2 0 0 5 A N N U A L R E P O R T

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P R E S I D E N T ’ S L E T T E R2005 was a time for the Marblehead Museum & Historical

Society to reflect on its strengths and weaknesses; reconfirm its mis-sion to preservation and interpretation and move forward towards astronger financial base and an even greater commitment to being avital part of the Marblehead community.

The year was filled with exhibits, from Marblehead Pottery toBurgess airplanes, and ending with Treasures from our own collec-tion. There is no doubt that MMHS is well endowed with beautifuland important objects. Our continuing obligation is to care for, dis-play, and inform others about these amazing things. Programmingrevolved around these exhibits, with outside experts and local histo-rians who provided us with interesting insights.

The Jeremiah Lee Mansion wallpaper conservation projectbegan in the fall of 2005, supported by Save America's Treasures anda matching grant from the Getty Foundation. Both the 18th centuryhand painted wallpaper and 18th century hand printed wallpaper arebeing conserved. This wallpaper is a legacy that is important interna-tionally, and an example of the level of stewardship and responsibili-ty of the Marblehead Museum & Historical Society.

The year was also filled with planning for the Holiday HouseTour 2005, which took place over Christmas Walk weekend. A majorevent like this involves so many people, and so much time and gen-erosity on the part of hundreds of volunteers. It was a great tribute toour organization and illustrates clearly how much people do careabout our town and our history. The Holiday House Tour was organ-ized and run by Board member Diane Barbour, who did an outstand-ing job. I would publicly like to thank the home owners who gener-ously allowed their homes to be on the tour, the floral Designers whohelped enhance these already beautiful homes, the hosts and hostesseswho stood in houses, checked tickets and answered questions for twodays- all were fantastic. It reminds us that our treasures are not onlyin objects, but in people who work diligently to keep everything onan even keel.

Daily we struggle with a limited budget, a very small but ded-icated staff, and day to day set backs. But, when we stop and take alonger look, we can feel encouraged that progress is being made, andthat we are working for a history that is worth preserving. I thank allof you that are involved, and encourage anyone who thinks that theymight like to be involved to join us with their time, money or both. Itis just one more way to enjoy and appreciate living in this wonderfultown.

Sincerely,

Sharon Pingree-RussellPresident MMHS Board of Directors

& HISTORICAL

S O C I E T Y

MARBLEHEAD

M U S E U M. . . . .

. . . . . .

The Institute of Museum &Library Services

LEE MANSON WALLPAPER

CONSERVATION GRANTS

Save America’s TreasuresGetty Foundation

G.A.R. CIVIL WAR VIDEO GRANTS

National Grand BankMassachusetts Cultural Council –

Marblehead

MMHS COLLECTIONS PRESERVATION GRANT

Marcia Hunkins

DONATIONS OF GOODS AND SERVICES

(in random order)Carr LandscapingMarblehead Garden CenterCarpenter Costin Tree ServicePatrick Maloney & Co., Professional

PaintersRobert Fumicello, Prizito ElectricKaren & John Doub, IrresistiblesDarren BrownGinny von RuedenLaurie BoggisNancy ClemsonDoris EagenPinar GokceSusan Griffin & Lucy HalstedSallie HarshbargerSheila KrikorianAbby LavoieElizabeth MancusoGail Maclaren, Mindy McManus

Susan McMullen & Sandi PeasleeSally SandsJoan SchleuterPeggy SchrageFerol BreymannMarcia HunkinsBruce MacInnisTom AllenJohn PetersonCarlo Fratini, Seaside Lock & KeyJim Ruberti, Photo SwiftSusan Gessner John StuckeHarriet & Jeffrey BrandMarie & Ken BreenStarr & Bob CampbellGrace & Eric ColeJody & Steve Dane

Tom Egan & Mary KrullLindsey & Tom FoleyUrsula Kretschman & Jeff BuddPat & Paul LausierHeather & Leroy MartinLinda & Andy NighswanderKatie Ryan & Gregory LawrenceCarol & Stratton SmithChip Osborne, Osborne FloristNancy Mantilla, Flores MantillaWaters & BrownMarblehead ReporterFraffie WelshTimothy Smith AssociatesAnna L. Geraghty, Design &

