Annual Report to the Board of Regents

Fiscal Year 2008

The National Museum of Natural History’s Sant Ocean Hall opened in September 2008. This 23,000- 

square-foot exhibition combines state-of-the-art technology with hundreds of marine specimens and 

models to explore the past, present, and future of Earth’s ocean systems and humanity’s impact upon it. 

January 2009
Public Impact

Visits to the Smithsonian

In fi scal year 2008, the Institution counted 24.0 million visits 

to its museums in Washington, D.C., and New York, plus the 

National Zoo and Steven F. Udvar-Hazy Center—down 2 percent 

from fi scal year 2007. Th is small decrease follows a strong surge 

in visitation in fi scal year 2007 and refl ects the general downturn 

in the economy.

Th e Smithsonian also counted approximately 5.15 million

visits to 58 traveling exhibitions mounted by the Smithsonian 

Institution Traveling Exhibition Service, on view in 510 locations 

in all 50 states plus the District of Columbia, Guam, and 

American Samoa.

Visits to Smithsonian Museums and Traveling Exhibitions

Fiscal Years 2006, 2007, and 2008

Smithsonian Online

Smithsonian Web sites logged 173 million visits in fi scal year 2008, down about 1 percent from the fiscal 

year 2007 figure of 183 million. 

The International Academy of Digital Arts and Sciences announced winners of its prestigious Webby 

Awards in June. Cooper-Hewitt, National Design Museum’s Design for the Other 90% exhibition 

site won in the Cultural Institutions category, and Cooper-Hewitt’s online Educator Resource Center 

and Piranesi as Designer exhibition site were Official Honorees in the Education and Art categories, 

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

African Art

Air and Space

Udvar-Hazy

American History

American Indian-Mall

Heye Center-NY

Anacostia

Cooper-Hewitt-NY

Freer/Sackler

Hirshhorn

Natural History

Postal

Renwick

Reynolds Center

Ripley Center

SI Castle

National Zoo

SITES

(In Millions)

FY 2006

FY 2007

FY 2008

Report to the Regents—January 2009 1
respectively. For the second consecutive year, the Smithsonian Center for Education and Museum 

Studies’ SmithsonianEducation.org won the People’s Voice Award for Best Cultural Institution Web site.

In February 2008, the alpha version of the online Encyclopedia of Life, which aims to document all 

known species, went live with 40,000 species pages, 24 multimedia pages, and one million placeholder 

pages. Experts from around the world will soon be invited to curate new species pages and upload their 

data. Th e project is led by a consortium of leading scientifi c organizations, including the Smithsonian.

Digitization proceeded apace at the Smithsonian. A few examples include the following:

Collection records from all seven research departments at the National Museum of Natural History 

have been posted on the Web. Over fi ve million records are now available to the public online.

Th e Smithsonian Institution Scholarly Press and Smithsonian Institution Libraries completed 

digitization of more than 1,000 legacy volumes of the Smithsonian Contributions research series and 

have made them available online in PDF format.

Th irty-one archival collections from the Archives of American Art were digitized and posted online. 

Sixty-three collections are now fully accessible online. 

Among the other online highlights of the fi scal year were the following: 

Th e Smithsonian’s National Museum of American History launched Smithsonian History Explorer, 

off ering free, standards-based resources for teaching and learning American history. 

The Smithsonian Center for Education and Museum Studies launched Smithsonian Across America,

a Web site that provides information on Smithsonian programming across the country. 

The Smithsonian Photography Initiative launched click! photography changes everything, a Webbased forum that seeks to stimulate a dialogue about how photography shapes our lives. 

Th e National Museum of African American History and Culture’s new Web site off ers an innovative 

feature called Memory Book, which allows site visitors to upload stories, images, and audio.

Th e Web site of the National Museum of African Art won three silver W3 Awards from the 

International Academy of the Visual Arts. 

Exhibition Highlights

The Sant Ocean Hall opened in September 2008 at the 

National Museum of Natural History. This 23,000 square 

foot permanent exhibition features state-of-the-art media 

technology and nearly 700 

specimens and models.

The National Air and Space 

Museum’s completely renovated America by Air gallery reopened in 

November 2007. In addition to displays of classic airplanes and walk-in 

exhibits of a 747 nose and a DC-7 fuselage, America by Air offers a wide 

range of artifacts, photographs, artwork, and interactive displays that tell 

the story of commercial aviation.

In February 2008, the National Museum of Natural History opened the 

new permanent exhibition, Butterflies+Plants: Partners in Evolution. With 

its immersive live butterfly pavilion, this exhibition combines traditional 

and experiential learning.

•

•

•

•

•

•

•

•

2 Report to the Regents—January 2009
The 42nd annual Smithsonian Folklife Festival drew hundreds of 

thousands of visitors to the Mall from June 25 through July 6, 2008, to see 

featured programs on Bhutan: Land of the Thunder Dragon, NASA: Fifty 

Years and Beyond, and Texas: A Celebration of Music, Food, and Wine. 

The inaugural exhibition of the National Museum of African American 

History and Culture, Let Your Motto Be Resistance: African American 

Portraits, cosponsored by the National Portrait Gallery, was on display in 

the National Portrait Gallery (October 19, 2007–March 2, 2008) before 

moving on to the Louisiana State Museum in New Orleans.

The Anacostia Community Museum’s Separate and Unequaled: Black 

Baseball in the District of Columbia was on display at the Historical Society 

of Washington, D.C. (May 18–October 5, 2008). The Museum also 

presented East of the River: Continuity and Change (September 15, 2007–

November 9, 2008) in its own gallery to commemorate its 40th anniversary.

From July 12 through October 5, 2008, the Smithsonian celebrated the 

imagination of Muppets creator Jim Henson with Jim Henson’s Fantastic 

World in the International Gallery of the Ripley Center. It attracted a record 

325,000 visitors there before embarking on a national tour. 

Smithsonian art museums presented an exciting variety of exhibitions, 

including the following: 

The Cinema Effect, a two-part exhibition of contemporary film, video, and digital works at the 

Hirshhorn Museum and Sculpture Garden, explored how moving pictures have blurred the 

distinction between illusion and reality. 

Wine, Worship, and Sacrifice: Golden Graves of Ancient Vani at the Arthur M. Sackler Gallery 

(December 1, 2007–February 24, 2008) featured antiquities from the ancient Kingdom of Colchis in 

what is today western Georgia.

RECOGNIZE! Hip Hop and Contemporary Portraiture at the National Portrait Gallery (February 

8–October 26, 2008) focused on the cultural impact of hip hop music.

Georgia O’Keeffe and Ansel Adams: Natural Affinities at the Smithsonian American Art Museum 

(September 26, 2008–January 4, 2009) looked at two iconic artists of the American West. 

El Anatsui: Gawu at the National Museum of African Art (March 12–September 7, 2008) featured 

huge metal “tapestries” and other imposing sculptures by one of Africa’s leading contemporary artists. 

Provoking Magic: Lighting of Ingo Maurer at Cooper-Hewitt (September 14, 2007–January 27, 

2008) is a retrospective of the celebrated lighting designer’s nearly four decades of work. 

Going West! Quilts and Community at the Renwick Gallery (October 5, 2007–January 21, 2008) 

featured 50 quilts dating from the early 19th century to the 1930s.

