Case

Wendy Lull, president of the Seacoast Science Center (SSC), faced her long-time friend and former board member, Rose Wood, across her office desk. Since Rose had moved to South Carolina, she had become an infrequent vis- itor to the center, but had come on this frosty February morning in 2008 to see the new Learning Studio and other recent changes. Wendy was happy to show off the SSC and talk about what had happened since it became independent in 2001. However, she noted, some things had not changed.

Rose asked, “Have you solved the ‘$50,000 problem’ yet? Have you found a way for your income to cover all your expenses?”

Wendy sighed: “Depending on how you look at where we are right now, it’s not clear that we’ve solved the ‘$50,000 problem.’ We used to think that revenue from programs covered 80 percent of our costs. I think that was a myth. I don’t think we ever really did it. What worries me is that we’re depending on the unpredictable, grants and bequests, to balance the budget.” She felt it would be more fiscally sound, and more comfortable for her as president, if the SSC could find a way to cover expenses out of operating income, rather than running operating deficits which were seldom less than $50,000.

Rose asked, “Have you thought about raising the admissions fee? It’s only $3.” Wendy looked challengingly at her visitor. “I’d like to see it go to $5, or even $7,”

she said. “Would that impact the number of visitors? Maybe, but that’s not necessarily a bad thing. And what else have we got?”

THE SEACOAST SCIENCE CENTER’S EARLY YEARS

Located in Odiorne Point State Park in Rye, New Hampshire, the Seacoast Science Center served both as the visitor’s center for the park and as an educational center for the local environment. Odiorne Point was the site of New Hampshire’s first permanent European settlement in 1623. Fishermen set out from its shores to fish the Gulf of Maine and the Atlantic Ocean, primarily for cod, while farmers took advantage of the fields, marshes, and inland fresh water. The nearby rivers effectively served as roads to connect residents of the point with the nearby towns of Strawbery Banke (later Portsmouth) and Dover, New Hampshire.

Seacoast Science Center: Sailing the Shoals 1

Seacoast Science Center: Sailing the Shoals1

Margaret J. Naumes, University of New Hampshire Wendy W. Lull, Seacoast Science Center

Copyright © 2012 by the Case Research Journal and by Margaret J. Naumes and Wendy W. Lull. This case study was prepared as the basis for class discussion rather than to illustrate either effective or inef- fective handling of an administrative situation. An earlier version of the case was presented at the 2008 Annual Meeting of the North American Case Research Association in Durham, New Hampshire.

NA0196

2 Case Research Journal • Volume 32 • Issue 1 • Winter 2012

Exhibit 1 Odiorne Point State Park Trail and Habitat Map

Source: Seacoast Science Center.

Seacoast Science Center: Sailing the Shoals 3

By the late 1800s, Odiorne Point’s scenic location on the edge of the ocean led to the building of luxurious summer homes. During World War II, the U.S. Government acquired most of the Point, building Fort Dearborn for coastal defense. The land was turned over to the State of New Hampshire in 1963 to serve as a state park (see Exhibit 1 for a map of Odiorne Point State Park). Recognizing the unique nature of the site, with seven distinct natural habitats, the Audubon Society of New Hampshire (ASNH) had begun offering nature programs in 1973 in cooperation with the New Hampshire Division of Parks and Recreation (Parks). In 1977, the ASNH programs moved to Sugden house, an old stone summer home located by the shore. The University of New Hampshire (UNH) provided a full time director for the visitor’s center, overseeing a rap- idly increasing number of visitors and school groups.

In 1987, UNH received the first formal contract from Parks to manage the seasonal visitor’s center. ASNH and the volunteer community group, The Friends of Odiorne Point, joined Parks and UNH as part of a Leadership Committee. The committee had no formal standing or authority, but the four sponsoring organizations agreed to follow its recommendations. In response to the growing number of visitors, the New Hampshire State Legislature created a $400,000 matching challenge grant for a year- round visitor’s center; the Leadership Committee raised an additional $1.2 million for the new construction. The original Sugden House formed the core of the building; the former porches facing the ocean and on the sides were permanently enclosed. A new open room behind the house held exhibits of the different park habitats, including a tide pool touch tank, a 1,000 gallon Gulf of Maine tank with oceanic fish, and tanks with creatures from the ponds and meadows. The room also held a nature store and served as the center’s entryway. At the rear were offices (see Exhibit 2). The facility, subse- quently named the Seacoast Science Center, opened in January 1992 with ASNH as the managing sponsor, Parks as the facility’s owner, and the Leadership Committee, now renamed the Advisory Committee, as the governing body. Wendy Lull, director of the visitor’s center, was its first employee. Sixty-five thousand people visited the new center in its first year.

