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How to start a nonprofit

How to Start a Museum in 2024: Nonprofit’s Guide

August 28, 2024

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Launching a museum is a transformative journey that enriches communities and preserves cultural heritage. 

This comprehensive guide empowers nonprofits to turn their vision into reality, walking you through nine critical steps from concept to opening day. You'll discover strategies for securing funding, navigating 501(c)(3) legal requirements, and creating engaging exhibits. 

Whether your passion lies in art, science, or local history, this resource provides the roadmap to establish a thriving cultural institution that will educate and inspire generations to come.

9 steps to starting a nonprofit museum

  1. Brainstorming ideas
  2. Choosing a niche
  3. Gathering information – museum research
  4. Raising funds 
  5. Finding the right location
  6. Understanding legal requirements for a new museum 
  7. Building your network
  8. Hiring staff members
  9. Marketing your museum

Why start a small-town nonprofit museum?

Small-town nonprofit museums preserve local heritage, foster community engagement, and stimulate economies by offering unique educational experiences that attract diverse visitors.

By showcasing local artifacts and stories, museums help maintain cultural identities and bridge generational gaps while serving as community hubs, hosting events and workshops to unite people. 

Museums can also partner with schools to enhance education and inspire future generations, thus providing nonprofits with a tangible way to fulfill their mission while creating lasting impact in their communities.

How to start your nonprofit museum

1. Brainstorming ideas

Your ideation process involves creating, developing, and exploring different strategies to maximize your educational and resource efficiency. The process begins with addressing some fundamental questions, including:

  • What cultural stories resonate most with your community?
  • What niche (art, children, natural history, science centers etc.) aligns with your nonprofit’s mission?
  • How much will the museum cost? 
  • What metrics will show that your ideas are making a difference?
  • Are there any potential partnerships with other cultural institutions? 
  • Does another museum have the same mission?
  • What resources do you need for museum planning?
  • Are you interested in history, art, science, culture or any other theme? 

Creating your museum based on your passion will give you a sense of purpose. It will fuel your drive and commitment toward sustaining the museum.

2. Choosing a niche

Choosing a specific museum type, such as art or children's museums, helps attract the right audience and define your unique identity.

Art museum

Art museums showcase a diverse range of creative expressions, from classical masterpieces to cutting-edge contemporary works. These institutions often specialize in specific periods, styles, or mediums, providing visitors with in-depth explorations of artistic movements. 

Nonprofit art museums play a crucial role in art education, offering programs that enhance cultural literacy and inspire creativity. They frequently collaborate with local artists, schools, and community organizations to make art accessible to all. 

Through rotating exhibitions, permanent collections, and interactive displays, art museums create dynamic spaces for reflection, dialogue, and artistic appreciation.

Children’s museum

Children’s museums offer interactive exhibits that make learning fun and engaging. They allow kids to climb, explore, play, and discover new things. 

Nonprofit museums aim to make educational opportunities accessible to all families. By displaying interactive exhibits, the museums can build strong relationships with local schools and families. 

Living and natural history museums

Living museums emphasize historical re-enactments and cultural immersion, while natural history museums focus on Earth's history, educating visitors about biodiversity and natural processes. 

Both types engage communities through educational programs and often partner with schools and conservation groups to promote awareness and secure grants.

Science museum

Science museums have fun, interactive exhibits, and activities that simplify scientific concepts, such as physics, biology, astronomy, and environmental science. 

Nonprofit science museums serve as educational hubs, offering programs supporting STEM education and inspiring future scientists. 

3. Gathering information – museum research 

Your research should cover important aspects like collection management and stewardship, legal requirements, risk management, and program ethics.

Collection management and stewardship

This refers to how you care for and manage your museum collections. Maintain a controlled environment for storage and display by regulating temperature and humidity levels while minimizing light exposure.

Implement proper storage techniques using special shelving, archival boxes, or climate-controlled rooms to prevent physical damage and deterioration of your collections.

