Friends of the Zeiss Statement
of
Telephone: 412-561-7876 Allegheny Regional
Electronic Mail: < friendsofthezeiss@planetarium.cc
> Asset
District:
Internet Web Site: < http://www.friendsofthezeiss.org
> 2005 August 29
Good evening, I am Glenn A.
Walsh of
Last year, the Children’s
Museum Executive Director told you that the Children’s Museum would finish
Fiscal Year 2005 with a surplus. And, sure enough, in the narrative of this
year’s grant application, the Children’s Museum claims a small surplus.
However, when I went to the financial report, I could not find this surplus!
I discussed this apparent
discrepancy with Mr. Donahoe and Ms. Marks, last week. They suggested that with
the addition of money from the Museum Endowment or cash reserves, and
disregarding the Depreciation line-item, the claim of a surplus may be
legitimate.
I do note that, in last
year’s grant application, the Children’s Museum projected a balanced budget for
FY 2005, including the Depreciation
expense. And, for this balanced budget, they only projected using $69,000 of
investment income; this year’s financial report shows that more than $535,000
was used in cash reserves. I also note that this year’s grant application
reports that the ratio of unearned income to earned income is now 53% to 47%
while the ratio prior to their expansion was 37% to 63%; their stated goal, for
2008, is a ratio of 40% to 60%.
Well, if the claim of a small
surplus is legitimate, then the next question is whether this financial
performance can be sustained in future years, once the novelty of the new
building has worn-off—and, with the
new challenge of continually escalating gasoline prices? Moreover, can they
return to the 60% range for earned income?
The Children’s Museum seems
to understand the challenge in front of them, as they are now proposing an
advertising campaign for the first quarter of next year to attempt to expand
the audience they serve. When I spoke to you last year and suggested that the
return and operation of historic Buhl Planetarium artifacts could expand their
audience and increase their revenue, I was questioned whether they could, then,
still be considered a Children’s Museum.
Well, the ad campaign will
seek to convince 8-to-13 year-olds that the Children’s Museum is a “cool” place
to be! Particularly considering their current exhibits, how many early
teenagers do you know that would think of the Children’s Museum as a “cool”
place to be?
The Children’s Museum does
need to expand their audience. I urge you to ask them to reconsider this ad
campaign-—and do something that could really expand their audience. Return
several of the historic Buhl Planetarium artifacts to operation in the
building, particularly the Zeiss II Planetarium Projector that, prior to its
2002 dismantling, was the oldest operable
major planetarium projector in the world !!!
Thank you.
gaw
[Reverse Side – Children’s Museum FY
2006 Grant Application excerpt:
Ad Campaign
aimed at 8-13 year-olds]