Print ManagementGene Arnould, Arnould GallerySusan & Nick Fader, Ditto EditionsDon DoliberBette HuntFred SullivanJoan GoloboyPeter HartGene JacobiRalph Khouri, Khouri’s Oriental RugsCarol & George Shube, Shubie’s

MarketplaceSharon Pingree-RussellJonathan Porath, Porath Computer

ServicesFrederick GoddardCarolyn & Peter LynchJohn KimballKem WidmerDiane BarbourAdelphi WallpapersRichard Irons, Masonry SpecialistG.F. Peach & Sons, Masonry SpecialistsThomas Lemons, Lighting SpecialistCharles Ricker, Home InspectorTracy Karatza Wallpapering Company

OTHER CONTRIBUTORS

Mr. Edward David AckermanMr. & Mrs. Richard AllesMs. Dorothy AtkinsMrs. John J. BingenheimerMrs. Frances Garrett Bowne, IIIMr. & Mrs. Richard P. Breed, IIIMr. & Mrs. Raymond E. BriggsMs. Harriet E. CanavanMs. Jennifer P. CaseyMr. & Mrs. John S. CaslerMs. Mary L. CooganMs. Katherine C. CuttingMs. Helen M. DonahueMs. Beverly Jean DoucetteMr. & Mrs. Richard FowlerMs. Frances W. GaussMrs. June S. GoldmanMr. & Mrs. Russell GrayMr. & Mrs. Dexter KoopmanDr. Donald L. Kleykamp &

Dr. Helen C. KaulbachMr. & Mrs. Jerome LevyMr. Oliver LoewenMr. John F. McKayMr. & Mrs. Bert MichaudDr. & Mrs. Jason E. MondaleMr. & Mrs. Perry W. MortonMr. & Mrs. Carl C. PierceMr. & Mrs. John J. SchlueterMr. & Mrs. Charles SchumacherMs. Sharon L. Smith &

Mr. Hugh W. StewartMr. Reginald Holton SmithwickMs. Deborah A. StephensonMs. Cheryl TuttleMs. Rita S. Valley

MAT C H I N G GI F T S

IBMState Street Research & ManagementCorning Incorporated FoundationExxon Mobil FoundationGrantham, Mayo, Van Otterloo &

Co., LLCIllinois Toolworks FoundationJ.P. Morgan Chase FoundationEastern Bank

LE E MA N S I O N WI N D O W

CO N S E RVAT I O N GR A N T S

Society of Colonial Warsof Massachusetts

General Society of Colonial WarsThe Felicia Fund, Inc

FRIEND ($100+)Dr. & Mrs. F. Knight AlexanderMr. & Mrs. Angelo R. ArenaMr. Joseph J. BalsamaBartlett & Steadman Company, Inc.Mr. & Mrs. Hugh P. BishopMrs. Priscilla H. BevinsMr. Bruce Bolen, D.M.D. Mr. & Mrs David CampbellClub of Small Gardens of

Marblehead NeckMr. & Mrs. Harr C. ChristiansenMr. & Mrs Stephen J. Connelly, IIIMr. Dennis Esposito &

Ms. Susan CohenMr. & Mrs. Ralph Colantuno. Jr.Ms. Virginia DrogueMr. & Mrs. Henry DembowskiMr. & Mrs. Christopher EganMrs. William M. FallonMr. & Mrs. John S. FosterMr. & Mrs. George Grader, VMs. Virginia C. GamageMrs. Susan T. GessnerDr. Peter L. Gill &

Ms. Joanna ShawcrossMr. & Mrs Gerald D. GoldsteinMr. & Mrs. Stanley GordonHarbor Light InnMr. & Mrs. Eugene HastingsMr. & Mrs. Thomas E. HoffmanMr. & Mrs. Jay HughesMs. Sylvia A. JohnsonDr. & Mrs. Arnold E. KatzMr. & Mrs. John P. KelleyKnightsbridge LandscapingMr. & Mrs. Charles F. LoutrelMarblehead Savings BankMr. & Mrs. Bert T. MartinMrs. Jeralyn H. MasonMr. & Mrs. Donald E. NowlandOld Marblehead Improvement

