“The financial crisis, through which the country has so lately passed, has had a calamitous, but it is to be hoped, temporary effect upon Minnesota.  [It has] been variously ascribed to the excessive inflation of the banking system – to the large importations of foreign goods – and to general heedless speculation and extravagance of living.  Whatever may be the … causes which have super induced a revolution so wide spread and ruinous, the periodical recurrence of such disasters would seem to indicate that they are as necessary to the due regulation of commerce and trade as are storms for the purification of the physical atmosphere.  They will doubtless occur as frequently in the future as in the past.”

– Gov. Henry H. Sibley, inaugural address, 1858

Economic adversity is nothing new for Minnesota. Gov. Sibley comments on the Panic of 1857, but his words would be an apt description of 2009.  What precautions do you take to ride out economic thunderstorms?

On Wednesday and Thursday last week the American Association of Museums held a webinar to address the nation’s financial crisis as it relates to cultural organizations. One concept that emerged was “redeployment.” We’ve often heard that we must “do more with less” or more recently that we should “do less with less.” Commentators however suggested that cultural organizations constantly adapt and even in the best of times there isn’t enough money to simply add more to already over-worked employees and volunteers. Instead, we must make strategic allocation of the limited assets of time and money through redeployment. That means stopping some services that are outdated and no longer highly desired, and adding new practices that further our missions.

If you were to redeploy to best meet your mission in the modern climate, what aspects that you do now might you consider obsolete? What emerging practices might you adopt?

A Minnesota Legacy Grant Recommendation has been put forth by the Minnesota History Coalition  - a consortium of history-related organizations.  This recommendation covers the Arts and Cultural Heritage Fund – one piece of the Legacy Grant pie.

The Coalition’s recommendation is a significant document as it demonstrates a working consensus among the representatives of these organizations – and they all deserve credit for that work. My sense is that this document will carry some weight with legislators.

We all have many questions about the Legacy Grant – questions for which there is not yet an answer. To the extent that this is time to get all ideas out on the table before it’s too late – I’d like to address two issues regarding the Legacy Grant funding.

Geographic/Economic Equity – The Legacy Grant is an opportunity to enable under funded county historical societies and underserved areas of the state to become better equipped for preservation of their history. There are many rural county historical societies (I’m thinking of Lincoln County in southwestern Minnesota) that aren’t as active due to little or no county support and that miss out on opportunities provided by the legacy grant to preserve their county’s history. County historical societies with limited staff do not have the ability to research and write grants, lobby for funding, lobby for preservation, etc…. They are too busy worrying about covering their next insurance payment or fixing the leaky roof. Consequently, their history is being lost.

I would like to see some of the legacy funds earmarked for those areas and organizations that lie in economically stressed areas where funding for historical societies and historic preservation is minimal. One solution may be to offer these counties a dollar for dollar matching grant for use in funding their county historical society or other bona fide historic preservation organization.

Deciding who gets what? – We know that the amendment gives the legislature the authority to make spending decisions. But we also know the legislature is not going to review and recommend individual projects. So who will?  I believe an independent council should be established similar to the Lessard Outdoor Heritage Council. This council, legislatively approved and containing eight citizens and four legislators, will make recommendations to lawmakers about spending the Outdoor Heritage Fund - another piece of the Legacy Amendment pie. More information on this council can be found in Minnesota Statute 97A.056.

Kurt Kragness

Executive Director

Sherburne History Center

Winona County historical Society wants to know if anyone in the field has any suggestions for attracting college-age students to their local museum. We have had some success working through the local universities attracting interns and lecturing professors. There has to be some good ideas out there we aren’t thinking of.

Mark Peterson

The February 26, 2009, Chronicle of Philanthropy notes the possible loss of several billion dollars in charitable giving under the most recently proposed federal budget. This proposal, which still needs to be passed by Congress, would cap charitable tax deductions at 28 percent for those earning more than $250,000, and would not take effect until 2011. What concerns some observers is that it seems to suggest the possibility that if major donors do not fund larger museums, the expenses of larger museums will encourage their development staff to find replacement contributions, and thereby increase competition for every dollar for all nonprofit charities.

First, what percentage of your income comes from individuals making a tax deductible contribution?

Second, can you describe what competition is like currently for individual contributions? Do you passively accept contributions? Seek them? Are people still giving in tough times? How hard is it in the present economy to make the case of your organization’s worth to donors?