MINUTES OF THE JUNE 25, 2012, MEETING

OF THE BOARD OF REGENTS

ATTENDANCE

This scheduled meeting of the Board of Regents was held on Monday, June 25, 2012. The Board 

conducted a morning, afternoon, and executive session in the Regents’ Room in the Smithsonian 

Castle Building. Board Chair France Córdova called the meeting to order at 8:30 a.m. Also present

were: 

The Chief Justice 1

Xavier Becerra

Stephen M. Case

Thad Cochran

Sam Johnson

Robert P. Kogod

Steven LaTourette

Patrick J. Leahy

David M. Rubenstein

Roger W. Sant

Patricia Q. Stonesifer

Paul Neely, Smithsonian National Board Chair

David Silfen, Investment Committee Chair

Vice President Joseph R. Biden Jr., Senator Jack Reed, Dr. Shirley Ann Jackson, and John W. 

McCarter Jr. 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, Assistant Secretary for 

Education and Access

Amy Chen, Chief Investment Officer

Virginia B. Clark, Director of Advancement and 

Philanthropic Giving

Scott S. Dahl, Inspector General

Barbara Feininger, Office of the Regents Senior 

Writer-Editor (recorder)

Albert Horvath, Under Secretary for Finance and

Administration/Chief Financial Officer

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 External Affairs

Christopher Liedel, President of Smithsonian

Enterprises

Nell Payne, Director of Government Relations

Eva J. Pell, Under Secretary for Science

Jeffrey P. Minear, Counselor to the Chief Justice 

T.A. Hawks, Assistant to Senator Cochran

Kevin McDonald, Assistant to Senator Leahy

Moira Lenehan-Razzuri, Assistant to Senator Reed

Grisella Martinez, Assistant to Congressman Becerra

David Heil, Assistant to Congressman Johnson

Sarah Cannon, Assistant to Congressman LaTourette

Jeffrey Brodie, Deputy Director of the Lemelson 

Center for the Study of Invention and Innovation 2

Sidney Hart, National Portrait Gallery Senior Historian 2

Alison McNally, Senior Advisor to the Secretary 2

Scott Miller, Deputy Under Secretary for Collections 

and Interdisciplinary Support 2

Daniel Sheehy, Director of the Center for Folklife and 

Cultural Heritage 2

1 The Chancellor, Chief Justice John G. Roberts, Jr., participated in the afternoon session.

2 Drs. Brodie, Hart, Miller, and Sheehy and Ms. McNally gave special presentations to the Board.
2

MORNING SESSION

REPORT OF THE BOARD AND EXECUTIVE COMMITTEE CHAIR

Introductory Remarks Board Chair France Córdova called the meeting to order. She thanked Mr. Sant and 

his wife, Vicki Sant, for hosting the previous evening’s Regents’ dinner.

Seriously Amazing: 

The Star-Spangled Banner

This year, Dr. Córdova noted, marks the 200th anniversary of the War of 1812. She 

said that the meeting’s “Seriously Amazing” and luncheon presentations would both 

address aspects of this pivotal event in American history. 1812: A Nation Emerges, a 

National Portrait Gallery (NPG) exhibition, would be discussed during lunch and the 

Star-Spangled Banner, a historically significant artifact that is the centerpiece of the 

recently renovated National Museum of American History (NMAH), would be the 

focus of the “Seriously Amazing” presentation. 

Under Secretary for History, Art, and Culture Richard Kurin introduced the 

presentation on the Star-Spangled Banner. The flag, when seen following the 

unsuccessful attack by British warships on Fort McHenry in September 1814, inspired 

Francis Scott Key to write what later would become the national anthem. It also

became a symbol of American values and ideals. Dr. Kurin welcomed Jeffrey Brodie, 

who was the project manager and cocurator of the NMAH exhibition The StarSpangled Banner: The Flag That Inspired the National Anthem. Dr. Brodie, who is the 

Deputy Director of the Lemelson Center for the Study of Invention and Innovation at 

NMAH, explained the history of the flag’s creation by Mary Pickersgill and how the 

banner was held by descendants of Major George Armistead, the commander of Fort 

McHenry who commissioned the flag in 1813, until its 1907 transfer to the 

Smithsonian. He also spoke of efforts to conserve the flag, including the 18-month 

conservation effort that began in 1998, and the installation of the flag in a new 

permanent exhibition at the museum.

Overview of Meeting 

Agenda and Executive 

Committee Report

Dr. Córdova outlined the meeting agenda and reported on the activities of the 

Executive Committee since the April 30, 2012, meeting of the Board. She reported 

that she hosted the fourth annual retreat of Smithsonian advisory board chairs on 

May 15, 2012. Over 20 boards were represented, including the newly established 

advisory boards of the Smithsonian Tropical Research Institute, the Smithsonian 

Institution Traveling Exhibition Service, and the Smithsonian Astrophysical 

Observatory. Dr. Córdova reported that unit directors and their advancement 

committee chairs later joined the retreat for an inaugural meeting of the national 

campaign steering committee. She congratulated steering committee cochairs David 

Rubenstein, Alan Spoon, and Barbara Barrett, as well as Director of Advancement and 

Philanthropic Giving Ginny Clark and her staff, for the successful event. 

April 30, 2012, Board 

Meeting Minutes

The minutes of the April 30, 2012, meeting of the Board of Regents were later

approved without comment or revision.

See attached Action 2012.06.01 (Minutes of the Board of Regents, Appendix A).
3

REPORT OF THE SECRETARY

“Seriously Amazing” The Secretary reported on several “Seriously Amazing” events. Standing at about 18 

million, fiscal year-to-date visitation is very strong and reflects an increase of over 1.5 

percent from the same time last year. The Smithsonian hosted many programs in 

conjunction with the “Girl Scouts Rock the Mall” centennial celebration on June 9, 

2012, and recorded over 560,000 visitors over the course of that weekend. At 

345,000, the final visitor count to the Ripley Center’s MathAlive! exhibition surpassed 

previous visitation records for the center, including its exhibition of Jim Henson’s 

Muppets. Secretary Clough spoke of the May 24, 2012, NMAH naturalization 

ceremony hosted by former U.S. Secretary of State Madeleine Albright. The impact of 

the space shuttle Discovery acquisition continues to be felt: the story generated over 

4 billion unique internet viewers and Nielson audience ratings reported over 350 

million viewers.

Federal Budget Update The Secretary reported on the fiscal year 2013 Federal budget appropriations process. 

The Smithsonian’s fiscal year 2013 budget request was $856.8 million. The markup by 

the House Interior Appropriations Subcommittee resulted in a 7.9 percent proposed 

cut to the request. The proposed funding reductions would most impact the 

Smithsonian’s Facilities Capital account: funding for the construction of the National 

Museum of African American History and Culture would be cut by $35 million and 

$16 million for earthquake repairs would not be funded. The Smithsonian is hopeful 

that action by the Senate will improve the Smithsonian’s Federal budget request.

Report on Fundraising, the 

Endowment, Grants and 

Contracts, Smithsonian 

Enterprises Revenue

As of May 31, 2012, $142.7 million was raised through Smithsonian fundraising 

efforts. The Smithsonian will meet its 2012 fundraising goal of $200 million should 

the pace of significant donor gifts continue. Fundraising for the national campaign is 

ahead of schedule, and 33.6 percent of the campaign goal has been raised. The 

expansion of the Smithsonian’s profile and donor base continues to be supported by

Smithsonian stakeholders, including members of the Smithsonian National Board, 

who have hosted the Secretary at events across the country.