By 1999, the number of visitors had grown to 100,000, and the facility was running out of space. The National Oceanographic and Atmospheric Administration (NOAA) had provided a grant of $450,000 to develop a new exhibit on aquaculture as well as the educational curriculum to accompany it. Office space expanded into a trailer in the rear parking lot. The Department of Parks and Recreation had commissioned a master plan that would include not only the science center but also the recreational, environmental, and historic aspects of the park, under a unified management contract. The ensuing dis- cussions among the Advisory Committee members and within both the SSC and ASNH led to the establishment of Seacoast Science Center, Inc., an independent 501c3 nonprofit organization, which took over the management contract for the visitor’s cen- ter in November 2001. In 2001, a NOAA grant provided $1 million to renovate and expand the facility, with an additional $300,000 to develop additional exhibits. In 2002, the Friends of Odiorne Point State Park, Inc., was merged into SSC.

The most recent expansion—a state of the art multimedia learning center complete with its own broadcast studio—had been launched in 2005 with a $1 million grant from NOAA and grants from the Little Harbor Charitable Foundation and IBM Corporation. The Gregg Interactive Learning Studio, named for Judd Gregg, former Governor and Senior Senator from New Hampshire, opened in June 2007, with a live virtual tour of the Mt. Washington (NH) observatory and Aquarius, an underwater lab- oratory in the Florida Keys National Marine Sanctuary. The Senator said, “This is an

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Exhibit 2

SSC from the water. Sugden House is visible on the left side of the building. This photo was taken before the addition of the Learning Studio.

The touch tank.

example of taxpayers’ money being put to good use. The legacy of every dollar is that future generations are going to learn about our environment.”2 SSC president Wendy Lull echoed this sentiment in her remarks: “Our innovative educational programs will engage our imaginations to excite us about nature, to touch our inner spirits and in so doing inspire a true spirit of environmental stewardship”3 (see Exhibit 3 for pictures of the Learning Studio).

EXHIBITS AND PROGRAMS

To create connections to nature through personal experience. SSC Mission

From its initial focus on interpreting the local seacoast environment, the SSC’s pro- gramming had expanded to include regional and global issues relating to the sea: “The Center’s exhibitions interpret four themes: the Gulf of Maine, New Hampshire’s Coastal Connection, Changes to the Sea and Sky, and working Under the Sea.”4 Underlying all four was the goal of helping visitors to “attain a sense of the natural his- tory of the park’s seven habitats and how people have interacted with them.”5 Exhibits and programs related to all seven of the habitats: Gulf of Maine, rocky shore, wood- lands, salt pond, freshwater pond, sandy beach, and salt marsh. As staff aquarist Steve Engstrom pointed out, this emphasis was important: “For the most part, we keep and show local species as teaching tools. . . . That’s what separates us from large aquariums that deal with tropical environments and animals from all over. We showcase what’s right here in our backyard.”6

Exhibits The central gallery stretched from the entrance to huge windows with a view of the rocky shore, the Gulf of Maine, three lighthouses, and the Isles of Shoals, which were seven miles offshore, but on a clear day appeared close enough to swim to. A display in the gallery held a relief map of the Gulf and its currents. At the other end of the gallery, near the windows, was the Tidepool Touch Tank, with starfish, hermit crabs, mussels, and other examples of creatures that could be found in the rocky pools just outside. In the exhibit hall to the left of the gallery were tanks representing various water habitats. A new large Off Shore tank held a naturally blue lobster and awaited other deep water denizens. The Sub Tidal Tank held several species of fish as well as anemones, urchins, and starfish. Other tanks displayed marsh and fresh pond creatures. One featured a bright orange sea raven, an exotic fish from a warmer climate that had ridden the ocean currents to the Gulf of Maine. Another showed tiny flounders in a tank whose floor was covered with light and dark sand; as the fish moved from one part of the tank to another, fasci- nated visitors could watch them turn lighter or darker in camouflage.

