This session was presented at the 2012 American Association of Museum’s annual meeting by Nina Simon (Santa Cruz Museum of Art & History), Ellen Rosenthal (Conner Prairie), and Eric Siegel (New York Hall of Science). These short presentations were followed by an extensive dialogue about museums, financial models, and budgeting.

1. show me the
money
straight talk about
business models
Ellen Rosenthal Eric Siegel Nina Simon
Friday, May 4, 2012

2. three museums
$850,000 $9,000,000 $17,000,000
Friday, May 4, 2012

3. our spending looks similar...
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8. improving
financial
understanding
at conner prairie
Ellen Rosenthal Eric Siegel Nina Simon
Friday, May 4, 2012

9. Conner Prairie
Interactive History Park
Friday, May 4, 2012

10. Conner Prairie
Interactive History Park
Friday, May 4, 2012

11. Improving financial understanding on
three levels
1. Micro – Increase staff
comprehension of the
cost of doing business
2. Mid-level – Analyzing
the impact of
programs
3. Macro - Recession
brings financial crisis
Friday, May 4, 2012

12. The Cost of Doing Museum
Business
Friday, May 4, 2012

13. What is the cost of?
Friday, May 4, 2012

14. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
Friday, May 4, 2012

15. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
Friday, May 4, 2012

16. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
Friday, May 4, 2012

17. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
• $19,484
Friday, May 4, 2012

18. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
• $19,484
• One week - TV spot on one station Indy DMA
Friday, May 4, 2012

19. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
• $19,484
• One week - TV spot on one station Indy DMA
• $19,800
Friday, May 4, 2012

20. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
• $19,484
• One week - TV spot on one station Indy DMA
• $19,800
• One week of electricity
Friday, May 4, 2012

21. What is the cost of?
• One time ½ page , 4 color, full DMA circulation
newspaper ad
• $2,600
• One year of food supplies for animals
• $19,484
• One week - TV spot on one station Indy DMA
• $19,800
• One week of electricity
• $3,480
Friday, May 4, 2012

22. Mid-Level: Cost Benefit Analysis of
Programs
Two cross-divisional
teams
Steps
1. Financial analysis
2. Analysis of non-
financial benefits
3. Recommendations
about programs
4. Action
Friday, May 4, 2012

23. ROI vs Mission
We need to judge every activity by two
primary criteria – mission and finances
---- Staff participant
Friday, May 4, 2012

24. Results
• Some programs dropped, others scaled
back, others expanded
• Understanding of the real cost of producing
programs
• Revealed hidden costs (and benefits) of
programs
• Strategic atmosphere for considering starting
and continuing programs
Friday, May 4, 2012

25. Conveying bad news
• Communicate, communicate,
communicate
• Small group meetings
• Museum finances are not
intuitive
• Sources of revenue
• Capital vs Operating
• Impact on staff
• The plan for moving forward
Impact of the Recession
Friday, May 4, 2012

26. funding risk
at the new york
hall of science
Ellen Rosenthal Eric Siegel Nina Simon
Friday, May 4, 2012

27. Friday, May 4, 2012

28. Friday, May 4, 2012

29. Friday, May 4, 2012

30. Friday, May 4, 2012

31. community
turnaround
at the santa cruz
museum of art
& history
Ellen Rosenthal Eric Siegel Nina Simon
Friday, May 4, 2012

32. yes, museums really can fail.
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Friday, May 4, 2012

33. yes, museums really can fail.
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38. Friday, May 4, 2012

39. WHAT’S THE RIGHT
REVENUE MODEL FOR A
COMMUNITY
ORGANIZATION?
Friday, May 4, 2012

40. Friday, May 4, 2012

41. Friday, May 4, 2012

42. Friday, May 4, 2012

43. WHAT SHOULD WE SPEND
MONEY ON IF WE WANT TO
BE A COMMUNITY CENTER?
Friday, May 4, 2012

44. Spring 123245.3"%!$$"63"%!$%" 2011 total: 7060
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2012 total: 13,625
93% increase
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49. Friday, May 4, 2012

50. what do you
want to talk
about?
Ellen Rosenthal Eric Siegel Nina Simon
Friday, May 4, 2012