Legal requirements

Ensuring your museum's collection adheres to legal and ethical standards is crucial. Research and comply with laws governing artifact acquisition, ownership, and display while implementing rigorous documentation processes for each item, including provenance and condition reports.

Stay informed about international regulations on cultural property, including conventions such as those established by UNESCO.

Consult with legal experts specializing in museum law to navigate complex issues like repatriation, copyright, and cultural sensitivity. Regular audits of your collection and processes will help maintain compliance and protect your museum's reputation.

Risk management

Find out the regulatory guidelines for managing risks associated with museum collections. Key areas of concern include how to handle:

  • Damage of collections from improper handling, or theft
  • Accidents, health emergencies, or security threats
  • Shortage of funding or sudden expenses
  • Copyright or regulatory violations 

Program ethics

Develop comprehensive ethical guidelines for your museum's programs and events. Prioritize inclusivity by ensuring accessibility for diverse audiences, including those with physical or cognitive disabilities. 

Implement transparent policies for educational content creation, ensuring accuracy and balanced perspectives. You should also foster community engagement through ethical partnerships and collaborations with local organizations and experts. 

Regularly review and update your ethical standards to reflect evolving social norms and best practices in the museum field.

4. Raising funds 

The groundwork alone required to start a museum runs into thousands of dollars. Consider applying for federal, state, and local government grants, or private foundations that support museums.

Federal grants can come from agencies like the National Endowment for the Arts. State arts councils and local government programs offer grants with specific requirements and deadlines, necessitating careful review of guidelines and thorough application preparation.

Many private foundations, such as The Getty Foundation and The Mellon Foundation also support museums and cultural institutions through grants.

These foundations fund projects that align with their mission and vision, such as promoting education, preserving history, or supporting the arts.

Diversify your funding streams

To ensure your museum's financial stability, it's crucial to explore various funding sources beyond grants. Consider securing donations from wealthy individuals, hosting local fundraising events like auctions, fun runs, or festivals, and implementing a robust online donation strategy.

To efficiently manage these diverse fundraising efforts, you'll need a versatile fundraising platform. Zeffy offers a 100% free fundraising platform that allows you to host a wide range of fundraising initiatives. From online donations and event ticketing to auctions and peer-to-peer campaigns, Zeffy provides the tools to streamline your fundraising processes without incurring platform or transaction fees. 

5. Finding the right location

Your museum's location must comply with local zoning regulations, which dictate allowable land uses in specific areas. 

Research zoning laws early in your site selection process to avoid potential roadblocks. If your chosen site is not designated for museums, you may need to apply for a special use permit or zoning variance. This process typically involves presenting your plans to local planning boards and addressing any community concerns. 

Consult with local planning officials and consider hiring a zoning attorney to navigate this complex process. Remember that zoning compliance is crucial for your museum's long-term stability and community acceptance.

6. Understanding legal requirements for a new museum 

Incorporate your museum

Articles of Incorporation include the name, purpose, and duration of your museum. They also include bylaws, amendment provisions, dissolution process, and names of founding members and directors.

Apply for 501(c)(3) status

Nonprofits must apply to the IRS for federal tax exemptions to benefit from tax breaks. The application involves submitting Form 1023 or Form 1023-EZ.

Form 1023 is the standard application for 501(c)(3) tax-exempt status and requires information about your organization’s activities, finances, and structure. For smaller nonprofits with limited operations, Form 1023-EZ offers a simplified and shorter application process.

Get your business license

Obtain a business license from your local government to ensure that you can legally operate your museum.

Obtain special permits

Certain exhibits may require special permits for handling artifacts, running educational programs, or hosting events.

Get your property insurance and copyright

Protect the museum building against damage or loss. You should also protect the museum’s name, logo, and any original content with appropriate copyrights and trademarks. 

7. Building your network

Consider building your network from:

  • Community leaders: Attend a local community meeting and schedule meetings with present leaders who can provide support
  • Museum professionals: Connect with curators, archivists, and museum directors for new exhibits
  • Historians and researchers: Build relationships with experts in your chosen niche
  • Architects and designers: Collaborate with professionals to create a functional and aesthetically appealing museum space
  • Schools and universities: Collaborate with educational institutions for student involvement
  • Grant organizations: Identify and connect with agencies that provide grants for museum projects

8. Hiring staff members

A group of positive employees encouraging you to support Orange County mental health initiatives with a donation to Mariposa Center.