In the galleries enclosing Sugden House were a series of additional exhibits. Visitors could check temperature and other data from off-shore buoys as part of the Seasons of the Sea exhibit. In the north gallery, overlooking the water where the Piscataqua River entered the Gulf of Maine, was The Great Bay to the Sea, an inter- active exhibit where, “using state-of-the-art mathematical models and computer ani- mation you can watch your water droplet move through the estuary and river.”7 Todd Kent, director of special projects, explained: “The exhibit is a new application for both the water flow research and computer model. The data is of scientific interest,

Seacoast Science Center: Sailing the Shoals 5

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Exhibit 3

SSC front entrance, from the parking lot. The left side of the building is the Learning Studio.

The Learning Studio. The left screen is showing a video; the middle screen is showing a PowerPoint presen- tation. Below the center screen is a lab table with built-in cameras.

of course, but also has many applications for municipalities that are trying to manage discharges and water quality. This exhibit is the first time the science and modeling have been combined for public education and fun!”8

In the gallery closest to the water was an exhibit on Working Under the Sea. Its most visually arresting feature was a leaded-boot dive suit, weighing nearly 200 lbs., that was the state of the art for diving equipment during WWII. Here one could also learn about the first underwater human habitat and the sinking of the submarine “Squalus.” Nearby, visitors could take a virtual trip underwater up the Piscataqua River or out into the ocean.

Interactions between humans and the environment were also on display in an exhibit about Sugden House and the changing landscape of Odiorne Point, and another show- ing the wreck and gradual recent revealing of an 1890s shipwreck on a nearby beach.

Programs SSC programs were designed to allow visitors to interact with nature and the local habi- tats. Visitors came from a variety of sources. Some were SSC members, returning repeat- edly for new programs or simply to visit the various sea creatures. Others were visitors to the state park who were curious about this interpretive facility. During the week, many young people came with school groups, or attended summer camps and school vacation programs. During the summer, there were daily programs for the public in addition to the camps. During the winter, the facility was only open to the public on weekends with a few weekday programs by reservation, although SSC members could call ahead to visit any time. See Exhibit 4 for the calendar of events for January 2008. Programs were led by a mix of staff and trained volunteers. See Exhibit 5 for SSC’s organization chart.

Educational programs were available for all ages from kindergarten through high school. SSC staff designed the programs to be consistent with state and national curricu- lum standards. Many of the programs also had as a goal increasing ocean literacy, “which is defined as understanding the influence oceans have on people, and the influence peo- ple have on oceans.”9 Field programs about the rocky shore, salt marsh ecology, and geol- ogy took students outside using the grounds of the Science Center and the park. Other programs, from “A Whale’s Tale” and “Adaptations and Classification” through “Love and Life Cycles,” involved hands-on learning, adapted to the students’ level. The one hour programs were available for classes of up to twenty-five students. They cost $130/hour, slightly more for the field programs. In the spring and fall, the SSC offered six-week preschool programs “for a child and their favorite adult to explore nature together.” Monthly programs for home schoolers were also available, and it was possi- ble to schedule children’s birthday parties.

The newest on-site program was “GeoAdventures, Assignment: Gulf of Maine.” It had been designed for the new Gregg Learning Studio, and made use of the studio’s high-definition projectors with ten-foot screens and Dolby surround sound. According to the program’s description, “During this multi-media, interactive experience students will ‘join’ teens on a quest to find hidden geocaches. Students are prompted to engage at activities at touch-screen computer stations. Through this experience, students learn that everything in the environment is interconnected; that our lives influence the oceans and the oceans influence our lives.”10 Teachers received supplemental materials to build on the experience in different areas including watersheds, lobstering, and global posi- tioning. The hour-long GeoAdventures program cost $200 per group.

Seacoast Science Center: Sailing the Shoals 7

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Exhibit 4 January 2008

Source: Seacoast Science Center website.

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

1 2 3 4 5

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

6

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

7

10:00 am: Snug as a Bug!

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

8 9

10:30 am: Global Warming Discussion Course

10 11 12

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

13

10:00 am: VIsitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

14

10:00 am: Snug as a Bug!

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

15 16

10:30 am: Global Warming Discussion Course

9:00 am: Book and Breakfast: Entanglements . . .