AssociationMr. & Mrs. Alexander ParkerMr. & Mrs. E. Russell Peach, Jr.Mr. Lawrence W. Rosenfeld &

Ms. Amy DrinkerMr. & Mrs. Donald SeamansMr. Robert N. ShapiroMr. & Mrs. F. Scott StephensDr. & Mrs. Ralph C. SweetlandDr. & Mrs. Richard A. von RuedenMr. & Mrs. Everett P. Walkley

GERRY & GLOVER SOCIETY ($10,000+)Mr. & Mrs. Benjamin A. Rowland, Jr.Mr. & Mrs. Michael Sherman

J.O.J. FROST BENEFACTOR ($5000+)Mr. & Mrs. Richard W. CarlsonMr. & Mrs. Peter J. HartMr. & Mrs. John B. Mc CarthyMs Sharon Pingree Russell &

Mr. F. Webb Russell III

JEREMIAH LEE PATRON ($1000+)Mr. & Mrs. Peter CoxeMr. & Mrs. James MarshMr. Charles W. PingreeMrs. Arthur P. Poor

SPONSOR ($500+)Mr. & Mrs. Robert W. CampbellMs. Mary Krull & Mr. Thomas EganMr. & Mrs. Timothy J. HuntMr. & Mrs. Eugene JacobiNational Grand BankMr. & Mrs. Robert C. PuffMr. & Mrs. Michael H. RubinoMr. & Mrs. Frederick H. SettlemeyerDr. & Mrs. John Rogers SimmonsMr. & Mrs. Richard L. Tuve

MEMBER ($250+)Mr. & Mrs. Ruleffe F. BarbourMr. & Mrs. Edmund P. BullisMr. & Mrs. Michael B. ChristianMr. & Mrs. Ronald C. ClarkMr. Timothy DavidsonMr. & Mrs. Michael FarrarMr. Stephen J. FarrarMr. & Mrs. Richard FarrarMr. & Mrs. James B. FlanaganMr. & Mrs. Richard GanongMs. Marcia HunkinsMr. & Mrs. Carl HyamMr. & Mrs. David JacksonMrs. Joan C. JohnsonMr. & Mrs. Daniel P. KearneyDr William H. Livingston III &

Mrs. Julie H. LivingstonMr. Robert MacomberMrs. Ann N. NortheyMr. & Mrs. William H. ParkMr. & Mrs. Jay C. PingreeMr. & Mrs. John PopeMr. John F. StuckeMr. & Mrs. William TruscottMrs. Dorothy A. Wilson

2 0 0 5 D O N O R S

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2 0 0 5 D O N O R S

Notemee t ingloca t ionchange

2 0 0 5 T R E A S U R E R ' S R E P O R TThere were a number of positive financial developments in 2005.

Additions to the Endowment were $95,000 higher than the previousyear. Grants received improved by more than $83,000, and revenuesfrom the first Holiday House Tour in five years exceeded relatedexpenses by more than $29,000. Invested Endowment funds appreciat-ed by approximately $44,000, and the amount of Endowments Fundsrequired to sustain operations decreased by approximately $28,000. Putin perspective, however, substantially all of the relief in the use of thosefunds came from net receipts of the Holiday House Tour, and the factremains that MHHS continued to operate in a deficit during 2005.

Dues received decreased by approximately $4,800, and receiptsfrom the Annual Appeal fell approximately $23,000 below the recentrecord level of 2004. Part of the drop in Annual Appeal receipts was dueto timing, with some significant contributions received in the earlyweeks of 2006. The support of the Holiday House Tour may havereduced funds available for the Annual Appeal, and contributions madeby potential donors to other organizations to provide much neededrelief from the natural disasters that occurred last year may have con-tributed to the shortfall.

