MINUTES OF THE JUNE 21, 2010, MEETING

OF THE BOARD OF REGENTS

ATTENDANCE

This scheduled meeting of the Board of Regents was held on Monday, June 21, 2010, in the 

Regents’ Room of the Smithsonian Institution Castle.  The meeting included morning, 

afternoon, and executive sessions.  Board Chair Patricia Q. Stonesifer called the meeting to 

order at 8:38 a.m.  Also present were:

The Chief Justice 1 

Thad Cochran  

France Córdova 

Christopher J. Dodd 2 

Shirley Ann Jackson 

Robert P. Kogod 

Patrick J. Leahy    

Doris O. Matsui  

John W. McCarter Jr.  

David M. Rubenstein 3

Roger W. Sant 

Alan G. Spoon   

Paul Neely, Smithsonian National Board Chair 

David Silfen, Regents’ Investment Committee Chair

Vice President Joseph R. Biden Jr., Representatives Xavier Becerra and Sam Johnson, and Dr. 

Phillip Frost were unable to attend the meeting. 

Also present were:  

G. Wayne Clough, Secretary  

Patricia L. Bartlett, Chief of Staff to the  

  Secretary  

Claudine K. Brown, Director of Education 

Amy Chen, Chief Investment Officer

Virginia B. Clark, Director of External Affairs  

Barbara Feininger, Office of the Regents  

  Senior Writer‐Editor 

Richard Kurin, Under Secretary for History,  

  Art, and Culture  

John K. Lapiana, Chief of Staff to the Regents  

Judith Leonard, General Counsel  

Evelyn S. Lieberman, Director of  

  Communications and Public Affairs  

Alice C. Maroni, Chief Financial Officer  

Alison McNally, Under Secretary for Finance  

  and Administration  

Tom Ott, President of Smithsonian Enterprises  

Nell Payne, Director of Government Relations  

Eva J. Pell, Under Secretary for Science  

A. Sprightley Ryan, Inspector General 

Evan Ryan, Assistant to the Vice President 

Jeffrey P. Minear, Counselor to the Chief Justice  

T.A. Hawks, Assistant to Senator Cochran 

Joe Hepp, Assistant to Senator Dodd  

Kevin McDonald, Assistant to Senator Leahy  

Melody Gonzales, Assistant to Congressman  

Becerra  

David Heil, Assistant to Congressman Johnson  

Kari Lacosta, Assistant to Congresswoman 

Matsui 

Mara Lee, Assistant to Congresswoman Matsui 

Kevin Gover, Director of the National Museum 

  of the American Indian 4

Anson Hines, Director of the Smithsonian  

  Environmental Research Center 4

Terry Chesser, U.S. Geological Survey  

  Research Zoologist in the National Museum  

  of Natural History’s Department of  

  Vertebrate Zoology 5

Helen F. James, Curator of Birds, Division of  

  Birds in the National Museum of Natural  

  History’s Department of Vertebrate Zoology 5  

Barbara W. Stauffer, Chief of Temporary  

  Exhibitions for the National Museum of  

  Natural History 5

_____________________________________________________ 

1  The Chancellor, Chief Justice John G. Roberts Jr., attended the afternoon and executive sessions. 

2  Senator Dodd arrived at 1:00 p.m., departed at 2:44 p.m., and voted on resolutions 2010.06.04–2010.06.08.    

3  Mr. Rubenstein arrived at 10:10 a.m. and voted on resolutions 2010.06.02–2010.06.08. 

4  Mr. Gover and Dr. Hines provided presentations on, respectively, the National Museum of the American Indian and the Smithsonian 

Environmental Research Center.  

5.  Drs. Chesser and James and Ms. Stauffer participated in the presentation on the National Museum of Natural History’s centennial 

activities and work in support of endangered species. 
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MORNING SESSION

OPENING REMARKS

  Executive Committee and Board Chair Patricia Stonesifer welcomed the attendees 

and introduced National Museum of Natural History representatives Terry Chesser, 

Helen James, and Barbara Stauffer.  Noting that the museum first opened to the 

public on March 17, 1910, the three gave a short presentation on the museum’s 

centennial activities and the importance of its work in support of endangered 

species.  Two birds from the museum’s collections were displayed, including 

“Martha,” the last known passenger pigeon.  The Regents discussed the parallels 

between the demise of the passenger pigeon population and the wildlife currently 

under threat from the oil spill in the Gulf of Mexico in context of the Grand 

Challenge “understanding and preserving a biodiverse planet.” 

REPORT OF THE BOARD AND EXECUTIVE COMMITTEE CHAIR

May 18 and June 9,

2010, Meetings of the

Executive Committee

Ms. Stonesifer reported that the Executive Committee met twice after the April 12, 

2010, meeting of the Board.  On May 18, 2010, the Committee approved a gift action 

and an advisory board appointment on behalf of the Board.  The timing of both 

actions required consideration by the Executive Committee in advance of this 

meeting of the Board.  The first was the appointment of David Rockwell to the 

Board of Trustees of Cooper‐Hewitt, National Design Museum and the second was 

the approval of a gift from Warner Bros. to the National Museum of American 

History.  The Executive Committee’s consideration of the gift agreement included a 

discussion of gift policies with regard to size, recognition, duration, and investment 

value, especially in relation to the pipeline of future gifts in the national campaign.  

The Executive Committee also met on June 9, 2010, to review and approve the 

agenda materials for this meeting of the Board. 

Strategic Retreat with

Advisory Board Chairs On April 26, 2010, Ms. Stonesifer and Secretary Clough hosted the second annual 

strategic retreat with the Smithsonian’s advisory board chairs.  Fourteen advisory 

board chairs were briefed on the status of the strategic plan and received an in‐

depth presentation on the national campaign.  Ms. Stonesifer reported that the 

advisory board chairs expressed their satisfaction with the enhanced 

communications between their boards and both the central administration and the 

Board of Regents.  The chairs also expressed concern about centralized versus 

decentralized management of donor prospects.  Ms. Stonesifer said that 

strengthening the linkages between the advisory boards and the central 

administration, and enhancing their knowledge of the scope of the Smithsonian’s 

activities, will support the success of the national campaign. 

Visit to Las Campanas

Observatory   Ms. Stonesifer reported on her visit to the Las Campanas Observatory on Cerro Las 

Campanas in Chile, the site of the future Giant Magellan Telescope (GMT).  The 

Smithsonian is hoping for a share of at least 10 percent in the GMT partnership.  

Secretary Clough, Under Secretary for Science Eva Pell, and Smithsonian 
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Astrophysical Observatory (SAO) Director Charles Alcock are leading efforts to 

strengthen funding for and secure Smithsonian’s leadership in astrophysical 

research. 

Minutes of the April 12,

2010, Meeting

The minutes of the April 12, 2010, meeting of the Board of Regents were approved.

See attached Resolution 2010.06.01 (Minutes of the Board of Regents, Appendix A).

REPORT OF THE SECRETARY 

Introductory Comments Responding to Ms. Stonesifer’s comments about Las Campanas Observatory, SAO, 

and the Giant Magellan Telescope, Secretary Clough reported that the contributions 

of the Harvard‐Smithsonian Center for Astrophysics to the From Earth to the

Universe exhibit resulted in the project receiving the International Year of 

Astronomy 2009’s Mani Bhaumik Prize for Excellence in Astronomy Education and 

Public Outreach.   

He then showed a photograph of a naturalization ceremony held at the National 

Museum of American History on June 12, 2010, two days prior to Flag Day.  The 

museum also hosted an event honoring the state winners of the National History 

Day.  Such events reflect the Smithsonian’s ability to reach and inspire youth.   

Copies of the 40th anniversary edition of Smithsonian magazine were provided to 

the Board.  

The Four Grand

Challenge Consortia

The implementation of the strategic plan is advancing with the development of four 

consortia in support of the four Grand Challenges.  The process of hiring the 

consortia directors, whose offices will be based in the Castle, is nearing its 

conclusion and the consortia will be launched by the end of summer 2010.  Two 

idea fairs related to the Grand Challenges have been held, and two more are 

planned, to encourage the development of collaborative initiatives.   

Education and

Broadening Access

The Secretary said that Claudine Brown, the new Director of Education, had 

assumed her position and thanked Mr. Kogod for his financial support for the 

Smithsonian’s educational and access initiatives.   

The Smithsonian has submitted $30 million in funding proposals to the Department 

of Education (DOE).  U.S. Secretary of Education Arne Duncan requested that the 

Smithsonian and DOE cohost a summer 2010 conference on rural education, and 

submit an education proposal targeting Indian youth, especially those in Bureau of 

Indian Affairs schools.  National Museum of the American Indian Director Kevin 

Gover and Ms. Brown are leading this initiative. 

