October 12, 2011 | Read Time: 2 minutes
Many arts groups are struggling because of the sour economy, but last year the Philadelphia Museum of Art managed to raise more than $56-million, an increase of more than 55 percent.
A big reason for the museum’s success is its campaign to endow 29 staff positions—or all of its curatorial, conservation, education, and library employees.
“The great thing about this initiative is that it allows us to shine light on our staff,” says Kelly O’Brien, the museum’s executive director of development. “It helps bring the museum to life.”
The campaign seeks to raise $54-million. To inspire gifts for the drive, the Philadelphia donors Gerry and Marguerite Lenfest pledged to give up to $27-million of the goal if the money is matched dollar for dollar by other gifts. Mr. Lenfest has served as chairman of the museum’s board.
Now halfway through the five-year drive, the museum has raised $23-million, including the dollars matched so far. Thirteen of the 29 staff positions have been endowed.
While the museum seems to be avoiding the economic challenges that so many arts groups have faced since the start of the recession, its leaders recognize that some donors might be reluctant to make a big gift now.
That’s one reason they decided to allow donors to use charitable bequests to finance up to half of their campaign commitment.
“If a donor wants, up to 50 percent can be in an irrevocable bequest and the rest paid over five years,” says Ms. O’Brien.
Nonprofits usually try to avoid pledges for endowed jobs that are so heavily tied to bequests because the money may not be available for many years. To alleviate that problem, the Philadelphia museum asks donors to make annual gifts equal to the amount their bequest commitment would generate if invested, or about 5 percent of its value.
What’s more, the Lenfests have agreed to match every dollar included in a bequest immediately. That promise comes with a requirement: Those donors must sign a pledge that they will not revoke the bequest.
