Huntington Museum of Art gets hit from recession

The recession has punched many nonprofit organizations in the Tri-State area, and the Huntington Museum of Art is one of many feeling the hit.

Last year, the Huntington Museum of Art struggled to meet its budget. It had a decrease of almost $9,000 from endowments and trusts. Margaret Mary Layne, executive director at the museum, said the recession has put the museum under pressure to meet its goals.

“Approximately fifty percent of the museum’s budget relies on investment returns from endowments and trusts that support the Huntington Museum of Art,” Layne said. “Obviously, when the stock market is down, the return on those investments is down.” Layne also said, “We are under great pressure to meet our professional goals and to maintain our service level to the community.”

The museum’s 2009-2010 budget is $2.1 million, which is $100,000 less than the 2007-2008 budget. The recession has forced the museum to make the cut because of less income coming in. An example of this is the 2010 Museum Ball. The ball is the percent of its $70,000 goal. In rough economic times, this is a success, but there is still a difference of $3,894 to balance the museum’s budget.

Another example is the Open Door Membership Campaign. The campaign is a yearlong fundraiser that started in 1970 to help bring in money for the museum. It represents 17 percent of funds the museum receives to support general operations such as electricity and water. In 2009, the campaign raised $320,000, which was 98 percent of its $325,000 goal. This is a raise in profit during the recession, but there is a difference of $5,000 the museum still needs to meet its budget. John Gillispie, public relations director at the museum, said the staff has a plan to come up with the money.

“We are going to increase revenue or cut various expenses,” Gillispie said. “During these tough economic times, we need to take all steps necessary to meet our budget.”

Gillispie also said the museum might use contingency funds, which are funds kept in reserve to guard against possible losses. These funds would make up the $8,894 difference from both fundraising events.

The museum also had a decrease in donations. The museum’s 990 forms from 2006 through 2008 show a decline of more than $4 million in net assets and more than $3 million in total revenue. In 2006, the museum’s net assets were $51.2 million, but in 2008, it was $47.2 million. This is a $4.4 million decline in two years. In 2007, it dropped more than $2 million going from $51.1 million to $49.1 million. Total revenue has also dropped. It went from $5.2 million in 2006, to $2.6 million in 2008. This is a $2.6 million decline in a two year time period. Also, it dropped from $5.1 million to $4.1 million in 2007.

Billie Karnes, director of finance at the museum, says things need to get better.

“It’s a very difficult time right now at the museum,” Karnes said. “It’s a difficult time financially for us and it makes it even more difficult because the recession is hurting everyone else.” Karnes also said, “The belt is as tight is it can get right now.”

Declining Net Assets and Total Revenue for the Huntington Museum of Art (2006-2008)

*Numbers are in millions

SOURCE: 2006, 2007, 2008 990 Forms