As of May 31, 2012, the Smithsonian’s Endowment reflected a market value of

$1,013.9 billion. The Endowment’s fiscal year-to-date performance is 6 percent 

growth versus the policy benchmark of 4.9 percent. Grant and contract awards are 

on track to double by 2015.

Smithsonian Enterprises (SE) continues to retool its portfolio. The Smithsonian store

at the NMAH recorded record sales over the Girl Scout centennial weekend: the sale 

of Girl Scout merchandise alone generated over $53,000. NMAH sales generated 

$70,000 in a single day, breaking its year-to-date one-day sales record. Products 

related to the space shuttle Discovery have generated more than $260,000 in new 

revenue.

Exhibitions, Education, 

Outreach

Thirty-two new exhibitions will have opened between the Board’s April 30 and 

October 15, 2012, meetings. In addition to the multiple events scheduled for the 

2012 Folklife Festival, other exhibitions include The Patents and Trademarks of Steve 

Jobs: Art and Technology that Changed the World (Ripley Center); NPG’s 1812
4

exhibition; Graphic Design—Now in Production (Cooper-Hewitt, National Design 

Museum); When Duty and Time Permit (National Museum of Natural History/NMNH); 

and 40 under 40: Craft Futures (Smithsonian American Art Museum’s Renwick 

Gallery). Beginning on July 9, 2012, the Smithsonian will be the first public institution 

to use Google Maps to support visitors’ experiences.

The Consortia continue to reach out to external partners in support of crossdisciplinary initiatives that advance the four Grand Challenges. On July 17, 2012, Judy 

Woodruff will host a conversation with Dr. Vartan Gregorian, president of the 

Carnegie Corporation, as part of the Americans All initiative. The June 7, 2012, Age of 

Plastic symposium touched on three of the four Grand Challenges—Understanding

and Sustaining a Biodiverse Planet, Valuing World Cultures, and Understanding the 

American Experience.

Assistant Secretary for Education and Access Claudine Brown is developing 

educational programs in support of the Consortia’s Waterways and Americans All 

initiatives. A summit on Smithsonian resources for STEM education was held with 

Colorado education and corporate leaders. Senator Cochran was the keynote speaker 

for the national meeting of Smithsonian Affiliates.

People, Awards, 

Infrastructure

The search for the next NMNH director is proceeding and a short list of finalists has 

been selected. The search for the next Archives of American Art director is almost 

complete, and a search to replace outgoing NPG Director Martin Sullivan will soon 

launch. Newly appointed NMAH Director John Gray will assume his position on July 

23, 2012. The Secretary reported on the Smithsonian’s tribute to the late Secretary 

I. Michael Heyman. The tribute was held at the NMAH Warner Bros. Theater in June 

2012.

The Secretary cited several achievements and recognitions recently awarded to 

Smithsonian staff. Some of those noted were NMNH Department of Anthropology

Senior Research Scientist Melinda Zeder, who was elected to the National Academy of 

Sciences; Smithsonian Astrophysical Observatory Senior Astronomer Mark Reid, who

was awarded the 2012 Jansky Lectureship in recognition of his pioneering work in 

Very Long Baseline Interferometry; and two groups of Smithsonian Conservation 

Biology Institute staff, who received the Association of Zoos and Aquariums Plume 

Award for their work on saving avian species. The Washington Building Congress 

recognized the Arts and Industries’ scaffolding project with its star award for technical 

excellence.

More than $1 billion in major construction projects are under way, on time, and on 

budget. Approximately 40 percent of the construction projects will be privately 

funded. A contract for the construction of the National Postal Museum’s expanded 

program space, including the William H. Gross Stamp Gallery, was awarded in May 

2012 and construction is expected to be complete in mid-2013. Over 60,000 square 

feet of the NMNH West Wing is being converted to work areas for the Vertebrate 

Zoology and Laboratory of Analytic Biology, and will include a lab to support rapidsequence DNA analysis.
5

BRANDING INITIATIVE UPDATE

Update on the Brand 

Advertising Campaign

Mrs. Lieberman reported that the first phase of the external brand advertising 

campaign will launch in October 2012. “Questions Alive,” the advertising campaign 

concept, is designed to change public perception by showing—in creative, inspiring, 

and unexpected ways—the exciting learning experiences and wide range of engaging 

resources offered by the Smithsonian. Trendsetting 18 to 34-year-old “Aware 

Millennials” who are active social media users and committed to learning are the key 

target audience. “Aware Moms” (women with children age 12 and up) are a 

secondary audience.

The initial advertising campaign will run for four weeks and include paid advertising 

on websites, in magazines, and in outdoor locations like billboards, bus shelters, and 

transit sites in five cities. Additional attention will be garnered via social and earned 

media, and programming and museum events. Ads will drive viewers to a new 

website called seriouslyamazing.com. The site will include interactive questions and 

answers called “SI-Qs” that will reveal Smithsonian content in fun and surprising ways

and send users to other Smithsonian websites to learn more. The “Questions Alive” 

advertising concept received enthusiastic responses from each of the nine focus 

groups tested. In future months, a video introduction to the Smithsonian and a 

printed companion piece will be produced. In keeping with the new brand strategy, 

both will offer a compelling description of what the Smithsonian is.

Target Corporation in-kind gifts valued at approximately $750,000 are financing ad 

creation and production fees. Mrs. Lieberman reported that the scope of Target’s 

commitment to the media placement campaign, however, was reduced to funding a 

limited number of digital ads and negotiating discounted placement rates for other 

ads. Smithsonian funds totaling $385,000 will finance the new website and now the 

majority of the media placement. The Office of Advancement is supporting efforts to 

identify other corporate sponsors, and promising discussions have been held with two 

large media outlets. 

Discussion The Regents discussed the impact of a donor’s announcement that it could no longer 

fund most of the $820,000 ad placement plan. The Smithsonian has identified 

$500,000 in Smithsonian monies to help address the funding shortfall. In response to 

a question from Dr. Córdova, Mrs. Lieberman said that securing the remaining funds 

will increase the depth, but not the length, of the advertising campaign. Additional 

funding will expand the scope of the digital media plan (the primary vehicle for 

reaching targeted audiences), out-of-home ads (billboards, transit, etc.) in large 

metropolitan areas, and magazine advertising. 

Ms. Stonesifer asked about the use of Smithsonian resources to promote the 

Smithsonian brand. SE will place brand ads in Smithsonian magazines and on the 

Smithsonian website. Ms. Stonesifer inquired about the Smithsonian’s overall 

advertising budget and the budget for the brand ad campaign. Noting that the 

Smithsonian currently doesn’t have a pan-institutional advertising budget, Mrs. 

Lieberman explained that Smithsonian ads are specific to individual units, are typically 

about museum exhibitions, and are usually funded by exhibition sponsors. 
6

Commenting on the need to internally fund the media placement plan, Mr. Kogod 

expressed concern about the Smithsonian’s ability to maintain the momentum of the 

ad campaign after its four-week run. The Secretary said the momentum will be 

supported by expanded internal branding efforts, adding that the Smithsonian brand 

already is reflected in numerous Smithsonian materials and websites, and soon will be 

seen in all Smithsonian materials. 

