The Barnes Foundation Petitions Court to Move Gallery into Philadelphia
MERION, PA, SEPTEMBER 24, 2002 - The trustees of The Barnes Foundation, stewards of one of the world's great art collections, are
petitioning the court in Montgomery County for permission to move its gallery into the City of Philadelphia and to make other
changes to its governing documents. Acting on behalf of The Foundation, former United States Court of Appeals Judge Arlin M. Adams is filing the papers in Orphans' Court, which has jurisdiction over trusts and charities.
Dr. Albert C. Barnes established The Foundation in 1922 "to promote the advancement of education and the appreciation of fine arts..." The Foundation was charged with the mission of using his remarkable collection for teaching purposes and public enjoyment-specifically for the benefit of ordinary working people-in a building he erected in Lower Merion, a suburb of Philadelphia.
In its petition to the court, The Foundation states that the gallery's existing home has become untenable. Under present conditions, The Foundation incurs large annual deficits that cannot be offset through investment income, since the endowment is depleted. To avoid financial peril, The Foundation must therefore secure significant contributions-and yet donors are reluctant to make major commitments to The Foundation so long as its gallery is in Lower Merion. Donors want to be confident that the gallery will be more accessible to the public than it is now, under the restrictions on visitation imposed by the Township of Lower Merion. Donors also want to know that funds contributed to The Foundation will not be drained by the litigation that has become a regular occurrence in Lower Merion. A move to Philadelphia, to a location near other cultural and educational institutions, is therefore the only feasible course if The Foundation is not to risk eventual bankruptcy and the possible dispersal of the collection. According to well-established legal doctrine, The Foundation may be released from Dr. Barnes's initial intent to house the gallery collection in Merion, if that constraint prevents the institution from carrying out the founder's predominant mission.
By relocating the gallery to Philadelphia, the petition states, The Foundation will be able to ensure the integrity and security of the collection, increase the capacity of its educational programs and realize more fully Dr. Barnes's mission of providing opportunities for teaching and public visitation, transforming the lives of ordinary women and men. To stay true to its purpose and character, The Foundation will install the artworks in the new location in accordance with Dr. Barnes's principles, which he devised to stimulate critical thinking. At the same time, to ensure its self-sufficiency and future strength, The Foundation is asking the court for permission to expand its Board of Trustees from five members to fifteen to facilitate fundraising. It is also seeking to amend The Foundation's governing documents to eliminate obstacles to increased revenues and to ensure efficient and effective operation and administration.
"There is no comparable art collection anywhere on earth," said Dr. Bernard C. Watson, President of The Foundation's Board of Trustees. "Our goal is to keep this collection safe and fully intact, and to allow it to benefit students, artists, working people and common citizens, as Dr. Barnes intended. A favorable ruling from the court will give us an opportunity to continue Dr. Barnes's educational legacy."
According to Kimberly Camp, Executive Director and CEO of The Barnes Foundation, "Barnes's vision and mandate have not yet been equaled in the art community. His use of exemplary collections of art and horticulture for developing democracy in America has been threatened for years. Something must be done to secure the Foundation's future."
After thoroughly reviewing their options, the Trustees of The Barnes Foundation approached The Pew Charitable Trusts and The Lenfest Foundation, which responded generously by offering to assist in raising $150 million, on the condition that the court approves The Foundation's petition. These funds will be used to build a new facility in Philadelphia to house a portion of the collection; to pay for the relocation of these artworks; and to establish a substantial endowment, to ensure the collection's security into the future. The Trusts and The Lenfest Foundation have also agreed to provide, along with The Annenberg Foundation, interim supplemental support totaling $3.1 million over two years for The Barnes Foundation's operations. In addition, the three foundations have agreed to cover legal fees incurred by The Barnes Foundation as part of these court proceedings.
The petition emphasizes that The Foundation will continue as an educational institution faithful to the teaching principles of Dr. Barnes. Although the gallery would move to Philadelphia, The Foundation would continue to maintain its facility at Merion, which includes additional artworks in buildings other than the gallery (artworks which the court recently permitted to be toured) and a renowned Arboretum established by Dr. Barnes's wife, which is used in connection with programs that teach horticulture.
Foundation Background
Although the Barnes Foundation holds one of the world's greatest collections of French paintings of the Impressionist, Post-Impressionist and early Modern eras-including an extraordinary number of masterpieces by Renoir, Cézanne, Seurat and Matisse-a recently completed independent audit revealed that the Foundation may be approaching bankruptcy. According to the audit, there is a likelihood of all cash reserves being expended by the conclusion of 2002, leaving The Foundation unable to care for a collection whose value has been estimated as being as high as $25 billion.
Dr. Barnes left The Foundation a $10 million endowment that has now been entirely depleted by legal fees and operating expenses, which rose dramatically during the 1990s. During the 1990s, the Orphans' Court lifted a provision of Dr. Barnes's indenture on a one-time basis by allowing The Foundation to tour a portion of the collection, so that revenues could be generated for desperately needed building renovations and modifications. These revenues are restricted to these purposes and cannot mitigate The Foundation's chronic operating deficit.
Compounding the problem are the constraints on the number of visitors permitted at the Lower Merion facility. Lower Merion Township has capped the weekly number of visitors at 1,200, which severely restricts The Foundation's earned income, as well as its ability to carry out its mission. In the past, The Foundation's attempts to expand its operating hours and visitor base have elicited costly lawsuits filed by neighboring property owners, and future requests to ease the constraints on visitation may be expected to generate further litigation.
"The Board of Trustees has concluded that The Foundation is now in an impossible situation," Dr. Watson said. "It is clear that a large-scale fundraising effort is required if we are to avoid bankruptcy, preserve this unparalleled collection intact and realize Dr. Barnes's vision for it. And yet even the most sympathetic of our potential donors have made it clear that they will not commit major resources to this institution under present conditions. We have therefore asked the court for permission to take the only responsible course we can see-a course that we believe will benefit hundreds of thousands of people, as Dr. Barnes wanted."
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