Financial Report 



Fiscal year 2000 was an exciting one for the Smithsonian. 

 Fund raising surpassed previous records. Challenging new 

 initiatives and major construction projects are under way. The 

 Smithsonian's financial condition is strong. In 2000, our: 



• Operating revenue increased 7 percent. 



• Funds raised totaled $206.6 million, a 40 percent 

 increase over 1999. 



• Endowment had an annualized return of 15.8 percent. 



• Business ventures generated a net gain of $24.4 

 million. 



By the end of 2000, the market value of the endowment 

 was $742 million, and net assets of the Institution had 

 reached a total of $1,569 million. 



The Smithsonian receives funding from federal govern- 

 ment appropriations and from private sources, including gifts 

 and grants from individuals, foundations and corporations; 

 grants and contracts from governmental entities; earnings 

 from investments; revenue from membership programs and 

 from sales activities, such as Smithsonian magazine, museum 



stores and restaurants, a mail-order catalogue, large-screen 

 theaters, and licensed products. 



Federal appropriations support core functions: caring for 

 and conserving our national collections; sustaining basic re- 

 search in history, science, and the arts; and educating the 

 public through exhibitions and other programs. Federal funds 

 also pay most costs associated with operating, maintaining, 

 and protecting the large Smithsonian museum and research 

 complex, as well as administrative and support services. 



Private funds, known as trust funds, allow the Institution 

 to undertake new ventures and significantly enrich existing 

 programs in ways that would not otherwise be possible. 

 These funds provide a critical margin of excellence for carry- 

 ing out innovative research, expanding and strengthening 

 our national collections, developing and building new facili- 

 ties, opening state-of-the-art exhibitions, and reaching out 

 to America's many different communities. 



An annual audit was conducted by KPMG LLP. For a com- 

 plete set of audited financial statements, contact the Office of 

 the Chief Financial Officer. 