Mr. Case expressed his support for the brand campaign’s choice of targeted audiences 

and commitment to social media. Because of recent changes in the branding budget, 

however, he suggested that the Smithsonian consider shifting its focus away from 

advertising and to social media partners. He also suggested repurposing the national 

campaign video, stating that it effectively conveys the Smithsonian brand and 

captures the ideas of targeted audiences. Noting that the national campaign video is 

targeted to donor audiences, Mrs. Lieberman said that funding has been set aside for

a “sizzle reel” that is similarly engaging, as well as targeted for a broader range of 

audiences.

Ms. Stonesifer noted the importance of the relationship between Smithsonian central 

and the units, and the need to support unit branding efforts. Significant brand 

funding, she said, should be directed to establishing a strategy to enhance the 

Smithsonian’s ability to “ride the natural wave” of “earned” media events that are 

“Seriously Amazing,” such as the arrival of the Space Shuttle Discovery. SE President 

Chris Liedel reported that SE is in the process of hiring a Chief Content Officer, a newly 

created position. The Chief Content Officer will be tasked with developing a resource 

stream of research, collection, program, and exhibition highlights that mesh the 

Smithsonian’s mission-based activities with its “diffusion” activities, and demonstrate 

the Smithsonian’s “Seriously Amazing” resources.

THE CASTLE AND THE ARTS AND INDUSTRIES BUILDINGS: INTERIM 

PLANNING

Introduction Senior Advisor to the Secretary Alison McNally updated the Board about interim 

planning efforts for the Castle and the Arts and Industries Building (AIB). She also 

discussed funding strategies to support the renovations of and programs for each 

facility. She provided background information on the plan’s development, a review of 

concepts and floorplans for the two buildings, and an overview of some of the new 

technologies that could be used during the period of the buildings’ interim use, a 

timeline that spans from 2014 to 2020.

Development of the 

Interim Plan

The Secretary hosted a retreat in fall 2011 to review the Smithsonian’s pressing needs 

(such as visitor service and broadening access requirements) that could be addressed 

by the Castle and/or the AIB. Participants agreed that the Smithsonian should 

expedite the development of an interim use plan for the Castle and the AIB; develop a 

long-term master plan for the entire South Mall Zone; be mindful of the pending 

legislation regarding the Smithsonian American Latino Museum; and apply the 

Smithsonian brand principles to all interim use plans and activities. 
7

An interim planning team was established and the following key objectives were 

established for the plan: provide a unified introduction to all of the Smithsonian, 

engage new audiences and enhance visitors’ experiences, and create revenuegenerating opportunities. Ms. McNally noted that she was asked to develop a 

business plan to address the programmatic and facility improvement costs of the 

interim plan. The team solicited input from many stakeholders during this process, 

including directors.

The Castle Based on input from the fall retreat, the interim planning team agreed that the focus 

of the Castle should be twofold: enhance visitor services and present the history of 

the Smithsonian and the Castle. The results of an April 2012 Castle visitor survey, she 

said, showed that visitors primarily want directions and maps, as well as information 

about the architecture and history of the Castle. A floorplan was displayed to support 

a discussion about proposed uses for the public space in the Castle. Visitor services 

will include vehicles such as mobile apps, movies and videos, and interactive maps 

that are designed to welcome, engage, and inform visitors. An information desk will 

be centrally located but, to support the flexible use of the space, mobile. Café and 

store services will be enhanced. Smithsonian benefactors also will be highlighted. 

Other ideas include the potential for a concierge-style service supported by 

Smithsonian Enterprises.

The Arts and 

Industries Building

Ms. McNally said the proposed interim use plan would position the AIB as the 

embodiment of Smithsonian innovation and dynamism, and provide a focus on the 

four Grand Challenges. Flexible, multilingual programming would be key elements. 

The plan’s flexibility could support competitive residencies, temporary exhibits, a 

retail store, and a café that could be extended into the Haupt Garden. Public 

programming could include partnership productions, as well as events like the Folklife 

Festival Marketplace, the Smithsonian Craft Show, and live entertainment. 

The anticipated reopening of the AIB will be in late spring or summer 2014. The 

building will be safe and functional but not fully revitalized. Because of the AIB’s 

condition, its interim use will highlight the building’s rich architectural history.

The AIB, said Ms. McNally, also could make use of cutting-edge technology to create 

“must see” events, as well as to support and advance ideas. The plan anticipates the 

use of mobile augmented reality apps and the use of digital technology projection. 

Business Plan A business plan for the initiative is almost finished. Funds must be raised over the 

next six years to pay off all costs, including approximately $6 million to prepare the 

building’s interior for interim use and programming. The majority of funding will 

likely come from private sources. A fundraising challenge, noted the Secretary, is that 

naming opportunities are not possible when the AIB only will be available for interim 

use. Should funding gaps occur, said Ms. McNally, the business plan could focus on 

partnerships with Federal agencies interested in long-term leases of exhibition or 

programming space. The Patent and Trademark Office, for example, already has 

expressed interest in a partnership. Funding also would come from retail, food, and 

beverage services, as well as special events.

Discussion Senator Leahy offered to support the development of partnerships with other Federal 
8

agencies. Mr. Case said that the AIB, like the proposed NMAH Mars Hall of American 

Business, offers significant development opportunities because of its association with 

American ingenuity and entrepreneurship. He presented two ideas that could 

demonstrate that today’s Smithsonian is vibrant, collaborative, and “thinks outside of 

the box.” He suggested the development of Smithsonian “labs” or “hothouses” in the 

space to foster innovation and creativity. He also proposed moving the Castle’s 

administrative functions to the AIB to advance a culture of corporate collaboration.

Mr. Rubenstein asked if the administration was looking for approval or guidance with 

regard to funding the initiative. The purpose of this discussion, said Ms. McNally, was 

to inform the Regents on the plan’s progress and to solicit their input. Dr. Córdova 

suggested, and Ms. McNally agreed, that the input of external advisors would be 

beneficial.

Ms. McNally noted that the business plan includes all annual operations and 

maintenance costs, as well as initial one-time costs. The plan, she said, calculates 

revenue of approximately $10 million from Smithsonian Enterprises and special event 

activities, and about $12 million in losses over seven years ($1.8 million per year). The 

plan, noted the Secretary, does not include any Federal funding at this point.

Ms. Stonesifer asked if the projected timeline for the project’s conclusion in 2020 is 

realistic. Ms. McNally noted the factors that influenced the development of the 

timeline. The planning team was cognizant of the fact that all of the Smithsonian’s 

office leases are scheduled to expire in 2021. It also took note of the process and 

timeline that led to the creation of the National Museum of African American History 

and Culture, and is applying that knowledge with regard to the possible use of the AIB 

as the Smithsonian American Latino Museum. Developing a conservative net gain 

revenue projection, she added, also impacted the decision regarding the timing of the 

interim plan.

Representative Becerra commented on the proposal to support partnerships with 

other Federal agencies. He asked if Smithsonian programs, such as the Smithsonian 

Latino Center, will be able to contribute content to the space and, if so, would they be 

asked to provide funding for such use. Ms. McNally said the proposed business plan is 

similar to that used by the Ripley Center, wherein Smithsonian units fund their own 

programming costs, as well as provide for additional infrastructure requirements.

Dr. Córdova concluded the discussion by suggesting that, during its executive session, 

the Board consider the establishment of an ad hoc advisory committee for the interim 

planning effort. 

