XIIICrowdfunding the Museum: Fundraising for Museums in the Digital Age

  • Kate Rice, The George Washington University

In order to survive unexpected financial hardships (such as the pandemic, decline in federal support, and growing operational costs) museum development departments work hard to secure future funding to adequately serve their constituents and preserve histories.1 Development departments tackle generating individual, foundation and corporate support for their institution. Routine development activities include monitoring grant opportunities, conducting research on target audiences and their giving patterns, and consistent transactions with potential and previous donors to build strong, long-lasting relationships.2 However, in response to the increasing presence of digital technology, museum processes have shifted as tasks revolve around online grant applications, copious amounts of internet research, and membership database management. Additionally, museums have begun to consider new technologically enabled funding sources and approaches to fundraising such as crowdfunding. According to the American Alliance of Museums, crowdfunding is a form of microgiving (soliciting small amounts of money from a large group of donors) that “exploits the potential of social networking tools and distributed technology.”3 In the 2012 issue of TrendsWatch, the AAM published an article on crowdfunding and its applicability to museums, stating the process relies on relationships just like traditional philanthropy.4 While crowdfunding works by asking a multitude of individuals for small donations and museums usually focus on a few donors for large funds, it is a worthwhile strategy for development departments as it capitalizes on the philanthropic and personalized outreach the teams engage in daily.

This paper will utilize examples from Museum of Food and Drink, the Tesla Science Center, the Smithsonian’s National Museum of American History, and the American Friends of the National Gallery of Denmark to consider the role of crowdfunding in a variety of museum projects. By providing greater understanding of crowdfunding, including its history and major platforms, and its effective projects within museums, I aim to promote crowdfunding’s utility for the field while recommending strategies as the industry shifts to requiring a virtual presence for success.

Historically, entrepreneurs in America sought funding from friends and family, limiting their financial backing networks to their direct contacts. The rise of the internet vastly expanded opportunities for funding as microlending and peer-to-peer lending gained popularity. While microlending – the practice of loaning small amounts of money traditionally to entrepreneurs in rural places – existed before the internet, websites such as Kiva, launched in 2005, facilitated and popularized the practice. By providing pictures of the entrepreneur, a description of the loan and the terms of repayment, potential donors could invest in causes that aligned with their beliefs.5 Peer-to-peer lending follows a similar format, allowing individuals to submit funding requests.6 The limiting factor of small networks that plagued traditional friend-and-family offerings becomes null as people bond globally through social media. Not only does social media connect unlikely friends but it provides a platform for people to share causes they believe in.

The technical capacity for crowdfunding evolved as companies such as Indiegogo and Kickstarter provided platforms for people to launch campaigns and fund passion projects. However, until 2012, legal hurdles prevented institutions from taking advantage of this potential avenue for funding. Then, President Barack Obama signed the Jumpstart Our Business Startups Act (JOBS) Act that eased restrictions on businesses, allowing them to use general solicitation, specifically those approved by US Securities and Exchange Commission (SEC). By 2015 crowdfunding portals were legally approved for companies, including non-profits, to use to gain early-stage capital, offering opportunities for smaller donors.7 With the legal go-ahead, museums began using crowdfunding to supplement their fundraising strategies, engaging constituents around the world.

The three major types of crowdfunding are Project Crowdfunding, Accredited-Investor Crowdfunding (Title II), and Social Media Crowdfunding (Title III). Project Crowdfunding is when an individual or company asks for donations for an idea or project and provides a tangible return on their investment. Since this is not investing in a company itself, it is not regulated by the SEC.8 This is one of the more popular forms of crowdfunding, empowering creative people to test their products and find worldwide supporters. Accredited-Investor Crowdfunding (Title II Crowdfunding) permits entrepreneurs to sell securities if they were not raising $1 million in a year and only allows accredited, rich investors (who could afford to lose their investments) to take stake in the project. Allowing companies flexibility in their approach, Social Media or Equity Crowdfunding (Title III Crowdfunding) permits startups to offer securities to less affluent investors, but still people rich enough to afford losing their investments. Most museum campaigns use the Project Crowdfunding model, sometimes offering tangible gifts in return for capital support.

While a third party is not required for a successful crowdfunded project, their streamlined payment processes and communication platforms can aid development departments in their day-to-day work. Two of the main crowdfunding platforms are Kickstarter and Indiegogo.

