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What happened to the Jersey City Museum is typical for non-profits in general. It's a lot easier to raise money for showy, more permanent things like new buildings than it is for on-going, relatively transient things like actual operations. Here's yet another example in today's Times:
Liberace Museum Is Closing Its Doors - NYTimes.com: "The museum’s founding endowment has shrunk from $10 million five years ago to $1 million, a result of money-losing investments and a decision to take out an expensive mortgage to finance a renovation of the building that in hindsight, Mr. Koep said, does not seem like a wise decision."
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