REPORT OF THE GOVERNANCE AND NOMINATING COMMITTEE

Governance and Nominating Committee Chair Roger Sant introduced the first of two 

reports from the committee. The committee has been actively working to identify a 

Citizen Regent candidate to succeed Alan Spoon. It also has considered proposed

changes to the prohibition on corporate board service by senior executives and to the 

scope of reimbursements under the current Regent travel policy. 
9

Establishment of an 

Advisory Board and Bylaws 

for the Asian Pacific 

American Program

Mr. Sant presented the committee’s recommendation that the Board approve the 

establishment of an advisory board and the implementation of proposed bylaws for 

the Asian Pacific American Program (APAP). Dr. Kurin noted that the request follows 

the recent, and successful, launches of advisory boards for the Smithsonian 

Astrophysical Observatory, the Smithsonian Tropical Research Institute, and the 

Smithsonian Traveling Exhibition Service. The motion was approved. 

See attached Action 2012.06.02 (Minutes of the Board of Regents, Appendix A).

Advisory Board 

Appointments

Mr. Sant next presented the committee’s recommendation that the Board appoint or 

reappoint candidates to four advisory boards. He noted that the list of candidates 

includes Representative Doris Matsui, a former Regent, for service on the inaugural 

APAP board and Sakurako Fisher to succeed Paul Neely as the next chair of the 

Smithsonian National Board. The motions were approved en banc.

See attached Actions 2012.06.03–2012.06.06 (Minutes of the Board of Regents, 

Appendix A).

Proposed Changes to the 

Special Events Policy

Mr. Sant reported that the committee has been considering changes to the 

Smithsonian special events policy regarding the third-party use of Smithsonian 

facilities. The Executive Committee discussed the proposed changes and identified 

some concerns and issues for further review. Mr. Sant noted that the Board would 

not be asked to consider a proposal at this meeting, and asked Secretary Clough to 

provide an overview of the anticipated benefits and potential drawbacks of the 

revised policy.

The Secretary explained that the proposed revisions reflect a larger effort to develop 

new revenue-generating opportunities at the Smithsonian. Under the current policy, 

the Smithsonian cosponsors events, such as donor celebrations, and participates in 

their planning. Such events present limited reputational risk to the Smithsonian. 

Proceeds are directed back to host units and provide discretionary funding for 

activities such as outreach and special programming. 

A proposed limited pilot program would test the proposed changes and support

rental options that could generate $8.5–15 million over the next five years. Such 

revenue would support initiatives such as the interim-use plan for the AIB. The 

rentals, the Secretary said, also would engage new audiences and foster potential 

donor relationships. The change in the policy, however, also could carry some 

reputational risk to the Smithsonian, as it would no longer be able to exercise 

discretion with regard to leasing space to individuals or groups with viewpoints that 

are legally protected but not shared by the Smithsonian. 

Discussion The committee, said Mr. Sant, recognizes proposed policy’s potential to generate new 

revenue streams, as well as agrees that the Smithsonian brand should not be 

jeopardized. He noted that the policy restrictions of peer organizations, such as the 

Kennedy Center and the National Gallery of Art, vary. The issue, he said, will be 

discussed further by the committee, as well as the Facilities and Executive 

committees, prior to the possible presentation of a proposal at a future meeting of 

the Board.
10

Dr. Córdova said the proposed changes have been discussed at length by the 

Executive Committee, which was concerned that potential new revenues could be 

offset by the costs associated with addressing potential “firestorms.” General 

Counsel Leonard explained that the terms of the proposed changes would mandate 

that the Smithsonian be viewpoint neutral, and that it could not exercise any latitude 

with regard to legally protected groups.

Representative LaTourette said, and Representative Becerra agreed, that the 

anticipated profit from the proposed policy would not outweigh the potential for 

reputational risk and litigation. Such conflict, said Representative LaTourette, could 

negatively impact the Smithsonian’s Federal appropriations.

Mr. Case agreed that the revised policy would present significant risk to the 

Smithsonian. He also said, however, that the anticipated profits would likely be 

greater because of increases in exposure to new audiences and donor bases. He 

suggested that a narrower pilot program could test the potential profitability of a 

changed policy. Representative Becerra responded that opening the Smithsonian up 

to litigation at this time could, among other things, be detrimental to the 

Smithsonian, as well as set back the branding initiative.

FINANCE AND ADMINISTRATION: OPPORTUNITIES AND CHALLENGES

Under Secretary for Finance and Administration/Chief Financial Officer Albert 

Horvath, who joined the Smithsonian in September 2011, provided an overview of the 

challenges and opportunities he has identified in the areas under his leadership. Mr. 

Horvath oversees over one-third of Smithsonian staff, whose responsibilities range 

from financial and investment management to building construction and 

management to protective services. Since his arrival, Mr. Horvath has visited every 

museum and major research center, as well as met with each unit director, in an 

effort to better understand Smithsonian operations and inform his opinions about 

future ways to do business. He said that his review would primarily address five 

issues: the Smithsonian’s operational complexity; the challenge of facilitating change 

in a decentralized structure; the management of institutional finances; the financial

and administrative processes that need to improve; and opportunities to enhance 

financial and administrative operations.

Operational Complexity

and Decentralization

The Smithsonian’s status as a public-private partnership drives its organizational 

complexity. Administrative operations must be flexible and responsive to the unique 

demands of the Smithsonian’s Federal and private obligations. The Smithsonian’s 

operations are largely driven by its Federal base, and include responses to regulations 

regarding compliance, rules, and risk reduction. These regulations, while appropriate, 

also impose limits on Smithsonian entrepreneurial activities. Mr. Horvath 

commented on the surprising number of ad hoc, unplanned Federal requests and 

activities that demand the redirection of staff resources.

The Smithsonian’s decentralized structure requires assessing, on a continual basis, 

which issues should be addressed by the central administration and which should be 

handled by individual units. Unnecessary redundancies also must be identified and 
11

eliminated. Financial training programs have been implemented to ensure consistent

financial skill sets across the Smithsonian.

Financial Assessment He reported that the Smithsonian’s financially sound foundation is reflected in 

increasingly diverse sources of revenue, strong balance sheets, and conservative fiscal 

management. It is highly reliant on Federal appropriations and has fared relatively 

well during a time of general uncertainty about the Federal budget. Non-Federal 

revenue sources need to grow, and the success of the national campaign will enhance 

the Smithsonian’s ability to achieve and maintain a higher level of annual gifts. 

Results from private revenue-generating activities, such as fundraising, gift and grant 

activities, and the initiatives of Smithsonian Enterprises, are promising. 

Mr. Horvath reviewed the Smithsonian’s fiscal challenges, as well as its opportunities. 

The Smithsonian’s annual budget needs greater flexibility, its capital program is 

constrained, and the Endowment is undersized. He said that the Smithsonian should 

be better positioned to respond opportunistically. The pool of investment capital

should be expanded, he said, and the goal of the national campaign should be 

increased by $500 million. He noted the challenge of managing projects that are 

funded by both Federal and private monies. In response to a question from Dr. 

Córdova, Mr. Horvath said that finding peer organizations to benchmark against is 

challenging. He added that the Smithsonian maintains a solid AAA rating but is at the 

low end of its peers using traditional financial metrics. 