Building a skilled and passionate team is crucial for bringing your museum vision to life. Start by defining clear roles and responsibilities for each position, considering both full-time staff and volunteers. 

Key roles include a curator, education coordinator, operations manager, and development officer. Seek candidates with relevant experience in museum work and a genuine passion for your institution's mission. 

Offer competitive compensation packages within your budget constraints, considering both salary and benefits. You should develop a comprehensive onboarding process to immerse new hires in your museum's culture and goals. 

Foster a positive work environment that encourages creativity, professional growth, and collaboration. Providing regular training and development opportunities will help your team stay up-to-date with museum best practices and enhance visitor experiences.

9. Marketing your museum

Develop a comprehensive marketing strategy to attract visitors, supporters, and donors. Use social media platforms such as Facebook, Instagram, X (formerly Twitter), and TikTok to share engaging content about exhibits, behind-the-scenes glimpses, and upcoming events. 

  • Create a user-friendly website with virtual tours, online resources, and easy donation options
  • Collaborate with local tourism boards, hotels, and cultural organizations for cross-promotion
  • Engage schools and community groups for educational visits and outreach programs
  • Implement a press relations strategy for media coverage of exhibits and milestones
  • Host special events, workshops, and lectures to increase community engagement
  • Develop a membership program with exclusive benefits to encourage sustained support
  • Use email marketing to keep supporters informed about museum activities and needs

Case study: How Wiscasset Waterville & Farmington Railway Museum raised over $11,000 using Zeffy

The Wiscasset Waterville & Farmington Railway Museum, dedicated to preserving Maine's narrow gauge railroad history, faced the challenge of raising funds efficiently while minimizing costs. They turned to Zeffy's 100% free donation software for a solution.

With Zeffy, the museum created a user-friendly donation form that resonated with supporters passionate about railway heritage. The WW&F Railway Museum raised $11,894 in contributions. 

More importantly, they saved $595 in fees that would have been charged by other fundraising platforms. This saving allowed the museum to allocate more resources to their core mission of restoring and operating historic narrow gauge trains.

Concluding thoughts on how to start a museum

Starting a museum is a rewarding journey that combines passion, meticulous planning, and community engagement. By following these steps, you'll be well-equipped to create a cultural institution that educates, inspires, and preserves valuable heritage for generations to come.

As you embark on this exciting venture, building a solid legal foundation by incorporating your nonprofit museum is a crucial first step.

Zeffy offers a streamlined, cost-effective solution for nonprofit incorporation as we cover the necessary fees. You can focus your resources and energy on bringing your museum vision to life. We also offer comprehensive tools that are 100% free for nonprofits - without any monthly or processing fees.

FAQs on how to start a nonprofit museum

Museums can be both for-profit and nonprofit. They operate in different legal and financial structures, depending on their organizational structure and mission.

Art Museums in the United States, often classified as 501(c)(3) or 170(c)(2) non-profit charitable organizations, typically rely on donors, grants, and memberships for funding.

For-profit museums are specifically for commercial purposes, including private galleries or themed attractions. They generate income through ticket sales, merchandise sales, and other commercial activities.

Starting a museum can be a hefty expense, with initial start-up costs ranging between $100,000 and $500,000.

Keep in mind that the costs may vary depending on size, location, and exhibits. Other factors include building renovation, exhibit design, staffing salaries, utilities, maintenance, insurance, marketing efforts, and operational costs.

Funds for these expenses can be sourced from grants, donations, sponsorships, membership fees, and fundraising campaigns.

Yes, we highly recommend seeking legal advice when starting a museum. Legal experts can assist with crucial tasks like nonprofit incorporation and obtaining tax-exempt status. They also help with drafting contracts and ensuring compliance with local regulations, which are essential for your museum to operate smoothly and legally.

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