Detroit Museum Pledges $100-Million for Bankruptcy Fund

The Detroit Institute of Arts will launch a 20-year, $100-million campaign to raise money for a federally mediated fund to shore up the bankrupt city’s pension system and prevent the sale of the museum’s masterpieces to satisfy creditors, the Detroit Free Press writes.

The fundraising effort, approved Wednesday by the institute’s board, is part of a deal that would see the city-owned museum turned into an independent nonprofit, shielded from the vagaries of municipal finances and politics. Ten national and local foundations have committed a combined $370-million to the pension and art rescue pot, and state legislators are weighing Gov. Rick Snyder’s plan to add $350-million in taxpayer funds.

A financial commitment from the museum was considered key to securing political support for the rescue fund and satisfying Detroit’s emergency fiscal manager, Kevyn Orr, who has insisted on accounting for the value of the art collection in his restructuring plan for the city and who had floated the $100-million figure.

“Clearly this is going to be a challenge,” said Annmarie Erickson, the museum’s chief operating officer. But she added, “Given that this will help move the bankruptcy along quickly, that it will help the pensioners [and] ensure that the DIA collection is safeguarded for the public, we have compelling arguments to take to donors.”