MUSEUMS: The Rise Of The Transformers

the age for transformationLee Foxa new art in raising fundsfrom different generations

June 2014

an age of transformation

Evolutionary leaps in the history of human progress are directly linked to the adoption and the adaption of powerful tools both invented and discovered.

The arch of humanity is shaped by these tools, as the norms of one ‘Great Age’ are chiseled away in favor of the next.

2014 marks the “25th year” of the internet, it also marks a new generation — that of the transformers.

1983

TCP/IP protocol

Matures Boomers GenX GenY GenZ Alphas

Adopters Transformers

1972

1st video game

1989

World Wide Web

1993

1st Browser for Personal

Use

1927 -1945 1946 -1964 1965 -1983 1984 -1996 1997 - 2009 2010 - now

1973

1st mobile phone

1969

1st computer message

1998

Google launched

1947

Polaroid camera

1936

high-definition TV

2004

Facebook launched

2007

iPhone

2010

Kickstarter launched

2014

Bitcoin emerging

Age of INFORMATION Age of TRANSFORMATION

digital transformation is about engagement

• The Maker Movement and accessibility of digital resources

• socially-constructed learning

• “co-creation” versus “broadcast”

• “data check-ins” with rewards

• digital discovery and cultural vitality

• “use” rather than “ownership”

90/8/2 rule

• 90% of collection should be freely available for people to view and share

• 8% of collection should be identified as having commercial potential

• 2% should be focused on licensing and distribution to generate revenue

Source: Nicholas Poole, Chief Executive at Collections Trust

the future of philanthropy is feedback

• facebook (1.5B registered 1.1B active)

• twitter (554M registered 255M active)

• pinterest (70M registered 40M active)

• google+ (540M registered 350M active)

• youtube (1B unique visitors monthly)

• tumblr (186M blogs)

• linked in (300M registered 187M active)

• vine (40M registered)

• instagram (200M registered 150M active)

• snap chat (60M registered 30M active)

• reddit (109M active unique visitors)

adapting to it• Matures - (age 69+)

• 88% give

• 6.2 charities

• telemarketing

• monetary donations are the most powerful

27M

• 26% of total giving

• $1,367 annually

• direct mail / email

• honor, tribute, gift, donation of goods

traditionalmake it…

“legacy”

Source: PEW Research

43%

adopting it• Boomers - (ages 49-68)

• 72% give

• 4.5 charities

• direct mail / email

• monthly giving programs

79M

• 43% of total giving

• $1,212 annually

• tablets

• payroll deductions

easymake it…

“multi-channel”

Source: PEW Research

60%

adept at it• GenX - (age 48-36)

• 59% give

• 3.9 charities

• email / social media

• workplace giving

49M

• 20% of total giving

• $732 annually

• word of mouth

• stocks

convenientmake it…

“work-centric”

Source: PEW Research

72%

altering it• GenY - (age 35-18)

• 60% give

• 3.3 charities

• word of mouth / text / social media

• peer-to-peer / crowdfunding

86M

• 11% of total giving

• $481 annually

• events / volunteering

• social currency

decentralizedmake it…

“co-created”user generated content is trusted 50% more than other media

Source: PEW Research

89%

transforming it• GenZ - (age <17)

• 90% give

• 49% of girls have given of their time at least once vs 39% of boys

• 74% of teens (12-17) are “mobile internet” users

• 75% of all teens text

• 81% of all teens use some kind of SSN

25M

• not measured in total giving

• 95% of teens use the internet

• 1-in-4 teens is cell-mostly internet users

• 60 texts / day on average

mobile & funmake it…

“social”voluntrepreneurs

Source: PEW Research

When Transformers “give” their contributions are more than financial.

They want brand counterparts

to ‘value’ their opinions, expertise, co-creations, social currency, time, and

money equally.

!

What can you do to show them their contributions

matter?

