Types of funding

You can reduce your funding uncertainty by diversifying your income streams. Museums have always been funded in different ways. Seeking to reduce their reliance on one source of income, museums are more likely to be funded by small sums from a range of sources. These range from admission charges to grants and investment income.

Generally covering core running costs

Admission charges – potentially the highest proportion of your income
Café – either your own, or one operated on your site by someone else
Products – exhibition merchandise, special events (museum lates, behind the scenes tours) or reproduction licences
Retail sales – from your shop, the sale of reproductions or research fees
Learning sessions – charges for school sessions or other activities
Venue hire and hospitality – meeting rooms, weddings or events
Delivery contracts – delivering services for another organisation

Income generation which aligns well with your organisation’s mission and strengths has a greater chance of success.

Usually one-off project and development costs and usually restricted though some do cover ongoing running costs. Learn more about finding and applying for grants.

Fundraising events – coffee mornings, sponsored activities
Gifts and donations – traditional donation boxes, bequests, regular giving, online giving and crowd-funding
Membership schemes – annual payment for benefits such as reduced admission
Sponsorship – perhaps from local businesses

Interest from your reserves
Increased value of assets, such as your building

Your trading activity may be restricted by your governing model and in some cases you may need to establish a separate trading company.
You should identify all the costs associated with an income stream – it may cost you more than it can generate and you should focus on areas that offer the best return for your investment of resources.
A higher proportion of unrestricted income will help you to be more flexible, don’t focus too heavily on bringing in restricted income.
There are ways to maximise your income, for example through Gift Aid. Funding is about building and maintaining long-term effective relationships.
Involve everyone – donations and sales come from building relationships with visitors and supporters. All staff and volunteers can champion the museum and its benefits
Trustees should have a role in fundraising.