Financial Report 



319 



for operations of the National Museum of the Ameri- 

 can Indian; SI. 5 million for the National Museum 

 of Natural History for operations and move costs 

 associated with additions to the museum; and 

 S4.7 million to meet security system requirements 

 that were not Year 2000 compliant. 



General trust revenue was $276.5 million, a 2 per- 

 cent increase over the previous year. Donor/sponsor 

 revenue for undesignated purposes of $33.7 million 

 was basically unchanged from the prior year. Sales 

 and membership revenue rose 2 percent, reversing a 



Sales and Membership Activities (S millions) 



250 



200 



150 - 



100 - 



1995 1996 1997 1998 1999 



Fiscal Year 

 Gross Revenue 



Net Revenue 



The Smithsonian is especially grateful to its many 

 friends in the private sector whose generosity con- 

 tributed vitally to its work. The names of major 

 donors are listed in the Benefactors section of this 

 annual report. 



In fiscal year 1999, the Institution recorded $66.9 

 million in revenue from contracts and grants from 

 government agencies, a $9.6 million increase over fis- 

 cal year 1998. Support from government agencies 

 constitutes an important source of research funding, 

 while also providing the granting agencies access to 

 Smithsonian expertise and resources. As in previous 

 years, most of these funds were provided by the 

 National Aeronautics and Space Administration for 

 research programs at the Smithsonian Astrophysical 

 Observatory. One of the largest and most important 

 projects funded was the Chandra X-ray Observatory, 

 which is now in orbit and contributing to astrophysi- 

 cal knowledge. Two projects received support from 

 Save America's Treasures, a public-private partnership 

 between the White House Millennium Council 

 and the National Trust for Historic Preservation: 

 $3.0 million for the Star-Spangled Banner Preserva- 

 tion Project and $1.4 million for Apollo space pro- 

 gram artifacts at the National Air and Space Museum. 



Endowment 



The Institution pools its endowment funds for 

 investment purposes into a consolidated portfolio, 

 with each endowment purchasing shares in a man- 

 ner similar to shares purchased by an investor in a 

 mutual fund. 



The Investment Policy Committee of the Board of 

 Regents establishes investment policy and recom- 



decline from last year. However, the net revenue 

 from these activities was up more than 58 percent, 

 in part due to a reduction in expenses. This increase 

 was the result of a major restructuring of the Smith- 

 sonian Institution Press, which eliminated unprof- 

 itable lines of business, and the success of Smith- 

 sonian magazine. 



Revenue from donor/sponsor designated funds 

 totaled $123. 6 million, more than doubling the 

 amount from fiscal year 1998. Major gifts and grants 

 included the $60 million pledge from Steven F. 

 Udvar-Hazy for the National Air and Space Museum's 

 Dulles Center and $10 million from Polo Ralph 

 Lauren for the Star-Spangled Banner Preservation 

 Project at the National Museum of American History. 



Market Value of Endowment (S millions) 



658 



600 



581 



483 



1995 lW(-> 1997 1998 1999 



Fiscal Year 



