Effects of The Late-2000s Financial Crisis On Museums - The National Academy of Design

The National Academy of Design

On 5 December 2008, the National Academy of Design announced that it had sold two canvases by Hudson River School painters for 13.5 million dollars in order to meet its operating costs: Mount Mansfield, Vermont, by Sanford Robinson Gifford; and Scene on the Magdalene, by Frederic Edwin Church. The decision drew criticism from the Association of Art Museum Directors, who strongly oppose deaccessioning to gain funds for any purpose other than acquiring art. The director of the Academy, Carmine Branagan, argued that because the Academy does not buy artwork but acquires pieces only through donations, the guideline should not apply.

The decision was made by the board of the Academy, which is composed of 16 prominent American artists such as Chuck Close, Jasper Johns, Frank Gehry, Wolf Kahn, and Helen Frankenthaler as well as 5 non-artist advisory board members. Some have attributed the poor financial state of the academy to its unusual leadership, as most museums are governed by professional administrators and curators.

The AAMD struck back, issuing an e-mail to its members ordering them not to loan works to the Academy or to collaborate with it on exhibitions. The apparent harshness of this reaction drew criticism from some quarters, such as Patty Gerstenblith, a law professor at DePaul University and author of Art, Cultural Heritage, and the Law: "If it’s a choice between selling a Rauschenberg and keeping the museum doors open, I think there’s some justification for selling the painting". Others have supported the AAMD's decision, initiating a debate on the ethics of deaccessioning. According to Dan Monroe, director of the Peabody Essex Museum, "The fact is as soon as you breach this principle, everybody’s got a hardship case. It would be impossible to control the outcome."

On 9 March 2009, representatives from the Academy and the AAMD met to discuss the Academy's financial future. The Academy agreed not to sell any more artworks, but there was no promise to lift sanctions on the part of the AAMD. They also agreed to change the composition of their board of directors: the new board will consist of 11 artist members and 10 non-artist members.