LouvreNat’l Natural History

Nat’l Museum of ChinaNat’l Air & Space

British MuseumMetropolitan

National GalleryVatican Museums

Natural HistoryAmerican Natural History

Nat’l American HistoryTate Modern

Nat’l Palace MuseumNat’l Gallery of ArtCentre Pompidou

Source: AEOCM: Themed Entertainment Association

today’s most popular museums & galleries

$16$0$0$0$0

*$25$0

$22$0

*$22$0$0$5$0

$17

entry price

9M

Museums Total Revenue

Government Support

Private Individual Donations

Private Corporate Donations

Foundation Support

Admission Fees

Membership Fees

Other Earned Income

Investment Income

decrease increase

Source: American Alliance of Museums

’09, 10, 11, 12

GovernmentSupport24.4%

Private (charitable) giving

36.5%

Earned Income 27.6%

InvestmentIncome 11.5%

Source: American Alliance of Museums

transforming it

museum snapshot (USA)

• 17,500 museums in the 1990s as compared to 35,144 TODAY!

• Museums depend on charitable gifts for more than 1/3rd of their operating funds.

• Museums directly contribute $21B to the national economy, employ 400,000+ people and attract 165M tourists annually.

• Vast majority were established as educational institutions and grew with investment & collections.

Patronage

1884 – 1885 Statue of Liberty

!$100,000

raised in 6 months !

125,000 people participated

!Joseph Pulitzer Campaign Promoter

(recognize this museum?)

Do you know the value of your museum’s social currency?

donationsmentionsRT’stweetssharescommentslikes

Chart published by the Palazzo Madama Museum

Top 10 Crowdfunding Tips1. RELATIONSHIPS mean everything

• the funding process creates long-term connections to existing and new people

• breadth versus depth

2. SEGMENT & AUTOMATE

• draft personalized emails

• create incentives / rewards for sharing

• involve passion-based communities

• social media implementations

3. MESSAGE CLARITY

• be very clear, you only have 3-seconds to get the ‘buy-in’ of a prospective contributor

4. HAVE A PLAN

• communication plan vs PR plan

• identify which tools you will use

• track-back your results

• drop-box for seamless sharing

5. CROSS POLLINATE

• multi-generational approach

• multi-passion communities

• give people something to share

6. TAP INTO INFLUENCERS

• experts and media

• board members and bloggers

• educators and patrons

7. PLAY ON EMOTIONS BUT INVITE CONVERSATIONS

• individuals

• communities

8. MAKE YOUR STORY COME TO LIFE

• 65% of all internet searches are video-based

• crowdfunding campaigns with good videos average 114% more funding than those without

• caption contests

• families

• tourists

• podcasts

9. MAKE IT EASY TO SHARE AND FOLLOW

• social media / fan pages

• email / newsletters

• texts / mobile apps

• (what reasons are you giving them?)

10. IT’S NOT ALL ABOUT THE MONEY

• validation

• community-building

• recognition

• direction

unleash your genius

(try a virtuous selfie)

THANK YOU & QUESTIONS?

Lee Fox!

@PeerSpring

[email protected]

A Tale of Two Museums

• Delaware Museum - houses 12,500 pieces of art

• Reeling from bond debt after an expansion + renovation in 2005, museum has to put up art for sale to raise $30M

• It took the trustees 4 years to raise $6.7 million of a $10 million campaign to celebrate the museum’s centennial, not being enough, the museum resorted to selling some prized art pieces, an ethical violation of public trust

• Bell Museum - houses 4 million specimens of animals, birds, plants, insects and other species

• In 2002 it started a multi-year campaign for state funding to build a new facility with the estimated price tag of $51.5M

• Museum was incapable of raising enough money, so it resorted to selling bonds.

http://www.startribune.com/sports/outdoors/259469281.html

http://blogs.artinfo.com/realcleararts/2014/05/05/insiders-duel-on-delaware-deaccessioning-dilemma/