Mcneil Museum Case Study

McNeil Museum of Art is located in Universal City, which has a large metropolitan population of 2.5 million residents. In they year 2004, they recorded their 3rd annual loss of ($383,715); totaling ($794,086) in the past 3 years. They have also depleted their savings and the interest they make on investments is declining with no positive sights in the near future. The museum makes 43% of their $6,657,644 revenue from the 17,634 membership dues charged to personal and corporate accounts. The amount of memberships has been down for the past 5 years. The memberships cost $854,461 plus extract $1,057,800 from their income due to benefits given to members. 80% of membership revenues come from personal accounts, the other 20% comes from corporate accounts. 475 association members volunteer, which saves the museum a substantial amount of operations cost that they do not have to pay employees. McNeil does not charge the public for museum visits, and therefore all other revenue is made by contributions, grants, Fannel County, investments, and auxiliary activities. The museum could potentially have over 2.5 million visits each year if all members of Fannel County attended at least once; however, they are only attracted 628,472 attendants in the year 2004. McNeil Museum of Art’s image is often criticized for only being an exclusive parking and lunching attraction for the rich members. The museum also faces a major awareness issues; director of development and community affairs, Ashley Mercer, claims that people don’t even know what the museum is or the things that it offers. They promote the awareness through publications, press releases, and other ways of informing the public; and although awareness is such an issue, Mercer clearly stated that the Board of Trustees would not allow them to increase these costs in the year 2005, which was $594,067 in 2004, an increase of 31% from 2003. Also, there are many monetary decisions that the company can make to fix their