To celebrate its 15th anniversary, the National Postal Museum is hosting Alphabetilately (September 26, 

2008–October 29, 2009), an alphabetical exhibition covering 26 topics related to the mail. 

Collections Highlights

After a three-billion-mile rendezvous with a comet, the Stardust return capsule joined the national 

collection of space icons at the National Air and Space Museum, where it will be displayed in the 

Milestones of Flight gallery.

•

•

•

•

•

•

•

Report to the Regents—January 2009 3
Two female Przewalski’s horses brought from Europe to the Conservation 

and Research Center gave birth to foals sired by a Zoo stallion, infusing 

genetic diversity into a captive population descended from just 14 animals. 

Th e species, native to China and Mongolia, is extinct in the wild.

A female dama gazelle fawn was born in November 2007, a fi rst 

for the Zoo. Only 120 dama gazelles exist in U.S. captive breeding 

populations, and the fewer than 500 estimated to remain in the wild 

are under constant threat from hunters and poachers. 

In March 2008, a North Island brown kiwi chick hatched at the 

Zoo. Th ese birds are one of the world’s most endangered species.

Education, Event, and Public Program Highlights

Th e Smithsonian Channel, a joint venture with Showtime Networks, won an Emmy Award — its fi rst 

— for the cinematography in “Th e Magic of Motion,” an episode of the series Nature Tech.

In spring 2008, the Smithsonian Associates presented the program series China: An Incomparable 

Journey in collaboration with the Embassy of the People’s Republic of China. 

Th e Museo de Arte de Puerto Rico (San Juan, Puerto Rico) partnered with the Smithsonian Latino 

Center for Puerto Rico at the Smithsonian, a series of exhibitions and activities in September 2008. 

More than 9,000 people visited the second annual Cooper-Hewitt National Design Week in October 

2007. A highlight was the eighth annual National Design Awards Gala.

In January, the Conservation and Research Center of the National Zoo, in partnership with George 

Mason University, launched an undergraduate semester in conservation biology program at the Zoo’s 

facility in Front Royal, Virginia. 

•

•

•

At a ceremony at the El Portal Th eater in North Hollywood on January 29, 

2008, nine leading ladies of Hollywood and Broadway donated objects from 

their careers to the National Museum of American History. Th ese included 

Carol Channing’s diamond dress from Lorelei, Tippi Hedren’s script from The 

Birds, Angela Lansbury’s costume from Mame, and Julie Newmar’s Catwoman 

suit from the Batman television series. 

Th e Archives of American Art acquired the records of the Leo Castelli Gallery

in New York, which comprise a rich source of primary materials from the 

second half of the 20th century, and the photographic archive of Colin de 

Land, which off ers a glimpse into the world of a renowned art dealer. 

On November 3, 2007, the Smithsonian American 

Art Museum unveiled a large-scale, site-specifi c light sculpture by Jenny Holzer, 

an artist renowned for her pioneering work incorporating texts into light-based 

art. Th e sculpture, titled For SAAM, is on display in the museum’s third-fl oor 

Lincoln Gallery. 

Th e Smithsonian Institution Libraries received the fi rst set of Botanica 

Magnifica, a fi ve-volume folio-sized work of 250 photographic images of 

plants—two volumes of which focus specifi cally on the Smithsonian’s living 

plant collections. Only ten sets will be produced.

Th e National Zoo’s animals produced some valuable off spring this year: 

4 Report to the Regents—January 2009
In December 2007, the Friends of the National Zoo held ZooLights. For 25 nights, the Zoo shone with 

thousands of environmentally friendly LED lights and animated exhibits that attracted 43,000 visitors. 

Th e Hirshhorn held three hugely popular evening After Hours events targeted at young professionals, 

off ering tours, music, and other activities to introduce the Museum to new audiences.

Th e Smithsonian Center for Education and Museum Studies hosted its annual Smithsonian Teachers’ 

Night on November 2, 2007, welcoming 2,800 educators to the National Air and Space Museum. 

Th e Smithsonian Astrophysical Observatory completed work on a one-semester interactive Web-based 

undergraduate course, “Habitable Planet: A Systems Approach to Environmental Science.” It has now 

begun work on a Web-based physics course in collaboration with the Harvard physics department.

In conjunction with the Archives of American Art’s exhibition A Thousand 

Kisses: Love Letters from the Archives of American Art, legendary new wave 

musician and artist Patti Smith gave a performance of her own songs and 

poems, plus readings from the exhibition’s companion book. 

Th e Masters Program in the History of Decorative Arts and Design, a joint 

program of the Parsons School of Design and Cooper-Hewitt, celebrated its 

25th anniversary in January.

A redesigned and expanded Archives of American Art Journal was nominated 

for a prestigious publishing award from the Society of Publication Designers.

National Outreach 

Smithsonian Affiliations off ers museums, cultural institutions, and educational organizations across the 

country access to Smithsonian collections and resources. 

In fi scal year 2008, Affi liations welcomed 14 new Affiliates; there are currently over 160 Affiliates in 

40 states, Puerto Rico, and Panama. 

Eight Smithsonian museums and the Smithsonian Institution Libraries loaned 68 artifacts to 13 

Affiliates. 

Affi liations partnered with Smithsonian magazine to promote a Museum Day at Affi liates across the 

country, featuring Smithsonian programs and screenings of Smithsonian Channel DVDs. 

Th is year’s Affiliations conference in Washington, D.C., drew representatives of 68 Affi liates; a 

Congressional reception in the Rayburn House Offi ce Building drew 30 Capitol Hill attendees, 

including fi ve U.S. Representatives.

Th e Smithsonian Institution Traveling Exhibition Service (SITES) continued to sustain a high level 

of outreach activity through its traveling exhibitions. In fi scal year 2008, SITES put the following new 

shows on the road: 

Let Your Motto Be Resistance: African American Portraits opened 

at the California African American Museum in Los Angeles.

The Working White House opened at the State Historical Society 

of Iowa in Des Moines. 

The White House Garden debuted at the U.S. Botanic Garden in 

Washington, D.C.

Freedom’s Sisters opened at the Cincinnati Museum Center in 

Cincinnati, Ohio.

•

•

•

•

•

•

•

•

Report to the Regents—January 2009 5
Beyond Baseball: The Life of Roberto Clemente opened at the 

Louisville Slugger Museum and Factory in Louisville, Kentucky. 

The Dancer Within opened at the Ypsilanti District Library in 

Michigan. 

Ancestry & Innovation: African American Art from the American Folk 

Art Museum opened at Reynolda House Museum of Art in WinstonSalem, North Carolina.

Beyond: Visions of Planetary 

Landscapes opened at the Monmouth 

Museum in Lincroft, New Jersey.

Singgalot (The Ties That Bind)

opened at Remy’s on Temply Art Gallery in Los Angeles, California.

Earth from Space, a poster exhibition of satellite images, opened in 

more than 300 locations. 

Th e National Science Resources Center held several national outreach 

events, including the following: 

the 2008 Indiana Building Awareness of Science Education Symposium, the fi rst step in a proposed 

10-year partnership to help Indiana reform its K–16 science education programs; 

the North Carolina Science Education Strategic Planning Institute for 15 school district leadership 

teams representing over 130,000 students, nearly half of whom live in poverty. Th e Center has a 10-

year agreement with North Carolina to help it establish eff ective K–12 science programs; and

the 2008 National K–8 Science Education Strategic Planning Institute, at which the Center hosted 

14 school district leadership teams to develop strategic plans for reforming K–8 science education. 

