Report of the Treasurer and Chair, Budget and Finance Committee

FY25 has been a year of change, within both the Museum and the broader cultural sector, and like many organizations, the MFA had a year of successes and challenges. For the fiscal year ending June 30, 2025, the Museum generated an operating deficit of $6 million versus a budgeted operating deficit of $5.4 million, which includes debt service.

I am pleased to report the Museum experienced its highest attendance level since the COVID-19 pandemic, with 1.05 million visitors engaging with the MFA’s art, programs, and events in FY25. Overall attendance was five percent above budget and eight percent higher than the prior year. The two special exhibitions in FY25, “Georgia O’Keeffe and Henry Moore” and “Van Gogh: The Roulin Family Portraits,” garnered both critical and visitor acclaim. Furthermore, “Dali: Disruption and Devotion” achieved the highest recorded attendance for an exhibition in Torf Gallery (184).

Operating revenue totaled $98.9 million in FY25—a 4.3 percent, or $4.29 million, increase relative to budget, and an increase of 8.3 percent, or $7.6 million, relative to FY24. The MFA’s three main sources of revenue are: the annual endowment distribution (approximately 35.4 percent of total revenue); audience-driven revenue (34.8 percent of total revenue); and private support donations (11.5 percent of total revenue).

Though the Museum distributes its traditional five percent spending rate from the endowment each year, it has not always spent the full allocation. Yet during FY25, the MFA focused on maximizing the available funds to support annual operations where possible within the terms of the endowment. An increased use of endowment funds (a 12.4 percent, or $3.8 million, increase relative to budget) drove an enlarged revenue. Private support contributions also grew by 4.3 percent, or $500,000. While high attendance contributed to strong admission numbers, parking and food services revenue and total audience-driven revenue lagged budgeted expectations due to softer membership growth than anticipated.

FY25 operating expenses, including debt service, totaled $104.9 million versus budgeted expenses of $100 million, an increase of $4.9 million, or 4.9 percent. These escalated expenses are primarily due to unexpectedly high space and occupancy costs (an increase of $1.7 million, or 15 percent), in addition to increased professional services expenses (an increase of $3.6 million relative to budget). The Museum’s largest expense category, salaries and benefits, totaled $56.2 million, or 55.7 percent of total expenses, and was 2.2 percent above budget.

Capital efforts and investment remained a focus for the MFA in FY25. For instance, fundraising endeavors continued for the new collections center, as well as a deep review of the economic impact of this new center and possible design opportunities. In FY24 we reopened the Arts of Japan galleries to great fanfare after several years of closure, and in FY25 the MFA received an additional gift to support the renovation of the remaining four Arts of Japan galleries. What’s more, a gift of $25 million facilitated work on the design and planning of several recently opened gallery spaces dedicated to modern art.

The Museum’s endowment experienced another solid year of growth. For the fiscal year ending June 30, 2025, the preliminary endowment value is projected to be $825.9 million, an increase of $87.9 million. The preliminary portfolio return (with private investments updated through March 31, 2025) of 11.5 percent exceeds our custom benchmark return of 10.8 percent. This performance is just below the top quartile (27th percentile) relative to the Cambridge Associates’ Endowment and Foundation universe of portfolios used for benchmarking performances greater than $500 million.

Looking ahead, the Museum expects continued headwinds in terms of limited short-term revenue growth and stationary attendance. Several financial tools have been developed to facilitate long-term modeling and forecasting, and these will be instrumental in guiding the Museum through its path ahead and supporting long-term financial sustainability.

I wish to thank the Budget and Finance Committee for its hard work and focus during FY25, as well as the Finance team and Museum staff for their dedicated efforts throughout the year.

Respectfully submitted,

Tom Seeman
Treasurer and Chair of the Budget and Finance Committee