Landmark Decorah museum feeling recession

DECORAH - It is one of Decorah's signature institutions, a place literally known around the world. But that doesn't make the Vesterheim Norwegian-American Museum immune to the effects of the recession.

It has cut programming, has sold two buildings and is selling two more.

With an annual budget of $1.3 million, Vesterheim is in no danger of closing. But newly appointed Executive Director Steve Johnson says the museum has been busy “refocusing on our mission.”

The museum began having budget problems last winter, just after concluding the second phase of its successful “On the Shoulders of Giants” fundraising campaign.

The fundraiser reached its goal of $6 million in October 2006. Pleased by the result, Vesterheim leaders launched a “Goal Plus One” fundraiser and brought in another $1.8 million.

The recession hit as the second campaign was ending.

Not only did museum's financial projections suddenly look less solid but contributors were pinched by new economic realities.

The first programming cuts came in April, but the economy worsened and a second round came in July. The museum's full-time staff shrank from 18 to nine, with two former full-time employees working part time.

The layoffs affected everything from public relations to curating.

Johnson said museum officials tried to minimize the impact on programming for exhibitions, classes and youth programs.

That meant discontinuing the Vesterheim News newsletter, folding that information into the semiannual Vesterheim magazine. The museum is using a new e-mailed newsletter, Vesterheim Current.

As the recession began to ease, the museum embarked on another fundraising campaign.

A special Leadership Gift Committee fund drive headed by Dan Huebner of Decorah collected $275,000 in May. And a summer appeal drew donations from 9 percent of those contacted.

“I'm quite optimistic now,” Johnson said. “We have taken the necessary action to be sustaining.”

But while museum officials believe they have righted the ship, the winds of change still buffet the museum industry.

Ford Bell is president of the American Association of Museums, the national industry group with headquarters in Washington, D.C.

He said most if not all museums are in “very difficult environments.” Contributions have plummeted, and even the nation's largest museums have cut spending and trimmed staff.

Ironically, the recession has increased museum attendance. “Museums are a good value,” Bell said, with 41 percent offering free admission. For example, Vesterheim has popular Free Thursdays.

Bell urges museums to find ways to engage their new visitors, despite having fewer staff and less money. “Therein lies the challenge,” he said.

Vesterheim has held special events on the history of several Iowa immigrant groups in addition to Norwegians to broaden the museum's appeal.

It recently sold two buildings at 521 W. Water St. and 111 N. Mill St. in town. The two properties up for sale are at 109 N. Mill St. and 610 Heivly St.

Johnson said the sales are not so much for additional cash as they are to refine the museum's mission. Being a landlord is not central to its purpose, he said.

By Paul Scott, Correspondent

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