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Indianapolis Art Museum Cutting 29 Jobs

By Network Indiana

Posted March 4, 2013

The Indianapolis Museum of Art announced Monday it is cutting 29 jobs, or 11 percent of its workforce in what it calls "strategic restructuring."

The jobs will be eliminated across all departments, and a press release says the museum will rely more on donated and earned revenue for its operating expenses.

In the release, museum chair Judy McCormack says a resolution was passed unanimously by its Board of Governors to reduce the IMA‘s reliance on its endowment. The endowment had a value of $326 million as of 2012, but the portion of the endowment available for operating expenses is $203 million.

The museum says it is making the move because investment managers do not believe non-profits will earn as much money in the immediate future.

"These are difficult changes, but it is imperative that we reduce our reliance on the endowment so future generations can benefit from it," said museum CEO Charles Venable in the written statement. "In my opinion, endowments ideally should not be used to support more than 50 percent of operations as a rule with the other half being supported through donations and earned revenue. It pains me greatly that we have to make staffing reductions at this juncture, but it was clear that they were necessary."

The release says the IMA relies on its endowment to fund more than 70 percent of its operating budget. Additional revenue comes from philanthropic giving, museum memberships, and earned revenue such as exhibition tickets.

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