<< Chapter < Page Chapter >> Page >

As the 1960s drew to a close, so did the presidency of Frederick B. Adams Jr. Under his leadership, the Society completed a successful campaign that helped finance major capital renovations; the Society's board was restructured and the Society's first female trustee was elected; the Society adopted a total return ap­proach to the spending of investment proceeds from endowment; and the Pintard Fellows were established. In addition, the Society's renovated exhibition spaces and expanded emphasis on public programs positioned it to serve a larger con­stituency than it ever had before.

Not all the news had been good, however; the latter part of Adams's tenure exhibited a shift away from the careful stewardship that characterized his early years. Whereas Adams had shown great caution in 1963, warning the Society of impending budget problems and urging a capital campaign even as the Society was running surpluses, he and the board did not anticipate or respond to the financial difficulties of the late 1960s. There is no mention of financial concern in the remaining reports of the period; in fact, it was not until 1970, after the Society suffered its first operating deficit in many years, that Adams sounded the alarm. That was the first year that the Society's total return investment policy and 5 percent spending rule did not provide sufficient income to cover expenditures. As he turned over the presidency to Robert G. Goelet, Adams warned that "the prospect for 1971 and beyond is not cheerful; we shall have to draw heavily on our carefully husbanded Reserve Fund balance to make up operating deficits."

Formula for disaster: dramatic change outside, status quo inside, 1971-1982

The 1970s proved to be an extraordinarily difficult decade for all cultural insti­tutions, especially those that depended on endowment for much of their income. The "stagflation" of that period affected these institutions negatively in terms of both revenues and expenses. On the revenue side, the recessionary economy that prevailed during the early 1970s reduced the return on these institutions' investments, driving down total income. In 1973 and 1974, for example, the annual total return for domestic common stocks was -14.8 percent and -26.4 per­cent, respectively.

Kennedy and Schneider (1994, p. 19).
As for expenses, inflationary pressure from the oil crisis, among other things, drove up the cost of operations during the same period.

The Society's ability to meet the challenges was constrained. First, the capi­tal improvements and renovations had reduced the Society's unrestricted reserves, inhibiting its financial flexibility. Second, and equally important, the Society con­tinued to move aggressively to expand its services to a rapidly growing public constituency just as the financial noose was tightening. As had happened at other times in the Society's history, the expansion of services (and the concomitant growth in expenditures) was not matched by a comparable growth in existing rev­enue or by the identification of new sources of revenue.

Questions & Answers

meaning of monopolystic competetion?
Jethail Reply
can I join the group
what is economic integration
Mohamed Reply
why does it makes sense to let the sewage disposal company in your town have a monopoly?
Janice Reply
how might a monopoly affect price?
how might a monopoly affect prices?
The principle of Economic is one to be involved in any economic buying substance
Anastassiya Reply
reason of corporation
What is economic integration
what are the principle of economics?
oche Reply
What is (Qs)
Bigi Reply
What is (Qs) and (Qd)
Quantity of supply and Quantity of demand
Qs: Is quantity of supply and Qd: quantity of demand
give as me quantitys
among all the definition of economics which of the definition is generally acceptable?
i science that studies human behavior as a relationship between ends and scarcity that have alternative uses
what are the principle of economics?
what Make things scarce
Soudani Reply
why do we studied economic
for the stability and growth of any reign.
what is macro economics.?
which part of economics is interesting..
what is economic integration
can somebody defined economic stability
macroeconomic is the part of economic that deals the as whole or as a nations.
so what is national economic
national economic is whole economy of your country
what is the difference between microeconomics and macroeconomics
what's cardinal utility theory
what is economic development?
how does economics define me
clement Reply
what are the factors that determines the demand and supply
what are the importance of Economics
Betty Reply
tell me something very important about economics..
Fayaz Reply
how may I solve arithmetic mean ,,,all example
Cee Reply
what is agriculture
Itoe Reply
simple method of understanding cost concept
Oludare Reply
what is inflation
Christiana Reply
Inflation is a general increase in price levels
is the action of inflating something
inflation is the persistent increase in general price level of goods and services in an economy over a considerable period of time .
inflation is the general increase of a commodity in a particular period of time.
inflation is a general increase in price levels of commodities
what are the types of inflation?
inflation is the period of persistent rise in the general level of the price of goods services over time
we have creeping inflation, demand pull inflation ,cost push inflation, and galloping inflation .
I s Nigeria in any kind of in inflation? If yes which kind?
please can someone help me with the principles of economic?
and u
no discassion just question
what is science and art economic
how can a location of a firm create difference between producers
joy Reply
what is monetary policy
is a monetary from policy that's authorized of country encharces
explain why Nigeria adopted labour intensive techniques to capital intensive techniques
Terdoo Reply
in a comparison of the stages of meiosis to the stage of mitosis, which stages are unique to meiosis and which stages have the same event in botg meiosis and mitosis
Leah Reply
Researchers demonstrated that the hippocampus functions in memory processing by creating lesions in the hippocampi of rats, which resulted in ________.
Mapo Reply
The formulation of new memories is sometimes called ________, and the process of bringing up old memories is called ________.
Mapo Reply
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get the best Algebra and trigonometry course in your pocket!

Source:  OpenStax, The new-york historical society: lessons from one nonprofit's long struggle for survival. OpenStax CNX. Mar 28, 2008 Download for free at http://cnx.org/content/col10518/1.1
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'The new-york historical society: lessons from one nonprofit's long struggle for survival' conversation and receive update notifications?