Caveat Venditor? Museum Merchandising, Nonprofit Commercialization, and the Case of the Metropolitan Museum in New York

Abstract

This paper reviews some of the underpinnings of the current commercialization debate in the nonprofit sector, based on an analysis of Metropolitan Museum of Art data from 1960 to 2002. The case suggests at least two avenues for additional research: First, while analysts tend to see the origins of the commercialization phenomenon in the fiscal setbacks of the 1980s, the economic crisis of the 1970s and the resulting erosion of endowment funds may also have been an as of yet unexplored driving force behind the commercialization trend. Second, current conceptual frameworks of the phenomenon adequately explain the motivations behind the observable rise of the museum's commercial activities. However, the changing rationales as well as economic fortunes of commercial activities in this case highlight the need for a better understanding of the long-term effects and consequences of commercial activity by nonprofit organizations, particularly in light of the current push for increased entrepreneurialism.