over 300,000 visitors) should curatorial and educational perspective.NemaNews/Fall 2004 8
  7. 7. This point of view, however, overlooks sons change so do the visitors, and the special, which aspects of the institutionthe fact that if the customers’ needs and location of merchandise and the empha- are most popular and what merchandiseinterests are not met then there will be sis given to certain merchandise also will best extend the visit. Combining theno retail transaction and, consequently, needs to change if each season’s cus- results of the research with his/her retailless profit and less support for museum tomers are to be well served. experience and creative skills, the buyeroperations. Each museum shop should establish for is able to create a mix of merchandiseTo ensure that a store serves the visi- itself what are its largest, and most lu- that is a true reflection of the institution.tors, the successful museum retailer crative, market segments. Only then can The immediate payoff for such diligentcontinuously refines his or her sense of the shop begin to effectively organize preparation is that the merchandise thatthe museum’s visitors/customers by its merchandise categories and its sell- most relates to the museum will prove toanswering the following questions: ing space. There are many methods that be some of your store’s best sellers. ForWhere do they come from? What is the can be used to accurately identify the instance, a museum with a multi-culturalage range? Generally, what are their market; the underlying principle of each orientation will find it easier to sellincome levels? Why did they come to is to discard all preconceptions and origami paper or shadow puppets thanthe museum? How long did they stay? look with a fresh eye at who is visiting a science museum.What did they do during their visit? the museum, who is shopping in the When developing a buying strategy,What did they like about the visit? store, who is buying the most, and what product range and price points shouldAnswers to these questions will reveal is being sold. also be considered. A rule of thumb thatvisitor preferences and valuable clues If a museum shop has maximized its will prove useful is: “the larger afor creating a visitor-focused store. In- ability to sell to its primary market — its museum’s attendance, the larger theterestingly, answers to these same ques- visitors — it can investigate broaden- shop, the broader the product line andtions can also help museum staff refine ing its market. Reasonable strategies to the wider the price points should be.”the programs and services provided for consider are: promoting the store with The buyer for a small shop must be morethe visitors. special events (book signings, story precise in product selection as there isUnderstanding the visitors’ interests telling, “holiday” shops); attracting the less space and capital for product clas-and needs does not require that the attention of motorists and pedestrians sifications of great breadth.museum’s cultural and educational mis- with creative window displays, attrac- Where can the store find new merchan-sion be overwhelmed by “crass con- tive signage or striking building improve- dise? The good news is that untappedsumerism.” The mere fact that the visi- ments; and ensuring that all museum merchandise resources abound. Localtors have chosen to visit a particular literature and group registration materi- and national trade shows take placemuseum indicates that there is a signifi- als prominently mention the store and throughout the winter and spring andcant overlap of the visitors’ and emphasize its mission and merchandise. again in the late summer/early fall. Themuseum’s concerns. For instance, when It is possible to attract “Destination Museum Store Association Annualplanning the store for the United States Shoppers”; many successful museum Meeting Trade Show and the New En-Holocaust Memorial Museum, we re- stores have monthly sales figures that gland Booksellers Association Fallpeatedly asked: “What will the visitor’s do not track with visitation. But reach- Show are also excellent sources forexperience be like?” “Will they be look- ing the non-visitor market is not a sub- museum quality merchandise. Manying for a store?” “What will they want to stitute for selling well to the museum major cities across the country havebuy?” The answers to these and other visitors; it is a benefit of successful permanent wholesale markets that arequestions led us to establish a merchan- retailing to those visitors. open through the year. And catalogs,dise mix that was almost