How the Smithsonian Spends Revenue (2024)

The Smithsonian is one of the most well-known museums in the world but you may not know that the Smithsonian is the world’s largest museum and research complex with 21 museums (9 of which are on the National Mall in Washington, DC, an additional 10 in the DC metropolitan area and 2 in New York City, plus the National Zoo, also in DC and the Smithsonian Gardens, also in DC), and 14 education and research centers. Collectively, these sites are the Smithsonian Institute, a 501 (c) (3), based in Washington, DC.

The most recent IRS Form 990 (2023) for the year ending September 30, 2024 reports the following key information:

Total revenue was $2 billion, most of which came from government grants ($1.4 billion) and other contributions, gifts, and grants ($235 million, of which $150 million were non-cash contributions).  Visitors, memberships, tours, subscriptions, theater (all referred to as program revenue) totaled $109 million.  Investment income, gains, sales from inventory, royalties, and net rental income was $162 million.

Total expenses were $1.5 billion  (not including $200 million in depreciation) allocated as follows:

• $818 million (42% of revenue):  Compensation
• $290 million (15% of revenue):  Fees for Services (primarily professional services)
• $220 million (11% of revenue):  Office-Related Expenses
• $ 61 million (3% of revenue):  Program Production
• $ 23 million (1% of revenue):  Travel and Conferences and Advertising
• $ 34 million (2% of revenue):  Research
• $ 18 million (1% of revenue):  Grants
• $ 17 million (1% of revenue): Other Expenses

Using the above information, every $100 in revenue was spent as follows:

$100:  Revenue

-$ 42:  Compensation

-$ 15:  Fees for Serices

-$ 11:  Office-Related Expenses

-$  1:  Other Expenses

-$  3:  Program Production

-$  1:  Travel, Conferences, and Advertising

-$  2:  Research

-$  1:  Grants

–$ 76:  Total Expenses

  $ 24:  Remaining Revenue:

As illustrated above, the Smithsonian spent $76 out of every $100 in revenue.  Net assets were $6.1 billion at year-end.

In summation, the Smithsonian is primarily funded by the government with about 76% of revenue spent on compensation, fees for outside services, program production, travel, conferences and advertising, and office-related expenses.  One way to look at the Smithsonian is that government funding and non-government contributions, gifts, and grants met all the expenses while program service, investment income and other revenue went to savings.  With more than $6 billion in net assets, the Smithsonian may not need as much government funding as historically been granted.

To read the IRS Form 990 (2023 for the year ending September 30, 2024), click here.