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9. Finances

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Intro Chapter 9: Finances

Intro Chapter 9: Finances

According to the definition of Museum (see chapter 2) , a Museum is a not-for-profit institution. But even though a Museum does not have to make a profit, it does need income. Income that will - at least - cover the costs. How do mainstream Museums do this?  What can Deaf Museums learn from them?

Again: there is no magic bullet solution. Finances are a major problem for all Museums, both mainstream Museums and Deaf Museums. Especially now: the Covid-pandemic was a very bad time for Museums: no visitors. More recently the energy crisis has become a problem.  Many Museums have trouble paying the rising costs of lighting and heating bills.  A final problem for mainstream Museums: the rising personnel costs. That is one problem that most Deaf Museums do not have to worry about: most do not have any paid employees. They depend on volunteers for most activities. Volunteers are the 'human capital' of Deaf Museums. But unfortunately, finding and keeping volunteers is not easy either.

9.1. Costs vs. Income

9.1. Costs vs. Income

All the topics of the previous chapters depend on the finances: the money. The location, the exhibits, the exhibition design, the marketing of the Museum: what is or is not possible depends on the budget, the money that is available. Even a private Museum in someone's garage that depends on volunteers will need some budget, even if only for heating, lighting and insurance.  An article in the New York Times says it all:  How to Put a Museum Exhibition Together (Hint: Start With Cash).

There are two streams of money in a Museum or any business. Money going out: the costs or expenses. And money coming in: income , revenue or benefits. When the income is higher than the costs, a Museum makes a profit. When the costs are higher than the income, more money is going out than coming in, the Museum makes a loss and is not sustainable. 

Financially, times have been bad for Museums. First there was the Covid-19 pandemic with all its restrictions, now there is the energy crisis. Museums consume a lot of energy - even with no or few visitors. Heating, air-conditioning, lighting: all very expensive. Many Museums are struggling to survive, some have already had to close down. 

"Museums across Europe have had to deal with two years with significant decreases in visitor numbers due to the pandemic, which has led to unprecedented revenue losses. Museums and other cultural organizations usually have fixed budgets related to operating expenses, which include energy costs. In previous years, energy costs have been relatively low and museums are clearly worried about the increase in prices in the current and subsequent years, as there is a forecast of a cost increase of up to 400% on the energy bills of museums this winter."

source: Network of European Museum Organisations, 16 September 2022

We looked at some of the business plans of Museums that are available online to find out more about the costs and sources of income of Museums.  In the table below you can see the fixed costs: the costs that are predictable and that will have to be paid every day, month or year. In the second column you can see sources of revenue or income. 

Both lists are not complete, there can be additional costs and possibly additional sources of income. How important each item is will depend on the size of the Museum, the building, the collection, the staff and the Museum's mission. 

Costs, Expenses

Revenue Streams (Sources of Income)

Rent Admission Fees
Staff Membership
Administrative Overhead  Museum Shop
Consultants, temporary personnel  Workshops, Conferences, Symposia
Cleaning and maintenance of the building Special Events 
Internet, telephone Facility Rentals (renting out rooms, services to external parties)
Energy (heating, lighting) Travelling Exhibits
Water Gifts, donations
Insurance (building, exhibits, staff) Sponsors
Taxes Funding, grants
Exhibits (buying, leasing, insuring, restoring, maintenance)  
Storage  
Exhibition Design, Creative Services  
Media Production (audio-tours, video)  
Website Development, Maintenance  
Clip and Image Licensing  
Equipment rent and maintenance  
Marketing and Advertising, Social Media  
Print Advertising, Photocopies, Catalogues  
Visitor Services and Security  
Volunteers (recruitment, costs, insurance)  
Fundraising  
Research  

 


 Further Reading:

 

9.2. Human Capital: Volunteers

9.2. Human Capital: Volunteers

The official definition of "human capital" is: the value that people bring to a business or a Museum. It includes the education, technical training, and problem-solving skills of a person.

Here, we use "human capital" to describe the value and skills that volunteers bring to a Museum. The "human capital"  of volunteers is usually not included in a business plan or a budget. Yet many Museums depend on volunteers for specific tasks, and some museums, including most Deaf Museums, could not function at all without volunteers. 