The Smithsonian has conducted three successful online conferences between 

Smithsonian experts and nearly 20,000 participants from across the world.  Two 

more online conferences are being developed with the support of Microsoft 

Partners in Learning.  The Secretary noted that the demand for online Smithsonian 

educational programs is growing. 
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The Pearson Foundation and Nokia are providing support for three digital media 

programs for students, educators, and educational leaders that will occur during 

summer 2010.  Registration for each event is full.  High‐end learning labs are being 

developed at the Hirshhorn Museum and Sculpture Garden and the National Postal 

Museum. 

There are now more than 300 social media accounts throughout the Smithsonian.  

The YouTube program on the presentation of First Lady Michelle Obama’s 

inaugural gown has received more than 260,000 views; the MEanderthal app has 

had more than 125,000 hits; and the Hirshhorn’s Yves Klein app is the twelfth most 

popular educational app.  Smithsonian National Board members Judy and Bob 

Huret are supporting the development of an app that will guide Smithsonian 

visitors. 

Creating a Digital

Smithsonian   The Regents’ meeting materials included copies of the new “Digital Smithsonian” 

strategic plan, which was developed under the leadership of Chief Information 

Officer Ann Speyer.  With digitized images being added daily, over 2 million images 

of Smithsonian collections are now available on Smithsonian Web sites, which also 

provide for online access to Smithsonian exhibitions. 

Organizational

Excellence

The best practices study conducted by McKinsey & Co. has concluded.  Now called 

“Smithsonian Redesign,” the initiative will help the Smithsonian become a high‐

performing organization and achieve the goals of the strategic plan.  The study 

noted the longstanding perception of distance between the central administration 

and the units.  To address this issue, implementation groups are being formed to 

facilitate communications, simplify processes, and encourage the participation of 

unit directors.  The Secretary noted that the Redesign initiative would be discussed 

at length later in the morning session.   

Identifying the

Smithsonian’s Income

Streams

The Smithsonian’s submission rate for grant and contract proposals rose  

41 percent over the previous year’s all‐time Smithsonian record.  Under Secretary 

for Finance and Administration Alison McNally is overseeing efforts to achieve a 

higher indirect cost recovery rate.  She reported that SAO has achieved the highest 

indirect cost recovery rates to date.  The national campaign will provide another 

source of new income. 

Fund Raising The Smithsonian’s fiscal year‐to‐date 2010 fund‐raising efforts have resulted in 

securing $72.5 million, or 51 percent, of the fiscal year goal of $142 million.  Of that 

total, $51.7 million has been raised for the Endowment, which is significant for both 

the Smithsonian and the national campaign. 

Branding Initiative The branding initiative has benefited from the participation of several Regents and 

Regent representatives.  The Smithsonian seeks to change the perception of the 

Institution as “the nation’s attic” and achieve greater understanding of—and credit 

for—its leadership, resources, and accomplishments in collections, research, 

science, and education.  A competition to select a private firm to support the 

branding initiative resulted in numerous responses. 

National Museum of

African American

History and Culture

The National Museum of African American History and Culture (NMAAHC) has 

achieved a significant milestone in the development of its collections.  Now 
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numbering 10,000 objects, the collection is one‐third of the way towards its goal.  

In recognition of this achievement, NMAAHC Director Lonnie Bunch hosted a tour 

of the collections now held in the museum’s storage facility.  The Secretary said the 

experience of viewing the objects and hearing Dr. Bunch’s commentary was 

powerful and inspirational. 

Significant effort is being directed towards securing $205 million in fiscal year 2012 

Federal funding for NMAAHC.  The Secretary noted that Vice President Biden, 

members of the Congressional Black Caucus, and other key stakeholders support 

this goal.  In addition, Senators Brownback (R‐KS), Durbin (D‐IL), and Inoyue (D‐

HI) sent a letter to President Obama supporting full authorization. 

Arts and Industries

Building   Secretary Clough, Ms. Stonesifer, and Under Secretary for History, Art, and Culture 

Richard Kurin met with key members of the National Museum of the American 

Latino Commission to discuss potential sites for a future National Museum of the 

American Latino.  The Arts and Industries Building (AIB) is one of the sites under 

consideration, although it is not the preferred site at this time.  Created by Congress 

and signed into law in 2008, the Commission will report its recommendations back 

to Congress shortly.   

Ms. Stonesifer noted that the Commission has not yet determined if the museum 

should be part of the Smithsonian or established as a separate institution.  This 

question is based in part on longstanding concerns about the Smithsonian’s 

commitment to Latino Americans.  The Regents discussed the 1994 report “Willful 

Neglect: The Smithsonian Institution and U.S. Latinos,” which noted the 

Smithsonian’s failure to represent both contemporary and historic Latino culture, 

and led to the creation of the Latino Pool, the Latino Center, and other initiatives.   

The Board agreed that the Smithsonian should be at the forefront of initiatives that 

celebrate the American Latino heritage and community, and discussed whether the 

Smithsonian’s efforts to date have been vigorous enough.  The Secretary will attend 

the Commission’s meeting in August 2010; the agenda will include the future 

governance of the museum.  The Regents also discussed the different roles and 

responsibilities of the advisory boards of the National Museum of the American 

Indian and the NMAAHC.  

The Secretary will meet with Senator Dianne Feinstein (D‐CA) on June 22, 2010, to 

discuss the protection and ultimate release of $30 million in matching monies from 

the Legacy Fund.  He said that the Smithsonian is moving forward on two possible 

uses for the Arts and Industries Building: an education center or the home of the 

Latino Museum.  Part of his discussion with Senator Feinstein will include the 

careful balance that the Smithsonian must maintain as it advances renovation 

efforts for a building that has not yet been assigned a definite purpose.   

The Regents discussed the use of AIB as an educational center and expressed 

concern about the possibility that the facility could take resources and visitors 

away from Smithsonian museums that are already underutilized and 

underappreciated.  The oversight of the building’s programmatic purpose will be 

largely clarified by the Latino Commission’s recommendation.  The Regents agreed 

that the future use of the building is unclear and will be the subject of future 
6 

discussions by the Board.

Annual Goals Update Progress against 44 targets is tracked weekly to measure the Smithsonian’s 

progress on its 2010 goals.  The Secretary reported that 41 targets are on track; 

three are lagging while consistent and accurate measures of digitization activities 

are tested.  

Visitation and

Exhibitions

As anticipated, the Smithsonian’s visitation dropped slightly from 2009 records, 

which included high visitorship due to the January 2009 inaugural activities.  The 

storm‐related closing of Smithsonian museums for six days in February 2010 also 

impacted Smithsonian visitorship.  Nevertheless, Smithsonian visitation is now less 

than 1 percent behind 2009 records and tracking well above 2008 records. 

New Smithsonian exhibitions have resulted in positive media reviews: the Ripley 

Center exhibition of children’s artwork made in the aftermath of the January 2010 

earthquake in Haiti; the opening of a new wing of the Anchorage Museum that 

presents objects from Smithsonian collections and hosts the new Smithsonian 

Arctic Studies Center; and the exhibition Read My Pins: The Madeleine Albright

Collection in the Smithsonian Castle. 

Haitian Recovery Effort Under Secretary Kurin is coordinating Smithsonian efforts to help recover, stabilize, 

and restore Haitian art and cultural artifacts impacted by the earthquake.  A facility 

has been leased to house a cultural heritage recovery center and a team is on site to 

both lead the recovery effort and train Haitians in conservation and restoration 

activities.  This humanitarian effort, which will conclude in November 2011, is a 

partnership with the Haitian government, the White House, the President’s Council 

on Arts and Humanities, and the U.S. State Department.  The Secretary and Dr. 

Kurin will visit Haiti in July 2010. 

The 2010 Smithsonian Folklife Festival will feature Haitian art and music, and its 

marketplace will highlight Haitian crafts.  “Our Man in Haiti,” a blog hosted by 

Smithsonian American Art Museum Conservator Hugh Shockey, is the museum’s 

most popular blog to date.  

Abu Dhabi Pilot Center The Smithsonian is developing a term sheet to support negotiations with the Abu 

Dhabi Authority for Culture and Heritage.  Dr. Kurin and Director of Government 

Relations Nell Payne had positive discussions with representatives of nine 

congressional committees on the proposed museum professional education center.  

Federal Budget Update The outlook for the fiscal year 2010 and 2011 Federal budgets is positive, although 

the 2011 budget may be subject to a Continuing Resolution.  The fiscal year 2012 

Federal budget remains a great concern.  Budget guidance is to anticipate a 

decrease of up to 9 percent in Federal funding.  Combined with federally mandated 

increases, such as salaries and expenses, this would result in a funding decrease of 

at least $70 million in the Smithsonian’s budget.  Under Secretary McNally is 

coordinating a transparent, pan‐institutional budget review.  The Smithsonian also 

has received budget guidance that would allow for the submission of a 

requirements budget, which would result in a more positive outcome for the 

Institution. 
7 

Congressional

Testimony

As a result of efforts by Ms. Payne to increase the visibility of the Smithsonian’s 

science resources, the Secretary will testify before the House Subcommittee on 

Research and Science Education on July 22, 2010.  The Director of Education, a 

science unit director, and a researcher will also testify at the hearing.  