Th e teams represented over 1 million students, nearly half of whom live in poverty. 

Th e National Museum of African American History and Culture conducted three Save Our African 

American Treasures workshops in Chicago, Los Angeles, and Washington, D.C. It also completed 

a series of public engagement events across the nation to assess the public’s expectations for the new 

Museum. 

As part of the National Museum of the American Indian’s Renewing Connections project to engage 

with its core Native constituencies, Museum teams manned booths, addressed audiences, and talked 

one-on-one with hundreds of Native people across the nation at venues such as the National Congress of 

American Indians, Assembly of First Nations, and Indian Market.

Th e Smithsonian Associates coordinated Teaching American History workshops in three school districts 

in New York and Michigan, at which Smithsonian educators taught object-based learning methods to 

public school teachers. Another major Associates outreach eff ort was the 10th annual Smithsonian Week 

in Long Beach, an eight-day program produced in collaboration with the Arts Council for Long Beach.

The Smithsonian Center for Education and Museum Studies produced two issues of Smithsonian in 

Your Classroom. Complimentary hard copies are sent to all of the nation’s 80,000 elementary and 

middle schools, and the publications are available in PDF format on SmithsonianEducation.org. 

Under the direction of David Baker, the Smithsonian Jazz Masterworks Orchestra toured Egypt, 

performing at the Pyramids, Cairo Opera House, Alexandria Opera House, and Cairo American College. 

•

•

•

•

•

•

•

•

•

6 Report to the Regents—January 2009
Scholarship

Science Units

National Zoological Park (NZP)

During fi scal year 2008, NZP scientists produced 118 publications (including one book), of which 25 

were published in high-impact journals. 

Smithsonian scientists discovered a new bird species in Africa; 

their fi ndings were published in the international science journal 

Zootaxa in August 2008. Th e olive-backed forest robin (Stiphrornis 

pyrrholaemus) was fi rst observed in 2001 in southwest Gabon.

In October 2007, Director John Berry and U.S. Representative 

Frank Wolf formally opened a Cheetah Science Facility at the 

Conservation and Research Center in Front Royal, Virginia — the 

fi rst new research facility on the property in 22 years.

In September 2008, Mary Hagedorn and fellow scientists from 

around the world had a successful fi eld trip to Puerto Rico to work 

on reproduction of an endangered coral species, Acropora palmata. Th e group reared two million larvae, 

shipped 700,000 larvae to zoos and aquaria, and created the fi rst genetic bank for endangered coral. 

Smithsonian Tropical Research Institute (STRI)

STRI recorded 330 scholarly publications, including 

journal articles, books, and book chapters, 297 of 

which were articles in peer-reviewed journals (53 in 

high-impact journals).

Among the eight books published by STRI 

researchers was Tropical Forest Community Ecology, 

edited by Walter P. Carson and Stefan A. Schnitzer, a 

defi nitive collection of 28 contributions from some 

of the world’s leading specialists that summarizes key issues in tropical ecology. 

In June 2008, STRI’s Center for Tropical Forest Science launched an ambitious long-term study of 

ecosystem services — water, carbon, biodiversity — provided by tropical forests. Conducted on a 3.3-

square-mile site in Panama, the study’s fi ndings will have implications for tropical land use worldwide. 

In December 2007, STRI and its partners launched China’s contribution to the Smithsonian Institution 

Global Earth Observatories (SIGEO) program. STRI is also collaborating with local partners to 

establish observation plots in India and Brunei, and plots are being established at the Smithsonian 

Environmental Research Center in Maryland and the National Zoo’s Conservation and Research Center 

in Virginia.

Smithsonian Astrophysical Observatory (SAO)

SAO scientists published 450 articles in peer-reviewed journals, plus another 730 non-peer-reviewed 

journal articles, books, and conference proceedings. SAO scholars produced 17 articles or columns for 

the prestigious journals Nature and Science.

Report to the Regents—January 2009 7
Astronomers from the Harvard-Smithsonian 

Center for Astrophysics have measured, for the fi rst 

time, a limit to the albedo (refl ectivity) of a Jupitersized extrasolar planet, and shown that clouds 

probably do not exist in its upper atmosphere. 

Th e Giant Magellan Telescope — SAO’s highest 

research facility priority — will be able to study 

much smaller planets around nearby stars. 

Harvard-Smithsonian Center for Astrophysics 

scientists have invented a revolutionary new 

laser device to improve measurements of minute 

velocities (down to one centimeter per second) in 

astronomical sources. Th e “astro-comb” produces a fi ne, stable yardstick of reference wavelengths.

Smithsonian Astrophysical Observatory astronomers have helped pioneer technologies to coordinate the 

Smithsonian’s Submillimeter Array with other telescopes to image the giant black hole at the center of 

the Milky Way galaxy at resolutions close to the highest ever achieved in astronomy — a scale equivalent 

to observing, from earth, a baseball on the moon. 

National Museum of Natural History (NMNH) 

NMNH scientists authored or coauthored over 700 publications. 

A recent paper in Science coauthored by Tim McCoy of the mineral sciences 

department reports on what may be the most ancient asteroids preserved from 

the formation of the solar system. 

A book by Adrienne Kaeppler of the anthropology department, The Pacific 

Arts of Polynesia and Micronesia, provides a richly illustrated, comprehensive 

introduction to the artistic traditions of these regions of the South Pacific.

The June 27, 2008, issue of Science featured the first report to emerge from 

a five-year, National Science Foundation–funded study by scientists from NMNH and four other 

institutions. The study aims to establish a framework for ornithologists and evolutionary biologists to 

organize and interpret the huge amount of available scientific data on birds.

Smithsonian Environmental Research Center (SERC) 

SERC scientists produced 98 papers (published and in-press) in peer-reviewed journals and books, 

and gave nearly 300 presentations at conferences and symposia. SERC scholars were awarded almost 

$5.5 million in grants and contracts. Many SERC publications focus on critical ecological problems of 

the day, including the eff ects of invasive species in marine ecosystems, land-use impacts on watershed 

discharge, blue crab fi sheries, and oxygen-depleted “dead zones” in coastal waters. 

Scientists from SERC published six papers in Reviews in Fishery Science that summarize their research on 

replenishing the blue crab population in the Chesapeake Bay. Th is research is widely recognized as some 

of the world’s most comprehensive work on fi shery stock enhancement.

Published in the Journal of Environmental Quality, a study by SERC’s Donald Weller and Kathy Boomer 

(with Th omas Jordan) compares actual sediment measurements in Chesapeake watershed streams with 

predictions from the most up-to-date models and fi nds model predictions to be extremely unreliable, 

apparently because of the models’ use of an equation developed for a diff erent purpose.

8 Report to the Regents—January 2009
In the past 200 years, carbon dioxide levels in the atmosphere 

have increased by 35 percent, and oceans and waterways have 

been soaking up excess carbon, growing more acidic in response. 

