How Museums Are Funded

 Most museums usually give free entry to view many artifacts and historical items. However, the cost of maintaining a museum is quite expensive. According to a survey by the Association of Art Museum Directors in 2018, about 39 percent of 210 art museums had operating budgets under $5 million, and 8 percent had operating budgets over 45 million dollars. The report also mentioned that 31 percent of the operating budget went into exhibitions, curation, conservation, and other art-focused activities. With these statistics in mind, one might wonder how museums are funded.

The first source of income for museums is public funding. This comes from the government via taxes. Most citizens support public funding, as they believe that if a museum gets its money from the government, it would spend less time sourcing funds from other sources and have more time to focus on catering to the public and its visitors. However, public funding usually totals up to 20 percent of a museum’s annual funding.

On the downside, public funding may come with conditions, such as offering free admission to visitors, which reduces avenues to gather income. Some grants given by the government may have to be used for particular projects only, such as building a new wing and other infrastructure.

The biggest disadvantage, however, is that government funding usually brings governmental interference. This means the museum must answer to the government. The government may exercise political influence over the museum. This would be an issue for more authoritarian governments. Nonetheless, most museums greatly appreciate government funding as it saves more time from sourcing funds elsewhere.

Secondly, museums earn income from business, trading, and programs. These can be sub-divided into admission fees, book and gift shop sales, membership, and admission fees. Earned income usually accounts for a larger annual income, making up 10-40 percent of a museum’s annual income. Museums could also rent out their space for weddings and other events. Corporations also sponsor events, be it exhibitions or educational programs. However, ethical issues may make museums warier of sponsorships from particular corporations.

Donations and fundraisers are also very important to museums. They can total up to half of most museums’ yearly income. Private individuals and corporations can send gifts that can be used for anything, including salaries or infrastructure, but some donors may donate for certain projects.

Asides from money, museums accept different types of donations, including real estate, stocks, and securities. Private donations can help museums operate successfully even with minimal state support. However, on the other hand, museums must constantly keep an eye out for donations from sketchy individuals and avoid dependence on the rich. If unable to remain independent from the rich, it may become difficult to operate the museum without interference, or they may receive grants for specific purposes, as with public funding.

Moreover, museums could sell some of their treasured pieces in their collection. However, deaccessioning comes with strict guidelines, which include using funds acquired from the piece’s removal only for new acquisitions and no other projects.