FINANCIAL REPORT 



NANCY D. SUTTENFIELD, 

 CHIEF FINANCIAL OFFICER 



Introduction 



The Smithsonian Institution receives funding from both federal 

 appropriations and nonappropriated trust sources. Nonappro- 

 priated trust funds include all funds received from sources other 

 than direct federal appropriations. These sources include gifts 

 and grants from individuals, corporations, and foundations; 

 grants and contracts from federal agencies and other govern- 

 ment sources; earnings from short- and long-term investments; 

 and receipts from membership programs and sales activities, 

 such as Smithsonian magazine, museum shops, mail order cata- 

 logues, and food service concessions. 



Federal appropriations provide funding for the Institution's 

 core functions: caring for and conserving the national collec- 

 tions, sustaining basic research on the collections and in selected 

 areas of traditional and unique strength, and educating the 

 public about the collections and research findings through exhi- 

 bitions and other public programs. Federal appropriations also 

 fund a majority of the activities associated with maintaining 

 and securing the facilities and with various administrative and 

 support services. 



Smithsonian trust funds allow the Institution to undertake 

 new ventures and enrich existing programs in ways that would 

 not otherwise be possible. They provide the critical margin of 

 funding for innovative research, building and strengthening the 

 national collections, constructing effective and up-to-date exhibi- 

 tions, and reaching out to new and under-represented audiences. 

 In recent years, the Smithsonian has also begun to rely on trust 

 funds for a portion of the funding for major new construction 

 projects. 



The following sections describe the external environmental 

 factors affecting the Institution's general financial condition, 



3^3 