Most Museums invest in volunteers: recruiting, training and retaining them. This is usually called volunteer management:

"Volunteer management is the process that a nonprofit organization uses to recruit, track, engage, and retain volunteers. Simply put, it encompasses all that an organization does to manage its volunteers. By developing a strong volunteer management strategy, a nonprofit's team can build a positive and immersive volunteer experience that will help cultivate lasting, mutually-beneficial supporter relationships."

source:  The Smart Nonprofit’s Guide to Volunteer Management

The British Museum for example has a team of more than 500 volunteers who support the Museum throughout the year, in a variety of roles:

"Volunteers share their knowledge and enthusiasm by delivering daily eye-opener tours, they help the public enjoy the collection in numerous other ways and support behind-the-scenes activities in almost every department. And that's just the start.  Every volunteer offers invaluable support to the Museum, and they get something back from it too."

source: the British Museum


Further Reading:

9.3. A Business Plan

9.3. A Business Plan

 "A goal without a plan is just a wish." Antoine de Saint-Exupéry

"A business plan is a road map showing potential funders, trustees, stakeholders and most of all you, where you are starting from now, where you aim to go, and how and when you are going to get there. It will also show them your plan for sustainability and how you will attract and generate the funds you need to pay for what's necessary. "

source: Successful Business Planning By A Different View

A Museum will need a business plan when it is applying for funding, looking for sponsors, and probably: always. There are many guidelines and templates for business plans, below are some examples. 

A more general text about business plans:  How To Write a Perfect Business Plan in 9 Steps (2022) has useful advice: 

"Keep it short and to the point. No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices."

Topics that are often included in a business plan are a financial plan , a SWOT analysis (SWOT: Strengths, Weaknesses, Opportunities, and Threats), and the 4 Ps of marketing : 

    • Price. How much do your products cost, and why have you made that decision?
    • Product. What are you selling and how do you differentiate it in the market?
    • Promotion. How will you get your products in front of your ideal customer?
    • Place. Where will you sell your products?

source:  PERFECTING YOUR FUNDING APPLICATION: 6 DOS AND DON’TS!

See below for more tips and guidelines. 


Further Reading: 

9.4. Fundraising

9.4. Fundraising

Fundraising can be done in a number of ways. It always takes a lot of time and effort, and there is usually no guarantee of success.

Fundraising can be done by direct mail (print or email), by using social media, by advertising on your website, or by writing an application for funding by some funding organisation.

 Donors

A donation is a gift of money, goods, or services. 

donation1

Sponsors

A sponsor gives money for an event or person. Usually in return for advertising: the sponsor's name is mentioned on a website, in a catalogue, in print materials.

The British Museum about sponsoring:

"We offer unique sponsorship opportunities based around exhibitions, galleries, temporary displays, curatorial positions and education programmes. The Museum works in close partnership with you to maximise the sponsorship, raising and enhancing your brand profile across key target demographics through a creative, targeted and integrated marketing and communications strategy, in addition to a tailored benefits package."

source: British Museum 

Membership, Friends of the Museum

The Museum of London offers Friends Membership with "exclusive benefits including free entry to our paid for exhibition Executions, discounts, priority booking for museum events (not including Mudlarks children's gallery), and more. See: Friends Membership .

Crowdfunding

Crowdfunding means that you set up a website or you use a crowdfunding platform to ask a large group of people to contribute financially to your project.  Each crowdfunding platform has its own rules and regulations; usually, the platform keeps a percentage of the funds that you raise. 

Kickstarter releases funds only after the campaign has reached its funding goal; Indiegogo (see below) allows the campaigner to receive funding pro-rata, or wait until their target is hit.

For an overview of crowdfunding platforms, see:  Crowdfunding: What It Is, How It Works, Popular Websites

The 6 Best Crowdfunding Platforms of 2022

indiegogo

 Source: Indiegogo

Applying for funding (grants)

An application for funding is a business plan with a twist: the objective is to convince a person or a group of persons that your project is viable, sustainable, and worthy of their funding. 

Some advice to make your application more successful: 

dos and donts

source:  PERFECTING YOUR FUNDING APPLICATION: 6 DOS AND DON’TS!

A successful application for funding is often a compromise between your original plans and wishes, and what a funding organisation is willing to pay for.
Often, a person or organisation will only fund part of your project; they will require that you pay part of the project yourself (own contribution), or that the project is paid for by several organisations - to minimise the risks.

Usually, it is easier to apply for funds for start-up costs or for one time events. It is much harder to get funding for operational costs - because these have to be paid every year.