exclusively trade magazines and sales representa-books–a merchandise mix that met the Is the Store Selling the Right tives can be invaluable resources asneeds of the visitors and was reflective Merchandise? well. A successful buyer leaves no stoneof the museum’s mission, collections, The answer to this question begins with unturned, including constantly shop-exhibits and programs. “know thy museum.” A skilled buyer, ping other stores. before exploring the marketplace to re-Understanding the visitors often means Is the Store Enticing to the search and select merchandise, will studythat the store needs to change periodi- Museum’s Visitors? the museum’s mission, exhibits, pro-cally. This is a retail reality that might A successful museum store is engaging grams and collection. An excellent wayseem indecisive, lacking in commitment. and visual merchandising—the loca- to ensure that the store well representsIn fact, retailers have learned that if they tion and arrangement of merchandise— the museum’s mission and exhibits isare to increase sales and better serve is critical to engaging the customer. The for the manager and critical store staff totheir customer they must continually featured displays should be artfully ar- periodically tour the exhibits and par-adjust the merchandise mix, relocate ranged, the merchandise grouped by ticipate in programs as if they were “visi-merchandise in the store and mark down category to ensure maximum exposure, tors.” In doing this, they will refreshpoor selling or no longer related mer- the shelves kept well-stocked and well- their sense of what makes their museumchandise. In many museums, as the sea- continued on page 14 9 NemaNews/Fall 2004
  8. 8. Focus Your Promotion Efforts with a Marketing Plan By Becki Swinehart(This article orginally appeared in Museum If your store doesn’t already have a Threats may include that state fundingStore, vol. 32, issue 1, Spring 2004) mission statement and brand statement, for the arts has been cut and a similar for-A special event is coming up, so you run it’s useful to develop those before start- profit retail store just opened down thean ad in the local newspaper. Your mu- ing the marketing plan. After all, if you street from the museum.seum sends a newsletter to members, so don’t know what you’re marketing, it It’s often useful to collect thoughtsyou write an article about the store for will be impossible to market it effec- from multiple people for a SWOT analy-it. A television reporter called before the tively. For insights on developing these sis. What one person sees as a threat,holidays to include your store in a piece statements, see the Summer 1998 issue another may see as an opportunity. Theabout places to shop, so you cordon off of Museum Store. more honest and complete the SWOTa portion of the store to do an interview You probably already have at least some analysis, the better handle you will havewith her. information on the store’s audience on what goals are realistic.All of these marketing efforts likely demographics — percentages by age, The meat of the planhelped bring a few more people into the sex, approximate income, zip code, edu- Before you even started the research,store, but were they the best use of your cation level, etc. You should also gather you probably had at least a couple goalstime and money? Should you have done the museum’s demographics, which may in mind for the marketing plan — in-a bag stuffer instead of, or in addition to, be slightly different. crease sales, perhaps raise the store’san ad for the special event? Should you Compare your stores demographics with profile within the community. The infor-spend your time writing press releases the museum’s demographics. Are there mation you gathered may have inspiredfor the media instead of a newsletter certain types of visitors who don’t buy some additional goals — increase salesarticle? anything at the store? For example, some to school groups or make the store moreCreating a marketing plan will help you museums get a lot of school groups as visible within the museum itself.answer these questions as well as better visitors but they don’t make time to stop These are all good goals, but they mustunderstand your audience, help you in the store. If so, one goal of the market- be developed a bit further to include aspend your marketing time more effi- ing plan may be to draw more of those form of measurement. If the goal doesn’tciently and, ultimately, get the best bang visitors in and increase sales to them. include a measurement, how will youfor your undoubtedly limited bucks. Also look