Whitman Miller of SERC is investigating the eff ects on the 

Chesapeake Bay’s oyster population, which today stands at 2 percent 

of what it was in colonial times. 

Museum Conservation Institute (MCI) 

MCI worked on 139 projects with 30 Smithsonian museums, 

research centers, and offi ces, as well as external organizations such as the Library of Congress, the U.S. 

Senate and House of Representatives, and the Offi ce of the Architect of the Capitol. MCI scientists also 

produced 19 publications in peer-reviewed journals, three books and 

catalogues, six book chapters, and nearly 30 other publications. 

In June 2008, MCI set up a central laboratory with two state-of-theart stable isotope ratio mass spectrometers (IR-MS) as the fi rst step in 

establishing a Mass Spectrometry Center to support pan-Institutional 

interdisciplinary research in earth sciences, environmental science, 

biology, anthropology, and even art history. 

MCI’s Jeff Speakman and his collaborators published a paper in the 

Proceedings of the National Academy of Sciences describing the discovery 

of a 4,000-year-old gold necklace at an archaeological site in Peru’s 

Lake Titicaca basin — the oldest worked-gold object found to date in the Americas.

National Air and Space Museum (NASM) 

In September 2008, John Grant of the Center for Earth and Planetary Studies (CEPS) cochaired the 

third landing site workshop for NASA’s 2009 Mars Science Laboratory mission to advise on landing sites 

for the Mars Science Lander, the next NASA mission to Mars. 

Using earth-based radar, CEPS scientists discovered that areas of the south pole of 

the Moon do not have extensive ice deposits, and that any ice present there would 

be scattered, making it unsuitable to support future manned landings. 

Two books from the National Air and Space Museum’s Space History Division 

recently received awards. After Sputnik: Fifty Years of the Space Age, edited by 

Martin Collins, won second prize in the Washington Book Publishers 2007 Book 

Design and Eff ectiveness Awards. Michael Neufeld’s Von Braun: Dreamer of 

Space, Engineer of War won the Richard W. Leopold Prize of the Organization of 

American Historians.

The new book Hubble: Imaging Space and Time by David H. DeVorkin and Robert W. Smith, with 

contributions by Elizabeth Kessler, updates the authors’ 2004 book The Hubble Space Telescope, which 

sold 70,000 copies.

Art Units 

Smithsonian art museums published numerous exhibition catalogues, including the following: 

Ballyhoo! Posters as Portraiture and Zaida Ben-Yusuf: New York Portrait Photographer from the 

National Portrait Gallery; 

•

Report to the Regents—January 2009 9
The Cinema Effect: Illusion, Reality, and the Moving Image and Amy Sillman: Third Person Singular

from the Hirshhorn Museum and Sculpture Garden; 

Piranesi as Designer; Provoking Magic: Lighting of Ingo Maurer; Rococo: The Continuing Curve 

1730–2008; and House Proud: Nineteenth-Century Watercolor Interiors from the Thaw Collection

from Cooper-Hewitt; 

Inscribing Meaning: Writing and Graphic Systems in African Art by the National Museum of African 

Art’s Christine Mullen Kreamer, which was awarded the Secretary’s 2008 Research Prize; and 

Japanese Masterworks from the Price Collection and Garden and Cosmos: The Royal Paintings of 

Jodhpur from the Freer and Sackler Galleries, as well as the second and third volumes to accompany 

the Galleries’ monumental 2007 Encompassing the Globe exhibition. 

Smithsonian American Art Museum Senior Curator Virginia Mecklenburg was honored by the National 

New Deal Preservation Association for her work with New Deal–related art.

Over 200 scholars gathered in September 2008 for the symposium Words Matter!, organized by the 

Smithsonian American Art Museum to mark the 20th anniversary of the Charles C. Eldredge Prize, 

awarded annually to the best book in the fi eld of American art. 

Th e International Institute for Conservation of Historic and Artistic Works awarded the prestigious Keck 

Award, for promoting public appreciation of the conservation profession, to the Lunder Conservation 

Center at the Donald W. Reynolds Center for American Art and Portraiture. 

Th e Archives of American Art published two books, With Love: Artists’ Letters and Illustrated Notes and 

Speaking of Art: Selections from the Archives of American Art Oral History Collection. Th e Archives also 

launched a redesigned and expanded Archives of American Art Journal.

Hirshhorn Chief Conservator and Collections Manager Susan Lake collaborated with the Getty 

Conservation Institute in Los Angeles to publish a book on noted artist Willem de Kooning’s painting 

methods and materials.

Stephen Van Dyk of Cooper-Hewitt Library worked with photographer and design historian Andrew 

Garn on the book Exit to Tomorrow: World’s Fair Architecture, Design, Fashion 1933–2005.

History and Culture Units

In September 2008, the third annual Winton M. Blount Postal History Symposium, a national 

conference of scholars and philatelists sponsored by the National Postal Museum and the American 

Philatelic Society, was held in the Museum’s Blount conference center.

National Museum of American History research staff published several 

books: The Star-Spangled Banner: The Making of an American Icon

by Jeff rey L. Brodie, Kathleen K. Kendrick, and Lonn Taylor; America’s 

Forested Wetlands: From Wasteland to Valued Resource by Jeff rey K. Stine; 

The Kennedys: Portrait of a Family by Shannon Th omas Perich; and 

Holidays on Display by William L. Bird. 

Th e National Museum of the American Indian added several titles to its 

highly regarded publishing program, including Fritz Scholder: Indian/Not 

Indian; Remix: New Modernities in a Post-Indian World; Meet Christopher: 

An Osage Indian Boy from Oklahoma (the fourth title in the My World 

series for young readers); and the revised paperback edition of Native 

Universe: Voices of Indian America.

•

•

•

•

10 Report to the Regents—January 2009
National Museum of the American Indian Research Unit staff organized the symposium Mother Earth: 

Call to Consciousness on Climate Change for scholars and community members engaged with climate 

change issues in Indian country. Unit members accepted positions in the Cultural Studies Association, 

Indigenous Studies Association, and American Academy of Religion, and have launched a Latin 

American Initiative to enhance the Museum’s commitment to the indigenous cultures of Latin America.

In February 2008, the exhibition catalogue for the National Museum of African American History and 

Culture’s Let Your Motto Be Resistance won the Outstanding Contribution to Publishing Citation from 

the American Library Association.

Th e Smithsonian Institution Archives organized the symposium “Preserving Historical Correspondence: 

Email Preservation Progress and Future Directions,” the culmination of a three-year collaboration with 

the Rockefeller Archive Center. 

Th e Eugene S. Ferguson Award of the Society for the History of Technology was awarded to the 

Smithsonian Institution Archives for The Papers of Joseph Henry.

Asian Pacifi c American Program Director Franklin Odo is completing a book on Japanese immigrant 

folksongs on Hawaii sugar plantations, for which he received a 2008 Scholarly Studies grant.

Th e Smithsonian Networks fi lm Sound Revolution: The Electric Guitar — based on the Lemelson 

Center’s research on the history of the electric guitar — won a Gold World Medal in the Arts category at 

the New York Festival’s television broadcasting awards.

Management Excellence

Leadership Milestones

On July 1, 2008, G. Wayne Clough assumed his duties as the 12th 

Secretary of the Smithsonian Institution, taking over from Acting 

Secretary Cristián Samper, who returned to his previous post as 

Director of the National Museum of Natural History. 

