Board of Trustees

Oakland Museum Of California Board Of Trustees Business Meeting Minutes-
Meeting Minutes
January 22, 2009
MUSEUM RESTAURANT
4:30 P. M. – 6:00 P.M.

ROLL CALL

Trustees

Kellie Abreu, Steven Anderson, Brian Cherry, Ralph Clark, Richard DeAtley, Quinn Delaney, Steven Douglas, Richard Edwards, Lori Fogarty, Virginia Furth, Tamra Hege, Joseph Hurwich, Jerry Johnston, Jacqueline Kane, Anita Martinez, John McDonnell, Christopher McLain, Jennifer Walker, Bruce Westphal, Robert Wilkins, Sandra Wolfe, Penelope Wong, Sheryl Wong, and John Wyro

Trustees Excused:

Dale Block, John Bowe, Susan Chamberlin, Matthew Cox, Harold Jones, Mike Moye, Steven Read and Winston Wilkinson

Staff Present:

Ann Dickson, Mark Medeiros, and Maggie Pico.

Volunteers Present:

Odessa Bolton, Barbara Bream, Sue Cake, Lois Corrin, Dave Elliott, Robert Freidenberg, Yvonne McCredie, Roberta O’Grady, Susan Schroeder, and Nancy Stryble

Guests Present:

Lynne Heinrich, Linda Crittondon and Steven Wolfe

1. CALL TO ORDER/INTRODUCTIONS – Christopher McLain
Chair McLain called the meeting to order at 4:35 p.m., noting that a quorum was present.

2. APPROVAL OF MINUTES – Christopher McLain
On a motion duly made and seconded (Johnston/Hurwich), the following resolution was unanimously adopted:

RESOLVED, the November 20, 2008 Board of Trustees meeting minutes are approved as mailed. .

3. CHAIR'S REPORT – Christopher McLain
Chair McLain announced the next order of business was to review and adopt the Investment and Spending Policy. He noted that the Policy, with an explanatory memorandum from Joseph Hurwich, had been distributed previously to all Trustees. He said that the Policy had been drafted by the Investments Committee, with input from Beacon Pointe Advisors, the financial advisor to the Foundation, had been approved by the Investments Committee, the Finance Committee, and the Executive Committee. He noted that the Policy guides the Investment Committee with regard to investments in the Foundation’s endowment, which totals approximately $7 Million, and does not cover the funds collected in the Capital Campaign, which are being held in cash and cash equivalents accounts. After asking for any questions or comments, on a motion duly made and seconded (Hurwich/Edwards), the following resolution was unanimously adopted:

RESOLVED, that the Investment and Spending Policy, dated December 22, 2008, is hereby approved and adopted as such Policy has been presented to this Board.

Finance Chair Richard Edwards recommended that Joseph Hurwich and the Investments Committee be recognized and commended for their work in drafting the Policy. The Board unanimously concurred in commending Mr. Hurwich and the entire Investments Committee for their efforts.

Chair McLain noted that there is no regularly scheduled meeting of the Board in February, but reminded the Board that a “Hard Hat Tour” has been scheduled for February 26, from 5 to 7 pm. This Tour is to provide the Board and leaders of the Museum Family, plus spouses, a first hand look at the improvements made to date in the Art and History Galleries. He reminded the Board that this Tour would provide the first-hand knowledge of the progress of the Project to convey to prospective donors to the Campaign.

4. EXECUTIVE DIRECTOR REPORT – Lori Fogarty
Executive Director Lori Fogarty reported on the continued progress of the Project, noting that it continues to remain on time and substantially on budget. She said that preliminary design discussions regarding the Phase 1.5 alterations are well underway.

The application for a grant was submitted in December to the National Science Foundation for support of the development of the Natural Sciences Gallery. The application was for a grant of approximately $2.9 MM and was endorsed and supported by numerous peer institutions and scientists.

Expenses are presently in line with the fiscal year budget expenses and although revenues are lagging, they are expected to be within budget by January. The Development Committee has been reviewing various methods on how to enhance contributed revenues. Trustee Steven Douglas noted there are hundreds of Oakland based small companies that have not been solicited for donations to the annual fund. He believes developers, restaurateurs, and other small businesses would want to help the museum attract more people to the area and invited trustees to join him in developing a sub-committee to reach out to these companies and solicit donations. The sub-committee will develop a master list of small to medium size businesses that will be followed up with solicitations by its members. Trustees Christopher McLain and Bruce Westphal have agreed to join the committee and other trustees were encouraged to participate.

5. OPEN FORUM– Christopher McLain
Chair McLain opened the meeting for comments from the audience. As there was no response from the audience, the business portion of the meeting resumed.

6. AUDIENCE DEVELOPMENT COMMITTEE REPORT- Ralph Clark
Trustee Ralph Clark introduced the recent work of the Audience Development Committee in developing a program for rolling out the new brand for the Museum. He noted that this was a strategic topic, and tied closely into the transformation Project and reopening of the Museum. He introduced Ann Dickson, Director of Marketing & Communication, to review the current program with the Board.

Ms. Dickson used a power point presentation for her remarks. She reviewed the definition of a brand, what it is, why it is important to any institution, and what needs to be done with a brand for effective utilization. She distributed a handout noting the top brands, with an explanation of their importance to the particular institution. Ms. Dickson reviewed the process undertaken by Museum staff to create the revised brand, including retention of top brand consultants, reviewing peer group institution brands, and the establishment of the brand promise, California Inside Out, which will be referred to in all uses of the brand. The brand promise will influence the visual identity, the programs and facility, and the outreach to the various communities. Ms. Dickson reviewed the brand logo, noting the color pallet, and emphasized the need to adhere with the tag line, “California. Many Voices. Many Stories.” Ms. Dickson reviewed the creation of a comprehensive style guide and distributed a copy to the Trustees.