9:30 am: CANCELLED Nature Sketching Workshop

17

10:00 am: CANCELLED Nature’s Cures

18 19

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

20

10:00 am: VIsitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

2:30 pm: Odiorne Point: Twice- Seen Photo Exhibit Opening

21

10:00 am: Snug as a Bug!

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

22 23

10:30 am: Global Warming Discussion Course

24

Heritage Dinner: ClimateChange: Cities and Towns Leading the Way

25 26

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

6:00 pm: Marine Teen Game-O- Rama

27

10:00 am: Visitor Programs: Underwater Exploration

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

28

10:00 am: Snug as a Bug!

2:00 pm: GeoAdventures, Assignment: Gulf of Maine

29 30

23

10:30 am: Global Warming Discussion Course

31

Seacoast Science Center: Sailing the Shoals 9

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The SSC also provided distance learning programs. Three hour-long programs were offered at $150 per broadcast: The American Lobster, Horseshoe Crab Program, and Coastal Creature Adaptations. These programs were broadcast live from the Learning Studio to the participating schools. The video conferencing capability also enabled teachers to offer pre- or post-visit activities. It was possible to customize any program at an additional cost.11

During the summer and school vacations, including between Christmas and New Year’s Day, there were a variety of camp programs. Summer programs were week-long and were led by seasonal camp staff. The vacation camps in December, February, March, and April offered individual daily programs, although many children came for the entire week. Week-long camps were $200/week, with a $25 discount for SSC mem- bers; a single day at vacation camp was $40, with a $5 discount for members.

Wendy smiled as she talked to Rose about the role of SSC’s personnel: People always comment about how engaged our staff is, how wonderful they are. Each one of them takes what we call “donut duty”—we all do visitor programs, we’re out there, you’re teaching people, you’re interacting with them. No one comes to this building who is not talked to two or three times and not just to say “Look over there.” [Rather] “Do you want me to talk to you more about the animals?” I spent an hour talking to a family of four about plate tectonics. . . . Where else do you go where you can have that much time with a naturalist, that intense personal experience? . . . We always try to make personal connections.

Staff and volunteer naturalists led a variety of free programs for visitors. During the winter, these programs were on weekends only, while during the summer, the offerings were at least daily. “Tidepool Treasures” was the most popular of all programs, taking people outside for a first-hand experience. Exhibit interpreters offered other programs such as “Working On and Under the Sea” and “Coastal Connections.” GeoAdventures introduced the Learning Studio to the public. A live broadcast from Monterey Bay, California, was also scheduled for the studio.

On occasion, the SSC took its programs to the general public. In August 2007, Fox Run Mall, the largest local shopping area, sponsored a day of lobster and rocky shore programs. Rose had not heard about this event, and Wendy pointed out its advantages:

Having informal science activities during the back-to-school shopping season helps them add an educational (but fun) component to their promotion. It helps us reach people who are not predisposed towards learning about nature. National Science Foundation studies indicate that people are more open to science in informal settings such as muse- ums and libraries than in schools. Now we can add a shopping mall to that list.

Special Events Seacoast Science Center programs were not just for children. The Heritage Dinner series hosted speakers from a variety of disciplines in an after-hours setting. Topics for 2007–2008 included natural history (life on an undersea volcano), adventure (the search for a lost airplane in an Alaskan lake), the environment (cities’ and towns’ efforts to reduce global warming), and the arts (the story behind filming a television documentary on the nearby Isles of Shoals). Individuals, families, and groups took part in BioBlitz!, a one-day survey of the flora and fauna of Odiorne Point State Park, in September; not only were they gathering scientific data on the park’s habitats but they were also able to interact with scientists classifying their findings in the Gregg Interactive Learning Studio.

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A week-long program of Art in Nature was being developed for July 2008, involving artists, campers, members and visitors. On Thursday evenings during the summer, the SSC hosted “Music-by-the-Sea,” a family concert series held outdoors (under a big tent in bad weather).

Travel was also part of the SSC’s programming. For several years, Wendy had gone with groups of members on naturalist-led trips with a nature/marine theme: to the Galapagos Islands, the South Seas, and Central America. As she pointed out, “Remember, by traveling with the Center, you support our mission twice: by living it, and because a portion of your trip costs is a tax deductible contribution.” Closer to home were yearly “Get Away Weekends.” In 2007, there was a trip to Eastern Egg Rock Island in Maine to see puffins, and planned for June 2008 was a trip to Hog Island in Damariscotta, Maine, for birding, botany, and tidepool exploration.