In September 2008, the Board of Regents elected Patricia 

Stonesifer to succeed Roger Sant as Chair of the Board, effective 

January 27, 2009. Stonesifer, Senior Advisor and Former Chief 

Executive Officer of the Bill and Melinda Gates Foundation, has 

been a Regent since 2001. 

In March 2008, John W. McCarter Jr. was appointed to the 

Board of Regents. Since 1996, McCarter has been President 

and Chief Operating Offi cer of the Field Museum in Chicago. 

He previously served as Senior Vice President of Booz Allen 

Hamilton and as President of the DeKalb Corporation. 

Charles Alcock became Acting Under Secretary for Science 

in April 2008. A renowned astrophysicist and member of the 

National Academy of Sciences, Alcock joined the Smithsonian 

as Director of the Smithsonian Astrophysical Observatory in 

2004 and continues to serve in this role while he is Acting Under 

Secretary. 

Report to the Regents—January 2009 11
In April 2008, the Smithsonian’s art units were organizationally 

joined to the history and culture units under a renamed Offi ce of 

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

serves as Acting Under Secretary for this new division.

Eldredge “Biff” Bermingham was named Director of the 

Smithsonian Tropical Research Institute in Panama City, Panama. 

Bermingham has been the Institute’s Acting Director since March 

2007. He joined its scientific staff in 1989 and served as Deputy 

Director in 2003–07. 

Martin E. Sullivan was named Director of the National Portrait 

Gallery. Sullivan previously served as Chief Executive Offi cer of the 

Historic St. Mary’s City Commission in Maryland and Director of 

the Heard Museum in Phoenix. He also has chaired three national 

boards on museum standards and practices.

Management Initiatives

On March 15, 2008, the governing Board of Regents announced its selection of G. Wayne Clough as 

the 12th Secretary of the Institution. In his previous position as President of the Georgia Institute of 

Technology, Clough dramatically raised that university’s profi le as a top-tier national research institution. 

He also has served on the President’s Council of Advisors on Science and Technology, the National 

Science Board, and the Council on Competitiveness (as Vice Chair).

Prior to Clough’s arrival, the Board of Regents, working with Acting Secretary Cristián Samper, took 

major steps to address acknowledged weaknesses in the Institution’s governance policies and processes.

Prior to its reopening in November 2008 after extensive renovations, the National Museum of American 

History began a Visitor Experience Training Initiative for all on-site personnel who have contact with 

the public, with the goal of providing visitors with a welcoming experience at all stages of their visit.

Th e Smithsonian Environmental Research Center 

completed a Master Plan for sustainable facilities and 

land management. It provides a 20-year plan for creating 

a model environmentally sustainable campus. Th e Center 

also completed the purchase of the 575-acre Contee Farm

property for $6.2 million, bringing its land holdings to 

2,650 contiguous acres on the Chesapeake Bay. 

In October 2007, Smithsonian Tropical Research Institute 

Acting Director Eldredge Bermingham signed a contract to 

purchase a 17.5-acre site in Gamboa, Panama, along the 

Panama Canal, as the fi rst step in establishing a new campus that will support advanced research. 

Offi ce of the Chief Information Offi cer (OCIO)

In December 2007, Chief Information Offi cer Ann Speyer presented Accenture Consulting’s initial Web 

strategy findings to Smithsonian Web masters and senior staff . One result of the study was the creation 

of a Director of Web and New Media position to lead the development of Web strategy.

In May 2008, the Smithsonian launched a digitization strategic planning committee to develop a panInstitutional digitization plan to feed into the Smithsonian’s overall strategic plan. 

12 Report to the Regents—January 2009
Th e Smithsonian joined Flickr Commons — a leading photo-sharing community — and posted over 

1000 images with no known copyright restrictions. Th e Smithsonian hopes to learn more about its 

audiences through their interactions with Smithsonian images on Flickr. 

To address the need for a pan-Institutional, centrally supported video teleconferencing (VTC) system, 

OCIO completed a pilot of Cisco Meeting Place for video, audio, and Web conferencing. Th e system 

entered production shortly after the end of fi scal year 2008.

Th e Getty Foundation is funding development of a Smithsonian enterprise digital asset network

(EDAN) that will give scholars, scientists, and the public the ability to locate and retrieve digital fi les 

stored in various systems across the Institution, without accessing each system individually. Th e initial 

system will be operational by the end of fi scal year 2009.

AT&T, Sprint/Nextel, and Verizon Wireless are providing approximately $6 million to create a common 

wireless access system (CWAS) to improve cell phone coverage inside Smithsonian Mall buildings. 

Th e design is complete, and the system will become operational at several initial sites by the end of the 

calendar year. Several free public Wi-Fi hot spots also will be provided as part of the CWAS.

All Federal and Trust staff now report their hours using a unifi ed, Web-based time and attendance/labor 

system (WebTA) that electronically transmits the information needed to generate pay checks. WebTA 

replaces the previous, awkward mix of manual processes, spreadsheets, and unit-specifi c systems. 

OCIO relocated 159 unit application servers, previously scattered across the Institution, to its data 

center in Herndon, Virginia, upgrading many in the process. Th e data center location provides 

advantages such as a secure environment, backups, monitoring, and environmental controls. 

In January 2008, the Smithsonian’s fi rst secure wireless network was rolled out, enabling staff to connect 

to the Smithsonian network and Internet with minimal security risk. It also features zones where visiting 

colleagues can connect to their home institutions. One hundred and sixty secure wireless access points 

were established.

Major Construction, Renovation, and Facilities Projects

Donald W. Reynolds Center for American Art and Portraiture

$19.5 million total estimated project cost 

Th e Robert and Arlene Kogod Courtyard, the center of the Donald W. 

Reynolds Center for American Art and Portraiture, opened to the public 

on November 18, 2007. Final design documents for the last parts of the 

Reynolds Center renovation — the F Street stair reconstruction, exterior 

landscape, and perimeter security — are complete. Th e stair will be 

privately funded at an approximate cost of $10.1 million, and the current 

fi ve-year facilities capital plan includes a Federal funding request of $9.4 

million for the landscape and security project in fi scal year 2015.

National Museum of American History, Kenneth E. Behring Center

Central Core: $87.1 million total project cost

Work on the most extensive renovation of the Museum’s public space in over 40 years stayed on track for 

the Museum’s successful reopening on November 21, 2008. Federal appropriations of $47.9 million were 

received in fi scal years 2005–008, and $39.2 million has been raised in gifts and pledges.

Report to the Regents—January 2009 13
National Zoological Park

$52.8 million estimated total project and program cost for Asia Trail II: Elephant Trails

Th e second phase of the Asia Trail project will renovate the historic elephant house and enlarge yard space 

into three habitat areas and a trail at a projected cost of $52.8 million — $35.6 million Federal (received 

in fi scal years 2006–08), and $17.2 million Trust. Construction began in March 2008 and is on schedule 

for completion in April 2011. Th e elephants will move into their new holding area in the spring of 2009, 

after which renovation of their current facilities can commence.