Most funding organisations will expect a concrete output and a clear timepath with regular milestones and a clear endpoint. And of course:  a realistic budget.

Below, you will find more information about funding by EU funding programmes. 

In the UK, the National Lottery has recently funded an application by the Deaf Heritage Centre in Manchester, and the Solar Flares: Deaf Heritage project.

SolarFlares

  


 

Further Reading:

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Quotes:

  • "For many members of the Deaf community their shared history is both personal and social. Deaf people will have gone to the same school, in many cases boarding schools where most of their younger lives will have been spent together, and then met again at their Deaf clubs, Deaf social events, reunions and other more personal events.
    One of the first things a Deaf person will often ask on meeting, before asking your name, is what school or Deaf club you go to. Making this connection is an important part of any greeting, as it will then help an individual to understand what shared history or people in common you may have."
    from: The Cultural Model of Deafness
  • "The Finnish Museum of the Deaf) was founded by deaf people, and, thus, its task has been to strengthen their identity and historical communality.

    Most of our materials have a connection to the key experiences that generations of deaf people have shared. These are important in understanding the past and keeping the collective memory alive."
    In: TIINA NAUKKARINEN, Finnish Museum of the Deaf: Presenting the Life of Carl Oscar Malm (1826–1863)
  • "After all, we are all of us explorers, and we all have much to bring to each other from our own
    journeyings."
    Ladd, P. (2003). Understanding Deaf Culture: In Search of Deafhood.
  • "The most significant function of museums is as centres for cultural democracy, where children and adults learn through practical experience that we all have cultural rights. Having the opportunity to create, and to give to others, may be one of our greatest sources of fulfilment. Culture is everywhere and is created by everyone."
    Source: A manifesto for museum learning and engagement
  • "It was only during the past decade that recognition of the importance of preserving Deaf history has emerged. In the main, Deaf heritage, culture and folklore has been passed down from generation to generation via the medium of sign language and fingerspelling. (..) It is also vital that the history of Deaf people is made available to future generations, especially Deaf schoolchildren as part of their history lessons."
    A. Murray Holmes,  in: Cruel Legacy, an introduction of Deaf people in history, by A.F. Dimmock, 1993
  • "Museums can increase our sense of wellbeing, help us feel proud of where we have come from, and inspire, challenge and stimulate us."
    Source: https://www.museumsassociation.org/campaigns/museums-change-lives/
  • "The Deaf community is international. What binds Deaf people, despite their different national sign languages, is their shared visual communication, history, cultural activities, and the need for a Deaf “space” where people come together."