Improvements to 

Financial and Administrative 

Processes

The Smithsonian’s financial and administration processes must improve. It currently 

has limited financial reporting and analysis capabilities, and is in need of a more 

robust multi-year financial planning process. Organizational changes will support the 

development of stronger financial reporting, interim reporting, targeted 

reorganization efforts, and process improvements. Mr. Horvath commented on the

progress achieved through the SI Redesign initiative, such as savings achieved from 

the centralization of the exhibition services. 

Investment Committee Chair David Silfen asked if the Smithsonian could apply a 

formalized, pan-institutional process of best practices to its financial reporting. Mr. 

Horvath responded that the Redesign initiative led to the creation of several groups, 

including the Finance and Administration management team. This pan-institutional 

leadership group, he said, works collaboratively to address issues, share best 

practices, and develop more effective Smithsonian-wide processes. 

Current Focus Mr. Horvath said that the Finance and Administration team is currently focused on 

operational improvements. An improved interim financial reporting process will be 

fully implemented by the end of 2013, the Smithsonian’s working capital and debt 

strategy is being updated, a comprehensive capital plan is under development, and 

the Institution’s enterprise risk management and internal controls continue to be 

improved. 

Mr. Horvath reported that he is pleased with the Smithsonian’s responsible, 

conservative fiscal culture and is impressed by the scope of the Smithsonian’s

achievements. He noted that the Smithsonian currently has the same number of 

employees as it had in 2002, despite the opening of new facilities and launch of new 
12

programs. He expressed his commitment to maximizing the Smithsonian’s use of its 

assets but expressed concern about how much the Smithsonian can realistically 

accomplish given its limited resources. 

Discussion Dr. Córdova asked that the Board continue to receive quarterly one-page financial 

dashboard updates that include metrics of income and balance statements. Senator 

Leahy suggested it would be beneficial to review statements that compare metrics 

over time. Mr. Sant said that measurements of the Smithsonian’s efficiency and 

productivity are needed, and that they include comparisons with peer organizations. 

Mr. Horvath agreed but noted the challenge of identifying benchmark organizations 

that compare with the Smithsonian’s public-private funding status. Facilities capital 

benchmarks are easier to identify but, because of the impact of the Federal 

appropriations process, financial operations benchmarks are more difficult to 

establish. The meaning of “mission enabling,” he said, also must be clarified. 

Mr. Horvath also noted that there are more opportunities for organizational 

efficiencies. In response to a question from Dr. Córdova, Mr. Horvath said the 

Redesign initiative is now focusing on procurement activities. 

Mr. Rubenstein asked if the Smithsonian’s AAA rating is at risk. Mr. Horvath explained 

that the rating is closely tied to that of the Federal government. He said that 

estimates of how much the Smithsonian may need to borrow in the future are likely 

the most important factor in potential ratings changes.

REPORT OF THE INVESTMENT COMMITTEE

Endowment Update Investment Committee Chair David Silfen complimented Mr. Horvath on his ability to 

provide an overarching perspective on the Smithsonian’s finances and contribute to 

the Endowment’s operations. He commented on the historic challenges currently 

faced by all endowments. Although market conditions are not as critical as 

experienced in 2008 and 2009, all fund managers are under duress and investment 

strategies have changed. 

Mr. Silfen reported that the most recent performance of the Endowment was not as 

strong as that in the previous quarter. The portfolio remains quite liquid. He noted 

that “this is a marathon and not a sprint.” A comparative performance and peer 

analysis showed that, compared to its top quartile peers, the Endowment had larger 

weightings to negative performing assets classes. Changes have been made to the 

Endowment’s manager selection, which Mr. Silfen characterized as “generally good.” 

Priorities for the rest of 2012 include refining manager selections, diversifying 

investment strategies, and expanding opportunistic positions. 

Mr. Silfen commented on the collaborative and transparent efforts of the Office of 

Investments (OI). He reported that the OI received a special commendation from the 

Smithsonian’s external auditors, KPMG, for its excellent work on the fiscal year 2011 

financial audit. The audit did not identify any material weaknesses or significant 

deficiencies. As advised by Mr. Horvath, a Request for Proposals will be issued for 
13

bank custodial services. Mr. Silfen also noted that Chief Investment Officer Amy Chen 

participated in a series of educational training sessions for Office of Advancement 

staff. 

Discussion Noting that the five-year performance of the Endowment is 2.9 percent, Mr. Sant 

expressed concern about the Smithsonian’s long-term ability to maintain a 

5.0 percent Endowment payout. Mr. Silfen agreed. Mr. Silfen also said that the 

Smithsonian will need to determine the degree of funds that should be locked up

from the perspective of liquidity.

Assuring current and prospective donors about the effective management of the 

Endowment, said Mr. Silfen, is important. The Smithsonian cannot, however, predict 

the performance of the overall market. Secretary Clough noted the contributions of 

donors who have invested in endowments that support the long-term goals of the 

Smithsonian.

Mr. Rubenstein and Mr. Case both spoke of the effectiveness and strong composition 

of the Investment Committee. The committee’s mission is complex and the 

Smithsonian has limited access to certain managers. Mr. Rubenstein added that few 

public endowments have achieved 5–7 percent returns. 

THE FUTURE OF THE NATIONAL COLLECTIONS

Deputy Under Secretary for Collections and Interdisciplinary Support Scott Miller 

provided a progress report on the care, management, and digitization of the 

Smithsonian’s collections. Dr. Miller’s presentation was a follow-up to his September 

2011 report on the effective stewardship of, and challenges to, the 137 million objects 

and specimens in the Smithsonian collections. 

Three pan-institutional initiatives have been launched to strengthen the stewardship 

of Smithsonian collections: a collections care assessment, a collections digitization 

survey, and a collections space survey. The parallel initiatives will inform the 

strategies, budget requests, and allocation of resources that support effective 

collections stewardship and broaden access to these resources.

Collections Care To date, groups of collections have been surveyed and characterized with regard to 

their condition, storage, and documentation. Progress has been made with regard to 

establishing baseline metrics, identifying deficiencies, determining priorities for the 

allocation of resources, and informing the strategic planning and budget requests for 

Smithsonian collections. 

Collections Digitization The digitization of the collections, which is managed by the Office of the Chief 

Information Officer, will strengthen their management and broaden access to these 

resources. Dr. Miller explained that the digitization initiative in fact includes two 

separate activities: the development of electronic records and the creation digital 

images (or other surrogates, such as audio recordings). Approximately 21 million 

electronic records are needed to provide inventory control for the 137 million objects

and specimens in the Smithsonian’s collections, of which only 27 percent have been 
14

created to date. On the other hand, 72 percent of the Smithsonian’s 136,000 cubic 

feet of archival collections have electronic records. Thirteen million collection items 

and specimens have been prioritized for digital imaging, of which 10 percent have 

been imaged to date. Depending on the kind of material, the cost of creating 

electronic records and digital images varies dramatically. 

Collections Space Dr. Miller updated the Board on collections space planning efforts. All of the 

Smithsonian’s 2.1 million square feet of collections space (18 percent of total 

Smithsonian space) has been surveyed with the support of the Office of Facilities 

Engineering and Operations. The survey is comprised of 30 data fields in five 

categories. The results, which are still to be analyzed, will inform space-related 

management and policy decisions; address sustainability, security, and accessibility 

issues; and create a road map for short- and long-term Facilities Capital, real estate, 

and collections projects.