In 2009, musician Perry Chan launched Kickstarter to help musicians and artists raise money for their creative projects. Understanding the financial burden of recording music and touring, Chan enabled fans to support their favorite artists in reaching their goals in return for a gift like a CD or t-shirt depending on the donation amount.9 Today, guided by the belief that art and creative expression are essential to a healthy and vibrant society, Kickstarter’s mission is to “help bring creative projects to life.”10 Directly connecting creators to their community, the company aims to empower people on creative endeavors, no matter their level of expertise. In 2015, Kickstarter became a Public Benefit Corporation- a for-profit company that equally weighs project effects on society and the shareholders. As of October 9th, 2021 29 million people had backed projects via Kickstarter, donating $6.2 million. At this point, 209,533 projects have been successfully funded.11

Founded by three friends who believed the internet could inspire innovation by bringing people together, Indiegogo aims to “empower people to unite around ideas that matter to them and together make those ideas come to life.”12 Since 2008, Indiegogo has hosted 800,000 projects from 235 countries, averaging around 19,000 campaigns launched monthly.13 Helping entrepreneurs unveil new products before they are largely public, Indiegogo pride themselves on hosting campaigns that are projected to become mainstream, involving backers in the creative process, often offering time-limited perks for early supporters. While Indiegogo empowers creative projects like Kickstarter, there is a heavier emphasis on technology and design.

Case Studies

Museums have used crowdfunding for a wide array of institutional projects from purchasing physical spaces to covering exhibition costs to funding critical conservation. The following crowdfunding campaigns from the Museum of Food and Drink, the Tesla Science Center, the Smithsonian, and the American Friends of the National Gallery of Denmark suggest applications in a variety of museum projects, inform subsequent best practices from their successes and failures.

Tesla Science Center

In 2012, the nonprofit group the Tesla Science Center at Wardenclyffe, joined by the Oatmeal’s Matthew Inman, introduced the Indiegogo campaign “Let’s Build a Goddamn Tesla Museum” to raise money to buy back Wardenclyffe Tower, Nikola Tesla’s old laboratory.14 Intending register the laboratory as a historic site and eventually build a museum, the group was trying to outbid a company planning to build a mall on the land. Trying to match a grant from New York State, the campaign set its goal for $850k to purchase the property.15 “Let’s Build a Goddamn Tesla Museum” reached its goal in six days, thus receiving the maximum grant from New York State as well. The Tesla Science Center at Wardenclyffe announced they purchased the laboratory site and were beginning their $10 million fundraising project for the building of the museum.16

In this example, it is important to acknowledge the involvement of Inman as he provided significant visibility via his blog The Oatmeal. Along with hosting the Indiegogo campaign, Inman used his blog, which boasted “7 million unique visitors and 30 million page views”, to invite small donors and encourage corporate sponsors.17 Inman even designed some of the perks for the campaign including the bumper sticker ($33) and the Tesla Geek Booklet ($333) which were exclusive to donors and not sold on his website otherwise.18 The top donation tier of $33,333 offers a feature on TheOatmeal.com where Inman says, “When I link to things I have a tendency of crashing websites due to the massive storm of traffic, so getting featured here would be fantastic for your business.”19

During the campaign the Tesla Science Center and Inman actively used the “Update” feature on Indiegogo to post short, Tweet-like announcements to their contributors. The most recent updates and comments revolve around missing rewards. In August 2021, user mikeshafer who asks “Heyo – so did this museum ever get built or was this campaign a scam?”20 Before this past August, no one had publicly interacted with the Indiegogo page since 2015 showing a lack of effort by the nonprofit and Inman to update constituents on the process post-funding.

Museum of Food and Drink

In 2013, the Museum of Food and Drink (MOFAD) began a Kickstarter campaign to support their first exhibition, “BOOM! The Puffing Gun and the Rise of Breakfast Cereal” before they found a physical museum location. Aiming to explain origins of the popular American treat, MOFAD wanted to create a mobile exhibition of a puffing gun (used to create aerated cereal like Rice Krispies) mounted on a flatbed trailer to bring scientific discovery around New York City. 21 By displaying a puffing gun, MOFAD hoped to enlighten audiences on industrial food production and mass marketing while providing a snack. Intending to avoid corporate sponsorship by specific cereal brands and allow free visitation, MOFAD set its Kickstarter goal for $80,000 to purchase the trailer and ingredients to puff.