    from: The Cultural Model of Deafness
  • "Deaf people have always had a sense of their history as it was being passed down in stories told by generations of students walking in the hallways of their residential schools and by others who congregated in their clubs, ran associations, attended religious services, and played in sporting events.
    With these activities, the deaf community exhibited hallmarks of agency — an effort to maintain their social, cultural, and political autonomy amid intense pressure to conform as hearing, speaking people."
    BRIAN H. GREENWALD AND JOSEPH J. MURRAY, in: Sign Language Studies, Volume 17, Number 1, Fall 2016
  • "What has become clear is that museums don’t just function as custodians of the past anymore; instead, they have embraced their responsibility towards the communities of the present: a responsibility to represent them, to speak to them, and to be open to dialogue with them."
    Tim Deakin, August 2021
  • "And yet, even within a large and, in many ways, traditional organization such as this (Trøndelag Folk Museum, Norway), the museum's encounter with Deaf culture contributed to profound changes and a process, still underway, which challenges our own understanding of what a museum is today, our role in society and our obligations towards more diverse audiences than those we had previously engaged or even recognized."
    Hanna Mellemsether, in:  Re-presenting Disability: Activism and Agency in the Museum, 2013
  • "Deaf mute, deaf and dumb, hearing impaired – the choices are many and not without consequences. Words have many meanings, they convey attitudes and prejudices and may hurt, even when used in a well-intended context."
    Hanna Mellemsether, in:  Re-presenting Disability: Activism and Agency in the Museum, 2013
  • “One story makes you weak. But as soon as we have one-hundred stories, you will be strong.”
    Chris Cleave in "Little Bee", 2008
  • "Until the fall semester of 1986, the history department at Gallaudet University had never before offered a course in the history of deaf people.
    In the 122 years, to that point, since the founding of the university, which was specifically intended for the education of deaf peoples, no one had ever taught a course about this very group of people.
    In all of those years the history department had offered courses on a wide range of topics but never deaf history. "
    ENNIS, WILLIAM T., et al. “A Conversation: Looking Back on 25 Years of A Place of Their Own.” Sign Language Studies, vol. 17, no. 1, 2016, pp. 26–41. 
  • "Opening ourselves to the Deaf community, listening to and respecting them as co-creators and experts telling the stories they want told, makes our practice richer, and has ongoing positive effects for the community.
    These embryonic relationships hopefully encourage Deaf people to feel welcome in our space — it’s their space too.
    For both side, communities and museum professionals, while genuinely, openly and truly committing to working together can be time-consuming, it repays any investment many-fold."
    Corinne Ball: Expressing ourselves’: creating a Deaf exhibition", 2020
  • “If you do not know where you come from, then you don't know where you are, and if you don't know where you are, then you don't know where you're going. And if you don't know where you're going, you're probably going wrong.”
    Terry Pratchett, I Shall Wear Midnight
  • "The UN Declaration of Human Rights states that “Everyone has the right freely to participate in the cultural life of the community”. This is based on the principle that citizens are not just consumers of cultural capital created by others; we have agency and the right to contribute through culture to the wider good of society."
    Source: A manifesto for museum learning and engagement
  • "Inclusion is moving from “we tolerate your presence” to “we WANT you here with us”.
    Jillian Enright in The Social Model of Disability, 2021
  • "This (Deaf) Museum is not intended as a casual show, to be seen once and forgotten. Its pretensions are nobler; it has a humanitarian aim. By its solid and tangible evidences, making history memorable and attractive by illustration, it serves a double purpose: to dispel ignorance and prejudice regarding the deaf, and to raise the victims of this prejudice and ignorance to their true level in society."
    The British Deaf Monthly, Vol. VI (p.265) 1897. In: Deaf Museums and Archival Centres, 2006
  • "Access to and participation in culture is a basic human right. Everyone has a right to representation and agency in museums, and communities should have the power to decide how they engage."
    Source: A manifesto for museum learning and engagement
  • “Stories of disability are largely absent from museum displays. Where they appear, they often reflect deeply entrenched, negative attitudes towards physical and mental difference. Research reveals that museums don’t simply reflect attitudes; they are active in shaping conversations about difference.
    Projects created with disabled people show that museums hold enormous potential to shape more progressive, accurate and respectful ways of understanding human diversity. Why wouldn’t we take up this opportunity? ”
    Richard Sandell, co-director, Research Centre for Museums and Galleries, University of Leicester
  • "Beyond works of art and objects, museums collect shared heritage, memories and living cultures as well as what we call intangible collectables."
    Source: We are Museums
  • "Histories have for too long emphasized the controversies over communication methods and the accomplishments of hearing people in the education of deaf students, with inadequate attention paid to those deaf individuals who created communication bridges and distinguished themselves as change agents in their respective field of endeavour."
    from: Harry G. Lang, Bonny Meath-Lang: Deaf Persons in the Arts and Sciences, 1995
  • "Nina Simon has described true inclusion in a museum context as occurring when museums value the diversity in their audience, value those individuals’ potential and contributions, when they actively link those diverse people across differences, and when the organisation reaches out with generosity and curiosity at the core.
    On a practical level this sort of museum practice would see widespread inclusion of people with disabilities in the planning of museum exhibitions, on museum boards and steering committees, and working in curatorial roles."
    In: Corinne Ball: Expressing Ourselves, 2020
  • "Museums can increase our sense of wellbeing, help us feel proud of where we have come from, and inspire, challenge and stimulate us."
    Source: Museums Change Lives
  • "As recently as the 1970s, deaf history did not exist. There were available sketches of various hearing men, primarily teachers, who were credited with bringing knowledge and enlightenment to generations of deaf children, but deaf adults were absent."

    In: Preface to: "Deaf History Unvailed, Interpretations from the New Scholarship". John Vickrey van Cleve, editor
    Publisher: Gallaudet University Press, 1993
  • the past can hurt

    From: Walt Disney, The Lion King

  • "An important matter for any minority group is that written documents in public archives are often drawn up by the majority group and do not always reflect a minority as it sees itself. Thus, preserving sign language narration is of the utmost importance and a challenge to those working in the field of Deaf history."
    In: TIINA NAUKKARINEN, Finnish Museum of the Deaf: Presenting the Life of Carl Oscar Malm (1826–1863)