The Endowment Trend:An Investigation into the Management of Museum Endowments

by Haley Nielsen, San Francisco State University

• When the financial bubble burst in 2008, many formidable nonprofit endowments, e.g., Yale University, Harvard University, and the Getty Trust, saw significant losses. These losses highlight the need for prudent investment management that focuses on fulfillment of philanthropic mission. This thesis examines the management of museum endowments by conducting a literature review and by completing three case studies of museums. Case studies included consultations with personnel involved in managing museum endowments and analyses of public records, including IRS 990 forms and audited financial statements. It was found that while endowments can provide long-term stability, fund programs that otherwise would not be possible, and supply an example of socially responsible investing to a public increasingly concerned with transparency, no specific best practices for the museums exist. Finally, several recommendations are offered, including conducting a detailed study of the range of museum endowments, and promoting a museum-specific best practice endowment model.