Los Angeles Museum of Contemporary Art - Falling on Hard Times?

Mike Boehm of the LA Times is reporting the Los Angeles Museum of Contemporary Art is encountering serious financial difficulties. It is now looking for either a large cash infusion, and may consider sharing or merging its collection of nearly 6000 pieces. With an annual budget of $20 million most raised through donation drives and 250,000 annual visits the museum has witnessed much growth over the past decade. But its cash burn rate has been very high, going through nearly $20 million in un-designated funds, and also borrowing $7.5 million from designated funding accounts. The museums investment portfolio was once worth over $35 million now stands closer to $20 million.

Boehm states MOCA must sharply accelerate its fundraising to ensure its continuing health. The director planned to meet with MOCA's Board of Trustees this afternoon to discuss a range of options. He said talks were proceeding "with a number of potential partners about a variety of arrangements," but he insisted that a dissolution or takeover of MOCA by another institution was not an option. "All the possibilities being explored involve MOCA retaining its identity, continuing its program, expanding its collection," he said. But he added: "I think it is time for this city to step forward and offer the kind of financial support commensurate with the work being done."

Boehm continues An irony of MOCA's plight is that, thanks to the appetite of wealthy international collectors, the market value of its prime pieces has soared. Corporations and individuals routinely sell sculptures and paintings in an economic pinch, but a museum that did so would be violating its reason for existing, which is keeping art in the public domain. The codes of ethics of both the American Assn. of Museums and the Assn. of Art Museum Directors, although not legally binding, specify that the only acceptable reason for selling artworks from a public collection is to raise money for buying other, presumably more desirable, pieces.

To read the full LA Times article, click HERE.