The National Museum of Natural History (NMNH) has the most comprehensive 

record of the Gulf of Mexico’s environment prior to the current oil spill disaster.  In 

a June 15, 2010, hearing titled “Hearing on Ocean Science and Data Limits in a Time 

of Crisis: Do NOAA and the Fish and Wildlife Service have the Resources to 

Respond?”, Dr. Jonathan Coddington, NMNH Associate Director of Research and 

Collections, testified on the Smithsonian’s collections and scientific resources 

before the House Subcommittee on Insular Affairs, Oceans and Wildlife (Committee 

on Natural Resources).   

Collaborations Memos of Understanding (MOU) have been signed or are being developed with the 

University of Maryland, Arizona State University, George Washington University, 

and the Société civile Synchrotron SOLEIL in France.  The latter will support the 

application of a third‐generation synchrotron to study and preserve Smithsonian 

collections. 

Pan­STARRS In collaboration with outside partners, Harvard‐Smithsonian Center for 

Astrophysics research successfully launched the first Panoramic Survey Telescope 

and Rapid Response System, also known as Pan‐STARRS.  The device searches for 

asteroids and meteors that could potentially strike the Earth. 

The Lost Symbol A movie based on the Dan Brown novel The Lost Symbol, which features a 

Smithsonian Secretary, is under development.  The screenwriter met with 

Secretary Clough to discuss the film.   

Discussion Ms. Stonesifer requested that future quarterly reports include more detailed 

information about the visitation patterns of individual museums and discussion of 

how to address the low visitation rates of certain units. 

Mr. McCarter encouraged the development of partnerships with the Department of 

Energy’s National Laboratories, among others.  The Secretary said that 

partnerships are already either in place or under development.  Dr. Pell reported 

that discussions with the Department of Energy have included the application of 

the Smithsonian’s resources with regard to carbon sequestration studies to support 

the development and enforcement of an international carbon treaty. 

Senator Leahy requested a breakdown of net income from Smithsonian Enterprises 

(SE) stores.  SE President Tom Ott said that SE contributions to the Central Trust 

reflect net income and that, of its fiscal year 2010 current contributions to date,  

some $19 million of the $26 million in SE net income comes from SE retail sales.  

Ms. Stonesifer requested that the September 2010 Regents’ meeting materials 

include an overview of the SE retail environment.  Director of External Affairs 

Virginia Clark noted that cash donations to the museums’ collection boxes total 

approximately $200,000 each year; the proceeds from the donation boxes are 

retained by each museum. 
8 

DIRECTOR’S REPORT: THE SMITHSONIAN ENVIRONMENTAL 

RESEARCH CENTER

Ms. Stonesifer said that, in response to the best practices recommendation to 

strengthen the Board of Regents’ understanding of and relationship with the 

Smithsonian units, each meeting of the Board will include reports from the 

directors of two Smithsonian units.  Each report will address the unit’s mission, 

activities, successes, challenges, and ways that the Regents can better support the 

vision of that unit.  She then introduced Dr. Anson Hines, Director of the 

Smithsonian Environmental Research Center (SERC). 

History and Mission of

the Smithsonian

Environmental

Research Center

Dr. Hines said that the Edgewater, Maryland–based research center is dedicated to 

the discovery and communication of scientific knowledge of sustainable 

ecosystems.  SERC researchers conduct large‐scale, long‐term ecological research 

that focuses primarily on land‐sea interactions, including the interaction of natural 

processes and human activities in coastal areas.  SERC researchers use the center’s 

location on the Chesapeake Bay, the world’s largest estuary, as a large‐scale model 

system to better understand how ecosystems, watersheds, and landscapes are 

connected and function.  The close proximity of SERC to the greater Washington‐

Baltimore metropolitan area provides easy access for researchers, educators, 

visitors, and policy‐makers. 

The subestuary Rhode River provides a model research platform to study land‐sea 

interactions, which Dr. Hines characterized as complicated, interactive, and 

competing.  Much of the SERC’s research focuses on land use, including agro‐

ecosystems, forests, developed land, watersheds, and wetlands.  SERC research also 

includes studies of estuarine and marine ecosystems, including water quality, food 

webs, and fisheries.   

SERC began in 1965 with the unanticipated bequest of 368 acres and $2 million 

from the estate of oceanographer and farmer Robert Lee Forrest.  Then‐

Smithsonian Secretary S. Dillon Ripley developed an innovative land conservation 

strategy to conserve the site for research and educational purposes by scientists 

from around the world.  Today SERC has 2,650 acres of land and 16 miles of 

shoreline along the Rhode River and is the largest site for environmental research, 

public education, and access on the western shore of the Chesapeake Bay. 

Successes and

Challenges, Goals and

Strategies

SERC’s world‐class ecosystem research focuses on five major ecosystem impacts:

global change, nutrient pollution, coastal food webs, invasive species, and the 

effects of land use.  SERC researchers have studied the impact of rising CO2 levels on 

natural plant communities and documented the accelerated growth of forests in 

response to climate change.  The latter study found that the growth rate of certain 

forests has increased two‐to‐four‐times faster in the past 20 years than in the 

previous 300 years. 

SERC studies of nutrient pollution provide a 40‐year record of changes and 

responses to weather and subsequent sediment discharges.  SERC scientists have 

extended their studies to the 64,000 square miles of land that comprise the 

Chesapeake Bay watershed.  SERC models have been used to advise the 
9 

Environmental Protection Agency on the management and setting of limits on the 

total discharge of nutrients, which fuel the overproduction of plankton, lower water 

oxygen levels, and compromise the health of marine organisms.  One SERC study 

documented the dramatic decline of blue crabs since 1990. 

SERC also studies invasive species, such as the Chinese Mitten Crab, in the largest 

and most comprehensive program on marine invasive species in the nation.  SERC 

has conducted baseline surveys in all the major ports, bays, and estuaries around 

the United States.  These analyses have shown that the growth rate of invasive 

species has risen markedly in recent decades in response to increases in 

commercial shipping and the dumping of ballast water.  SERC is the home of the 

National Ballast Information Clearinghouse, which was established by the National 

Invasive Species Act of 1996.  The Clearinghouse, charged with monitoring and 

reporting all commercial ship arrivals in every U.S. port, produces some 115,000 

records each year that reflect changes in ballast water management practices.  

SERC researchers also study the impact of land use, in particular urbanization and 

agricultural activities, on estuarine ecosystems.   

SERC hosts some 20,000 visitors each year, half of whom are students, who see 

researchers at work and learn from on‐site educators. 

SERC’s vision is to support sustainable ecosystems in coastal landscapes and 

enhance global recognition of the Smithsonian as a primary source for ecosystem 

expertise and solutions.  SERC’s world‐class research seeks solutions for issues 

related to fisheries, climate change, ecosystem goods and services, and coastal 

water quality.  To support its research activities, SERC competes for grants and 

contracts that provide approximately $2 for each $1 in Federal funding. 

SERC faces several challenges.  Research programs have expanded threefold in the 

past 20–30 years, and much of the office and lab space that support these programs 

reside in temporary trailers.  Staffing and technology requirements continue to 

grow.  SERC’s facilities, operating plan, and management of its environment must 

be sustainable.  The center must expand its educational programs and cultivate 

greater understanding of current and future environmental challenges.   

The Mathias Laboratory, which is scheduled to open in 2011–2012, is anticipated to 

be one of the most energy‐efficient facilities of its kind in the country.  It will 

provide significant support for SERC’s programs, increase awareness of the center, 

and support fund‐raising activities.  A primary goal of SERC’s fund‐raising campaign 

is to support the development of a “Green Village” of sustainable housing for the 

hundreds of scientists and students who work at SERC each year.   

SERC’s long‐term master plan reflects its commitment to increasing the physical 

and virtual accessibility of its resources.  The center has conducted video 

conferences and satellite‐based electronic field trips that have reached 81 million 

students in 49 states or countries. 

SERC’s success will be measured by its ability to sustain world‐class environmental 

research, provide for innovative and integrative thinking in support of 

environmental sustainability, expand its science‐based education and 
10 

communication initiatives, and identify itself as both a model system and a physical 

and virtual destination.  Dr. Hines encouraged the Board of Regents to support 

SERC by visiting the center, working to sustain Federal funding for SERC, advancing 

the national campaign, and embracing the urgent need to address global climate 

change. 