beyond the basic demograph- know when you’ve reached it? ics to other audience characteristics likeGetting started Some sample goals may be:Long before you start placing ads or lifestyle and cultural influences. Al- though the patrons of an art museum • Increase sales per visitor by 5 percentwriting articles, you need to do research. between June and December of thisChances are you already know some of and those of a history museum may have similar ages and incomes, other year.the important information for develop- factors draw one group to art and an- • Increase capture rate (number of mu-ing a marketing plan — such as the other group to history. seum visitors who make a purchase)demographics of your customers — but The strengths, weaknesses, opportuni- by 10 percent within 12 months.getting other information may require abit more digging. ties and threats (SWOT) analysis should • Improve inventory turnover by 0.5 take into account not only internal fac- turns within 18 months.Most marketing plans include a fairamount of background information that tors, but external influences as well. For You may come up with quite a few goalssets the stage for the meat of the plan: example, when examining the store’s that could require a lot of time and re-the goals, strategies and tactics. The strengths you may include quality prod- sources to reach. If so, you may want tobackground is critical because it helps ucts and excellent merchandising as well consult with your supervisor or evenguide decisions on which strategies and as your city’s strong tourism draw and the museum director to help prioritizetactics to use. Marketers have dozens your museum’s place as a stop on sev- them.of tactics at their disposal — from Super eral regular bus tours. For each goal, you’ll need to come upBowl commercials to fliers on car wind- Weaknesses might be that the store is in with some basic strategies and thenshields — but smart marketers use the the basement of the museum, much of more specific tactics to reach the goal.ones that are most effective based on the merchandise is out of style and Strategies for increasing sales per visi-their research. shifting U.S. demographics project tor could he these:Background information can include, population decline in your typical cus- tomer base. • Encourage add-on sales to existingbut isn’t limited to, your museum’s and customers.store’s mission statement and brand Examples of opportunities are that your • Get more visitors into the store.statement; audience demographics; and museum is planning a renovation anda strengths, weaknesses, opportunities expansion, and that you just got ap- Tactics for the strategy of encouragingand threats analysis. proval to start an online store. add-on sales could be these:NemaNews/Fall 2004 10
  9. 9. • Train staff to suggest related prod- bring hordes of shoppers to your store, What Marketing Budget? ucts to customers, such as a book on begging to buy more. Now the chal- Tips for Small Stores the artist to go with a poster. lenge is finding the time and resources By Becki Swinehart• Create displays that “suggest” prod- to implement it. So your store’s total sales are less than ucts to purchase together, such as a Some tactics are quick, easy and inex- The Met’s marketing budget — that necklace, earrings and bracelet next pensive to implement, like creating at- doesn’t mean you shouldn’t create a to each other in a case. tractive merchandise displays. Many marketing plan. You’ll just have to be aPossible tactics for getting more visi- — like printed materials and special bit more creative with no-cost and low-tors into the store may be these: events — require a fair amount of time cost tactics.• Add signage within the museum to and money. To reasonably allocate these E-mail. Collect e-mail addresses from resources, you should create an imple- customers and ask them to forward your direct visitors to the store. mentation plan. e-mail messages to their friends.