Similar to the Tesla Science Center’s campaign, MOFAD offered an array of gifts for donors. The lowest donation of $10 offered insider information and updates on the exhibit as well as MOFAD wallpapers for electronic devices. Higher level gifts presented donors with custom-made snacks by the puffing gun, admission to a NYC party with prominent chefs or having your name engraved on the exhibition’s puffing gun. 22

Seventeen days after launching on Kickstarter, the Museum of Food and Drink announced the campaign reached its goal and planned to debut the exhibition the next month.23 Additionally, MOFAD instated additional benchmarks where if met founder Dave Arnold would perform food dares such as being raw vegan or paleo for an entire week.24 With the help of 830 backers, “Boom! Museum of Food and Drink’s Explosive First Exhibit” raised $106,503 by the end of its campaign period. Including funds raised outside of Kickstarter, the project earned over $136,000- 170% of its launch goal.25

Throughout and after the campaign’s duration, the Museum of Food and Drink actively kept backers engaged through Kickstarter’s ‘Update’ feature, posting a total of 12 updates in relation to this project. The posts give voice to the MOFAD team, personalizing the project and inviting contributors to participate in the exhibition’s creative process in the comments while constantly offering thanks. In their second update, MOFAD states its excitement and appreciation before sharing articles that have discussed the campaign from sources such as Popular Science, Eater, and the New York Times. They also engage backers by providing a list of the snacks they are planning to puff first- peppercorns, coffee beans, and hot dogs to name a few- and asking for additional suggestions on twitter or in the comments.26 Backers interact directly with the post and each other, postulating what puffing a garlic clove would result in. Subsequent updates revolve around the distribution of perks, information on the opening of the exhibition and the general success of the campaign, constantly thanking backers all the while.

The ‘Comments’ section provides donors a platform ask clarifying questions, but most members of the community have used it as a space to offer congratulations and their excitement about being a part of the Museum of Food and Drink’s origin story.27

The Smithsonian’s Yoga Exhibition

While the Tesla Museum and the Museum of Food and Drink show the ways that new and emerging museums have used crowdfunding to seed their projects, established museums have also used crowdfunding effectively. One of the earliest examples of museum crowdfunding took place in 2013 when the Smithsonian embarked on their first crowdfunding campaign for the Freer | Sackler’s exhibition Yoga: The Art of Transformation. The world’s premier exhibition on yogic art, Yoga brought together 130 artworks from around the world.28 Though the Freer | Sackler is a federal institution where operation costs are covered by taxes, this project posed significant financial requirements for shipping and exhibiting (mounting, labeling, and lighting), influencing the launch of the “Together We’re One” campaign. The staff decided to utilize its development department’s fundraising efforts in an innovative approach by asking more constituents for smaller amounts of money rather than relying on companies for large donations. 29 Run through the museum’s own site, donations would also fund public programs such as workshops and yoga classes for families as well as exhibition takeaway materials. The popularity of the subject matter helped: “Since so many people practice and are enthusiastic about yoga, we’re choosing a format that allows everyone to get involved, not just those who have the means to make large donations.”30 By the end of the campaign, around 600 funders donated over $170,000, making the Smithsonian’s first crowdfunding project a success.31

The Smithsonian’s Ruby Slippers

The Smithsonian’s National Museum of American History launched its second Kickstarter facilitated crowdfunding campaign “Conserve Dorothy’s RUBY SLIPPERS” with the goal of $300,000 in October 2016. Having been on display for over 30 years, Dorothy’s Slippers required immediate care and a new, environmental control display case before taking part in a 2018 exhibition on American pop culture.

The Smithsonian explains the original fast, process of movie prop creation which meant for items like Dorothy’s Slippers “to last only for the brief duration of the shoot” rather than forever.32 With the funds from this campaign, conservators will work with scientists to “understand how [the materials] have changed and the consequences of their natural breakdown” in order to effectively build a display case stabilizes and preserves the shoes. 33 They also ensure that conservation will not change the slipper’s appearance so that they can continue to show their history of being worn during filming.34

In exchange for donations, contributors received a wide array of slipper-related gifts and experiences – some of which were designed by Tony award-winning Broadway costume designer William Ivey Long. Perks ranged from tote bags to exclusive experiences like tours, events, and lectures at the National Museum of American History. With each gift, the Smithsonian outlined how much of the contribution is tax deductible, providing the estimated value of the goods and services offered at each level.

On November 16, 2016, the project was funded successfully with 6,451 backers pledging $349,026 in total.35 Throughout the campaign process, the Smithsonian engaged followers with updates that featured objects from other Smithsonian museums that relate to Wizard of Oz.

