What it means
Financial health is measured by a museum’s ability to raise and maintain revenue and balance expenditures. Revenue can be earned or contributed and is used to fund its staff, operations, programs, and facilities.
Financial sustainability is dependent on sound strategic planning and developing diverse revenue streams including ticket sales, membership, shop sales, paid programs, subscriptions, partnerships, donations, endowments, government support, and more.
How it’s used
A museum must recognize financial matters as mission critical, articulate financial goals, strategies, and responsibilities, and ensure that annual budgets are developed and adhered to accordingly.
Why it matters
The fulfillment of a museum’s mission is dependent on and energized by its sustained financial health. Only a sustainable museum can continue to add value as well as economic vitality to the communities, the public, and the region it serves. Also, a sustainable business model is paramount in order to be able to weather economic downturns.
Recommends
As the old adage goes, “No money, no mission.” See: What if Museums Were Run Like Successful Companies?