• Include mention of the store’s loca- tion and hours on all museum ads. First, find a calendar. If any of your Media coverage. If your store offers goals are date-specific — perhaps tied• Include the store on the museum’s unique products or activities, let local to a special exhibit — plug in the tactics reporters know via a press release. Be map of the building/grounds. for those first. Be aware that certain sure to say that the store’s proceeds• Educate docents/tour guides about tactics, such as direct mail and advertis- the store’s merchandise and encour- support the museum. ing, require a certain amount of lead time age them to mention the store in their to create and then to reach their target Customer service. It certainly doesn’t presentation. audience. cost you or your staff anything to smileYou may find it useful to create a master and treat customers with respect and Consider working on some marketing kindness. Thrilled customers will mar-list of general marketing tactics that you initiatives during times that are less busycan select from and customize based on ket your store for you through word-of- for you and your store. Be realistic about mouth.the goal, strategy and audience. how much you can accomplish on top ofSome general marketing tactics include your existing responsibilities and how Museum staff and volunteers. Explainthese: much you can expect other staff to to co-workers how store sales benefit handle. the whole museum, and then provide• advertising — newspaper, magazine, some examples of how they might en- radio, television, billboard, public Depending on how your institution’s courage visitors to stop by the store. transportation signage and store’s budget is structured, you• public relations — press release, event may have to adjust your marketing plans participation/sponsorship around cash flow as well. Although the NEMA Benefit!• direct mail — postcard, special piece, adage “you have to spend money to newsletter make money” is often true, your museum’s finance director may have NEMA and• e-mail — special announcement• e-newsletter some limitations on when that money is W.B. Mason spent.• special events — book signing, cura- In the end, developing a marketing plan Discount Office Supplies tor presentation, toy demonstration will help you focus on your store’s• printed materials — brochure, flier, goals as well as provide a frame-work for NEMA & W.B. Mason have bookmark reaching them. Instead of haphazardly partnered to bring you the benefit• signage — within institution, in local sending out a press release here and a of discounted office supplies. neighborhood postcard there, you’ll have a more coor- From pens & paper-clips to binders• in-store — staff, displays dinated effort that you can measure and & colored paper, we have negoti- evaluate, then adjust for the future. ated unbeatable prices on the 100Remember that your tactics should be Becki Swinehart was involved in de- supplies most used by museums.selected based on the audience you’retrying to reach. For example, if your veloping MSA’s first comprehensive In addition, W.B. Mason will meetaudience demographics closely match marketing plan. or beat any advertised price youthose of a local magazine with a limited Reprinted with permission from the find elsewhere.circulation, it may be more cost-effective Museum Store Association. This ar- Order by phone, fax or on-line.to advertise in that publication than in ticle orginally appeared in Museum Free, next day delivery for all ordersthe more widely read daily newspaper. Store, vol. 32, issue 1 (Spring 2004). All received by 1:00 pm. rights reserved, ©2004.Making it all happen For information or to set up an accountSo, you’ve developed a comprehensive call W. B. Mason Sales Managermarketing plan that you just know will Keegan Holt at 888-926-2766, ext. 1674. 11 NemaNews/Fall 2004
  10. 10. Candlelight, A Glass of Wine and UBIT: A Food and Facilities Tax Primer By Jeffrey HurwitMost readers probably have some fa- we now have museum architectural de- sioner, T.C. Memo 1997-395. That maymiliarity with the basic premise of the sign created by UBIT regulation. be the case even if an exhibit opening,UBIT (Unrelated Business Income Taxa- A recent case has imposed additional tour or other educational component istion) rules. Simply put: If your museum limits on the convenience exclusion. In included in the event.makes money on activities unrelated to IRS Technical Advice Memorandum 97-its tax-exempt purposes, the profit is 20-002 (1996), a museum opened an Exclusion #3:taxed at for-profit business rates. More Passive Rental of Museum Facilities upscale restaurant larger than neededtechnically, unrelated business income for visitors and staff. The IRS deter- The rental of real property, includingis net income derived from a trade or mined that since it was designed partly function facilities, is not considered thebusiness regularly carried on which does as a public restaurant and was adver- “active conduct of a trade or business”,not contribute importantly to the ac- tised regularly in magazines, the conve- but rather the “passive” receipt of rev-complishment of the museum’s tax-ex- nience exclusion did not apply. Note enues. So called passive