Dear
Lori,
I think your question is something we should all think
about. Our museum keeps about a year's worth of operating expenses in
money market, bond & stock funds, etc. We try never to touch it.
But, for example, last year it made it possible to upgrade our technology
base. I've never heard of a small museum having too much cash
reserves. Your County Government should see those reserves as a sign of a
well run institution that will make careful use of the grants you are applying
for. Have trustees (does your museum have an attorney?) personally contact
the concerned officials. Try to have a respected and relatively uninvolved
community leader make your case for you. If you spend down your hard won
reserves you will not find the county coming to your rescue in case of an
emergency.
Richard de Koster
Executive Director
Constitution Island Association
at
West Point
Hi listers!
We are a small history museum in Florida. Annually, we apply for
grant funds
from our County Government. This year, they have
questioned the amount of
cash shown on our Balance Sheet. Our board
and staff feel strongly that
having a certain amount of cash reserves is
not only wise, but necessary, in
the event of major (or minor) emergencies
(i.e. our annual major fundraiser,
and outdoor historical festival, is
rained out; natural disaster strikes;
etc.).
Is there a standard
in the museum industry for how much cash should ideally
be held in
reserve? Perhaps a certain percentage of the institution's
annual operating budget? I am curious as to how much other museums
hold in
reserve (where possible). Please reply to the e-mail address
given below.
Thanks in advance!
Lori Tomlinson
Executive
Director
Florida Adventure Museum
Punta Gorda, Florida
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