Arts Institutions Face Financial Distress

Facing financial disaster, the Los Angeles Museum of Contemporary Art is seeking large cash gifts from donors, according to the museum’s director, Jeremy Strick, who is not ruling out the possibility of sharing the museum’s collection of nearly 6,000 artworks or merging with another institution, reports the Los Angeles Times.

While the museum’s staff size has continued to grow, its reserves have dwindled to pay operating expenses, according to federal tax returns, which show signs of financial distress even before the current national crisis, the newspaper says. In mid-2007, the museum’s investment portfolio was worth $20.4-million, down from $36.2-million in mid-2006, the newspaper reports.

In Philadelphia, arts and cultural groups are also feeling the pinch as they brace for budget cuts following the mayor’s announcement that the national economic downturn has hit the city hard and will result in significantly reduced support, reports The Philadelphia Inquirer.

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