Discussion The Regents discussed the global importance and immediate relevance of SERC’s 

mission and activities, as well as its close alignment with the Smithsonian strategic 

plan.  Dr. Hines discussed SERC’s unique and preeminent ability to conduct both 

marine and terrestrial research, its leadership in the study of land‐sea interactions, 

and its participation in multidisciplinary and collaborative programs around the 

world.   

The Board discussed current and potential collaborations with other Smithsonian 

units, such as the Smithsonian Tropical Research Institute, and with outside 

organizations, such as the National Science Foundation’s National Ecological 

Observatory Network (also known as NEON) and Woods Hole, Massachusetts, 

research communities.  Ecology‐based economics, such as the implementation of 

carbon sequestration credits, was discussed.  The Board agreed that the 

Smithsonian should be a resource in the development of science‐based policies and 

partnerships between resource managers and economists.   

Mr. Sant noted that only 1 percent of the Smithsonian’s budget is dedicated to SERC 

and expressed concern that SERC’s programs might not receive sufficient support.  

He asked how to make SERC a more integral part of the Institution and maximize its 

impact.   

Dr. Hines explained that, although SERC is a relatively small part of the 

Smithsonian’s Federal budget, it receives significant funding from other sources.  

SERC’s demonstrated ability to apply for and receive outside grant and contract 

funding has been notable from the center’s inception.   

Because of its successful grant and contract funding history, substantial research 

and education programs, digital access resources, and construction of LEED‐

certified facilities, SERC exemplifies many aspects of the Smithsonian’s strategic 

plan.  Because of SERC’s commitment to “walk the walk,” the Secretary has asked 

Dr. Hines and National Zoological Park Director Dennis Kelly to develop a mission 

statement about the Smithsonian’s commitment to conservation resource 

initiatives. 

The Regents discussed the potential for the Smithsonian to assume a leadership 

role in international conservation resource and sustainability efforts.  The Board 

also considered the Institution’s ability to organize and “brand” a consortium of 

recognized leaders to address global environmental challenges.  Mr. McCarter 

suggested that this effort could be developed into a fifth “Grand Challenge” for the 

strategic plan. 

The Board considered the Smithsonian’s status with regard to life science studies.  

As is often the case in educational institutions, the Smithsonian’s life science 

research has not received support equal to that of other science units, such as the 
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Smithsonian Astrophysical Observatory.  The Board discussed the impact of high‐

tech engineering on both research and the life sciences over the last two decades, 

and noted that the Smithsonian should be a leader in such initiatives.  One of the 

goals of the national campaign is to create endowed chairs that will strengthen the 

Smithsonian’s intellectual capital, including research in life sciences.  The Board 

discussed the areas of expertise represented by SERC’s Board of Advisors, which is 

primarily an advancement board, and the importance of using scientific, economic, 

and policy experience in support of fund‐raising efforts.   

Ms. Stonesifer said that the Board’s ability to champion these causes effectively 

would benefit from an overview of the Smithsonian’s assets and abilities with 

regard to life sciences, conservation initiatives, and climate change.  She asked that 

Dr. Pell provide this overview at the January 2011 Regents’ meeting, and that the 

presentation include proposed ways to strengthen and brand the Smithsonian’s life 

science programs.  In addition, Ms. Stonesifer asked that Dr. Pell review the science 

units’ advisory boards and offer her opinion with regard their composition and 

ability to evaluate the work of their units, including work directed towards the life 

sciences.  Ms. Stonesifer also suggested that SERC might host a meeting of the Board 

after its new facility opens. 

FINANCIAL SNAPSHOT 

As Ms. Stonesifer requested, each Board meeting includes a financial “snapshot” of

the day‐to‐day financial management of the Smithsonian.  Ms. McNally said that the 

format of the new report, which had been prepared with the support of the Finance 

Committee, will continue to be refined, particularly in the reporting of expenses. 

Revenues The Smithsonian’s overall financial strength is good, particularly in comparison to 

its status at this point in 2009.  Revenues are strong: second quarter fund‐raising 

revenues total approximately $72 million and are on target to meet the annual 

fund‐raising stretch goal of $142 million; government grants and contracts are 

ahead and on target to meet a stretch goal of $130 million; Smithsonian Enterprises 

is anticipated to reach its $26 million net gain stretch goal; and the Endowment, 

after experiencing a slight drop in May 2010, is at approximately $904 million, 

which is better than its policy benchmark.  

Expenses With the exception of gift‐related expenses, the Smithsonian is on budget.  The 

timing of certain gifts and a change in accounting reporting resulted in the reported 

discrepancy. 

Fiscal Year 2011

Forecast

With regard to fiscal year 2011, the Smithsonian is cautiously optimistic.  The Office 

of Management and Budget (OMB) recommended a 4.8 percent budget increase for 

the Smithsonian and the April 14, 2010, budget hearing went well.  Management 

has begun planning for the likelihood of a fiscal year 2011 Continuing Resolution.  

Fiscal Year 2012

Budget Planning

Process

As anticipated, the fiscal year 2012 budget process is extremely challenging.  OMB 

guidance for all Federal agencies includes reduced budget levels in fiscal year 2012.  

For the Smithsonian, the guidance level budget is 9 percent below the fiscal year 

2011 level, a reduction of about $72 million.  Additional mandatory increases, such 
12 

as pay raises and utilities, would increase the funding shortfall to approximately 

$90 million.  If enacted, this would result in a fiscal year Federal budget that is 

about $35 million below the Institution’s fiscal year 2010 Federal budget. 

OMB also directed the Institution to identify for reduction or elimination programs 

that constitute at least 5 percent of the fiscal year 2010 appropriation and are least 

critical to advancing the Smithsonian’s mission.  Using some of the information 

from the best practices study, management is conducting a pan‐institutional effort 

to project the impact of a 10 percent reduction, standardize criteria to determine 

programmatic priority, and identify candidates for administrative consolidation.  

The results of this process will be presented to the Finance Committee at its August 

2010 meeting.  The Board agreed that the least‐favorable reduction options would 

include closing Smithsonian museums or reducing museum hours. 

At the same time, OMB indicated that the Smithsonian might be able to submit a 

“requirements” budget which, if accepted, would present a much more favorable 

financial forecast for fiscal year 2012.   

SMITHSONIAN REDESIGN

Process Overview An update on the Smithsonian best practices study, renamed “Smithsonian 

Redesign,” was presented.  The first phase of the study, which concluded in April 

2010, included an assessment by McKinsey & Co. of the Smithsonian’s 

organizational structure and financial resources with respect to the Institution’s 

ability to realize its stated goals, implement its strategic plan, and maximize its 

present resources.  The first phase also included a series of recommendations that 

were derived from the study. 

The second phase of Smithsonian Redesign is focusing on the Institution’s financial 

and administrative processes.  The purpose of the second phase is to ensure that 

the Smithsonian’s financial organization and management is best positioned to 

ensure the ability of the Smithsonian to achieve its strategic goals.  Both phases of 

the Smithsonian Redesign initiative have benefited from the participation of the 

Finance Committee and that committee’s ad hoc advisory group.  

Phase One The study included a Smithsonian Organization Health Index (OHI) survey, which

found that the Smithsonian scores high with regard to employee motivation, values, 

capabilities, and leadership and low with regard to decision‐making, innovation, 

and external orientation.  The Smithsonian’s coordination and control of its 

decision‐making processes is slightly below that of other organizations.  However, 

Smithsonian employees are significantly more motivated when compared to the 

employees of most organizations.   

The best practices study resulted in specific recommendations to improve upon the 

Smithsonian’s current processes.  It also identified key goals towards which the 

Smithsonian should aspire.  The recommendations include rebalancing 

relationships between the central administration and the units in order to achieve 

more effective partnerships.   
13 

The report also called the Institution’s current goal‐setting process inefficient.  The 

ideal process for establishing the Smithsonian’s annual goals and budget will 

include, among other things, better communications with the units and the 

application of operational metrics.  It will take approximately two years to 

implement a new annual goals and budget process. 

The current organizational structure of the Smithsonian was reviewed with regard 

to the Institution’s ability to achieve its stated goals and a proposed reorganization 

plan was presented for consideration.  The reorganization would better align the 

Smithsonian with its strategic plan and four Grand Challenges, maximize its 

resources, and provide for more coordinated, collaborative initiatives.  Changes to 

the Smithsonian’s organizational structure must be approved by OMB, and then the 

House and the Senate interior appropriations subcommittees.   

Phase Two The Secretary reported that several financial and administrative processes were 

identified for improvement.  A “Change Taskforce” has been created to oversee 

internal “change teams” tasked with successfully implementing the strategic change 

initiatives.  The process is intended to result in a more effective and transparent 

Smithsonian. 

Observations of the

Finance Committee’s ad

hoc Advisory Group

Finance Committee Chair Roger Sant provided the ad hoc advisory group’s 

observations and recommendations on the Smithsonian Redesign effort.  The group 

was comprised of outside experts.  Mr. Sant, Secretary Clough, and Ms. Stonesifer 

also participated in the group’s meetings.  The group’s report expressed two 

concerns and one strong recommendation. 