National Museum of African American History and Culture

$500 million total estimated project cost

A programming study to inform the design of the Museum building was completed in October 2008, 

and the second-phase Environmental Impact Statement and Historic Preservation Review is under way 

with the National Capital Planning Commission. Th e architect/engineer selection process has begun, 

with a design contract award scheduled for late summer 2010. Museum design and construction 

($400 million, pre-concept estimate) and exhibit design, fabrication, and installation ($100 million, preconcept estimate) are scheduled for completion by December 2015.

National Museum of Natural History, Sant Ocean Hall Exhibition

$46.6 million total estimated project and program cost

Th e Sant Ocean Hall exhibition opened in September 2008 at a total estimated cost of $46.6 million 

— $22.2 million in Federal funding (received in fi scal years 2002–06) and $24.4 million from grants 

provided by the National Oceanic and Atmospheric Administration and other donors. 

Arts and Industries Building (AIB) Revitalization

$75 million estimated cost for building repairs, infrastructure, and roof replacement

Current planning is focused on determining a use for AIB (beginning with a review of the possibilities 

that fi t its architecture, history, and plan) and scheduling $75 million in roof and infrastructure system 

revitalization that can be completed while the building’s future use is under discussion. Contracts for a 

historic structures report, roof investigation, and exterior masonry repairs will be awarded in fi scal year 

2009, followed by design eff orts in fi scal year 2010, and the start of renovations in fi scal year 2011. 

Cooper-Hewitt, National Design Museum 

$57 million total estimated project cost

A long-term lease was signed in October 2008 for a storage facility in Newark, New Jersey, to house 

Cooper-Hewitt collections, photography, and conservation functions during building renovations, with 

transfers to start in December 2008. Design for the Fox-Miller townhouse renovation will be complete 

in December 2008, with construction starting in March 2009. Design for the Carnegie Mansion 

renovation is on track for completion in July 2009. A one-year delay in the Mansion renovation was 

approved to allow the Museum time to complete fund raising for the project. A construction contract 

is expected to be awarded in January 2011. Of the $15 million Federal appropriation, $2.4 million has 

been received and spent on design and collections storage, $1.7 million will be available in fi scal year 

2009 for the Fox-Miller work, and the balance will be deferred to fi scal year 2011. Of the $42 million in 

required private funds, $23 million has been identifi ed in gifts and pledges.

14 Report to the Regents—January 2009
Museum Support Center of the National Museum of Natural History, Pod 5

$42.7 million total estimated project cost

Construction of a fi fth storage pod in Suitland, Maryland, was completed in April 2007. Th is addresses a 

major safety concern by allowing the transfer of specimens stored in alcohol from the National Museum 

of Natural History building and Pod 3 into a facility with state-of-the-art fi re protection systems. 

Transfer of specimens is under way and will be completed by spring 2009. 

Museum Support Center of the National Museum of Natural History, Pod 3

$42.65 million total estimated project cost

Th e July 2008 award of a $22.6 million design-and-construction contract for renovations to Pod 3 in 

Suitland began the next phase in the Smithsonian’s drive to improve collections care. Th e renovated Pod 

3 will provide a consolidated site for frozen, refrigerated, gas-preserved, and dry collections, allowing 

the Smithsonian to vacate leased properties and free up congested space in the Hirshhorn, African Art, 

Freer/Sackler, and Natural History museums. More than $15 million of shelving/racking, collections and 

meteorite cases, and freezers will be installed. Transfers of art, specimens, and artifacts from the Mall are 

expected to be completed after July 2011; estimated moving costs are $5 million.

Smithsonian Environmental Research Center, Mathias Replacement Laboratory Project

$40.5 million total estimated project cost

Th e Smithsonian Environmental Research Center is eliminating unsafe trailers (which currently house 

25 percent of the Center’s lab space and 65 percent of its offi ce space) and renovating and reconfi guring 

the existing Mathias Lab to create 52,000 square feet of laboratory and support space. Th e new space 

will employ sustainable technologies and building materials that will yield substantial reductions in 

energy and maintenance costs. Solicitation for design was issued May 2008, with an architect/engineer 

award anticipated in early 2009. Design is scheduled for completion by early 2010. Congressional 

authorization — required prior to the award of a construction contract — is anticipated in 2009. 

Construction will be completed by mid-2012. 

National Air and Space Museum—Steven F. Udvar-Hazy Center, Phase 2 

$81 million (Trust) total project cost

Phase 2 of the Udvar-Hazy Center at Dulles International Airport is under construction. It will add 

237,000 square feet of collections care space to the current facility, including a restoration hangar, storage 

and processing space, a conservation laboratory, and archives. Completion is expected in mid-2011.

Permanent Physical Security Barriers

$55 million total project cost

Construction of security barriers at the National Museum of Natural History is under way, with the fi rst 

phase to be completed in December 2008. Contracts for the fi nal phase of the security perimeter will 

be awarded in fi scal year 2010. A construction contract has been awarded for perimeter barriers on all 

but the south side of the National Museum of American History, with completion expected in spring 

2010. Th e design for Castle and Quadrangle security barriers will be awarded in fi scal year 2009, with 

construction scheduled to start in fi scal year 2013.

Report to the Regents—January 2009 15
Financial Strength

At the close of fi scal year 2008, the Smithsonian Institution reported a drop in net assets of $100 million, 

driven primarily by the impact of the U.S. economic recession on the Smithsonian’s Endowment. From 

an operational standpoint, however, the Institution’s fi nancial posture remains sound. Net income 

from Smithsonian Enterprises (SE) exceeded budget and private-sector giving was stronger than 

expected. Despite the steep decline in the fi nancial markets, the Endowment fared better than its policy 

benchmark. 

Th e Institution continued to make progress on its stated goals. Resource constraints remained a 

challenge because Federal increases largely went to pay mandatory operating bills such as pay raises, 

electricity, and rent. Th e Institution continued to fi ll, with rare exceptions, only one out of every two 

Central Trust–funded vacancies that occurred.

Financial Performance

Fiscal year 2008 began on October 1, 2007, amidst considerable uncertainty. With Congressional action 

on the full-year appropriation still not complete, the Institution implemented a Federal hiring freeze and 

made other preparations for the possibility that Federal funding would be held at the prior year’s level. 

Th is was averted with the December 2007 enactment of a fi scal year 2008 appropriation, which allowed 

Federal hiring to resume. However, the Smithsonian still had to contend with a $13.3 million Federal 

funding shortfall — the result of (1) a mandated pay raise that was not fully funded; (2) a 1.56% acrossthe-board budget reduction on all entities funded in the Interior, Environment and Related Agencies 

Appropriations Act; and (3) the need to absorb the cost of Congressionally mandated staff increases in 

the Offi ce of the Inspector General and the Offi ce of the Chief Financial Offi cer.

Revenues for fi scal year 2008 exceeded budget by $53 million, driven primarily by better than budgeted 

donor and sponsor contributions. Nevertheless, notable specifi c revenue variances occurred as refl ected 

below.