VISITATION

The number of visitors coming to the SSC was distinctly seasonal (see Exhibit 6), with the greatest number coming during the summer months. Recently, visitation had peaked at more than 61,000 people in Fiscal Year 2006 (July 2005–June 2006). FY 2008 so far showed improvement compared with FY 2007, but was still below the FY 2006 numbers. School programs accounted for 13,000 visits, down from a high of about 16,000. The summer and vacation camps were also down.

Rose asked Wendy: “Are bodies coming in the door the right metric?” Wendy replied: “Maybe not. Viewers of distance learning programs are not being

included in visitation counts, only people who come physically to the site.” Rose responded: “But that means you could count people who come to weddings

or corporate parties, people who are wandering around but not necessarily learning anything.”

Wendy replied: “That’s true, but if they wander around and are intrigued, they may come back with their kids.”

Rose asked about the number of visitors, which had been growing rapidly every year when she was on the board. Wendy replied that visitation was increasing, but only slightly. One problem, she said, was caused by pressure on school budgets: “Nobody has money for field trips anymore.”

Rose commented: “In the early years we pretty much relied on direct mail to schools and press releases. What are you doing now to get people to come to the SSC?”

Wendy replied that the SSC did have a website as well as the direct mail and press releases, and that she tried to visit local radio talk shows regularly, but SSC still had no brochures in the state’s visitor’s centers, and still used no paid advertising: “If you’re doing nothing differently and nothing changes, why are you surprised? And why don’t we do any advertising? Because we don’t have any money. And why not? Because we don’t have enough people coming to support us, and at $3 a head, ha!”

COMPETITION

Although no other organization in the seacoast area offered exhibits or programs simi- lar to the SSC, Wendy had no trouble coming up with a list of potential competitors looking for visitors. Strawbery Banke, a historic village with homes from all eras of local history, and the Children’s Museum were located in neighboring Portsmouth. The

Seacoast Science Center: Sailing the Shoals 11

12 Case Research Journal • Volume 32 • Issue 1 • Winter 2012

Exhibit 6 Seacoast Science Center Visitation

(Fiscal year: July 1–June 30)

Number of Visitors

Month FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

July 6,492 12,047 11,548 11,749 10,537 August 6,852 10,173 8,319 5,373 10,604 September 2,827 3,964 2,542 2,932 3,810 October 4,631 2,258 4,832 3,793 4,015 November 26 1,639 1,735 1,702 1,982 December 502 918 1,056 1,187 752 January 58 954 1,025 1,725 1,057 February 130 1,749 1,962 1,846 March 60 1,404 2,277 1,822 April 3,874 4,702 9,752 8,307 May 4,328 6,337 7,529 6,310 June 16,933 10,248 9,170 7,897 Total 46,713 56,393 61,748 54,643

Visitor Revenues ($)

Month FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

July 9,713 14,620 11,935 6,116 11,951 August 10,547 9,839 12,454 9,519 12,229 September 3,763 5,134 4,070 4,608 3,226 October 3,121 3,829 3,103 3,514 3,981 November 1,735 2,411 1,986 2,228 1,947 December 1,056 1,365 1,056 1,558 922 January 1,431 1,025 1,626 1,449 February 2,554 2,614 2,607 March 2,226 2,605 2,523 April 8,763 6,637 7,554 6,450 May 7,266 4,717 3,671 4,149 June 12,948 6,385 6,058 6,846 Total $58,912 $61,148 $58,131 $51,744

Note: The Seacoast Science Center was closed to visitors for several months in FY 2004. Between January and March, there were “very small visitor numbers, probably from other activities for which we [the SSC] didn’t charge admission” (W. Lull, personal correspondence).

Note: Revenues are less than the number of visitors for some months because of sharing group fees with Parks as payment for groups’ admission.

Source: Seacoast Science Center records.

Gundalow Company brought its reconstructed sailing vessel to many sites and activities in the local area. There were National Estuaries—marine habitats with interpretive cen- ters in Stratham, New Hampshire, and Wells, Maine—as well as the Science and Nature Center located at the Seabrook Nuclear Power Plant, only fifteen miles down the New Hampshire coast. The New England Aquarium in Boston was only sixty miles away, offering extensive exhibits of marine wildlife.