Mr. Sant expressed the advisory group’s conclusion that the Redesign project 

presents an important opportunity to transform the culture of the Smithsonian.  

The group strongly suggests the implementation of bolder initiatives than those 

currently articulated; it said that “unstoppable momentum” would provide for 

more substantive, transformative change.  The group also concluded that, in light of 

the current budget environment, the Redesign plan would benefit from an 

increased emphasis on cost savings and the articulation of goals to guide that effort.  

This would include creating criteria to identify activities and programs that may no 

longer be sustainable.  The group urged clarification of the functions and benefits of 

the consortia and ongoing assessment of the financial feasibility of new programs 

against cost efficiencies and consolidations. 

The advisory group strongly recommended that the Regents’ Executive Committee, 

with the continued support of Mr. Sant and two members of the advisory group, 

provide regular and ongoing oversight of and support for the Redesign initiative.  It 

also recommended that follow‐up surveys be conducted to track the Smithsonian’s 

progress. 

Discussion The Board discussed how the public receives regular updates about the 

Smithsonian’s goals, organizational changes, and progress.  Director of 

Communications and Public Affairs Evelyn Lieberman noted that the Smithsonian’s 

success can be measured by the stories about the tremendous work the 

Smithsonian accomplishes.  The branding initiative also will highlight the 

Smithsonian’s initiatives and excellence.   
14 

The Secretary said that the Smithsonian’s contract with McKinsey includes support 

for the development of a “change story” that communicates the important 

initiatives that the Institution has undertaken and those that will be launched.  

Governance and Nominating Committee Chair Shirley Ann Jackson reminded the 

Board that its September 2010 meeting will include discussion of that committee’s 

review of the Smithsonian’s progress over the previous three years, particularly 

with regard to the Government Accountability Office’s 2008 report on the 

Smithsonian’s governance.  The committee’s report will likely provide for a 

comprehensive statement about the Smithsonian’s current organizational health, as 

well as its aspirations for the future. 

Ms. Stonesifer reminded the Board that their ongoing support for Smithsonian 

leadership is of critical importance as the Institution implements the Smithsonian 

Redesign and communicates the transformative changes to which it aspires. 

REPORT OF THE FINANCE COMMITTEE

Finance Committee Chair Roger Sant said the committee met twice since the April 

2010 meeting of the Board of Regents.  In addition to considering the observations 

and recommendations of the best practices advisory group, it also reviewed 

funding options for the national campaign.  The committee took action on two 

routine but important issues: the fiscal year 2011 Endowment payout and the fiscal 

year 2012 Federal budget priorities. 

Fiscal Year 2011 Payout With regard to the Endowment payout, the current policy is to pay out each year 

5 percent of the average market value per share over the previous five years.  In 

fiscal year 2010 the Endowment payout was frozen at the fiscal year 2009 level of 

$38.72 per share in response to the economic crisis and in the interest of 

preserving the Endowment principal.  For fiscal year 2011, the Finance Committee 

proposed a payout of $39.30 per share, which is projected to result in a total payout 

of $49.86 million.  The committee also recommended that the difference between 

the fiscal years 2010 and 2011 payouts, which totals $1.13 million, be set aside to 

provide bridge funding for the national campaign.  The set‐aside would not apply to 

endowments where donor restrictions prohibit such a use.  The Board approved 

the Endowment payout recommendations of the Finance Committee. 

See attached Resolution 2010.06.02 (Minutes of the Board of Regents, Appendix A).

Fiscal Year 2012

Federal Budget

Priorities

Because the outlook for the fiscal year 2012 Federal budget is of great concern, the 

Regents were asked to review and approve proposed priorities that will inform the 

development of the fiscal year 2012 Federal budget request.  The Finance 

Committee will review the Smithsonian’s fiscal year 2012 budget submission 

during its August 23, 2010, meeting and recommend it for the approval of the 

Executive Committee.  All Regents are invited to participate in the telephonic 

Finance Committee meeting.   

Mr. Sant reiterated the key issues previously identified by the Secretary and noted 

that the number one budget priority is to secure $205 million in Federal funding to 

complete the construction of the National Museum of African American History and 
15 

Culture (NMAAHC).  Mr. Sant emphasized that the NMAAHC funding requirement 

will be exceptionally challenging should OMB’s recommended 9 percent Federal 

budget reduction be applied.   

The remaining budget priorities reflect non‐discretionary costs and areas 

emphasized in the strategic plan.  These include Federally mandated pay raises and 

necessary rent and utilities; strengthening collections care; and broadening access 

via education, digitization, and the Web.  The proposed budget priorities also take 

advantage of the best practices study and reflect the recommendations of the Trust 

team, particularly with regard to anticipated fiscal year 2012 Federal reductions. 

The Board approved the proposed fiscal year 2012 Federal budget priorities. 

See attached Resolution 2010.06.03 (Minutes of the Board of Regents, Appendix A).

REPORT OF THE INVESTMENT COMMITTEE

Portfolio Update Investment Committee Chair David Silfen reported that the portfolio continues to 

perform well.  The Endowment’s balance was $938.5 million at the end of March 

2010.  For the year‐to‐date period ending March 31, 2010, the Endowment 

reflected a return of 3.9 percent versus its policy benchmark of 3.6 percent.  With 

regard to one‐ and three‐year benchmarks, returns are solidly in the second 

quartile compared to peer organizations.  Five‐year numbers are anticipated to 

improve as the 2005 returns are retired from benchmark metrics.  The Investment 

Committee regularly compares the Endowment’s performance against those of 

non‐profit organizations that operate on a June fiscal year.  

The Smithsonian’s long‐term benchmark policy was revised in January 2010.  As of 

June 20, 2010, the Endowment’s performance was largely on track with regard to 

its revised asset allocation; fixed income and cash levels remain highly liquid.   

Uniform Prudent

Management of

Institutional Funds Act

The Board discussed the Uniform Prudent Management of Institutional Funds Act

(UPMIFA).  The act is intended to align charitable institutions’ investment decision‐

making processes with contemporary portfolio theory.  Although the Smithsonian 

has already been adhering to UPMIFA standards, the Investment Committee 

proposed that the Board formally adopt the new investment guidelines.  A chart 

comparing the standards of UPMIFA against those of its predecessor, the Uniform 

Management of Institutional Funds Act (UMIFA), was provided for the Regents’ 

review and a proposed motion that the Smithsonian be guided by the UPMIFA 

standards was presented. 

The Board’s review of the comparison chart, which was written by the Uniform Law 

Commission, revealed an unintentional vagary, or editorial error.  The Board asked 

that the Smithsonian’s position with regard to this issue be clarified and that the 

motion be presented for approval at the September 2010 Regents’ meeting.   

Infrastructure Update Filling the vacant investment officer position continues to be a challenge because of 

the Smithsonian’s inability to offer compensation that competes with industry 

standards.  The Office of Investments will be hiring an investment operations 
16 

assistant to support its work.

The core module of the new portfolio system, Backstop PM, is active and staff are 

learning to use the system.  In the first week of July 2010, the Office of Investments 

will move to new office space in closer proximity to the Smithsonian’s central 

administration facilities on the National Mall. 

Next Steps The Investment Committee continues to be apprised of the status of the national 

campaign, particularly with regard to funding options.  Following the approval of 

the campaign plan, staff will prepare for the committee’s review a recommendation 

regarding the use of the Endowment as a funding source for the campaign. 

AFTERNOON SESSION

The Chair called the afternoon session to order at 1:10 p.m.  Claudine K. Brown, the 

new Director of Education, was introduced to the Board of Regents. 

THE NATIONAL CAMPAIGN

Five Key Questions to

Guide the Development

of the Campaign  

Advancement Committee Chair Alan Spoon introduced the report on the national 

campaign.  He said that the development of the campaign has been shaped by five 

key questions: 

 Are the campaign needs right for the Smithsonian? 

 Is the Smithsonian’s capacity for achieving the campaign’s goals sufficient? 

 Is the administrative structure (budget, staffing, and policies) appropriate 

for the plan? 

 What are the roles and expectations of volunteers?  

 What is the relationship between this private initiative and the 

Smithsonian’s Federal support? 

