The Metropolitan Museum of Art

The Metropolitan Museum of Art (The Met) in New York City is the largest encyclopedic art museum in the Americas, renowned for its diverse collections and educational and cultural initiatives. Its vast array of artworks from over 5,000 years of civilization attracts millions of visitors a year.  

The management of nonprofits such as the Met, which aim to break even or operate at a small surplus while providing a public benefit, is the art of balancing their budgets and social missions. Achieving this requires strategic planning for operations, fundraising, and budgeting to avoid crippling red ink. 

When the Met's new president and COO Daniel Weiss arrived in July 2015, he discovered that the museum had significant financial challenges that had previously been understated. Initially assured that the museum was in excellent shape with just a minimal $4 million deficit, Weiss realized that the Met had been using unrestricted reserves to fund operations and a slew of ambitious new programs. This practice masked a much larger actual deficit, compelling its leadership to consider major budget revisions.

To decide how to balance the budget, Weiss had to navigate potential strategies including cost cuts across the museum and finding additional sources of revenues.  He also pondered governance changes to secure the institution's long-term financial stability. Weiss faced the challenge of picking a path to sustainability that would enhance the Met's mission to collect, preserve, study, and exhibit art for all to enjoy, while also establishing his credibility as a newcomer to the world famous institution.