Revenues exceeded budget, due primarily to: 

An increase in contributions driven by two $15 million gifts

An increase in Smithsonian Enterprises net gain compared to budget associated with (1) the 

unbudgeted licensing fee from Twentieth Century Fox’s Night at the Museum II; (2) the strong 

performance of the museum stores and restaurants; (3) the success of Smithsonian Journeys; 

and (4) the aggressive management of SE operating expenses in the Magazine and the Catalogue 

where costs exceeded budget 

An increase in funding for government grant and contract efforts

An increase in museum revenue due to unbudgeted royalties and special events

An increase in the Endowment payout due to the unbudgeted investment of $70 million taken 

from the short-term portfolio at the direction of the Board of Regents

•

•

•

•

•

16 Report to the Regents—January 2009
Expenses for fi scal year 2008 were below budget by $55 million. Notable variances in expenses occurred 

as refl ected below.

Expenses were below budget, due primarily to: 

A decrease in Federal expenses recognized for operations as a consequence of the 1.56% acrossthe-board rescission enacted by Congress, slower than planned hiring at the National Museum 

of African American History and Culture, and an under-estimate of the level of capitalized S&E 

funds

A decrease in unrestricted Trust expenses associated with a slower than planned backfill of 

leadership positions and development vacancies, and a delayed start-up of the reinstituted 

scholarly studies program

 Lower depreciation expenses due to the November versus July 2008 reopening of the National 

Museum of American History

A decrease in restricted Trust expenses to reflect the capitalization of expenses for the NMAH 

Public Space Renewal Project and the NMNH Ocean Hall 

Th e decrease in expenses was partially off set by:

Increases in spending on government grants and contracts

•

•

•

•

•

Th e fourth quarter decline in the fi nancial markets dramatically aff ected the performance of the 

Endowment. With a non-operating investment loss of $199 million at year-end, the Endowment return 

which had been budgeted to increase by a modest amount, fell short of budget by $239 million. By 

design, the Endowment’s budgeted income represents the Institution’s investment objective and is not 

based on an annual market forecast. While the Endowment continues to diversify its assets with the goal 

of reducing risk and improving the long-term return, the volatility of the fi nancial markets and the steep 

economic decline experienced during the fi rst quarter of fi scal year 2009 continues to be refl ected in the 

Endowment’s performance. Likewise, the operational performance of SE is feeling the impact of the sour 

economy as fi scal year 2009 gets under way. Extraordinary eff orts are being taken by all SE operational 

divisions to remain on budget. 

Th e increase in revenues was off set by:

A decrease in Federal revenues recognized for operations due to the across-the-board 1.56% 

rescission enacted by Congress and slower than planned hiring at the National Museum of 

African American History and Culture

A decrease in Federal revenues recognized for capital programs due to delays in the execution 

of the Legacy Fund and delays in awarding several major contracts

A decrease in Trust revenue from Contributing Memberships attributed to the economy and 

an unexpected net loss from The Smithsonian Associates

 A loss on gift annuity program investments due to the economic recession

A decrease in short-term investment income due to the unbudgeted transfer of $70 million 

from the short-term portfolio to the Endowment at the direction of the Regents

•

•

•

•

•

Report to the Regents—January 2009 17
Compared to the policy benchmark, which is a blend of indices based on the Endowment’s allocation 

targets, the fi scal year 2008 performance of the Smithsonian’s Endowment (-14.1%) exceeded the policy 

benchmark return (-17.3%), while the total return on the Endowment over the last fi ve years annualized 

through September 2008 (7.7%) also exceeded the policy benchmark return (6.6%). Th e Institution’s 

diversifi ed investment portfolio had a value of $906 million at year-end. 

Smithsonian Institution Year-End Endowment Value ($ in millions)

Taken together, the Institution’s net assets decreased by $100 million — $133 million below budget 

— due to the poor performance of the fi nancial markets.

Smithsonian Institution Financial Performance for Fiscal Year 2008 ($ in millions)

FY2008 Budget FY2008 

(Unaudited)

Variance to 

Budget

Revenues 948 1,001 53

Expenses 947 892 55

Endowment Return Reinvested/

Unrealized Losses

40 (199) (239)

Net Collection Activities/Other (8) (10) (2)

Change in Net Assets 33 (100) (133)

Eff orts to increase funding for important programmatic initiatives, facilities revitalization, and 

maintenance requirements remained the Institution’s highest priorities. Recent reports prepared by the 

Government Accountability Offi ce noted that current funding levels were not suffi cient to address the 

Institution’s overall facilities requirement. Th e Institution requires a minimum of $100 million annually 

for facilities maintenance (based on the National Research Council’s recommendation of a minimum of 

2% of the physical plant replacement value) and $150 million annually for facilities revitalization. 

Funding for the revitalization of the Smithsonian’s physical infrastructure totaled $120 million in fi scal 

year 2008. Th is funding level is an improvement over prior years, but remains short of the $150 million 

annual goal. Th e $120 million includes $15 million from the Legacy Fund, which is a matching fund 

set up to provide one Federal dollar for every two dollars raised privately for facilities revitalization. Use 

of the Legacy Fund is delayed while the Institution continues to evolve the concept of the Fund with 

Congress. Maintenance funding was also short in fi scal year 2008, at $51.4 million against an annual 

need of $100 million. 

906

999

843 779

697

638

0

300

600

900

1200

FY03 FY04 FY05 FY06 FY07 FY08

18 Report to the Regents—January 2009
Funding for Smithsonian Facilities Revitalization ($ in millions)

120

93 81

118

98 83

0

50

100

150

FY03 FY04 FY05 FY06 FY07 FY08

Management remains committed to the revitalization of the Institution’s physical infrastructure and to 

funding equally critical programmatic priorities that have suff ered many years of underfunding. Securing 

adequate Federal funding and sustaining support for Federal funding increases over the long term remain 

enormous challenges. Likewise, management continues to be challenged by the need to secure adequate 

operations funding to forestall further erosion of the Institution’s ongoing programs. Nevertheless, the 

Institution proudly continues to serve the American people and accomplish its time-honored mission, 

“the increase and diff usion of knowledge.” 

External Aff airs

In fi scal year 2008, the Smithsonian raised $135.6 million in private support from individuals, 

foundations, and corporations. Th is is 36 percent above the $100 million goal for the year.

Twenty-four leadership gifts of $1 million or more were received. Leadership gifts totaled 

$64.7 million, or 48 percent of total funds raised, and provided major support for eight Smithsonian 

units and funding for exhibitions, research, acquisitions, educational programs, construction, renovation, 

and Web site development. $15.5 million of these were directed to endowment. In the fi nal quarter, 

gifts were received from Richard D. and Laura A. Parsons and Th e Oprah Winfrey Foundation to 

support the planning and design of the National Museum of African American History and Culture’s 

Mall facility.

Thirteen Smithsonian museums and research centers exceeded their fund-raising goals. Th e National 

Museum of Natural History raised $26.2 million, more than four times its goal of $6 million. Th e 

National Air and Space Museum raised $21.5 million, twice its goal of $10.2 million. And the National 

Museum of African American History and Culture raised $12.2 million, surpassing its goal of $8 million 

by 53 percent. 

Th e Contributing Membership had revenues of $14.1 million, comparable to last year. Membership 

increased 8 percent over last year, to 91,000. Th e James Smithson Society, part of the Contributing 

Membership, contributed $1.47 million, and Society membership reached an all-time high, with 568 

members at the end of fi scal year 2008. Results for the National Air and Space Museum membership 

program paralleled the Contributing Membership, while Friends of the National Zoo increased both 

membership and total contributions over last year. 