Establishing the

Campaign’s Goal

Secretary Clough reported on the activities that have been conducted on the 

campaign.  Internal meetings have been conducted with Regents, unit directors, and 

five staff groups representing nearly 20 units, and feedback has been gathered from 

each stakeholder group.  The staff group meetings, which will continue, have 

considered the “needs” (staffing, budgets, and funding) of the campaign.  Ideas and 

budgets for pan‐institutional initiatives and unit‐specific programs were gathered, 

resulting in an initial “needs” budget of $3 billion.  With the help of a consultant, 

refinements were made that resulted in an initial campaign goal of $1.5 billion over 

a seven‐year period.  This goal represents an increase of about 40 percent over 

what the Smithsonian normally raises without a campaign.   
17 

Breakdown of the

Total Needs Budget

Of the $1.5 billion total proposed needs budget, 85 percent ($1.275 billion) will be 

directed toward the units’ needs and 15 percent ($225 million) will be directed 

toward Smithsonian‐wide initiatives, such as digitization projects, education, the 

revitalization of the Arts and Industries Building, the consortia, and endowed 

directorships and fellowships.  The total needs budget also was broken down into 

five divisions representing the strategic plan’s four Grand Challenges and unit‐

specific needs.  Reflecting the funding needs of the National Museum of African 

American History, some 49 percent of the total needs budget is dedicated to the 

Grand Challenge “understanding the American experience.”  

The Secretary emphasized that the campaign plan is focused on the Smithsonian 

units, not central administration.  He noted that the elements that comprise the 

“needs” budget will likely change as the campaign plan is developed, the results of 

the feasibility study are known, and the reaction of donors is ascertained during the 

“quiet phase” of the campaign. 

With regard to endowments versus “spendable” targets, the endowment goal is 

ambitious: 44 percent ($660 million) of the total campaign goal.  The Secretary 

noted that this stretch goal is necessary, given that the Smithsonian does not have 

enough endowment funding for an institution of its size.  He said that three factors 

should support the ability of the Smithsonian to achieve this target: many directors 

have established ambitious goals for their units; planned‐giving goals will be 

increased from 2 percent to about 20 percent of total donor giving; and a pool of 

previously untapped donors have expressed strong interest in the campaign.  

Capital projects, such as the construction of the National Museum of African 

American History and Culture and the revitalization of the Arts and Industries 

Building, comprise about 33 percent of the total campaign goal.  Initiatives in 

support of the strategic plan’s “broadening access” goal comprise 26 percent of the 

total and include such programs as exhibitions, Web and digitization efforts, and 

public programs.  Research comprises 17 percent of the campaign total, although 

funding for some research‐based initiatives, such as education programs, are 

included in the broadening access category; the Secretary added that this relatively 

low figure recognizes the campaign’s commitment to funding research through 

endowment‐based fund raising. 

Under Secretaries Pell

and Kurin Discuss the

Importance and

Potential of the

Campaign

Under Secretary Pell addressed the importance of the national campaign for the 

Smithsonian’s “people, places, and things.”  With regard to the intellectual 

resources of the science units, monies from the campaign will help address the base 

erosion of the Smithsonian’s intellectual capital and provide for endowed positions 

and fellowship programs that attract and keep the best minds in the field.  The 

creation of new structures, such as SERC’s “Green Village,” and the renovation of 

existing facilities, such as the National Zoological Park’s Elephant Trails, will 

support the Smithsonian’s commitments to world‐renowned research and public 

access.  These commitments also will be advanced with new funding for “things,” 

such as the Giant Magellan Telescope, the digitization of the collections and 

libraries, and oral history projects. 

Under Secretary Kurin spoke of the transformational potential of the campaign; the 

moments in the Smithsonian’s history when it has been able to contribute to 
18 

national and international issues, such as the industrial revolution and subsequent 

rationalization of the American economy; and the compelling global needs that the 

Smithsonian is uniquely positioned to addressed at this time, such as global 

warming and understanding the peoples and cultures of the world.  He said that, 

with the support of the national campaign, the aspirations of the Smithsonian’s 

strategic plan will benefit the nation and the world, giving increased purpose to the 

Smithsonian’s mission to support the “increase and diffusion of knowledge.”  

Challenges and

Opportunities

The Secretary then addressed the challenges and opportunities of the national 

campaign.  The development of the first‐ever comprehensive Smithsonian 

campaign has identified the Smithsonian’s challenges, and offered unifying 

opportunities for the Smithsonian.  Smithsonian‐wide efforts have contributed to 

the identification and prioritization of the Smithsonian’s needs.  These efforts also 

confirmed that the Smithsonian needs to increase its fund‐raising activity and 

streamline its operations. 

Current fund‐raising staff levels were assessed with regard to the Institution’s 

fund‐raising capacity.  The assessment showed that the work of certain fund‐raising 

staff should be realigned and that increases should be made to overall fund‐raising 

staff levels, particularly with regard to planned giving and individual contribution 

functions.  The Smithsonian must find new funding sources to support the 

expansion of fund‐raising staff. 

The Smithsonian has benchmarked its campaign needs against the campaign 

funding models of comparable organizations.  The Smithsonian’s unique status as a 

public‐private partnership creates a slight handicap, as the use of Federal funding 

to support fund‐raising activities is prohibited.  The benchmarking results 

produced funding models, which were discussed with the Advancement, 

Investment, and Finance committees of the Board of Regents.  A more detailed 

discussion on funding models will be held during the September 2010 Regents’ 

meeting. 

Review of the Campaign

Planning Calendar

Mr. Spoon noted the many contributions of the Advancement and other Regent 

committees, as well as the staff working groups.  He then reviewed the revised 

campaign planning calendar.   

The internal assessment final report was completed in March 2010, at which time 

the Advancement Committee began discussions of certain campaign plan 

components (needs, priorities, macro goals).  Previews of campaign budget and 

funding models began in June 2010; the Board will closely review these models 

during its September 2010 meeting.  Previews of other campaign plan components 

(staffing, policies, messaging) also began in June 2010; these also will be closely 

examined by the Board at its next meeting.  It is anticipated that the plan will be 

presented for the Board’s approval in January 2011. 

Discussion Mr. Spoon asked for feedback on the campaign plan, including the proposed weight 

of the endowment target in the total campaign goal. 

The Smithsonian historically targeted 10 to 15 percent of its raised funds towards 

endowments.  However, capital campaign goal norms are changing.  Institutions are 
19 

now asking for more money; it is not uncommon to set an endowment target of 44 

percent.   

The Board considered the total campaign goal.  Some Regents expressed concern 

that the $1.5 billion campaign goal is too conservative; others were of the opinion 

that an achievable goal will likely gather momentum and offer the opportunity to 

raise the goal once into the campaign.  The impact of the current economic climate 

was noted.  The Regents discussed the fact that this will be the Smithsonian’s first 

national campaign, a distinction that could ensure a strong and sustainable 

campaign and possibly support a more ambitious campaign goal. 

The Board also discussed the importance of carefully explaining the Smithsonian’s 

public‐private partnership, the Institution’s sizable needs, and the limitations of its 

Federal funding.  Donors must also be assured of the Federal government’s support 

for the Institution. 

The Board acknowledged that, regardless of the overall campaign goal, difficulties 

will likely arise during the implementation of the campaign.  For example, units 

might feel uneasy sharing information about donor prospects.  The Board agreed 

that streamlining and centralizing the reporting structure of the Smithsonian’s 

development offices, which currently do not report directly to the central Office of 

External Affairs, will strengthen the campaign. 

The Board acknowledged that both the campaign’s overall goal and budgets are 

placeholders at this time.  More information will continue to be gathered from 

Smithsonian staff, unit directors, and advisory board members.  The Secretary was 

asked to provide an update to the Board at its September 2010 meeting about the 

Smithsonian’s progress on communications to staff about the campaign.  Mr. Spoon 

also asked for guidance on establishing a non‐contractual alliance with the Federal 

government to ensure its continued support as the Smithsonian achieves its 

campaign fund‐raising goals. 

REPORT OF THE ADVANCEMENT COMMITTEE

Notable Gifts and

Proposed Gift Actions

Director of External Affairs Director Virginia Clark commented on six notable gifts 

recently received by the Smithsonian.  The six gifts, which did not require the 

approval of the Board of Regents, aligned with the strategic plan and its stated 

needs, including broadening access and educational initiatives.  One gift was from 

an individual, one from a foundation, one from an association, and three were from 

corporations. 

Naming and

Endowment Actions

Five naming and endowment actions that required the approval of the Board were 

presented.  The proposed motions were approved en bloc. 

See attached Resolutions 2010.06.04–2010.06.08 (Minutes of the Board of

Regents, Appendix A).
20 

DIRECTOR’S REPORT: THE NATIONAL MUSEUM OF THE 

AMERICAN INDIAN

Ms. Stonesifer welcomed National Museum of the American Indian (NMAI) Director 

Kevin Gover, who has served as the museum’s director since 2007.   

History and Mission of

the National Museum of

the American Indian

NMAI is the first national museum dedicated to the preservation, study, and 

exhibition of the life, languages, literature, history, and arts of Native Americans.  It 

was established by Congress in 1989 to protect and preserve an important, but 

financially threatened, collection of Native American art and artifacts.   