revenues, suchempt functions. the fact that restaurant patrons did not as endowment investment income, haveThis article focuses on the three major have to pay museum admittance fees long been excluded from UBIT. Internalexclusions to UBIT relating to museum was one factor weighed in the decision, Revenue Code Section 512(b)(3). How-food service. These exclusions likely but was not itself determinative. ever, if a museum provides services,mean that most of your food and facili- such as labor, food, catering, linens, To museums’ benefit, the rule of “frag- etc., in addition to simply renting out aties profits are not taxable. However, the mentation” applies in calculating netUBIT rules are continually being re- facility then the rental arrangement is income. Museums may “fragment” res- subject to tax. IRS Technical Advicefined and at times seem to involve al- taurant sales (by separately recordingmost microscopic hair splitting. Memorandum 97-02003. sales to museum visitors and to the general public), and pay taxes only on As you can see, the factual variationsExclusion #1: sales to the general public. and legal distinctions relating even toVending Machines to Four-Star Meals: these three exclusions leave many openNontaxable As A Convenience to Visi- questions. Hopefully, this brief primer Exclusion #2:tors, Employees Outside Museum Facility Use for Edu- gives you a sense of the legal param-Whether snack bar, cafe, or fine restau- cational Purposes eters for the majority of UBIT situationsrant, whether Snickers or crème brulée, Increasingly, museums use their facili- you will encounter.on premise food sales to employees and ties for outside business and social af-visitors contribute to accomplishing tax- fairs. Jeffrey M. Hurwit is founder of Hurwitexempt purposes because they 1) allow & Associates which provides compre-visitors to devote more time to the The legal issue is then whether an event hensive legal counsel to tax-exemptmuseum’s educational exhibits, and 2) is held primarily for business purposes organizations throughout the U.S. andenhance efficient museum operation by or museum/educational purposes (in abroad.enabling staff to remain on-site through- which case food/entertainment is inci-out the day. Food sales, like water cool- dental). Suppose an outside sponsor Copyright © 2004 Hurwit & Associ-ers, restrooms, and exhibit room benches, asks a museum to create an educational ates. All Rights Reserved.facilitate and enhance the museum ex- program for its participants, focusingperience. Thus, resulting revenues are on an exhibit, lecture or tour, and inci-not taxable. Revenue Ruling 74-399 dentally food and other services are UBIT Sources & Resources(1974). provided. Such an event contributes to accomplishing the museum’s purposes Internal Revenue Service’s Publica-At least that’s the legal conclusion. For and is therefore not subject to tax. IRS tion 598, Tax on Unrelated Businessnow. Usually. Technical Advice Memorandum 97-02- Income of Exempt Organizations. 003 (1996). www.irs.gov/pub/irs-pdf/p598.pdf.But as an example of how small factsmake big legal differences, if a dining Nonprofit Law Resource Library, However, if the event is primarily fo-facility is accessible not only through www.hurwitassociates.com, contains cused around, for example, a cocktailthe museum but also through a door dozens of legal resources for museums and dinner dance, a business meeting,directly to the street, then it has been and other nonprofit organizations and or an awards ceremony, then the educa-held by the IRS not to be primarily for foundations. tional aspects are secondary to othervisitor convenience but for general pub- business purposes, and it is not “sub-lic use, and therefore taxable. Ibid. Thus stantially related.” Madden v. Commis-NemaNews/Fall 2004 12
  11. 11. The Museum, the Baby & the Bathwater Bathwater Authenticity in the Information Age N EMA A n n u a l C o n f e re n c e October 27-29, 2004 Join us in Burlington, VT for three days of great sessions, networking with colleagues & special events.3 Days of Professional Development Exhibit HallMore than 60 concurrent sessions are scheduled so that each timeslot You’ll be amazed at the variety of products and services presented in therepresents a wide variety of disciplines. Whether you work in Collections, Exhibit Hall, open from 8:00 a.m. Wednesday ‘til 4:00 p.m. Thursday.Education, Exhibitions, External Affairs, or Museum Administration, you’lldiscover a thought-provoking, high-quality program, led by presenters from Save on Costsaround the corner and across the country. Need to catch a ride to the conference? Want to save on lodging expenses? Save on the cost of your attendance by sharing with a colleague. LimitedFor a closer look at museums in the Burlington area, sign up for an off-site openings are also available for conference volunteers, who save onprogram or an evening event—there’s something for everyone! conference registration fees. Call the NEMA office (781-641-0013) with yourNEW! 