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Business Models and Financial Instruments for the museums, libraries and archives sector: Review of the Literature and Survey Findings

Publications:
Main Document 2.56 MB

Freshminds

2008

Intended purpose and/or audience:

Policy makers, practitioners, fundraisers

This work aims to answer two questions: 1) What is the capacity of the sector to innovate and develop new business / funding models? 2) How can the MLA Partnership best support the development of more sustainable models across the sector?

The work contained in this report describes the current state of thinking on sustainability and links it to the museums, libraries and archives sector. The focus is on financial sustainability and the business models necessary to secure it. Financial sustainability is only one component of the concept but it is a fundamental one as only financially solvent institutions will be able to achieve their mission in promoting and sustaining wider cultural and social goals.

The second portion of the report contains the results of a survey conducted with sector organisations. The extensive survey of English museums, libraries, and archives was designed to test the findings and issues raised in the initial portion of the research to understand how the sector is performing and how its performance measures up to existing
theory.

General Survey Findings
1. 89% of organisations surveyed said they ‘agreed slightly’ or ‘agreed completely’ with the statement that they “should be entitled to significant government funding given the public service they provide”. Even leaving aside the question of whether or not such organisations ought to be fully funded by government, the fact is that government funding is being cut in the sector. A sense of entitlement in this regard may be inhibiting organisations from actively exploring alternatives to better ensure their sustainability in the face of change.

2. However, the majority of organisations believe they could do more to be sustainable. 68% of all organisations felt that they could be doing more in aid of financial sustainability of which 26% felt that they could be doing a lot more. Libraries were the organisation type that was most open to the possibility they could do more, up slightly on museums, and quite significantly on archives.

3. 75% of organisations surveyed feel they should diversify their income streams and 74% believe that they could potentially use commercial activities as a source of income.

4. 24% of total respondents believed that their organisations were below average in achieving financial sustainability.

5. An organisation that feels that it is sustainable is statistically more likely to:

• Have a larger turnover
• Have more employees
• Be non-Local Authority
• Perceive fewer barriers to sustainability
• Feel that there is less that they can do to improve
• Characterise their organisation as innovative and development oriented.

Publisher


MLA Council

Year published


2008

Commissioned by


MLA Council

Authors


Freshminds

Domains


Archives
Arts organisations
Historic environment
Libraries
Museums

Geographical coverage


International
UK
England

Other keywords


Fundraising
development
business models
financial instruments

Programmes


Cultural Entitlement

Social groups


Children and young people

Social outcomes


Celebrating local identity