Museum Donor Trends Post Covid
As the economy reopens and museums begin to open their doors to reduced crowds of visitors, it is timely to consider the financial situation faced by these institutions and the industry. Released in June of 2020, CCS Fundraising shared its findings concerning the impact of the public health crisis on fundraising in the nonprofit sector. Cultural institutions’ fundraising has responded to the crisis similarly to other nonprofits with significant declines beginning in April and continuing through May, but also like other nonprofit sectors, most cultural institutions have reported a return to a slight increase in fundraising. Facing financial shortcomings due to several months of closed doors, it is evident that donor trends are directly related to visitor trends. In 2014 the American Association of Art Museum Directors provided data on visitors and donor trends from 220 art museums in the U.S. revealing that the greatest stream of financial support comes from individual philanthropy in the form of membership programs, admission fees, and donations. In relation to this reality, the projection for fundraising through the end of the calendar year for cultural institutions remains among the worst compared to other sectors of nonprofits, exposing the fragility of relying on directly connecting with visitors by means of getting them through the doors and providing a comfortable environment for enjoying arts and culture. The challenges facing visitation remain as institutions reopen amidst strict social distancing measures, restricted capacity, and consumers enjoying entertainment on demand and remotely. Despite the challenges facing museums and their fundraising goals, adversity has created innovation in the industry.
Leveraging Technology
It is becoming increasingly more important that museums leverage technology to their advantage in order to increase donor engagements at times when donors are not visiting or are visiting physical institutions in lower numbers. Continuing contact with visitors through virtual access to museums’ collections as well as curating a social media presence helps to bridge the gap left by fully closing institutions off from patrons. Additionally, facilitating philanthropy through technology fills in revenue gaps. Once connected with patrons, online museums can utilize eCommerce and online donation platforms in order to integrate online interactions with online donation opportunities. Having an online presence is an effective way to connect with new, digitally inclined visitors and to capitalize on their generosity and newfound interest. New donors are important to tap into in the midst of this crisis as major donors and many consistent visitors/donors have continued their generosity through the last several months. New revenue streams may stand in for decreased admissions and fewer non-local, tourist visits. There is much to be learned by museums as they enter the digital world, but with trial and error, there are myriad opportunities for industry-changing innovations that can propel cultural institutions to new heights as central features in their communities.
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