Th e Smithsonian raised $305,000 for the Legacy Fund challenge posed by Congress. An online 

campaign, which reached more than 500,000 individuals by e-mail, resulted in 551 gifts totaling 

$61,000. Banner ads placed on the Smithsonian home page and other Smithsonian Web sites, as well 

as on Google, Yahoo, and Facebook, brought the total number of people to have seen the Legacy Fund 

appeal to more than a million. In addition, Board of Regents Chair Roger Sant sent an appeal to 723 

Smithsonian advisory board members, which was answered with 29 gifts totaling $244,000.

Report to the Regents—January 2009 19
Online fund raising continued its rapid growth, with $622,105 raised in fi scal year 2008—more than 

double last year’s total of $219,403. Th is fi gure includes Contributing Membership and Legacy Fund 

gifts. Subscribers to the monthly e-newsletter Smithsonian Focus increased from 65,216 to 72,081. 

Th e Smithsonian National Board’s annual giving program, which raises unrestricted funds, raised 

$1.04 million. National Board members gave $8.4 million in new gifts and payments on pledges.

Planning for the Smithsonian’s national fund-raising campaign continues. Th e Offi ce of External Aff airs 

will soon complete searches for a campaign director and campaign consultant. Early in 2009, it will 

begin an internal assessment to identify the resources available and needed for the multi-year fund raising 

eff ort. Th e Institution’s strategic planning process, when complete, will inform the campaign’s goals.

Smithsonian Enterprises (SE) 

Acting on the recommendations of the SBV Task Force, Smithsonian Business Ventures formally changed 

its name to Smithsonian Enterprises on July 1. Business lines were consolidated from fi ve to three: 

Retail, Media, and Licensing and Business Development, with new leaders appointed to the fi rst and 

third of these. Th e Board of Directors was disbanded, and the President now reports directly to the 

Secretary through the Board of Regents’ Finance Committee. Other recommendations continue to be 

addressed. 

SE operations contributed $26.7 million in net gain (after tax) to the Institution in fi scal year 2008, 

$200,000 (0.8 percent) above budget and slightly above the contribution in fi scal year 2007. 

Th is favorable performance is primarily attributable to the extension of summer operating hours 

for stores and theaters; the license fee for the fi lm Night at the Museum II: Battle of the Smithsonian; 

merchandise margin initiatives; and cost controls. It was achieved despite 

an interruption of the catalogue business between March and July; 

signifi cant deterioration in magazine advertising (owing to the ongoing 

migration from print to digital media and the eff ects of the recession on 

advertisers’ budgets); and the delayed reopening of the National Museum 

of American History. 

Additionally, SE paid unbudgeted taxes of $600,000 for non-missionrelated income from fi scal years 2007 and 2008, primarily after-hours 

theater shows and unrelated merchandise. Th ese taxes are expected to 

continue, as Institution tax credits no longer exist to off set this income.

SE is internally budgeted to provide $27.2 million in net gain in fi scal year 2009. Refl ecting the 

economic slowdown, consumer spending has signifi cantly softened, and the print advertising industry 

continues to struggle. Management has initiated actions to address these factors through creative 

promotions and marketing, coupled with continued cost vigilance.

Retail 

Th e stores’ year-end net gain exceeded both budget and fi scal year 2007 performance, despite a shortfall 

in forecasted sales. Th is was due to improvements in merchandise gross margins and reduced operating 

expenses. Also, strong performances from the National Museum of Natural History, National Air and 

Space Museum, and Jim Henson’s Fantastic World exhibit helped to off set a $2 million shortfall from the 

delayed opening of the National Museum of American History.

Theater operations contributed $4.1 million but fell short of budget by $134,000, due largely to 

20 Report to the Regents—January 2009
underperforming mission fi lms and the delayed launch of Legends of the Sky 

3D. Balancing these were the strong showings of 3D Sun and two feature 

fi lms, U2 3D and The Dark Knight.

Two new airplane simulators installed at the National Air and Space 

Museum helped drive concessions performance well above budget.

Food and beverage commissions exceeded both budget and fi scal year 2007 

performance, contributing a net gain of $3.7 million.

Due to the unanticipated mid-year closure of the Smithsonian catalogue’s 

fulfi llment partner, the catalogue unit was forced to suspend operations 

for four months, resulting in a fi scal year loss of $1.6 million. Operations 

resumed with a new fulfi llment provider in August.

Media 

With distribution provided by DISH Network, DirecTV, Verizon FiOS TV, RCN, and Charter 

Communications, the Smithsonian Channel is in approximately 2.4 million households via linear 

programming and 10.8 million households via on-demand programming. Selected Smithsonian 

Channel shows are now available for download at the iTunes Store. Adding to the fi ve CINE Golden 

Eagle awards garnered earlier in the year, the Channel celebrated its fi rst Emmy Award, becoming the 

youngest channel ever to receive this coveted prize. During the fi scal year, 134 programs were completed, 

bringing the total to 209.

Unique visitors across all media Web sites were up 107 percent over last year.

Smithsonian magazine’s Museum Day event off ered more than 200,000 cultural enthusiasts—double last 

year’s number—free admission to 928 participating museums across all 50 states and Puerto Rico.

Smithsonian Books has changed its title-acquisition strategy to focus on 

adult trade nonfi ction and a handful of popular reference titles. America’s 

Hidden History by Kenneth Davis was on the New York Times best seller list 

for two weeks, and How the States Got Their Shapes made it to the extended 

list for several weeks. Another blockbuster was the Smithsonian Field Guide 

to the Birds of North America, which has received glowing reviews and is 

expected to sell over 100,000 copies in its fi rst year. Other highlighted 

titles featuring Smithsonian content include Let Your Motto Be Resistance 

(National Museum of African American History and Culture), The StarSpangled Banner (National Museum of American History), and Smithsonian 

Ocean (National Museum of Natural History).

Licensing and Business Development 

Smithsonian Journeys exceeded its budgeted net gain by nearly $700,000 while increasing its passengers 

by 11 percent, including 42 percent growth in the value-priced Travel Adventures line. Th e division 

completed its fi rst full year as a preferred supplier for the American Express Consumer Travel Network, 

netting more than 200 bookings and over $1 million in sales.

As part of a pan-Institutional eff ort, SE’s Licensing division helped secure a licensing agreement with 

20th Century Fox for use of the Smithsonian name in the second Night at the Museum movie. Location 

fees and royalties based on related product sales were also included in the overall agreement.

Report to the Regents—January 2009 21
Smithsonian Home furniture introduced a third line at the High Point International Furniture Trade 

Show, consisting of dining room, bedroom, living room, and home offi ce groupings developed from 

the resources of the Freer Gallery of Art, Smithsonian Castle, National Museum of American History, 

National Museum of Natural History, and Smithsonian Institution Libraries. Also introduced was a line 

of hand-tufted rugs inspired by Smithsonian collections, including those of Cooper-Hewitt. 

Two licensees won awards for Smithsonian-themed children’s products in 2008. Soundprints earned two 

Teachers’ Choice Awards with Smithsonian American Favorites: Star-Spangled Banner and Smithsonian 

Alphabet Books: Alphabet of Insects, and Pressman Toy won a Dr. Toy Award for the Smithsonian Be the 

Expert game.

22 Report to the Regents—January 2009