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The outcry that had led to the appointment of the advisory committee was "public" in every respect, and articles appeared in the New York press that attempted to explain the reasons for the Society's problems. In general, these ar­ticles emphasized the Society's reputation as an elitist institution, its inability to engage both its surrounding community and the general public in its collections and programs, and the magnitude of its financial difficulties. A New York Times article headlined "Is This the End for New York's Attic?" laid much of the blame on the Society's board of trustees, describing a "depressing saga of crisis man­agement."

Kimmelman (1933a).
It emphasized the erosion of the Society's endowment in the 1980s and the failure of trustees and administrators to focus on an attainable mission. The article asserted that the Society's "mission statement was so vague that it could serve for the Smithsonian Institution" and pointed out that one of the key tasks for the advisory committee was to "accomplish in the next several weeks what the trustees did not when there was time: to articulate, once and for all, a clear mis­sion for the Society."

There were disparaging articles in other papers as well. An article in the New York Observer, headlined "New-York Historical Society Rattling Toward Disintegra­tion," was particularly critical of Society management.

Bagli (1993)
It asserted that during the late 1980s, the Society "continued to wrack up annual deficits of $2 million a year and . . . had to 'invade' the ... relatively small endowment to cover expenses." It quoted an unnamed member of the advisory committee, who wondered, "How can it be that year in and year out they were dissipating the endowment without any sign of improvement? It makes you wonder what was going on.”

Déjà vu?

This was not the first time that crisis had enveloped the Society. In 1988, a simi­lar public controversy developed after the Society laid off one-fourth of its employees and announced plans to sell roughly forty European paintings.

The Society's decision to sell some of its art drew sharp criticism from the professional museum community. Richard Oldenberg, director of the Museum of Modern Art, said, "If you start cannibalizing your collections, for whatever wor­thy purpose, it's an abdication of responsibility by the people running the place."

McGill (1988b).
Regarding the use of proceeds from those sales, representatives of the Society admitted that "under some limited circumstances, .. . the interest made from investment of the proceeds could be used for some operating costs."
McGill (1988d).
Museum pro­fessionals considered that plan unethical and a violation of accepted museum practice. Peter C. Marzio, then president of the Association of Art Museum Directors, said, "The spirit of any deaccession"—the art world term for selling works from a museum collection—"is to improve the permanent collection. That's the only reason for deaccession."
McGill (1988b).

The Society's problems did not end with the criticisms of layoffs and deaccessioning. In the days following these announcements, a two-year-old confiden­tial trustees' report detailing horrendous conditions at an off-site storage facility was obtained by the New York Times. Apparently, some paintings had been dam­aged or had been allowed to deteriorate as a result of the poor storage environ­ment in a New Jersey warehouse. The resulting Times expose attracted the attention of the New York State attorney general, who launched an investiga­tion into "whether the art collection is being properly cared for and what legal consequences that may have."

McGill (1988g)

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Source:  OpenStax, The new-york historical society: lessons from one nonprofit's long struggle for survival. OpenStax CNX. Mar 28, 2008 Download for free at http://cnx.org/content/col10518/1.1
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