101 Track information.For those new to the field or anyone who wants to brush up on the basics, Conference Registrationwe’ve created a multidisciplinary program of 101 sessions on a variety of Member rates: Full Registration: $150 (3-days), One Day: $95topics. (Look for this symbol 101 in every time-slot!) Early Bird Deadline: September 21, 2004Jobs Center For More InformationPositions to fill, or looking for employment? Place or peruse job openings at Visit the NEMA website at www.nemanet.org for a downloadable programNew England museums. Resumes can be left or collected during the book, including details on how to register for sessions and events, and obtainconference. hotel reservations. Please call the office at 781-641-0013 with any questions. Thank you! N E M A A n n u a l C o n f e re n c e S p o n s o r sPrincipal Sponsor Welcome Sponsor Supporting SponsorsDirectors and Trustees Luncheon Wake-Up Coffee: October 28, 8:00 am Coffee Break: October 27, 3:15 pmHenderson Phillips Fine Arts Co. Art Shipping International Ltd. Richard White Sons, Inc.Bill Allen, Managing Director Bill O’Connors, President Kenneth R. White, Director of BusinessLynn Marcin, Assistant Vice President PO Box 285288, Logan Int’l Airport Development1627 I Street, NW, Suite 800 Boston, MA 02228 70 Rowe St., Auburndale, MA 02466-1596Washington, DC 20006 781- 477 -9800 / 781-477-0400 (fax) 617-332-9500 / 617-965-8868 (fax)202-223-5860 / 202-223-5866 (fax) 800-480-8977 (toll free) krwhite@rwsons.com; www.rwsons.com info@artshipint.com; www.artshipint.com Coffee Break: October 28, 10:30 amReception SponsorExhibit Hall Reception Laura B. Roberts Scholarship Discover Europe, Ltd. Roberts Consulting Mike Induni, U.S. DirectorTufts University Museum Studies Laura B. Roberts PO Box 435, Dublin, NH 03444Certificate Program 1715 Cambridge Street, Cambridge, MA 02138 603-563-7077 / 603-563-7137 (FAX)Angela Foss, Office of Graduate and 617-492-5048 / 617-491-3566 (fax) 866-563-7077 (toll free)Professional Studies laura@lauraroberts.com discovereurope@earthlink.netTufts University www.lauraroberts.com www.discovereuropeltd.comMedford MA 02155617-627-3395 / 617-627-3016 (fax) University Products Curatorial Coffee Breakpcs@ase.tufts.edu Fellowship BaileyDonovan, LLChttp://ase.tufts.edu/gradstudy/ University Products, Inc. Betsy Bailey, Paula DonovanprogramCertMuseum.htm John Dunphy, Director of Marketing 1838 Elm Street PO Box 101, Holyoke, MA 01041 Manchester, NH 03104 800-628-1912 / 800-532-9281(fax) 603-625-9933 / 603-218-6065 (fax) jadunphy@universityproducts.com www.baileydonovan.com www.universityproducts.com 13 NemaNews/Fall 2004
  12. 12. Achieving Success in Your Museum Store continued from page 9 EARNED INCOMEorganized, and the lighting should cre- answer. Their retailing instincts were SOURCES & RESOURCES Please note that the following is a sampling onate drama and emphasis. Museum stores confirmed; the larger store has seen a the topic of earned income resources.are competing with hundreds, if not 50% increase in sales. But adjusting thethousands, of other stores for the visi- size of a store is not a panacea by itself NEMA 2004 Annual Conferencetor/customer’s attention, and success- and should only be considered after A number of conference sessions will relate to the topic of this newsletter. They include:ful museum retailers utilize the full range addressing the other critical retailing Special Events Safety & Security; Facilityof visual merchandise techniques as questions discussed in this article. Rentals; Paperless Marketing; Museumwell as emphasizing the mission and The merchandising and construction Branding; Value Added Experiences; Muse-image of their institution. budgets available for improving an ex- ums as Social Experiences.Also essential to engaging the visitor is isting store or for building a new store Administration, Facilities & Servicescustomer service. For a museum store to are often limited or non-existent. Be- Professional Affinity Group The PAG Lunch at conference will focus onreach its potential, it is vitally important cause every dollar spent on museum Museum Store Marketing and Management.that the entire store staff be