Corporate Membership Programs in Museums
June 2022
Recently, ABA ran a project for a set of museums about corporate membership levels and benefits. During the months of closure, many cultural organizations adapted the way they engaged with their corporate partners, often increasing staff access to new online benefits to maintain goodwill and connections. As organizations have resumed more of their pre-pandemic in-person activities, the question of online benefits, access, flexibility and pricing are returning to the fore.
To learn more about how cultural organizations have re-adjusted their corporate membership program in recent months, we interviewed 10 iconic cultural institutions in the US: eight large museums, one performing arts center and one zoo shared their insights and perspectives. Interviewees ranged in budget size from $15M to $300M, and had corporate membership programs with 20 to 200 members.
One terminology point: when we talk about corporate membership programs, we mean the annual programs geared to year-round support with member benefits and (typically) employee access to the cultural institution. These are typically unrestricted gifts.
Most corporate membership programs at museums look pretty similar, with 5-6 levels of membership and commensurate benefits aligned with levels of contribution. While the contributions support the cultural institution in many important ways, to the corporation it is viewed more of a transaction in exchange for benefits, rather than a philanthropic gift. Those benefits typically include discounts on event rentals, free or discounted employee access to the space, executive networking opportunities and behind-the-scenes tours.
Here we offer three insights from the study. Members, you can view the full research and benchmarks here.
1. The pandemic has changed the way corporations interact with cultural institutions
Most organizations interviewed mentioned that the number of corporate memberships dropped during pandemic closures. While they have mostly returned to pre-pandemic levels, corporate needs have changed. The primary question from corporate members is what offerings does the museum provide for remote employees?
During pandemic office closures and remote work, the local office reduced in importance for corporate members; most employees in large companies maintained connections with their departments (like marketing, sales, IT) but less so with the office. In addition, employees who could, used the pandemic period to move away from urban centers. This means that while cultural institutions are deeply embedded in a community and location, many corporate partners are less anchored to that community. And that is likely to continue even as they return to hybrid work.
What it means for cultural institutions: corporate membership benefits need to include some virtual benefits (like virtual tours, behind-the-scenes webinars or talks; easy access to tickets for those visiting the office). These do not need to be dedicated to corporate members per se—the most successful institutions combined them with individual member activities—but they seem to be here to stay.
2. Corporate members anchor at the lowest level, unless they also sponsor the institution in another way
Most interviewees described a barbell distribution of corporate members: most tend to stick at either the lowest or highest level. Those at the highest level are typically also sponsors of exhibits, have an executive on the board of the institution, or otherwise support the organization in broader philanthropic efforts.
The remaining corporate members are primarily at the lowest membership tier. This is true for three major reasons. One, the lowest tier may be all that is necessary for event discounts/rental options, which is often the initial instigator of corporate membership. Two, organizations often want to test out corporate membership at the lowest level and see if it is valuable to them, but the value (most often measured by employee use of passes) is hard to quantify to a degree that motivates increased contribution. Three, most large corporations want to offer employee access to multiple cultural institutions rather than push for just one; a lower contribution level to each allows the corporation to list access to multiple institutions in their employee benefits.
What it means for cultural institutions: make sure your lowest tier is not too low. Most institutions with membership starting at $5,000 now are looking to eliminate that lowest tier and transition members up to $7,500 or $10,000. If you are starting a new corporate membership program, the lowest level should be something you are comfortable with most of your members sitting at for multiple years.
3. Corporate membership is increasingly linked to higher-order values and purpose
As consumers increasingly make purchases that are aligned with their values, the most successful corporations have marketed the higher-order ideals they authentically stand for –a concept called shared values and one we have discussed as critical for arts organizations to embrace as well.
As companies embed their values in their branding and communications with clients, they increasingly want their philanthropic investments to reflect those values. Corporate membership leaders are emphasizing art innovation, education or sustainability even as a component of their corporate membership programs.
One interviewee said: “Our sustainability values are updated on the website – as is our DEAI plan. I make it clear [with corporate members that] we’re differentiating ourselves in these areas… This has helped and opened up a lot of prospects who might not have been interested in art but want to engage with sustainability.”
What it means for cultural institutions: you can expand the value of membership by increasing your corporate membership program connections to employee resource groups and reframing the benefits around philanthropy and staff experiences.
Members, you can find much more in the full report here. Not a member but interested in learning more? Contact us.