Matisse Conservation

In November 2021, the American Friends of the National Gallery of Denmark (SMK) are seeking funding via Kickstarter to conserve a recently found Matisse painting Nymph and Faun so it can be featured in a 2022 Museum of Modern Art exhibition. Henry Matisse: The Red Studio reunites the paintings and sculptures present in the namesake work that showcases the artist’s making space.36 To provide essential care before shipment, SMK is requesting $30,000 to fund this conservation.37

The American Friends of SMK clearly outlines their treatment proposal for Nymph and Faun, informing donors on the specific care they are funding. The conservation required includes deliberate and careful cleaning to restore its original color, retouching previous amateur fixes, and stabilize fissures to prevent further damage. Donations will also support the reframing of Nymph and Faun in a micro-climate frame that would protect the piece from humidity and surrounding temperature changes.

As of October 28th, 2021 “Unique Matisse Painting in Need of Conservation Treatment” has received a total of $9,763 from 33 backers, with 26 days remaining in the campaign.

Conclusion

An overarching theme between the five case studies is their urgent sense of purpose. For Tesla Science Center it was to outbid a corporation; MOFAD wanted to launch their museum, and NMAH and American Friends of SMK had to preserve unstable and influential pieces. This urgency works in tandem with the popularity of the campaign’s topic (Tesla, snacks, the Wizard of Oz, and Matisse respectively) to create a dialogue about the campaign. Since these projects are housed on the internet, it allows museums to expand far “beyond board of director’s network and [taps] into networks of all stakeholders.”38

Crowdfunding employs skills development departments utilize daily, making it a worthwhile strategy to engage in. Like traditional solicitation, crowdfunding involves consistent, clear communication, gifts in exchange for a donation (the good feeling from a charitable act or something like a tote bag), and the opportunity to be a part of a large project of personal interest at the ground level. Not only does it build on these existing practices, but it also helps expand museum communities, connecting people based on their passions instead of focusing on geographic location. By facilitating crowdfunded projects, development departments reach a wider demographic of potential contributors, allowing the possibility for new members and loyal donors even if their base contributions are smaller than traditional corporate partners. From her own campaign experience with the Chabot Space & Science Center Melissa Russo speaks to the accessibility of crowdfunding stating, “The crowdfund model will not replace traditional fundraising practices of facet face cultivation and stewardship in soliciting major gifts from high net worth individuals. Yet, one of the great promises of crowdfunding is that it promotes philanthropy beyond the traditional wealthy donor, allowing for broader public awareness and inclusion in giving.”39

Notes

  1. Neil G. Kotler, Philip Kotler, and Wendy I. Kotler, Museum Marketing and Strategy : Designing Missions, Building Audiences, Generating Revenue and Resources, Hoboken: John Wiley & Sons, Incorporated, 2008. https://ebookcentral.proquest.com/lib/gwu/reader.action?docID=353560 ↩︎

  2. Neil G. Kotler, Philip Kotler, and Wendy I. Kotler. Museum Marketing and Strategy : Designing Missions, Building Audiences, Generating Revenue and Resources, 56. ↩︎

  3. American Alliance of Museums, “Alt Funding,” TrendsWatch: Museums and the Pulse of the Future, 2012: 14. ↩︎

  4. AAM, TrendsWatch, 16. ↩︎

  5. Clifford R. Ennico, The Crowdfunding Handbook: Raise Money for Your Small Business or Start-up with Equity Funding Portals,New York, New York: AMACOM, 2016, 14. ↩︎

  6. Ennico, The Crowdfunding Handbook, 14. ↩︎

  7. Jason Best and Sherwood Neiss, “Crowdfunding: a Historical Perspective,” Crowdfunding: a Guide to Raising Capital on the Internet, Hoboken, New Jersey: John Wiley & Sons, Inc, 2014, 12, https://ebookcentral.proquest.com/lib/gwu/reader.action?docID=1638488. ↩︎

  8. Ennico, The Crowdfunding Handbook, 6. ↩︎

  9. Karen Kerrigan, Understanding the Crowd.” Crowdfunding: a Guide to Raising Capital on the Internet, Hoboken, New Jersey: John Wiley & Sons, Inc, 2014. https://ebookcentral.proquest.com/lib/gwu/reader.action?docID=1638488 ↩︎

  10. “About,” Kickstarter, https://www.kickstarter.com/about?ref=global-footer. ↩︎

  11. “About,” Kickstarter. ↩︎

  12. “About Us,” Indiegogo. https://www.indiegogo.com/about/our-story. ↩︎

  13. “About Us,” Indiegogo. ↩︎

  14. Matthew Inman, “Let’s Build a Goddamn Tesla Museum,” Indiegogo, August 15, 2012. https://www.indiegogo.com/projects/let-s-build-a-goddamn-tesla-museum--5#/. ↩︎

