The Museum of Fine Arts of Boston has had some major changes in its financial documents from 2000 to 2004. These financial changes gave the lead to transformation within the institution due to the necessity of repositioning the museum, allocating new staff and cleverly creating a strategy that allowed the Museum to overcome a major renovation, administrative and economical restructuration. More so, one can appreciate how from 2000 to 2004 the Museum was in major need of an internal and external reform.
By analyzing the Museum´s income statement of the years 2000 to 2004 one can come to the conclusion that the top line growth decreased in at least 20% of its yearly revenue. Although, corporate memberships appear to be stable through the years, individual membership decreased, and support coming from grants, gifts, appeals and contributions did
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It is exactly the lack of change in support and the decrease on attendance, exhibition success, sales in merchandise and short term investment that created a “chaos” within the financial statement. On another hand, bottom line growth, decreased as well. One may believe that the less expenses an institution has the better. However, by analysing the income statement one can understand that the problem relied on the lack of investment in programming for both general public and members, and the lack of evolution in expenses for supporting services.
If we look at it as a cycle, it would tell the history of how the Museum kept paying a large amount of staff a nd internal administrative issues and did not take into account the public. Thus, generating a lower revenue stream. Although, the Museum did tried to lower its expenses, the financial deficit in profitability had already increased from year 2000 in such a way that in order to shift this into profitability it would take a new financial