On Fri, 17 Oct 1997 10:39:37 -0400, you wrote:

>        List-serv users:
>
>        My Museum is currently building its budget for the next FY as well
>as developing a financial plan.  It has become apparent that projected
>expenses are going to exceed projected income.  We realize we will either
>have to dip into our principle our take on some debt (we are currently debt
>free).

        Haven't you left off one other option?  Can't you reduce
expenses, or at least stretch out some of the activities?  

>        What are some existing debt structures for smaller museums?  What is
>the amount of debt carried vs. assets/income for most museums?  If expenses
>exceed income should we take on debt as well as dip into our principle?  If
>we have no income to pay for a loan is it responsible to use our principle
>for this?
>
>        Please respond to [log in to unmask]
>
>Jim Remar,
>Director
>Mifflinburg Buggy Museum
>Mifflinburg, PA
>
Our small, but venerable, art museum has just come out of a year plus
long nightmare where the previous board merged the museum with that of
a neighboring city.  It is my opinion, based on evidence from our
successful law suit that money (or lack of it)  was a key factor
behind the merger.  In an out of court settlement we got our museum
back and it is now under a new board of which I am a member.  .  The
previous board had borrowed against our endowment funds and the board
of the other museum had essentially borrowed ALL the funds in their
endowment fund to pay for ongoing expenses.  Another factor was that
our old board members were tired of dipping into their own pockets for
funds to keep the museum open, but they were not willing to cut back
on exhibits and other expenses.  

One result is that our new board is in total agreement that we WILL
live within our means.  We have pledged this to our city when they
gave us a welcome restart grant and we have pledged it to our members,
who in the long run are our real strength.   Need I say more?

John A. Bing 
Laguna Beach CA
--
John A. Bing
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