We are formulating a proposal for the construction of a steel industry
museum in northeast USA.  We have found a large mill building that would
be an ideal site for the museum, but we estimate that the cost will be in
the neighborhood of $250,000 even figuring on the maximum amount of in
kind services and volunteer labor that we could possibly obtain.  Given
the uncertainties of obtaining grants for this amount, I have heard that
some museums have issued bonds to finance construction.  Is this a viable
method of raising funds?  Our museum site is located within a mile of a
major Interstate, with excellent access and within a very large
metropolitan area.  After crunching the numbers and coming up with a
preliminary balance sheet, I think that we could produce enough revenue to
pay off the bonds when they mature.

However, I rarely read about using bonds or other debt financing to
construct or expand museums.  Why is that?  I also get the feeling that
museums could not survive without subsidies of some sort, be it from
foundations or the government.  Are there any museums that has enough
visitorship to cover all of its costs from admissions, gift shop sales and
other operating income?  Will the public pay the admissions fees neccesary
to cover a museum's operating costs?

I am admittedly naive (sp?)  about the funding realities for museums,
therefore I am using this list to ask those who know. I have this notion
that if you build a museum that is appealing and market it sufficiently
that you should be able to operate at a profit. (or should I say
"surplus")

I could use some help.  Are there any resources on the web that could
better explain museum finances to me?

Rick Rowlands