The National Gallery’s financial position strengthened in fiscal year 2024 due to the favorable performance of the investment portfolio, combined with prudent management of expenses; strong support from Congress and the administration; and the continued generosity of private citizens, foundations, and corporations. Attendance continued its upward trend toward pre-pandemic levels, increasing 2.0 percent to 3.8 million visitors. This success contributed to a modest operating surplus in fiscal year 2024.  

The federal commitment to operate and maintain the National Gallery originates in the 1937 Joint Resolution of Congress that accepted Andrew W. Mellon’s unprecedented gift to the nation of his art collection, the funds to construct the West Building, and an endowment. The Joint Resolution pledged that the United States would provide funds for the upkeep, administrative expenses, and costs of operations, including the protection and care of the works of art given to the nation, so that the National Gallery would at all times be properly maintained and remain open to the public free of charge.

The National Gallery receives annual federal appropriations to support core programs and renovations of its buildings as part of the budget approved annually by Congress and signed by the president. Income from endowments as well as gifts and grants designated by donors for other specific purposes supplement the federal appropriations. Endowment support for expenditures is computed under the National Gallery’s spending policy and used in accordance with donor-imposed restrictions. The National Gallery is a nonprofit organization exempt from federal income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code.

Financial Position

The National Gallery’s net assets totaled $1.8 billion on September 30, 2024, increasing by $234.6 million or 15.4 percent during the fiscal year. The investment portfolio returned 23 percent in fiscal year 2024, with a total fair market value of $1.3 billion on September 30, 2024, an increase of $233.4 million over fiscal year 2023 net of new gifts, manager fees, and spending to support operations and art purchases. The portfolio’s performance was driven by strong performance of global public equity markets. Hedge funds and bonds also generated robust returns.  

Property, plant, and equipment assets increased $4.4 million over the prior year, representing $21.0 million in capital expenditures offset by $16.6 million of depreciation expense. The capital expenditures primarily funded renovation projects included in the National Gallery’s comprehensive Master Facilities Plan. The Master Facilities Plan is a federally funded, long-term capital renewal program designed to address life safety, security, and infrastructure improvements necessary to maintain and protect the National Gallery’s buildings. Major West Building renovation projects included the exterior stone façade repair and roof replacement, as well as ongoing upgrades to the fire alarm systems. East Building renovation projects included final close-out work on the East Building main atrium skylight replacement. Construction is nearing completion on the new joint art storage facility with the Smithsonian Institution at its Museum Support Center in Suitland, Maryland. The new shared structure will provide the National Gallery with 61,000 square feet of art storage space at a total cost of approximately $71.5 million. Construction completion is scheduled for January 2025, at which time National Gallery equipment and storage racks will be installed and art movement will begin.  

Total liabilities increased $23.6 million over fiscal year 2023 due mainly to an increase in the operating lease liability of $28.5 million, which was offset by an increase in the operating lease right-of-use asset of $28.6 million.  

Operating Results

Operating activity reflects day-to-day operations of running the National Gallery, including salaries, benefits, rent, utilities, contractual services, supplies, insurance, special events and other costs. The National Gallery ended the fiscal year with an unrestricted operating surplus of $3.2 million before depreciation and amortization. Unrestricted operating support and revenue totaled $211.2 million in fiscal year 2024, an increase of $4.1 million over fiscal year 2023. Federal appropriations for operations increased to $171.5 million compared to $160.1 million in the prior year. Operating gifts and grants from individuals, corporations, and foundations decreased to $8.0 million compared to $8.1 million in the prior year. Funds appropriated for operations under the National Gallery’s investment spending policy decreased to $28.9 million compared to $36.4 million in the prior year due mainly to a one-time expense in fiscal year 2023 related to a ten-year partnership agreement with the Corcoran School of Art and Design at George Washington University. Royalties and other income increased to $2.8 million compared to $2.4 million in the prior year.  

Fiscal year 2024 operating expenses totaled $207.9 million, increasing $5.5 million over the prior year. The increase in expenses resulted mainly from cost of living pay and benefit increases for staff; modernization of IT systems; website design; and the opening of several major special exhibitions during the fiscal year including Mark Rothko: Paintings on Paper, Woven Histories: Textiles and Modern Abstraction, and Paris 1874: The Impressionist Moment.

The National Gallery’s collection was augmented by several major purchases in fiscal year 2024, including Juan Correa, Christ Gathering His Garments after the Flagellation, c. 1700; Sophie Taeuber-Arp, Le Vase, 1935; Emily Kame Kngwarreye, Muna-Everything, 1991; Karin Bergöö Larsson, Portrait of Pierre Louis Alexandre, 1879 -1880; and Emily Kame Kngwarreye, Kame Colour, 1995.  

Auditor’s Report and Financial Statements

Summarized financial information is shown below. The National Gallery’s complete fiscal year 2024 audited financial statements, related notes, and the auditors’ reports thereon can be found on the National Gallery’s website. The National Gallery’s external auditors issued an unmodified opinion on the fiscal year 2024 financial statements and did not identify any material weaknesses, significant deficiencies, or areas of noncompliance with laws and regulations.

William W. McClure

Treasurer