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The Ross advisory committee in March 1993 outlined a plan for how the Society could begin to generate a sound capital base through sales of some of its collections and development of a part of its real estate. Whether such a plan can be a success depends on many factors, not the least of which is the time it will actually take to generate money from these initiatives. No one knows whether fol­lowing these recommendations will allow the Society to remain independent, but regardless of the specifics of its plan for survival, there is one hurdle the Society must clear if it is going to pursue this course.

The Society must balance its budget. For a quarter of a century, Society lead­ership has justified deficits with claims that excess expenditures were an invest­ment in the future, that they were necessary to show that the Society was an institution worth supporting. The Society is suffering the effects of those invest­ments. Today, not only is the endowment almost gone, but $1.8 million in loans remains outstanding. No single thing the Society can do will go further to restor­ing public confidence in the institution and its leadership than a balanced budget.

A stable and viable financial plan will require involvement from each and every one of the Society's many constituencies, but the single most important par­ticipant is the public sector. Lack of timely public support was one of the key rea­sons for the failure of the Society's bridge plan in the late 1980s. Significant public support is the one variable that has changed that makes considering an indepen­dent path for the Society possible.

It must be understood, however, that the type of public sector support mat­ters a great deal. The Society must convince the city and state to provide unrestricted general operating support. What brought the Society to the brink of bankruptcy was not so much lack of support—the Society raised more than $20 million dur­ing the Debs administration, much of it in the form of restricted program grants—it was the lack of unrestricted support. As the Society's unrestricted cash balances dwindled, so did its ability to make payroll and pay bills for such basics as utilities. Unfortunately, because of the heightened publicity surrounding the Society, there is some risk that government support could be linked to new programs of community outreach. Such a linkage would be self-defeating; designing and manag­ing such initiatives is expensive and is unlikely to result in any new net income to operate the institution.

Barring significant annual support from the public sector, the Society would once again have to depend on private contributions. Given its recent history, how­ever, it is unlikely that the Society can raise the substantial sums required through annual appeals. If the Society is to be successful in such a scenario, it will re­quire an extremely large donation from a private benefactor to replenish its unrestricted endowment.

Option 2: dissolve the society and distribute the collections

The most drastic alternative the Society could choose would be to dissolve itself and sell or otherwise distribute its collections. Choosing this option would amount to an admission that the Society does not have a sufficiently broad support base to justify keeping its collections together and in a single independent institution. In addition, to argue for such an alternative, one must put aside one's concern for the institution and instead place more emphasis on the collections and on what maximizes the use of the limited public resources available to care for them. Put simply, it says that the Society as a whole is worth less than the sum of its parts.

Questions & Answers

List and explain four factors of production
Vuyo Reply
capital labour entrepreneur natural resources
Thembi
What is supply
Ogodo Reply
when the supply decreases demand also decreases
Thembi
types of demand and the explanation
akin Reply
what is demand
akin Reply
other things remaining same if demend is increases supply is also decrease and if demend is decrease supply is also increases is called the demand
Mian
if the demand increase supply also increases
Thembi
you are wrong this is the law of demand and not the definition
Tarasum
Demand is the willingness of buy and ability to buy in a specific time period in specific place. Mian you are saying law of demand but not in proper way. you have to keep studying more. because its very basic things in Economics.
Hamza
Demand is the price of Quantity goods and services in which consumer's are willing and able to offer at a price in the market over a period of time
Umar
Demand is the quantity of goods and services that the consumer are willing and able to buy at a alternative prices over a given period of time. But mind you demand is quite different from need and want.
Tarasum
Demand can be defined as the graphical representation between price&demand
alkasim
sorry demand is nt a graphical representation between price and quantity demand but instead that is demand curve.
Ebrima
Demand is the willingness and ability of a consumer to buy a quantity of a good over a given period of time assuming all other things remain constant.
Vedaant
what is commercialization?
Doris Reply
How to talk loan for bank?
Alfred Reply
what is the meaning of gpa?
Ritisha Reply
Answer: GPA stands for Grade Point Average. It is a standard way of measuring academic achievement in the U.S. Basically, it goes as follows: Each course is given a certain number of "units" or "credits", depending on the content of the course.
Yusuf
what is small and Microbuisenes
tadesse Reply
What is fiscal policy
Dansofo
Who is the funder of Economic
Dansofo
founder , that is Adam Smith
Daniel
what is model
Daniel Reply
The wealth of Nations
Yusuf Reply
the wealth of nations, is it the first?
Umar
Yes very sure it was released in 1759
Yusuf
thank you Yusuf.
Umar
then when did he died?
Umar
17 July 1790 Born: 16 June 1723, Kirkcaldy, United Kingdom Place of death: Panmure House, Edinburgh, United Kingdom
Yusuf
1790
Yusuf
that's my today questions, thank you Yusuf it's bed time see u after.
Umar
what is fiscal policy
kemigisha Reply
what's mode?
Umar Reply
mode is the highest occurring frequency in a distribution
Bola
mode is the most commonly occurring item in a set of data.
Umar
Please, what is the difference between monopoly and monopsony?
Olaleye Reply
is there monopsony word?
Umar
I have no idea though
Umar
please, in which year Adam smith was born?
Umar
monopsony is when there's only one buyer while monopoly is when there's only one producer.
Bola
who have idea on Banter
Ibrahim
like trade by barter?
Bola
Monopoly is when there's excessively one seller and there is no entry in the market while monopsony is when there is one buyer
kemigisha
Adam smith was born in 1723
Bola
 (uncountable) Good humoured, playful, typically spontaneous conversation. verb (intransitive) To engage in banter or playful conversation. (intransitive) To play or do something amusing. (transitive) To tease mildly.
Umar
which book Adam smith published first? the first book of Adam smith pls.
Umar
wealth on nation, 1776
Daniel
what is market power and how can it affect an economy?
Gab Reply
market power:- where a firm is said to be a price setter.market power benefits the powerful at the expense of others.
Umar
Market power refers to the ability of a firm (or group of firms) to raise and maintain price above the level that would prevail under competition is referred to as market or monopoly power. The exercise of market power leads to reduced output and loss of economic welfare
Kartheek
find information about the national budget
Molahlegi
three branches of economics in which tourism is likely to figure
Makgotso Reply
What are those three branches?
IlRegno
Difference between extinct and extici spicies
Amanpreet 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
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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
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