By its founding statute, NMAI maintains three facilities: the New York City–based 

George Gustav Heye Center, which was named after the collection’s founder; the 

Cultural Resources Center, a research and collections facility in Suitland, Maryland; 

and the National Museum of the American Indian, which opened in 2004 on the 

National Mall. 

The museum’s founding statute also included other specific provisions.  It defined 

the Native American peoples to include all of the indigenous peoples from the 

southernmost parts of South American to the top of the Arctic Circle, as well as 

those in Hawaii.  In addition to the oversight of the Board of Regents, the 

governance of NMAI is largely managed by its Board of Trustees, the majority of 

whom must be Native American.  The NMAI Board of Trustees possesses the sole 

authority over the accession and deaccession of the NMAI collections, and over 

certain endowments from the Heye Foundation. 

Successes and

Challenges, Goals and

Strategies

The successes of NMAI over the last two decades have been many.  The Heye 

collection was rescued and is now well cared for by conservators at the Cultural 

Resources Center.  NMAI has steadily dealt with repatriation requests for human 

remains, as well as funerary and sacred objects.   

Reflecting NMAI’s commitment to community engagement, the exhibits in the 

museum’s facility on the National Mall were designed with the input of numerous 

Native American communities.  The museum is now “renewing connections” and 

engaging in a new round of consultations with tribal communities.  In addition to its 

displays of historic art and artifacts, the museum is committed to exhibiting the 

work of contemporary Native American artists. 

The museum has an active publishing program that produces publications that 

range from scholarly exhibition catalogues to book series for children.  It also is 

test‐marketing accessible publications for the general reading public.  Lively 

cultural arts events, such as the annual “Power of Chocolate” and outdoor concert 

series, contribute to the museum’s outreach. 

Mr. Gover discussed NMAI’s fund‐raising history and the upcoming Smithsonian 

national campaign.  During its three most successful fund‐raising years, the 

museum raised $23 million, $26.5 million, and $18 million which, if replicated, 

would advance the museum most of the way towards its campaign goal.  Mr. Gover 

said that the museum’s campaign goal is achievable but challenging.  To be 
21 

successful the museum must sell the idea of the museum’s impact on the public’s 

understanding of Native Americans, just as funds for the creation of the Mall facility 

were raised by selling the idea of a facility dedicated to the art and culture of the 

American Indian.    

NMAI membership revenues are key to maintaining the museum’s level of 

programming.  NMAI has about 46,000 members, which is approximately half of the 

total membership of the Friends of the Smithsonian and well above that of many 

other Smithsonian museums.  Its membership also is significantly higher than that 

of other Native American art and culture museums, a comparison that is especially 

significant given that free admission is not a membership benefit at NMAI.   

The museum does not have the high attendance of the large Mall museums.  

Nevertheless, its membership is deeply committed, geographically diverse, and 

largely not Native American.  The membership, however, is both aging and 

declining in size.  The museum’s membership fell after its peak membership levels 

in 2004–2005.  Membership levels now compare to those in 2003.  A membership 

goal of 60,000 to 65,000 in the next few years has been established. 

Visitation at the museum dropped following the initial surge of visitors to the new 

facility on the Mall, and visitation numbers are now flat.  Visitation to the Heye 

Center was severely impacted by the events of 9/11.  

Other challenges to the museum include the ongoing need to address 

misconceptions about American Indians.  The museum must continually compete 

against powerful, ill‐informed narratives presented in historic and contemporary 

media.  The belief that “there are no more real Indians” is regularly encountered.  

The sustainability of the NMAI budget was discussed.  Seventy percent of the fiscal 

year 2006 Federal appropriation was dedicated to salaries and benefits; some 80 

percent of the fiscal year 2011 Federal budget will be devoted to the same.  Staff 

levels are not top‐heavy and have remained flat. 

The museum has identified several strategies to support its goals.  It has created a 

new scholarship unit and developed themes that correspond to the strategic plan’s 

four Grand Challenges.  It also is refurbishing the Mall facility’s permanent 

exhibitions to increase the museum’s attendance. 

The reinstallation of the exhibitions will include a more uniform curatorial voice, 

and will present the impact of European immigration on Native American 

communities.  Family activity centers will be opened in both the Washington, D.C., 

and New York City facilities. 

New exhibitions will consider the Great Inka Road; the relationship between the 

environment and culture in native Hawaiian communities; treaties; histories of 

Native American tribes in the United States; and, in New York City, the first survey 

of the permanent collection and materials about the history of the tribes of New 

York.  The museum provides access to its collections through travelling exhibitions, 

loans, Web‐based exhibitions, and the digitization of its collections.  Over 12,000 

digitized images representing some 2,000 Native American communities are now 
22 

available online.  Online visitorship is growing about 15 percent each year, and the 

length of these visits are increasing. 

Mr. Gover said that the most important strategy, and goal, is to instill and nurture 

the understanding that Native American history and culture is also the history and 

culture of each visitor, no matter who they are or where they are from.  

Collaborative initiatives and revitalized education programs can explain, for 

example, that corn was developed by Native Americans; corn and corn products 

now provide for 20 percent of the world’s food supply.  The language recovery 

program at the National Museum of Natural History is another example of a 

successful collaborative initiative. 

To continue to tell the story of the Native American peoples, NMAI must carefully 

manage increasingly limited resources.  It must generate new sources of revenues 

and non‐revenue contributions and expand and diversify its membership base.  

New education and exhibition strategies, such as installing exhibitions in the Mall 

facility’s popular cafeteria, will be implemented. 

The museum has identified two major goals for the national campaign: to fund all 

new exhibitions and to increase the size of its endowments.  Mr. Gover noted that 

the museum has carefully managed and increased the size of its endowment.  It 

now must focus even more on preparing for the financial challenges of the future. 

Discussion Mr. Gover was asked about the underlying rationale behind naming the museum 

the National Museum of the American Indian, and not Native Americans.  After first 

explaining that the museum’s name was derived from the title of the Heye 

collection, Mr. Gover noted that both are equally inaccurate. 

The National Park Service Board recently established a process for the disposition 

of culturally unaffiliated Native American remains in museum collections or on 

exhibit.  Mr. Gover explained that the Park Service’s process is controversial 

because some stakeholders believe it needs refining.  He said that the museum 

could convene Native American advisors in an effort to provide additional input on 

the process. 

In response to a question about what the museum needs from the Regents and the 

central Smithsonian leadership, Mr. Gover said that NMAI would benefit from as 

much certainty as possible about budgets, directives and rules, and the national 

campaign. 

INSPIRING GENERATIONS THROUGH KNOWLEDGE AND 

DISCOVERY: NEW RESEARCH

Under Secretaries Kurin and Pell each highlighted three examples of recent 

research activities in their respective divisions. 

Dr. Kurin spoke of Cooper‐Hewitt, National Design Museum’s forthcoming 

exhibition Critical Mass: Design and Urbanization, which will explore proposed 
23 

solutions to some of the complex issues that are projected to occur over the next 20 

years in response to unprecedented rates of urban growth.  He noted the March 

2010 colloquium “Collaborations in the Conservation of Time‐Based Media Art,” 

which was co‐organized by the Hirshhorn Museum and Sculpture Garden, the 

National Portrait Gallery, and the Smithsonian American Art Museum.  He also 

commented on the collaborative initiative between the National Museum of 

American History and the National Museum of African American History and 

Culture to search for an historic American slaver wreck off of the coast of Cuba.  If 

approved by the Cuban Ministry of Culture, the search could provide unvarnished 

insights into the realities of the American slave trade before 1820.  

Dr. Pell discussed the recent discovery by Harvard‐Smithsonian Center for 

Astrophysics astronomers of a red giant star considered to be among the second 

generation of stars to form after the Big Bang.  Smithsonian Tropical Research 

Institute (STRI) researchers discovered a previously unknown prehistoric turtle 

species in Colombia; the fossil’s relationship to six contemporary turtle species, 

including one in Madagascar, provides evidence of the continental drift that 

separated India and Madagascar some 90 million years ago.  STRI scientists also 

discovered two new frog species during their studies of a deadly fungal disease that 

has wiped out more than 100 frog species to date. 

REPORT OF THE SMITHSONIAN NATIONAL BOARD

SNB Fund Raising

Update

Smithsonian National Board (SNB) Chair Paul Neely updated the Regents on the 

activities of the Smithsonian’s pan‐institutional advisory board.  The results of the 

Board Annual Giving campaign, which provides discretionary funds for the 

Secretary, have surpassed the 2010 goal of $1 million.  Gifts from individual SNB 

members have provided support for the Smithsonian branding initiative, an 

education center at the National Zoo’s Conservation Biology Institute, and the 

development of a universal Smithsonian mobile Web site and applications. 

