Understanding the True State of Museums: An Insider’s Perspective

Museum Planning
3 min readAug 22, 2024

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As a museum professional with over thirty years of experience, I’ve witnessed firsthand the misconceptions surrounding our field. It’s time to set the record straight about the realities facing museums today.

Contrary to popular belief, profitable for-profit museums are a rarity in the United States. Most institutions struggle to break even, let alone turn a profit. The romanticized notion of museums as well-funded cultural havens is far from reality. In states like Utah, university museum programs have been completely defunded, highlighting the severe financial challenges we face.

I’m tired of hearing board members say, “You need to run the museum like a for-profit business.” This statement underscores a fundamental misunderstanding of how museums operate. Even the most financially successful museums rely heavily on donations, grants, and other unearned income to cover their operating costs. By IRS standards, museums need to raise between one-third and two-thirds of their income from unearned sources.

The impact of recent global events, particularly the COVID-19 pandemic, has been devastating. While initial estimates suggested that up to 30% of museums might close, the reality is closer to 15% of U.S. museums have permanently shuttered. However, this statistic doesn’t capture the full picture. We’re not in a crisis — we’re in its aftermath. Museums are closing, merging, and selling off collections. Valuable artifacts and scientific specimens are being warehoused, potentially lost forever due to financial constraints.

Working in museums is often a labor of love, but it comes at a significant personal cost. Many museum professionals work for low wages, especially in adjunct or part-time roles, leading to a high turnover rate as experienced individuals leave the field. This has long-term implications for the sustainability and quality of museum operations.

The challenges go beyond finances. Every day, I face the exhausting task of explaining basic museum principles to administrators, board members, and even legal professionals who should understand these concepts. The lack of comprehension about fundamental practices, like the long-term responsibilities that come with accepting objects into a collection, is staggering.

Research, a cornerstone of museum work, faces significant hurdles. Conducting meaningful research outside of a university setting is extremely difficult, contrary to assumptions about independent research opportunities at museums and grant funding.

The conversation about technology in museums is often disconnected from financial realities. While digital innovation is crucial, many institutions are focused on basic survival rather than cutting-edge tech implementations. Only the largest and best-funded museums can afford to invest in the latest technologies.

It’s crucial to understand that museums are not just facing a temporary setback. The damage done is, in many cases, irreversible. Collections have been lost, institutions have closed, and the landscape of our field has fundamentally changed.

As we move forward, the public, policymakers, and even those within the museum world must recognize these realities. Museums play a critical role in preserving our cultural and scientific heritage, but they’re operating in an increasingly challenging environment. Understanding these truths is the first step toward meaningful support and change for our institutions.

The next time you visit a museum, remember: behind every exhibit is a team of dedicated professionals facing enormous challenges to bring you that experience. Our field needs support, understanding, and realistic expectations if we’re to continue our crucial work in preserving and sharing knowledge for future generations.

References:

  1. Alexander, B. (2023). *Museum Finance: Issues, Challenges, and Successes.* Rowman & Littlefield Publishers.
  2. American Alliance of Museums. (2022). *Museum Field Experiencing Compounding Financial Losses, New Survey Reveals.* Retrieved from [AAM](https://www.aam-us.org/2022/02/08/museum-field-experiencing-compounding-financial-losses-new-survey-reveals/)
  3. Halperin, J. (2024, January 19). *The Hangover After the Museum Party: Institutions in the US Are Facing a Funding Crisis.* The Art Newspaper. Retrieved from [The Art Newspaper](https://www.theartnewspaper.com/2024/01/19/us-museums-funding-crisis-new-generation)
  4. Cascone, S. (2023, December 7). *Art Museums Are Still Making Cutbacks in Response to Financial Woes and Decreased Admission.* Observer. Retrieved from [Observer](https://observer.com/2023/12/art-museumsfinancial-woes-decreased-admission/)
  5. Kiley, B. (2024, February 16). *Bellevue Arts Museum Faces ‘Dire’ Financial Crisis.* The Seattle Times. Retrieved from [The Seattle Times](https://www.seattletimes.com/entertainment/visual-arts/bellevue-arts-museum-faces-dire-financial-crisis/)
  6. Sotheby’s Institute of Art. (n.d.). The Business Model of the Nonprofit Museum. Retrieved from https://www.sothebysinstitute.com/news-and-events/news/the-business-model-of-the-nonprofit-museum
  7. American Alliance of Museums. (2015, February 2). Your Museum Needs Money — Now What? Retrieved from https://www.aam-us.org/2015/02/02/your-museum-needs-money-now-what/

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Museum Planning

Mark Walhimer is the managing partner of Museum Planning, LLC, and the author of Museums 101 (2015) and Designing Museum Experiences (2021).