familiar with store improvements cannot be spent on Please see www.nemanet.org/conf04.html forthe museum’s exhibits and programs, operations, museums are naturally un- complete details. See page 21 for contact infor-appreciate how the merchandise relates comfortable appearing to invest too mation regarding this PAG.to the exhibits and programs, and be much in store improvements. However, Museum Storescomfortable talking with customers nothing depresses sales (and therefore Museum Store Association, http://about the merchandise and the institu- the store’s long-term support of mu- museumdistrict.com. Provides resources fortion. The goal is for the store to be seum operations) more than a store that museum stores. Website contains downloadableknown for its well-designed merchan- appears tired or cobbled together. Suc- articles on topics relating to but not limited todise, it attractive appearance and also cessful stores are those that reflect and museum stores. 4100 E. Mississippi Ave., Suitefor its customer service, giving it a de- support the image of the museum. In 800, Denver, CO 80246-3055, Phone: 303-504-cisive advantage over local corporate some instances this mandates a more 9223.retailers and the internet. The level of extensive investment; in others only Museum Store Association’s Managerscustomer service in many for-profit careful planning and merchandising is Guide: Basic Guidelines for the New Mu- seum Store Manager (Museum Store Asso-stores is declining and museum stores required, or can be justified. In either ciation, 2004). A comprehensive manual forthat provide a higher level of service are case, store improvements should be seen managing a nonprofit store, from administeringable to realize higher sales per transac- as an investment in a future income financial data to marketing.tion and attract repeat business. stream, not as an expense. The New Store Workbook: MSA’s GuideTypically, successful museum stores An Exhortation to the Essential Steps from Business Planare properly sized and well located. This Retailing is a fact of museum life: Few to Opening Day (Museum Store Associa- tion)is often a challenge; floor space within museums can afford to ignore the poten-a museum can be at a premium and tial income, and a creatively merchan- Theobald, Mary Miley. Museum Store Man- agement (AltaMira Press, 2000). Offers storeachieving the right design can be diffi- dised store is an opportunity to further managers advice and tools to develop initialcult. The optimum size for a store is educate and serve the visitors. In this store conceptualization and to improve prof-dependent on the number of merchan- regard, all museum stores–in history, itability.dise items for sale, the number of visi- fine art, science and children’s museums,tors and the fluctuations in visitor traf- zoos, aquariums and parks–have an im- Food Services & Facility Rentalsfic. A store that is too large can be just NEMA Policy Loan Service. This service portant institutional role to play. It is the gives Institutional Members access to moreas disadvantaged as a store that is too role of the museum director and program than 16 categories of polices and reports,small. We have adjusted the size of staff to appreciate what the store can including Facility Rental Polices. A completestores, up and down, to better serve the contribute, programmatically and finan- list is available on the NEMA website.customers and better present the mer- cially, to the museum; and it is the re- Function Managers of Historic Sites andchandise. Most recently, at the sponsibility of the museum store man- Museums. An informal group of FunctionSugarlands Visitor Center in the Great ager and staff to strive for success. Managers from the region. For more informationSmoky Mountains National Park, we Judy Flam and Arch Horst are principals of or if you have a question e-maildesigned a new store that was four fmhsm@msn.com. MarketPlace Associates, a retail consultingtimes larger than the previous store. In and design firm in Cambridge, Massachusetts. Allen, Judy. The Business of Event Plan-this case, the goal was to better accom- Judy Flam is the former retail director of the ning: Behind-the-Scenes Secrets of Suc-modate the surges of visitors in the peak Museum Shop at the Boston Children’s cessful Special Events (John Wiley & Sons, Museum. Arch Horst is an architect specializing Inc., 2002)seasons and the pulses of visitors arriv-ing on tour buses. The store’s manage- in museum retail design. MarketPlace Manask, Arthur T. and Mitchell E. Schechter. Associates advises museums throughout the Complete Guide to Foodservice in Cul-ment had observed that sales dipped country on issues of retail feasibility, store tural Institutions: Keys to Success in Res-precipitously in those situations and performance, product development, store taurants, Catering, & Special Events (Johnreasoned that a larger store was the operations and store design. Wiley & Sons, Inc., 2001)NemaNews/Fall 2004 14
