Pooled Vehicles: The New Investment Frontier for Small to Medium Sized Museums

Abstract

Museum officials have spent years dedicated to achieving their mission at the highest level, yet when it comes down to fulfillment, many fail. This thesis argues that small/medium museums are at a disadvantage because they do not have the same fundraising capacity as larger museums, and do not have access to alternative investment strategies that will maximize the return on their investments. Research obtained from both scholarly sources and museum experience demonstrates that those institutions pooling their investments have the ability to do so while maintaining best practices for their organization. Specifically, this argues that pooling creates a "domino effect" and allows for efficiency in administration, reporting, investing, and compliance thus enhancing both financial and structural sustainability. Several factors instrumental in determining the effectiveness of pooling will be examined, and include data from anonymous surveys and discussions with key museum officials, foundation directors, philanthropists, and board members. The data will demonstrate this vehicle is, in fact, needed if not necessary to the organization's long- term sustainability. Historically, endowments of museums whose operating budgets range between one and five million dollars do not have access to the same resources as larger institutions, thus reducing their overall efficiency. However, the set of guidelines in this research will provide these institutions the ability to seek this access, making it an invaluable resource for the future of small to medium sized museums.