Dr. Miller spoke of collections space determined to be “below acceptable.” The 

majority of “below acceptable” collections space is found in the Garber Facility, the 

NMNH, and the NMAH. In some cases, he noted, storage spaces have been upgraded 

but substandard storage cabinetry and shelving have not. Next steps, he said, include 

separating major facilities and systems investments from smaller, incremental 

improvements. 

The Pan-Smithsonian Cryo-Initiative (PSCI) was discussed as an example of a 

successful, pan-institutional collections stewardship effort. Dr. Miller said that four 

units in multiple locations participate in the collection of biomaterials. Between 

785,656 to 1 million frozen samples representing over 18,500 species are held in over 

200 Smithsonian freezers and liquid nitrogen tanks. 

Discussion In response to a question from Representative LaTourette, Dr. Miller explained why 

digitization costs vary so dramatically. The Smithsonian collections hold objects that 

range from papers to frozen biomaterial to the Space Shuttle Discovery. In addition,

digitization supports two types of inventory: that of the whole and that of the 

individual parts of a given collection of objects or specimens. Legal and social 

responsibilities convey with ownership, and digitization also records the ownership 

and possible rights of other parties. 

Dr. Córdova asked if deaccessioning collections can be a revenue-generating 

opportunity. Dr. Miller explained that, although materials continue to be 

deaccessioned from the collections, there is limited financial benefit from such 

activities. He noted that 800,000 objects were deaccessioned from the Smithsonian 

collections between 2007 and 2011, and added that deaccession rates increase during 

the move or renovation of facilities.

Ms. Stonesifer thanked Secretary Clough for his leadership on this initiative. She 

asked about efforts to cultivate, measure, and monitor Smithsonian-wide investment 

in all aspects of the collections stewardship initiative. The Secretary said the 

collections stewardship initiative has offered opportunities to develop, share, and 

apply best practices. He reported that the NMNH template for monitoring collections 

care is now being used to assess similar efforts across the Smithsonian. A centralized 
15

approach, he said, is essential to this effort. In addition to addressing deficiencies in 

collections stewardship, a centralized effort will support collaborative activities.

In response to a question from Ms. Stonesifer, Dr. Kurin said that the performance of 

unit directors is measured with regard to the care, security, and digitization of unit 

collections. The condition of collections storage space, however, is largely influenced 

by Federal funding and therefore more difficult to measure. 

The Secretary said that both digitization standards and digital media vary, and noted 

that changes occur as new technologies emerge. He cited the Hirshhorn’s collection 

of new media as an example. He also noted that the museum regularly deaccessions 

objects in an effort to maintain its status as a collection of contemporary art, as well 

as to provide funding for new acquisitions and collections care.

Dr. Miller commented on the wide standard of care that previously existed across the 

Smithsonian’s collections. He said that metrics are being refined to support better 

assessments of unit collections and the performance of unit directors. 

Adjournment and Luncheon 

Presentation on 1812: A 

Nation Emerges

The morning session was adjourned at 12:00 p.m. During the Regents’ luncheon, NPG 

Senior Historian Sidney Hart spoke about the exhibition 1812: A Nation Emerges, the 

profound impact of the War of 1812, and how it helped shape the nation’s identity.

The War of 1812 was a small part of the Napoleonic wars—a two-decade struggle for 

mastery of the Atlantic world between Great Britain and France. Although the war 

wasn’t large, even by contemporary standards, it played an immense part in 

determining the destiny of the North American continent. It was perceived by most 

American contemporaries as a continuation of the struggle for American 

independence. Although the war ended in a draw, Americans perceived it as a victory 

and the opening of the continent to American expansion and settlement. 

The exhibition, which Dr. Hart cocurated with assistant guest curator Rachael 

Penman, displays over 100 portraits and artifacts from American, Canadian, and 

British collections. Included are paintings of nautical battles and one of the most 

famous models of the USS Constitution; contemporary cartoons and historical 

documents; uniforms and the only 17-star American flag that exists in this country; 

and videos created by one of the supporters of the exhibition, the History Channel.
16

AFTERNOON SESSION

The Chancellor called the afternoon session to order at 1:10 p.m.

PROPOSED AWARD OF THE JOSEPH HENRY MEDAL

The Regents considered a motion to award one of the Smithsonian’s highest honors, 

the Joseph Henry Medal, to NMNH Director Cristián Samper. Dr. Samper, an 

international leader in the field of conservation biology, is stepping down to serve as 

the Chief Executive Office of the Wildlife Conservation Society. Dr. Samper began his 

Smithsonian career in 2001 at the Smithsonian Tropical Research Institute, where he 

served as Deputy Director and staff scientist for two years. He was appointed NMNH 

Director in 2003 and also served as Acting Smithsonian Secretary from March 2007 to 

July 2008.

Dr. Samper’s contributions to the NMNH and to the Smithsonian have been 

substantial. With gratitude and by unanimous vote, the Regents agreed to award the 

Joseph Henry Medal to Cristián Samper. 

See attached Action 2012.06.07 (Minutes of the Board of Regents, Appendix A).

DIRECTOR’S REPORT: CENTER FOR FOLKLIFE AND CULTURAL HERITAGE

Public Engagement and 

Impact

Center for Folklife and Cultural Heritage (CFCH) Director Daniel Sheehy thanked the 

Board for the opportunity to discuss the Center. Dr. Sheehy said that the CFCH joins

quality scholarship with strong community partnerships to promote the 

understanding and sustainability of the world’s diverse traditional cultures. The work 

of the CFCH, he said, also directly aligns with two of the Grand Challenges: 

Understanding the American Experience and Valuing World Cultures. 

The work of the 43 members of the CFCH staff reflects a commitment to, and best 

practices in, cross-cultural communication and cultural conservation. The Center 

conducts collaborative research, documentation, and preservation activities, and its 

dissemination efforts are of equal importance. Activities include presentations, 

educational programming, social and cultural enterprise initiatives, and publications. 

The two primary vehicles that carry out the CFCH mission are the Smithsonian Folklife 

Festival and Smithsonian Folkways Recordings. The Ralph Rinzler Folklife Archives and 

Collections and the work of the Cultural Heritage Policy and Research and Education 

teams also are important CFCH components.

The Smithsonian Folklife 

Festival

In 1966, Secretary S. Dillon Ripley hired Ralph Rinzler to create the Festival of 

American Folklife, now known as the Smithsonian Folklife Festival. The Festival, which 

was launched the following year, provided the foundation for the CFCH. The curated, 

living exhibition is now the largest annual cultural event in Washington, D.C., 

attracting over 1 million visitors over a span of 10 days. The lifespan of Festival 

programs, noted Dr. Sheehy, is extended through the CFCH website, blog, and other 
17

social media vehicles that engage audiences in Festival programs before, during, and 

after their scheduled time on the National Mall.

The Folklife Festival is committed to providing first-person perspectives and crosscultural experiences that are topical, in context, and the result of collaborative efforts. 

Festival programs celebrate national and international arts, such as music, dancing, 

and crafts; occupational programs also are central to the Festival. To date, the 

Festival has presented programs on 90 nations, every region of the U.S., a broad 

range of ethnic communities, over 100 American Indian groups, and 70 occupations. 

Dr. Sheehy noted that the Festival was recognized for Best Practice of international 

cultural engagement at the November 2010 bipartisan U.S. Summit for Global Citizen 

Diplomacy. 

