Campaign News

President's Message: Nov. - Dec. 2007

Previous messages:
Free Day Revisited  (Sept-Oct 07)

Power of Gifts-in-Kind  (July-Aug 07)

Breadth and Depth of Exhibitions  (May-Jun 07)

Burndy Library  (Jul-Aug 06)

Every Member Counts   (May-Jun 06)

Power of Collaboration  (Mar-Apr 06)

Art of Discretion  (Jan-Feb 06)

Generations to Come  (Nov-Dec 05)   

"Working Together, Growing Stronger"

Six years ago, the Trustees of The Huntington gave me a formidable challenge: to significantly improve the financial condition of this institution.  Historically, The Huntington had been underfinanced with a relatively small endowment, few optional revenue streams, too high a “take-out” rate (the percent of endowment income we spend each year), and very rigid budget discipline that limited programmatic activities. During Bob Skotheim’s tenure as President (1988-2001), the institution repositioned itself, strengthened its internal management, raised new support for two programmatic initiatives (the Library and the Gardens), and made significant progress. Still, when I arrived, the fiscal limits seemed daunting. Our take-out rate was near 7 percent, and  possible future deficits demanded strong action.

Happily, I can report today that we are making real headway on the challenge posed by the Trustees.  I say “we” because it has been the effort of many different constituencies—staff, volunteers, members, and donors—working together that has made this progress possible.

Staff continues to demonstrate remarkable efficiency and imagination.  The growth of expenditures in our operating budget has been less than 4 percent annually despite the expansion of new programs. Staff size remains relatively constant requiring everyone to add new responsibilities to already existing demands. Yet staff morale is high.  Working at The Huntington is challenging, and rewarding.

Volunteers feel the same way. More than 1,000 volunteers provide support in all facets of the institution. Without their contributions of time and talent, The Huntington simply could not operate. Conservative estimates of the fiscal value of their work exceed $700,000 per year—equivalent to a $14 million endowment.

Each member supports The Huntington, as well. Membership has increased from 18,000 to 26,000. Upper level memberships play an even more important part in our financial picture. Giving at all levels of the Society of Fellows has increased dramatically. This philanthropy is crucial to our progress.

All of this is happening in the context of a major comprehensive campaign, the most ambitious fund-raising effort The Huntington has ever undertaken. We launched it three years ago. Now, half-way through, we have raised 80 percent of our goal. Major gifts, planned gifts, pledges, grants, gifts small and large to capital projects, to annual giving as well as to the endowment—every gift and every donor has helped improve The Huntington’s financial position.

Our long term goal is to grow the endowment so that it can cover half of the annual operating costs. In order to achieve this goal, two changes must occur simultaneously: the annual take-out rate must be lowered to 5 percent, and the endowment needs to grow to a more than $300 million dollars. Thanks to a recent commitment made anonymously by one of our Overseers, we can implement the first change immediately. For each of the next five years, this generous donor will give us $1 million for the express purpose of reducing the annual take-out rate to 5 percent, which puts us in line with industry standards. The less we spend, the more we have to reinvest. We can meet our current needs without mortgaging the future. This is an extraordinary gift from a wonderfully far-sighted donor.

But we still have work to do.  We need to continue to build our endowment through wise investment and new gifts.  And while we accomplish that goal, we’ll continue to depend on annual giving.  A dollar today is like having $20 in the bank. There’s an inextricable relationship—just as we are all bound together in our passion for The Huntington.   

Steve Koblik, President