A Literary Museum Finds Rumors of Its Death Greatly Exaggerated

Like the author whose legacy it honors, the Mark Twain House & Museum got into financial trouble over costly construction.

In the 19th century, Samuel Clemens, better known as Mark Twain, incurred massive debts from building his Hartford, Conn., dream home. At the beginning of the 21st century, the organization that bears his name embarked on an overly ambitious building and renovation project that quickly exceeded its original $11-million budget.

When the economy soured after the September 11 terrorist attacks, donations dropped, while construction costs ballooned to $19.5-million. The nonprofit was on the brink of bankruptcy. It scrambled to reduce expenses and find new sources of support in the face of dwindling private donations, cuts in state aid, and ever-declining ticket sales, says Jeffrey Nichols, who took over as executive director in 2008.

The organization cut the size of its staff from a high of 49 to 17 and slashed its operating budget from $4-million to $2.7-million. It used a $500,000 grant from the Annenberg Foundation to support operations and plan its next steps.

A $250,000 three-year grant from the Hartford Foundation for Public Giving allowed the organization to shore up its public-relations and marketing efforts by hiring two additional staff members and enlisting the help of a communications firm.

The charity used part of that money to pay for and promote new programs, including discussion events with some of today’s famous authors as well as more whimsical events, such as ghost tours, a Twain-themed Oktoberfest, and a “steampunk” costume tea party (at right), which have attracted more visitors in their 20s and 30s.

Today, the investment in marketing and new programs has paid off. Attendance at events rose 71 percent, and 8.5 percent more visitors came to the museum in the fiscal year that ended in January. Revenue has increased by 81 percent from the previous fiscal year.

Looking ahead, the group hopes to expand its board from 28 to 40 members and eventually increase its endowment. The organization is also seeking foundation grants to support its fundraising efforts and hopes to boost giving by individuals, especially those capable of giving $1-million or more.

The road to recovery was not without a few bumps. In 2010 Mr. Nichols learned that the institution’s longtime controller had been embezzling funds since 2002. The employee eventually went to prison, convicted of stealing $1-million. Although the incident took a toll on the staff’s morale, Mr. Nichols says, he and his colleagues were steely enough by then to weather the latest storm.

“It was a brutal, brutal blow to take,” says Mr. Nichols. “But we were able to work through that problem. It was just another thing to clean up.”

Recovery Tips

• In the wake of staff cuts, ask board members to step in if they have specific skills that will help fill the gaps.
• Avoid slashing marketing or public relations because they are crucial to getting the word out about the nonprofit’s work.
• Build programs that take little or no cost to produce