Dr. Sheehy invited the Regents to participate in the 2012 Festival, which was 

scheduled to open on June 27. The three themes of the 2012 Folklife Festival are 

“Campus and Community” (commemorating the 150th anniversary of the founding of 

land-grant universities and the USDA); “Citified” (celebrating creativity, identity, and 

community in Southeast Washington, D.C., neighborhoods); and “Creativity and 

Crisis” (recognizing the 25th anniversary of The AIDS Memorial Quilt). Dr. Sheehy also 

presented images from previous Folklife Festivals.

Looking forward, one theme of the 2013 Folklife Festival will address linguists’ 

estimation that more than half of the world’s 7,000 languages will be extinct by the 

end of this century. Their loss, said Dr. Sheehy, reflects the extinction of cultural 

knowledge, traditions, and values that support cultural diversity, sustain 

communities, and foster the well-being of humanity. In 2015, the Festival will build 

on the Consortia’s “Americans All” project by exploring how the American experience 

has been shaped by the immigration and migration experiences of its residents. That 

year’s Festival may also commemorate the 50th anniversary of the Hart-Cellar Act, 

which reformed immigration legislation and removed the national origins quota 

system. 

Research and Education The CFCH’s work is, by nature, research-based and educational. Throughout the year, 

the center produces educational products, such as curricula and activities. It also 

supports internships for emerging scholars in, among other things, research, program 

development and production, music marketing, and collections management. An 

important aspect of CFCH’s work, said Dr. Sheehy, is training scholars in other parts of 

the world.

Smithsonian Folkways 

Recordings

In 1987, a second major public face of the CFCH was created with the acquisition of 

the Folkways Records label from the estate of Moses Asch. Mr. Asch established the 

label in 1948 to document “people's music,” spoken word, instruction, and natural 

and man-made sounds from around the world. With a staff of two, Mr. Asch 

produced 2,168 albums over 38 years, and recorded the music of such iconic 

American musicians as Lead Belly, Pete Seeger, and Woody Guthrie. 

Today, Smithsonian Folkways Recordings continues the Folkways Records traditions 

and honors Mr. Asch’s commitment to cultural diversity, education, increased 

understanding, and engagement with the world of sound. It republishes important 
18

historical works, such as the Anthology of American Folk Music; updates and expands 

collections, as heard in Jazz: The Smithsonian Anthology, an expanded recording of 

the 1973 production Smithsonian Collection of Classic Jazz; and creates new 

recordings and compilations of recordings, such as Woody at 100: The Woody Guthrie 

Centennial Collection Woody at 100. Folkways albums and artists have received some 

100 awards by the music industry in recent years, including six GRAMMY or Latin 

GRAMMY awards. 

The impact of Smithsonian Folkways Recordings is also seen in its robust web, video, 

and digital presence. The Smithsonian Folkways catalog offers over 3,000 albums 

with more than 44,000 tracks, and 15 new releases are produced each year. The 

catalog is distributed globally through multiple outlets such as, to name a few, iTunes, 

Amazon, Barnes and Noble, and 445 library subscribers. Also available are downloads 

of 96 lesson plans and 200 free streaming music videos. Dr. Sheehy presented a short 

video of website excerpts from the Center’s award-winning Latino series. Folkways 

Recordings and digital revenues generate approximately $3.5 million in annual 

revenues, he said, and sales continue to go up.

Ralph Rinzler Folklife 

Archives and Collections

The Ralph Rinzler Folklife Archives and Collections are named after the cofounder of 

the Smithsonian Folklife Festival. The Rinzler Archives holds two major collections: 

the Moses and Frances Asch collection, which consists of original recordings and other 

materials that conveyed with the purchase of Folkways Records in 1987, and written, 

audio, and visual records of projects and exhibits sponsored by the CHFC, most 

notably the Smithsonian Folklife Festival. Included in the Rinzler Archives is Woody 

Guthrie’s original master recording of “This Land is Your Land.” Dr. Sheehy noted that 

the conservation and preservation of the Rinzler Archives have benefitted from a Save 

America’s Treasures grant.

Cultural Heritage Policy Not surprisingly, the development of cultural heritage policy has emerged from the 

work of the CFCH. In response to the 1989 UNESCO recommendation on 

safeguarding traditional cultures, the Center contributes ethnographic and cultural 

heritage policy–oriented research through national and international networks. 

Presentations, conferences, consultations, and articles are just some of the vehicles 

through which the CFCH promotes the understanding and sustainability of the world’s 

diverse traditional cultures

Skills and Capabilities Dr. Sheehy spoke of the important skill sets that the CFCH brings to each of its 

initiatives. In addition to the Folklife Festival, the Center produces or coproduces

other large-scale, outdoor events, such as the 2004 National World War II Reunion 

and the 1996 Smithsonian Sesquicentennial Celebration. The Center’s documentation 

skills, including audio and video productions, are notable. 

The CFCH’s mission-driven entrepreneurial activities both contribute to the public 

impact of its programs and provide critical financial support for the center and the 

traditional artists it celebrates. The CFCH typically triples its allocated budget by 

generating about $4 million in earned revenues each year as well as financial 

cosponsorships, grants, and gifts. In addition to sales by Smithsonian Folkways 

Recordings, the Festival Marketplace also generates revenue for the CFCH and artists.
19

CFCH Strategic Priorities: 

2012–2017

The CFCH’s strategic priorities for 2012–2017 are directed to strengthening the 

center’s national and international leadership in efforts to advance the engagement 

and sustainability of world cultures. The center’s programmatic priorities are 

designed to build a mission-driven, dynamic, visible, and engaged organization, and its

management priorities are designed to support an innovative, efficient, 

entrepreneurial, financially sound, and sustainable center. 

Two programmatic initiatives, the Folklife Festival and the Smithsonian Folkways 

World Encyclopedia of Sound, will be the subject of increased focus. The CFCH will 

enhance its communications, branding, and engagement in the field. The growing use 

of mobile devices and the Center’s ability to deliver its content to them, said Dr. 

Sheehy, increases the Center’s impact and engagement with the public. Expanding its 

presence on the web and radio will support the international reach of the CFCH. 

Programs such as NPR, BBC-Wales, and Radio Bilingüe can increase the Festival’s 

audience by about 1 million people.

The CFCH will strategically use its human resources to support a culture of learning 

and innovation and increase its financial strength and stability. Dr. Sheehy 

commented on the Center’s demonstrated record of revenue-generating and 

fundraising activities, and spoke of the Festival’s potential to support increased 

sponsorship and branding opportunities. Increased funding will enable the center to 

proactively select Festival themes that address important cultural issues of the day, to 

acquire collections for public dissemination and revenue generation, and to produce 

more content through curatorial production. Dr. Sheehy noted that charitable giving 

to the CFCH needs to become more robust. The Center’s engagement with the 

national campaign will help address this weakness, as also will the anticipated 

addition of a full-time development officer.

Dr. Sheehy spoke of the impact of the National Mall renovations on the Folklife 

Festival. He reported that the CFCH is working closely with the new Mall 

superintendent, the National Park Service, and other Smithsonian units to ensure that 

that the Festival’s programs consider the sustainability of the National Mall grounds. 

Although the number of CFCH staff has decreased in recent years, the Center will 

increase its activities by aligning its human resources with key priority projects. The 

CFCH’s ability to advance its mission is tied to the availability of discretionary funds, 

such as that from charitable giving.

Discussion Mr. Rubenstein asked about the annual cost of the Folklife Festival and the source of 

its funding. Dr. Sheehy said that annual costs can range from $4 million to $8 million. 

