see all jobs
Museums told to improve money making opportunities
The Public Accounts Committee (PAC) has issued a report saying that the way public body museums collect their additional income in the UK is “ineffective”.
During 2002-3, the UK’s 17 public-money museums, which are sponsored by the Department of Culture, Media and Sport (DCMS), generated a total of £108m from fundraising, trading activities and admission. However, the PAC says much of the activities were mismanaged.
Calling for a more entrepreneurial attitude, the report said: “The museums and galleries have achieved a creditable performance in generating their own income but there is unrealised potential.
“There is scope for growth across a wide range of activities including catering, shops, mail order and e-commerce. The museums should appoint more entrepreneurs as trustees and encourage boards to appoint entrepreneurial directors.”
According to the report, most museums have a shortage of business management skills and fail to reach unrealistic goals through ineffective measures.
The report encourages museums to set five-year targets for income growth, with milestones against which they and the DCMS can monitor progress.
It said: “Targets should be supported by plans based on a systematic review of their assets and opportunities, an appreciation of which areas are most profitable and an assessment of risks.”
The report also calls for the museums and galleries to have a better understanding of the costs they incur in generating income, as many museums do not have a grasp of the actual profit they are making on the activities – leading to a situation where some activities are in fact losing money for the institution, rather than bringing it in.
PAC stated that fundraising and venue hire were still the most promising areas for growth, while the inability to borrow money – due to government controls over public sector lending – continues to be a constraint on generating income for many larger museums and galleries.
The 17 DCMS-sponsored institutions received state grants worth £270m in 2002-03. Details: www.publications.parliament.uk
More News
- News by sector (all)
- All news
- Fitness
- Personal trainer
- Sport
- Spa
- Swimming
- Hospitality
- Entertainment & Gaming
- Commercial Leisure
- Property
- Architecture
- Design
- Tourism
- Travel
- Attractions
- Theme & Water Parks
- Arts & Culture
- Heritage & Museums
- Parks & Countryside
- Sales & Marketing
- Public Sector
- Training
- People
- Executive
- Apprenticeships
- Suppliers