  15. Inman, “Let’s Build a Goddamn Tesla Museum.” ↩︎

  16. Inman, “Let’s Build a Goddamn Tesla Museum.” ↩︎

  17. Matthew Inman, “Help Me Raise Money to Buy Nikola Tesla’s Old Laboratory,” The Oatmeal, https://theoatmeal.com/blog/tesla_museum. ↩︎

  18. Inman, “Help Me Raise Money to Buy Nikola Tesla’s Old Laboratory.” ↩︎

  19. Inman, “Help Me Raise Money to Buy Nikola Tesla’s Old Laboratory.” ↩︎

  20. Mikeshafer, “Let’s Build a Goddamn Tesla Museum- Comment,” Indiegogo, August 2021. https://www.indiegogo.com/projects/let-s-build-a-goddamn-tesla-museum--5#/. ↩︎

  21. Museum of Food and Drink, “BOOM! Museum of Food and Drink’s Explosive First Exhibit,” Kickstarter, 2013. https://www.kickstarter.com/projects/mofad/boom-museum-of-food-and-drinks-explosive-first-exh/description. ↩︎

  22. MOFAD, “BOOM! Museum of Food and Drink’s Explosive First Exhibit,” Kickstarter, 2013. ↩︎

  23. Museum of Food and Drink, “Update: Project Funds Successfully,” Kickstarter, 2013. https://www.kickstarter.com/projects/mofad/boom-museum-of-food-and-drinks-explosive-first-exh/posts. ↩︎

  24. Museum of Food and Drink, “Announcing the Puffing Gun Debut,” Kickstarter, July 18, 2013. https://www.kickstarter.com/projects/mofad/boom-museum-of-food-and-drinks-explosive-first-exh/posts/542218. ↩︎

  25. MOFAD, “BOOM! Museum of Food and Drink’s Explosive First Exhibit,” Kickstarter, 2013. ↩︎

  26. Museum of Food and Drink, “Day 4: Puffing Forward,” Kickstarter, July 3, 2013. https://www.kickstarter.com/projects/mofad/boom-museum-of-food-and-drinks-explosive-first-exh/posts/528613. ↩︎

  27. MOFAD, “BOOM! Museum of Food and Drink’s Explosive First Exhibit,” Kickstarter, 2013. ↩︎

  28. Freer|Sackler Staff, “Together We’re One: Crowdfunding our Yoga Exhibition,” National Museum of Asian Art, May 24, 2013. https://asia.si.edu/together-were-one-crowdfunding-our-yoga-exhibition/ ↩︎

  29. Freer|Sackler Staff, “Together We’re One: Crowdfunding our Yoga Exhibition.” ↩︎

  30. Freer|Sackler Staff, “Together We’re One: Crowdfunding our Yoga Exhibition.” ↩︎

  31. Allison Peck,“Smithsonian Surpasses $125,000 Goal for its First Major Crowdfunding Campaign.” Smithsonian, July 8, 2013. https://www.si.edu/newsdesk/releases/smithsonian-surpasses-125000-goal-its-first-major-crowdfunding-campaign ↩︎

  32. National Museum of American History, “Conserve Dorothy’s Ruby Slippers,” Kickstarter, October 2016. https://www.kickstarter.com/projects/smithsonian/conserve-dorothys-ruby-slippers?token=ee9ed485. ↩︎

  33. NMAH, “Conserve Dorothy’s Ruby Slippers.” ↩︎

  34. NMAH, “Conserve Dorothy’s Ruby Slippers.” ↩︎

  35. NMAH, “Conserve Dorothy’s Ruby Slippers.” ↩︎

  36. “The Paintings within Matisse’s ‘The Red Studio’,” The New York Times, The New York Times, September 12, 2021. https://www.nytimes.com/2021/09/12/arts/design/matisse-studio-painting-moma-.html. ↩︎

  37. American Friends of SMK, “Unique Matisse Painting in Need of Conservation Treatment,” Kickstarter, October 5,2021. https://www.kickstarter.com/projects/1826270401/help-preserve-a-unique-matisse-painting/posts. ↩︎

  38. Melissa Russo, “Crowdfunding the Museum: Engaging Program Constituents in Resource Development” in Fundraising and Strategic Planning: Innovative Approaches for Museums Lanham, Maryland: Rowman & Littlefield, 2015, 39. ↩︎

  39. Russo, “Crowdfunding the Museum: Engaging Program Constituents in Resource Development,” 40. ↩︎