SNB’s Review of the

Arts and Industries

Building

Mr. Neely said that the SNB April 2010 meeting included a guided tour of the Arts 

and Industries Building, followed by an in‐depth review of the design concept that 

had been previously presented to the Regents.  SNB members broke into discussion 

groups and expressed a range of opinions about possible design and program 

concepts for the building.   

SNB members also asked about the renovation needs of the Castle and suggested 

that the future use of both buildings be addressed at the same time.  The Regents 

agreed that the Castle is in need of renovation.  Dr. Córdova noted that establishing 

a vision for the Castle in concert with that for the Arts and Industries Building could 

provide a powerful fund‐raising tool that could attract significant donors.  Mr. Neely 

concluded his report by noting that the discussions of the AIB design concept 

demonstrated the Smithsonian National Board’s ability to serve as an important 

stakeholder focus group that can provide critical input on the Smithsonian and its 

initiatives.   
24 

REVIEW OF GOVERNMENT RELATIONS: LEGISLATIVE ACTIVITIES 

AND ISSUES 

Director of Government Relations Nell Payne said there were no updates to the 

Review of Government Relations that was provided in the Regents’ meeting 

materials.   

REPORT OF THE GENERAL COUNSEL

General Counsel Judith Leonard said that there were no updates to the confidential 

litigation update included in the Board’s meeting materials. 

INTERNATIONAL MUSEUM PROFESSIONAL EDUCATION PROGRAM

Under Secretary Kurin provided an update on the proposed international museum 

professional education program and discussions with the Abu Dhabi Authority for 

Culture and Heritage (ADACH) regarding the launch of a pilot program in Abu 

Dhabi.  The Smithsonian is seeking the Board’s guidance on whether to go forward, 

using a detailed draft term sheet, in good faith negotiations with ADACH and how to 

conduct such negotiations.   

Overview of

Activities To Date

The Board and the Strategic Planning and Programs Committee previously 

conducted frank discussions about pursuing a pilot museum education program in 

Abu Dhabi.  In January 2010, the Board endorsed the general idea for an 

international museum education program but did not approve the selection of any 

specific locations for the program.  Since that time, the Office of the General Counsel 

and other senior management developed a draft term sheet outline to support, with 

the concurrence of the Regents, negotiations with ADACH.  Briefings were 

conducted with representatives of various congressional committees and the U.S. 

Department of State, the Smithsonian’s OMB examiner, and members of the Anti‐

Defamation League (ADL), among others.  The Smithsonian received a 

memorandum of support for the proposed program from the State Department. 

Director of Government Relations Nell Payne reported that the proposed program 

was discussed with representatives from nine congressional committees.  

Reactions from the committees’ staff ranged from neutral to very positive.  Mild 

concern was raised over the possibility that, during a time of reduced resources, the 

initiative might distract from the Smithsonian’s ability to fulfill its mission.  The 

program could create new and robust revenue sources.   

Accessibility Concerns Ms. Payne noted that there are ongoing discussions about access to the program, 

particularly with regard to the ability of Israeli faculty and students to secure visas.  

Dr. Kurin reminded the Board that the underlying reason to pursue the museum 

education program in Abu Dhabi is because of the area’s need for museum training, 

which does not appear to be the case in Israel.  Dr. Kurin also commented on the 

success of the Institution’s prior negotiations in support of Chinese and Cuban 
25 

researchers who desire to work with the Smithsonian.  

Draft Term Sheet The Board reviewed a draft term sheet that, when finalized, could support further 

negotiations in support of the pilot program.   

The Board agreed to continue this discussion during the Report of the Strategic 

Planning and Programs Committee. 

REPORT OF THE STRATEGIC PLANNING AND PROGRAMS 

COMMITTEE

Discussion of the

Proposed International

Museum Education

Pilot Program in Abu

Dhabi

Strategic Planning and Programs Committee Chair Doris Matsui thanked the Board 

for the input it continues to provide with regard to the proposed development of an 

international museum education program and the creation of a pilot program in 

Abu Dhabi.  She reminded the Board that the Smithsonian had received a multi‐

million dollar proposal to establish the Abu Dhabi program about one year before 

this meeting.  Since that time the Board has provided guidance on the necessary 

structure and due diligence that must occur if the program is to proceed.  Staff have 

created a draft term sheet to guide negotiations and conducted substantive 

discussions with key stakeholders, such as representatives of the Congress, the 

White House, the U.S. Department of State, outside legal counsel, and organizations 

and universities that are currently engaged in similar programs in Abu Dhabi.   

Representative Matsui noted that these discussions have been conducted in the 

transparent manner that also would guide the proposed program.  She stated that 

the Smithsonian’s reputation and close ties with the Federal government both 

demand that the Institution establish higher standards than those set by some 

organizations that have undertaken similar initiatives. 

She said that the Strategic Planning and Programs Committee was not asking the 

Board to endorse the proposed initiative at this time but believes that the 

Smithsonian could advance to the next level of discussions with ADACH.  She 

acknowledged that the remaining unanswered questions could only be addressed 

during the next course of negotiations.  She also emphasized that the Smithsonian 

should not depend solely on the support of the U.S. Department of State and that 

the Institution should anticipate taking “ownership” of the program.   

To work towards achieving a greater level of clarity and comfort, the Board was 

invited to continue its discussion of issues of concern.  Accessibility issues, 

particularly with regard to potential visa requests for Israeli citizens, were again 

discussed, as also was the rationale for selecting Abu Dhabi as the pilot site for the 

international museum education program. 

As recently evidenced in Haiti, the need for an international museum education 

program is great.  Funding from the Abu Dhabi pilot program could support the 

Smithsonian’s ability to provide training for countries without such financial 

resources. 
26 

The Board requested that the draft term sheet clarify the pilot program’s terms 

with regard to termination, liability, and indemnification issues.  Participants must 

fully understand that due process varies in different sovereign states, and therefore 

cannot hold the Smithsonian or its Board liable if they choose not to abide by local 

laws.  The term sheet should make clear that, should the Smithsonian withdraw 

from the program because of changes in either country’s foreign policies, it will not 

bear the exit costs.   

The potential for the Smithsonian to become a world leader in museum education 

programs was discussed. 

Advancement Committee Chair Alan Spoon said that this discussion raised issues 

that must be reviewed, negotiated, and addressed in the draft term sheet.  He also 

agreed with a point raised by Mr. Sant that that the differences and underlying logic 

of gift donations versus funding for administrative support should be clarified.  The 

Regents agreed to continue its discussion in executive session.

ADJOURNMENT

The afternoon session was adjourned at 3:48 p.m., after which the Board met in 

Executive Session.  The meeting of the Board of Regents was adjourned at 4:15 p.m. 

Respectfully Submitted, 

G. Wayne Clough 

Secretary 
APPENDIX A 

APPROVED RESOLUTIONS

JUNE 21, 2010, MEETING OF THE BOARD OF REGENTS

VOTED that the Board of Regents approves the minutes of the April 12, 2010, meeting of the Board 

of Regents.  [2010.06.01] 

VOTED that the Board of Regents approves a payout rate of $39.30 per share for all Endowment 

funds for fiscal year 2011, with the $0.58 per share increase from fiscal year 2010 to be set aside as 

bridge financing for National Campaign expenses to the extent not prohibited by donor restrictions.  

[2010.06.02] 

VOTED that the Board of Regents approves the fiscal year 2012 annual budget priorities proposed 

by the Secretary.  [2010.06.03] 

VOTED that the Board of Regents approves the creation of an endowment to support and 

administer a fellowship and internship program at the National Museum of Natural History to train 

museum professionals, including but not limited to scientists, collection managers, and educators. 

In addition, the Board recognizes the donor’s generosity to the Museum, and approves naming the 

program The Peter Buck Fellowship Program.  [2010.06.04]  

VOTED that the Board of Regents recognizes the generosity of Ann and Gilbert Kinney to the Freer 

Gallery of Art and the Arthur M. Sackler Gallery and creates and names the Ann and Gilbert Kinney 

Endowment, an endowment for unrestricted support of the Galleries with a preference for support 

of Southeast Asian art and culture.  [2010.06.05]  

VOTED that the Board of Regents recognizes the generosity of George and Holly Stone and their 

children, Elianna, Emma, Sophia, and Yuri, to the National Zoological Park and, in honor of Holly 

Stone’s parents, names the Homer and Martha Gudelsky Elephant Outpost for the life of the facility 

or until its first major renovation, whichever comes first.  [2010.06.06]  

VOTED that the Board of Regents recognizes the generosity of Target Corporation to Cooper‐

Hewitt, National Design Museum, and names the Target Master’s Students’ Lounge for a period of 

40 years from the date of the gift.  [2010.06.07]  

VOTED that the Board of Regents recognizes the generosity of Joseph G. Tompkins to the National 

Zoological Park and approves naming the Jay and Toshiko Tompkins Elephant Stall for 20 years, or 

until the first major renovation of the facility, whichever comes first.  [2010.06.08]