When taken together the financial health of MMHS improved tosome degree during the past two years. The single most significantimprovement came from the $100,000 donation to the Lee MansionPreservation Fund received during 2005. The increased level of Grantawards during the past two years was also a very important contribu-tor, since most of the grants support major Lee Mansion conservationprojects necessary continue the Mansion’s vitality.

Increased revenues from the 2004 and to a lesser extent the 2005Annual Appeal played an important role in the financial improvement.The successful Holiday House Tour was key to reducing theEndowment Funds required to sustain MMHS operations during 2005,and finally improved returns on invested Endowment Funds helpedconserve and improve financial resources.

The Budget for 2006 presents a continued commitment to furthernarrowing the shortfall between expenditures and revenues. The bud-geted improvements, if achieved during the current year, will play a rolein assuring the long term health of MMHS. This alone, however, willnot be sufficient to assure the financial well being of MMHS.

An increased level of contribution to The Annual Appeal Fund,continued improvement in the level of Grants received, and contribu-tions to the Endowment itself are necessary to assure the continuedfinancial health of MMHS. Without them, undertakings of the MMHSwill need to be significantly curtailed, in the not too distant future.

Peter J. HartMarch 4, 2006

2 0 0 5 F U N D B A L A N C E S

Year End Changes During 2004

General Funds $ (45,381) $ (27,868)Acquisition $ 4,189Documents Preservation Grant 2,041Education Projects Grant 2,041Lee Mansion Windows Grants 17,244 $ (6,173)Garden Club 352Wallpaper Preservation $ 93,543 80,499Total Restricted Funds 119,410 74,326

Plant Fund 454,195 (11,500)

Endowment Funds Katherine D. Hammond $ 76,588 3,278 W.E. & T.E Hammond Bowden 21,037 790Lee Mansion Preservation 143,109 101,619Unrestricted 1,044,929 5,244

Total Endowment 1,285,663 144,932

Total All Funds $1,813,887 $ 179,862

Location of All FundsNational Grand Bank $ 43,169 $ 15,570Scudder Funds 76,588 3,278Vanguard Funds 899,374 49,905Eastern Bank Custodian 340,561 122,609

Total $1,359,692 191,362Building Fund 454,195 (11,500)

GRAND TOTAL $1,813,887 $ 179,862

REVENUES EXPENDITURES

Revenues and Donations Operating and Restricted Fund ExpendituresAnnual Appeal $ 54,275 Salaries, Payroll Taxes and Related Costs $102,478Admissions—Mansion & Walking Tours 5,201 Administrative Assistance and Guides 3,836Attendance at Lectures and Events 4,335 Annual Report and Calendar 4,926 Donations - Unrestricted 10,975 Associations and Conferences 150Donations - Restricted 4,900 Audit and Regularity Reports 2,800 Grants 126,172 Brochure 2,570

Cleaning 11,952Facilities Rental 950 Computer 505Gift Shop Sales 941 Holiday House Tour 30,106Holiday House Tour 59,402 Insurance 20,979Membership Dues 32,889 Maintenance - Building 8,213Royalties and Research Fees 673 Maintenance - Garden 5,704Wine Tasting Party 6,241 Materials and Supplies 9,211Other 249 Postage and Printing 13,402Total Donations and Operating Revenue 307,203 Publicity and Advertising 810

Security 1,140Utilities 11,265Wallpaper Conservation 32,898

Investment Income and Support Windows Conservation 18,061Donations to The Endowment 100,000 Other 5,238Endowment Income Reinvested 1,013 Total Expenditures $287,077Endowment Income 25,440Endowment Principal Remitted 44,291Prior Years Windows Contributions 11,208Total Investment Income and Support 181,952 Investment, Cash and Capital Accounts

Donation to Endowment $100,000Total Revenue, Donations and Support $489,155 Grant Funds Transferred from Eastern Bank 86,356

Endowment Appreciation 43,922Endowment Income Reinvested 1,013Endowment Principal Remitted (44,291)Prior Years Windows Contributions (11,208)

Increase in Investments 175,792Increase in Bank Balances 15,570Building Depreciation (11,500)Increase in Fund Value $179,862

R E V E N U E S , E X P E N D I T U R E S & C H A N G E I N F U N D V A L U E S