Ms. Dickson also reviewed the creation of a new web site for the Museum, noting that it was to be open in April 2009. She also covered the remainder of the rollout of the brand, including materials going to the press in February 2009 with other materials generally beginning in July 2009. Lastly, she noted the training in use of the style guide by all insider groups was being undertaken.

7. CAPITAL CAMPAIGN TRAINING– Sheryl Wong
Trustee Sheryl Wong introduced the next segment of the meeting, training for the Capital Campaign. She noted that a number of Trustees had expressed a desire for training in connection with their willingness to assist in the Capital Campaign, and this session was intended to fulfill that need. She introduced Lynne Heinrich, Senior Consultant for Marts & Lundy, Inc., the Campaign consultants retained by the Foundation.

Lynne Heinrich utilized a power point presentation for her remarks. She reviewed the current status of the Campaign, noting the expanded Campaign goal of $58.2 MM (including bond interest), the amount raised to date of approximately $48.6 MM (not including the bond interest), noting that the remaining amount of $7.6MM (not including the bond interest) has to be raised by the Campaign completion target date of April 2010. She noted the source of gifts to the Campaign, focusing on individual giving. She distributed the gift table outlining the numbers of gifts to date and yet to be obtained to reach the goal. Ms. Heinrich reviewed the current state of the economy as it effects donations, noting that most campaigns, including current local campaigns, are moving ahead with their efforts due to the leadership in place for the individual campaigns. She noted that historically philanthropy continues to grow even during recessionary years while corporate donations tend to drop during such periods. Individuals tend to continue giving, and, nationwide, over $1 trillion remains in donor advised funds is awaiting disbursement instructions. Ms. Heinrich reviewed her recommendations for the Museum’s Campaign, noting that (1) our cause is worthy; (2) even though actual giving may be paused in the short term, asking should not be restrained; and (3) charities that receive funding are those that respond constantly with thanking their donors, to keep the cause in front of the donor. She reviewed the need and ways to build relationships with prospective donors, and covered the six steps that a donor engages with an institution (being identification, qualification, cultivation, solicitation/negotiation, stewardship and renewal). She reviewed the motivators for giving, noting that fully 62% responded that they gave because they had been asked, with 83% noting that they felt a need to “give back” to an institution. When asked what would compel a donor to give more, the responses include having less spent on administration (75%), be better able to determine the impact of a gift (58%), and knowing more about the organization (37%), being leading responses. Donors look for advice on gifts from fundraisers (41%, the top category), and peers (36%).

Ms. Heinrich reviewed the specific ways that each Trustee can assist in the Campaign, including suggestion of prospects for cultivation, assistance in thanking donors, reviewing lists developed by staff to see who they may know, accompanying a Campaign Cabinet member in an actual solicitation, and attending a Campaign salon event and interacting with other attendees. She reviewed the 14 key steps to a successful solicitation: (1) the first step is to make your own gift (at a meaningful level, and a “stretch gift” to give you the right to ask others to do the same), (2) know the case and the cause and be able to explain it coherently to potential donors (3) knowing the prospect through research provided by staff; (4) understanding your own role in representing a cause, not asking for a handout; (5) setting a solicitation plan with the assistance of staff; (6) getting the appointment (never asking for, nor accepting, the gift over the telephone); (7) meet prospective donor on your terms in an appropriate place (avoid lunches; best if they come to you, but visiting them is more likely); (8) get started properly being proud of the OMCA, and remembering that this is a civic activity, not a social one; (9) involve the prospect by listening and answering and learning; (10) presenting the opportunity orally, not referring to documents, being specific on the importance of their support making a difference; (11) asking directly, noting the importance of meeting the campaign goals, not apologizing and asking for a specific amount at the top of their presumed capacity, and then being silent until there is an answer to your suggestion; (12) always saying thank you, for giving, considering a gift, or even for seeing you; (13) follow up timely, relying on staff advice and assistance (need to do so within no more than 48 hours of your meeting); (14) maintain the relationship with the donor, keeping them involved in the opportunity and informed of the progress.

At this point Ms. Heinrich requested certain Trustees to role-play in the first solicitation for a meeting. Trustees Ginny Furth and Joe Hurwich created the “wrong way” in a telephone conversation for a meeting. Their “mistakes” were corrected by Trustees Steven Douglas and Joe Hurwich in doing the telephone conversation in the “right way”, with a positive result in setting a meeting. Ms. Heinrich pointed out the “mistakes” that were corrected in the right way conversation, such as meeting in an appropriate place, and making sure the meeting is a solicitation, not a social environment.

At this point, Trustee Wong and Ms. Heinrich requested the Trustees and members of the audience to divide into four groups, and role-play in the actual solicitation meeting. Each group had one or more solicitors and one prospective donor play a number of different elements in appropriate solicitations, with Ms. Wong and Ms. Heinrich going from group to group with helpful suggestions on better solicitation techniques. Each of the groups then reported out the comments and suggestions from the groups, and Ms. Heinrich repeated a number of the 14 points of a successful solicitation as a reminder to the Trustees.

Trustee Wong concluded the session noting that each Trustee would be contacted in the near future regarding their willingness to be involved in various aspects of soliciting for the Campaign, and again reminded the each Trustee must be involved in the Campaign to enable a successful conclusion in achieving the Campaign goal.

8. ADJOURNMENT – Christopher McLain
There being no further business Chair McLain adjourned the meeting at 6:10 p.m.

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Jerry Johnson
Secretary