INDIANAPOLIS, IND.- The Indianapolis Museum of Art announced yesterday at the 133rd Annual Meeting that it will pay off more than $17 million in outstanding debt by the end of 2016. This will mark the first time since 2004 that the IMA will have a debt portfolio of less than $100 million. Currently, the IMA spends approximately $3.5 million each year on interest payments.

“Our significant interest payments hinder the organization, as they consume funds that otherwise could be used to fund IMA programs and staff,” said Dr. Charles L. Venable, the IMA’s Melvin & Bren Simon Director and CEO. “One of our main priorities at this time is to improve the guest experience and capital is needed to do that well. With limited resources we have recently expanded our guest services team to allow us to better welcome our guests and help them to navigate our campus; opened an 18-hole mini golf course that invites guests to interact with art in an exciting new way; unveiled the exhibition 19 Stars of Indiana Art: a Bicentennial Celebration; and showcased a record-number of blooming bulbs in the gardens. We need to be investing more in exceptional experiences with art and nature for our guests, and paying off our outstanding debt will over time make funds available to do this.”

Financial stability has been a primary goal during Venable’s three and a half year tenure at the IMA. Last month, the IMA Board of Governors announced that Venable’s contract has been extended to 2026 to align with the institution’s new 10-year strategic plan. A core objective of the plan is to ensure a sustainable business model that thrives on an endowment draw rate of less than 5 percent—a major change from the almost 8 percent draw that was occurring when Venable joined the IMA in 2012. During the current fiscal year, the IMA reduced the endowment draw to 5.49 percent, with a 5.25 percent draw rate budgeted for the upcoming fiscal year.

“One of the most important roles of the governing body is to manage the resources of the organization carefully,” said Tom Hiatt, chair of the IMA Board of Governors. “The board feels strongly that paying down the debt strengthens the Museum's balance sheet and is another important step on the path towards a long term sustainable business model."

“We are on the road to financial stability,” said Jerry Wise, CFO of the Museum. “Paying down the principal on our debt is a significant step in ensuring a sustainable future for the IMA. Along with this, we have significantly reduced our endowment draw and cut costs across the organization, while continuing to deliver outstanding programming and exhibitions such as Dream Cars: Innovative Design, Visionary Ideas and the new Mini Golf at the IMA. We have been able to do more with less, and continue to grow with a record number of members. We are improving not only financially, but also qualitatively as an organization.”