Endowment Campaign Hopes to Keep the LA Museum Whole
After weeks of discussion, rumors and proposals at mergers the museum announces a campaign to stay solo.Recap of recent events and articles on this story
MOCA fundraising effort aims high
The ailing museum announces a campaign to raise $100 million for its endowment, much of it from trustees.
By Mike Boehm, Los Angeles Times
March 26, 2013
L.A.'s Museum of Contemporary Art has set a goal of building its endowment to $100 million, as it tries to outgrow the financial vulnerability that has dogged it for more than a decade. Already, the museum says, it has commitments from its board that would lift its endowment past $60 million.
Word of the new pledges follows the announcement by the MOCA board last week that it would keep the museum independent and step up efforts to raise money, effectively rejecting an offer to be absorbed into the Los Angeles County Museum of Art.
LACMA Director Michael Govan had presented a takeover offer at the request of some MOCA trustees that called for keeping MOCA's name and its two downtown buildings, while raising $100 million.
MOCA's Tuesday announcement said that the new commitments to the endowment came in over the last two weeks. It wasn't immediately clear how much was pledged, who the donors are, or what the timetable might be for receiving the pledges or for completing the campaign.
Endowments are piles of money held solely to be invested, with the principal from the original donations left untouched, but the investment proceeds available to be pumped into an organization's regular operations.
A 5% annual withdrawal is typical, so a $100-million endowment could mean $5 million a year in spendable income for MOCA. That would cover up to about 30% of its annual needs, based on spending in recent years.
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