Campaign News

President's Message:  Jan. - Feb. 2006

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"The Art of Discretion"

Shakespeare’s affable and endearing character Falstaff once admonished, “Discretion is the better part of valor.”

That may be so. For who among us really prefers to act rashly, throwing caution to the wind —especially when it comes to money?

Of course, there are those moments of spontaneity, when a purchase may simply be too hard to resist. But at The Huntington, spending wisely, and very deliberately, is a discipline we live by, day in and day out.  Which brings me to the matter of discretion at The Huntington-- discretionary funds to be more precise, and the lack of them until very recently.

As individuals, we all understand how valuable discretionary funds can be. This is “rainy day” money, set aside for unanticipated expenses; it’s also funding to be used in case a sudden, not-to-be-missed opportunity arises. Ideally, we put money away to provide a nice cushion; certainly that’s what financial advisers counsel us to do. For an institution, discretionary funds provide critical flexibility.

But the fact is, The Huntington never really has had discretionary funds.

Our operating budget has been so tight that we use all our resources to sustain current programs and staff. Our deferred maintenance problems—garden irrigation and library electrical systems both in dire need of overhaul—are directly related to our inability to address normal maintenance issues. These are places where discretionary funding can be helpful. But when I think about special “rainy day” funds at The Huntington, I’m not necessarily thinking about fixing things; I’m also thinking about inspiring people.

Discretionary funds provide the fuel for entrepreneurship, enabling staff to launch new programs, for instance, that otherwise might not have been possible. Discretionary funds give a whole different kind of vitality to an institution: it’s seed money, and it leverages new ideas, brings possibilities to fruition.

Recently, we’ve received two wonderful gifts that enable us to do just that.

David and Ellen Lee have pledged $100,000 to establish a venture fund to help encourage giving to the Chinese Garden. We are grateful for their leadership and vision in giving a gift that will be used to inspire others regarding this monumental project.

The H. Russell Smith family has thought about the importance of venture funds as well, and for that we are extremely appreciative. Recently Russ Smith and his son Stewart pledged a $2 million gift to endow The H. Russell Smith Foundation Presidential Discretionary Fund, with the intent to stimulate innovation at The Huntington. Russ Smith has been a longtime Huntington friend. (He previously endowed the Library position of Curator of Western American Manuscripts.) Said Stewart Smith, a Huntington Trustee, “We are drawn to make this pledge by the possibility that over time the president will be able to make significant expenditures out of the fund which are of an entrepreneurial nature, ones that experiment with promising new ideas that would not otherwise receive seed capital support through the usual budgetary process. In this way, we envision that the fund will assist the president in assuring that The Huntington remains a dynamic and progressive institution.”

We are enormously pleased by the Smiths’ very generous gift and their commitment to the innovative spirit of this place. Discretionary funds introduce flexibility into an organization and encourage staff to think creatively, knowing there is a means to implement their ideas. Discretionary funds liberate us to take advantage of opportunities. This energy creates a more nimble institution and a stronger one.

Steve Koblik, President