  13. 13. GOVERNMENT AFFAIRS HIRING a director or curator?Senate Finance Committee Scrutinizes Nonprofit Community a development director?This summer, the Senate Finance Com- white paper, released in conjunction NEED HELP WITHmittee has been examining fraudulent with the hearing, was the subject of a Recruiting?and abusive practices within the non- July 22 roundtable hosted by the Fi- Reference checks?profit sector and the need for better nance staff. Nearly 20 individuals fromenforcement and oversight of chari- the nonprofit, foundation, academic, M useumties. Committee Chairman Charles and legal communities were formally S earch & R eferenceGrassley (R-Iowa) has indicated he is invited to participate and nearly 80planning to introduce reform legisla- more in the audience had the opportu- Marilyn Hoffmantion this fall. The erosion of public nity to comment on the dialogue. Principaltrust in the corporate sector and gov-ernment and recent high profile scan- Independent Sector has taken a lead Executive Search &dals involving charities and founda- role in representing the interests of Reference Checkingtions has led many to call for greater the charitable community. They have “Full Search orpublic accountability and transpar- created 13 task forces—two led by Just the Help You Need”ency in the nonprofit community. AAM (valuation and accreditation)— to advise them on their response to Manchester, NH / Boston, MAWhile nonprofit museums should not the white paper and in the ongoing A “headhunter” you can affordanticipate any immediate changes to discussion with the Senate Finance CALL OR E-MAIL TODAYcurrent law, the more than 30 recom- Committee. TO DISCUSS YOUR NEEDS.mendations being circulated in a Fi- No obligation - A la carte servicesnance Committee white paper could, if Independent Sector’s initial response 603-432-7929approved, change nonprofit report- to the white paper is available at Hoffman M ar@aol.coming requirements and governance www.independentsector.org. Most www.museumsearch notable is the strong recommendation andreference.compractices and how charitable dona-tions of tangible and intangible prop- against the federal government en-erty are valued. The American Asso- gaging directly or indirectly in ac-ciation of Museums (AAM), however, creditation of nonprofits. This viewis encouraging museums to be familiar was echoed at the roundtable by thosewith the implications of the Sarbanes- well-known for their strong views inOxley Act of 2002. While the new law favor of nonprofit regulation.is aimed primarily at reforming the Reform legislation may be introducedcorporate sector, there are two provi- by Sen. Grassley as early as Septem-sions that apply to nonprofits. ber. Advocates anticipate that it will Designers and consultants for be the first among many measures the most sophisticatedTo help guide nonprofits, BoardSource, a national nonprofit focused aimed at ending abusive practices in High-density storage systems.on strengthening nonprofit boards, nonprofits. For additional information,and Independent Sector, a national contact Eileen Goldspiel, AAM assis- A s ,d s r b t r o lo itiuos fcoalition for nonprofit organizations, tant director of Government and Pub- lic Affairs, at 202-289-9125 or Montel Systems andhave issued a paper, which is avail- S e lF x u e M g te itrs f.able at www.boardsource.org. Orga- egoldspiel@aam-us.org. To let yournizations representing the nonprofit elected officials know your views, joincommunity, including AAM, are ac- AAM’s Museum Advocacy Team® by contacting mat@aam-us.org. www.bibliodesignltd.comtively talking with Senate FinanceCommittee staff about proposals for This report is compiled from a recentcharitable reform. series of articles published in AAM’s 1240 Park Ave. Suite 1F Newsletter Aviso. Copyright American New York, NY 10128-1754At a June 22 committee hearing, three Association of Museums. Reprinted Tel: 212-876-1114panels presented testimony on en- with permission. Fax: 212-369-1872forcement, fraudulent and abusivepractices in nonprofits, and the need Ebrown1240@aol.comfor better oversight of the nonprofit Peter Diemand, Pres.community. The Finance Committee Elaine Brown, VP 15 NemaNews/Fall 2004