What Do Race and Ethnicity Have To Do With Future Museum Income? Everything!

Two weeks ago we discussed how the US population is moving inexorably to majority-minority status, where white, non-Hispanics will, eventually, make up less than 50% of the population.  And last week, we explored how, overall, incomes are decreasing, especially in those peak spending years of 25 to 54, making family budgets tight (along with the ramifications for admissions and philanthropy). 

This week, we are going to talk about both the shift towards a majority-minority population and the resultant ramifications for admissions and philanthropy. 

When we looked at the U.S. Census Bureau’s "2010 Annual Social and Economic Supplement," and focused in on the population projections, we noticed something huge:  the predicted shift in population size will result in a notable shift in spending. 

First, let’s look at the shift in population.  Between 2010 and 2020, we see once again a dramatic shift in the population towards minorities, and a net decrease in the number of whites among those that are 25 to 54.  Take a look:

 

            Peak spending years 25 to 54: Shift in population size

  

So, for museums, most of which have audiences that are primarily white, this means that, nationwide, the base of visitors, especially in that crucial family audience, is shrinking.  By 7%.  That’s a lot, and makes maintaining audiences, especially at children’s museums and science centers, a challenge without much deeper penetration of minority audiences.

But there is another way we need to look at this.  Money.  Fewer people mean less money to spend on lots of things, including museum visits and philanthropy.  Over the next ten years, aggregate earnings among whites 25 – 54 are projected to decrease by $258 billion – not because whites 25 to 54 are going to be making less money, just because there will be fewer of them.    

        Peak earning years 25 to 54: Aggregate earnings projections

 

 

Again, when most museums have member and donor basis that are primarily white, around 90%, this means that maintaining memberships and gifts in this age group will be a challenge unless there is significantly deeper penetration of minority audiences.  But that is where we also a nice silver lining.  Take a look at the increase in aggregate earnings from minorities.  It adds up to $346 billion - more than making up for the decrease in whites.  And, our projections are based on current aggregate earnings, so we’re likely projecting an excessively conservative gap.  Their aggregate earnings will go up as more Hispanics and other minorities increase their overall rates of educational attainment.

The question is – can museums effectively reach out to minority audiences, and bring relevant and transformative experiences to their lives?  Some museums have made great strides in reaching minorities, but we still see way too many whose core audiences are well below 10% minority.  Those who don’t effectively reach minorities may well see their audiences, and income, disappear as our population changes.

 

What is your museum doing to reach out to young minorities and their families?  We’d love to hear your best ideas and practices!  To share your thoughts, simply click on “comments” below.  (If you are reading this from your e-mail subscription to the blog, please go to our blog's website to add a comment.)

Comments

[Kenneth Shefsiek]

Your conclusion, that we need to attract more non-whites to our museums in order to make up for the income losses that will likely be caused by the declines in the white population, is not the only conclusion that can be drawn. An alternative is that we simply need to attract a larger segment of the white population. This is not to say that we shouldn't try to increase the diversity of our audiences, which I think we should. The question for me is if it is merely a matter of income, which approach is more likely to succeed? Tapping the wealth of a greater number of whites--who are apparently our traditional audience, or tapping the wealth of an expanded non-white population? In either case, we need to expand our audiences and our donors. Perhaps since trying to attract more non-whites can potentially meet two goals--increased resources and reaching a broader cross-section of our communities--we should take that approach. But based on the ethnic/racial and economic demographics of my community, for example, sustainability can more likely be achieved by expanding our white audience. That doesn't mean, however, that I'm not going to try to reach out to minorities.

[Susie Wilkening, Reach Advisors]

Good points, Ken. And it will depend largely on where a museum is located. Your community is very different than, say, Miami, so it would make sense for you to focus more of your efforts on expanding the white audience. While other museums in other communities are going to invest more of their time and effort on minorities.

Another layer to add to this mix is that of educational attainment, however. Museum visitation generally correlates with education, and minorities are making great strides in increasing educational attainment, particularly among young women. So in terms of educational attainment, minorities will increasingly have that typical museum-goers profile. But that does still beg the question of "will they visit," given that they may not have grown up visiting museums, another key factor in adult visitation.

[Mary Ann Colopy]

http://www.thewritingcompany.biz/nj_multicultural_tourism Susie, I hope you have seen these. NJ has multicultural tourism guides for the state's attractions, the leisure activity suggestions are tailored for each group. Note the differences in graphics, photographs, and family groupings. I have not seen museums address the core problem that they are not part of the cultural landscape of minorities for fundamental differences in values and history. Lack of minority attendance goes way beyond education and income. I would like to see a study comparing minority specific nstitutions-- eg Mussee del Bario, Museum of American Indian---with institutions that mount a minority focused exhibit. I also would like to see a study about diversity in content in history museums. My gut feeling is that unless the group is the "owner" of the museum, there will not be visitation.