The CFCH funds the Festival by leveraging its Federal and Trust allocations with 

external partnerships. Corporate sponsorship opportunities, however, can be limited 

by National Park Service restrictions. Dr. Sheehy noted that this year’s introduction of 

windscreen partitions can support sponsorship opportunities that won’t conflict with 

Park Service restrictions. Increases in discretionary funding, he added, would 

leverage the CFCH’s ability expand its programs, as well as increase its fundraising 

capabilities. 
20

REPORT OF THE ADVANCEMENT COMMITTEE

Advancement Committee member David Rubenstein provided the committee’s report

on behalf of Committee Chair and Regent Emeritus Alan Spoon, who was unable to be

present. Mr. Rubenstein reported that, as of this meeting, the Smithsonian has raised

about $142 million of its $200 million fiscal year 2012 fundraising goal. The capital

campaign is making steady progress and has reached about 1/3 of its fundraising goal. 

Gift and Sponsorship 

Policies and Processes

Discussion occurred about the general nature of gift discussions between the

Smithsonian and donors. The Board considered the need for flexibility and

transparency while working to meet the philanthropic interests of donors and, at the

same time, adhering to Smithsonian values and guidelines. 

The Regents reviewed the nature and exceptions to Smithsonian guidelines and the 

approval levels for gifts and sponsorships, which were developed and approved by

the Board less than two years ago. Mr. Rubenstein noted that certain aspects of the

Smithsonian’s policies put it ahead of many other institutions. The discussion was

concluded with the consensus that, while there may at times not be full agreement

about how individual gift agreements are concluded, the current policies will remain

in place.

Gift Actions A proposed motion then was presented to approve the naming of a space in the

Renwick Gallery. With the exception of Representative Becerra, who voted no but

expressed his appreciation for the generosity of the donor, the Board approved the

motion.

See attached Action 2012.06.08 (Minutes of the Board of Regents, Appendix A).

The next proposed motion regarded the naming of a space in the NMAH. With the

exception of Representative Becerra, who voted no but expressed his appreciation for

the generosity of the donor, the Board approved the motion.

See attached Action 2012.06.09 (Minutes of the Board of Regents, Appendix A).

RESEARCH HIGHLIGHTS

Under Secretary for Science Eva Pell briefly commented on the impressive quantity of 

Smithsonian research that is published in prestigious, peer-reviewed journals each 

year. The May 24, 2012, cover of Nature magazine, for example, featured the 

discovery of a sensory organ embedded in the mandibles of rorqual whales by Dr. 

Nicholas Pyenson, curator of fossil marine mammals at the National Museum of 

Natural History, and his colleagues. 

The number of Smithsonian scientists (500) is relatively small, said Dr. Pell, and yet 

over the last 10 years nearly every Smithsonian scientific discipline has been 

published in Science, Nature, and the Proceedings of the National Academy of 

Sciences—the three most competitive, frequently cited journals in the world. In these 

journals alone, Smithsonian research has been published in nearly 500 publications to 
21

date, which means that the work of one in 10 Smithsonian scientists is published in 

these internationally recognized journals each year. These statistics are an incredible 

measure of the quality science conducted by Smithsonian staff, said Dr. Pell, and the 

Smithsonian must enhance its ability to share such stories.

REPORT OF THE SMITHSONIAN NATIONAL BOARD

Smithsonian National Board (SNB) Chair Paul Neely, who was attending his last 

Regents’ meeting as a representative of the National Board, stated that there were no 

updates to the SNB report included in the advance reading materials. He commented 

on the National Board’s contributions to the early stages of the national campaign 

and the increasing importance of the SNB in campaign outreach efforts.

Chancellor Roberts expressed the Regents’ deep appreciation for Mr. Neely’s 

contributions to the Board and to the Smithsonian. Mr. Neely said it had been a 

privilege to participate in Board meetings, and expressed his admiration for the 

Regents’ collective accomplishments in business, education, public service, and 

philanthropy. Noting that the chair of the SNB is invited by custom, not mandate, to 

attend the Regents’ meetings, Mr. Neely said he appreciated the collegial respect that 

had been extended to him during his tenure as SNB chair. 

REPORT OF THE OFFICE OF GOVERNMENT RELATIONS

Report on Government 

Relations

The Regents did not have any questions about the Report on Government Relations, 

which was included in the advance reading materials. 

The Board adjourned for an executive session.

EXECUTIVE SESSION

During the Board’s executive session, the Regents approved a motion to nominate 

Barbara Barrett of Paradise Valley, Arizona, to succeed Alan G. Spoon as a Citizen 

Regent.

See attached Action 2012.06.10 (Minutes of the Board of Regents, Appendix A).

ADJOURNMENT

The meeting was adjourned at approximately 3:45 p.m.

Respectfully submitted,

G. Wayne Clough

Secretary
22

APPENDIX A: ACTIONS OF THE

JUNE 25, 2012, MEETING OF THE BOARD OF REGENTS

VOTED that the Board of Regents approves the minutes of the April 30, 2012, meeting of the 

Board of Regents. [2012.06.01]

VOTED that the Board of Regents approves the establishment of an advisory board for the 

Asian Pacific American Program and the proposed bylaws. [2012.06.02]

VOTED that the Board of Regents appoints Sakurako D. Fisher as chair and Robert D. 

MacDonald III as vice chair of the Smithsonian National Board, and reappoints Jane Lipton 

Cafritz, John French III, and William M. Ragland Jr. to the Board, all for three-year terms 

effective October 1, 2012. [2012.06.03]

VOTED that the Board of Regents appoints Carrie Rebora Barratt to the Board of Trustees of the 

Archives of American Art for a three-year term effective immediately. [2012.06.04]

VOTED that the Board of Regents appoints Irene Hirano Inouye and Doris Matsui to the Board 

of Trustees of the Asian Pacific American Program for three-year terms effective immediately. 

[2012.06.05]

VOTED that the Board of Regents reappoints Nancy Marks to Board of Trustees of CooperHewitt, National Design Museum for an exceptional fourth, three-year term, effective 

immediately. [2012.06.06]

VOTED that the Board of Regents presents the Joseph Henry Medal to Cristián Samper in 

recognition of his many contributions to the Smithsonian Institution as the Director of the 

National Museum of Natural History from 2003 to 2012 and as the Acting Secretary of the 

Smithsonian from March 2007 until July 2008. [2012.06.07]

VOTED that the Board of Regents recognizes the generosity of L. Hardwick Caldwell III and his 

wife, Katharine S. Caldwell, to the Smithsonian American Art Museum and its Renwick Gallery 

and names the Hacker and Kitty Caldwell Gallery at the Renwick Gallery in their honor until the 

Renwick Gallery’s next comprehensive renovation. [2012.06.08]

VOTED that the Board of Regents recognizes the generosity of Mars, Incorporated to the 

National Museum of American History, approves the benefits of the sponsorship, and names 

the Mars Hall of American Business for a period of no less than 20 years from the opening of 

the American Enterprise exhibition. [2012.06.09]

VOTED that the Board of Regents nominates Barbara Barrett of Paradise Valley, Arizona, to 

succeed Alan G. Spoon as a Citizen Regent on the Board of Regents and to serve a statutory 

term of six years, effective immediately. Furthermore, the Board asks its congressional 

members to introduce and support legislation to this effect as soon as possible. [2012.06.10]