Most Museums Don’t Put Their Money Where Their Values Are

In recent years, museums have come under fire for lack of diversity, unfair labor practices, and so-called toxic philanthropy. Many institutions invest in endowments that were created on the turn of the 20th century by what the industry has called toxic by todays norms. Now, museums are beginning to consider the ethical implications of their investments.

The National Gallery of Art in Washington D.C. began focusing on gender and racial diversity, including their investment portfolio in 2019. Kaywin Feldman, the museums director, says “To attract our national population we need to reflect the nation.” Now, the museum is shifting focus towards environmental sustainability.

A survey conducted by Upstart Co-Lab, the Association of Art Museum Directors, and the Black Trustees Alliance for Art Museums reported that 80% of museum boards question the ability of impact investments will achieve targeted financial returns. However, institutions are now recognizing that they can invest responsibly and hit their financial targets while aligning with something they believe in.

For more information:

See Abby Schultz, “Most Museums Don’t Put Their Money Where Their Values Are,” Barrons PENTA, July 8, 2022.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.