Other nearby attractions competing for visitors’ attention and dollars included a large water park; beaches and parks along the New Hampshire coast, including Wallis Sands, Long Sands, and Hampton Beaches; and an expanse of outlet malls in nearby Kittery, Maine.

Rose asked: “Who are you competing with for donors?” Wendy replied: “Our biggest competitor is Cross Roads House,” a homeless shelter

and residence that also provided services to help its residents become independent. She pointed out that the Portsmouth Music Hall, a historic performing arts center, was in the midst of a major renovation and fundraising campaign. Strawbery Banke was another competitor for funds. Wendy said: “It’s been around since the 1960s and is

more valued by long term local donors. We share a lot of donors, but those individuals are more likely to support Strawbery Banke’s annual fund.” The University of New Hampshire (UNH) and the New Hampshire Charitable Foundation (NHCF) also engaged in large scale local fundraising. Wendy noted that UNH and NHCF were well organized “for recruiting and maintaining donors who would want to support similar mission areas. NHCF also gives us money, so that’s a bit different . . . but when it comes to competing for an individual’s dollars, they’d be on the list.”

FINANCES

Fund Raising and Development Although the Science Center had been in existence for a decade, the change in manage- ment to SSC Inc. in 2001 allowed Wendy and the staff to concentrate on the SSC’s mis- sion, rather than on trying to balance SSC activities with ASNH’s philosophy and mis- sion, which had a stronger focus on habitat preservation. Additionally, it freed SSC from the need to contribute to ASNH’s overhead in addition to covering its own costs, and allowed the organization to have its own members and donors. Financial issues for the whole ASNH organization during the final years of its management contract had led to retrenchment, including at the SSC. Consequently, the Seacoast Science Center had started its new life “lean and mean.” The initial board of trustees was primarily con- cerned with operations and growth; its members were businesspeople with little experi- ence with nonprofits or fundraising. It was not until 2005 that a new board voted to make fundraising a priority. According to Wendy, the new chair, Pam Hall, “has a huge amount of experience.” As an indication of its increased priority, the chair established a development committee on the board, rather than the previous development task force.

Because of this new priority, a donor came forward who, in addition to an outright gift of $50,000, pledged to match $20,000 a year for three years to cover the salary of a development director. In Wendy’s words, the donor “realized that you can’t support an organization like this without some kind of infrastructure for fundraising.” The SSC also secured a grant of $25,000 for fundraising software from Fidelity Investments. Wendy estimated that fundraising had increased from $50,000–60,000 to $150,000 and then to $235,000. She expected the FY 2008 number to be closer to $170,000, however. She noted that not everyone approved of the increased emphasis on fundraising:

People are saying either “that’s bad because you’re going to be too dependent on fundrais- ing, because it’s going to go to 30 percent instead of 20 percent, so that’s bad,” or “you’re not doing your job raising enough money to cover operational expense.”

The first development director left after less than a year. As a result, as Wendy said, “as of November, we had to start the fundraising all over again.” The new development director, Nicole Rutherford, came on board in early October 2007.

Even with a development director, fundraising would still be a challenge, Wendy told Rose. She was very willing to talk to potential donors, but:

The only way we can generate enough money to make it run, with part of me, a full time development person, and twelve hour a week data entry person is if the board par- ticipates in fundraising. I don’t know who to ask. They’ve got to bring the names to me. They’ve got to do the people. They’re very good, they’ve made the jump, they write the checks, that’s huge and great and wonderful. [Fundraising] is only peer to peer, it does- n’t work any other way.

Seacoast Science Center: Sailing the Shoals 13

She felt that the SSC had already missed several key opportunities, including one offered by the new Learning Studio:

[An advisor] had said to me a long time ago, “a smart nonprofit when it’s doing a capi- tal campaign builds endowment at the same time because people will give to bricks and mortar, they don’t give to water.” This is the second time that we have been given a mil- lion dollars—a million dollars!

The Seacoast Science Center had a small endowment generating approximately $15,000 per year. Wendy stressed the importance of fundraising and development:

Why do people give to nonprofits? And part of it is, in our case, because people won’t pay what it costs. You can’t charge enough to come into this building, because people don’t value it enough. You’re not going to pay what it really costs to go to the opera or the bal- let or an art museum. So you get other people who value it who subsidize it. The donors are our investors. And the return on investment isn’t money. It’s the mission. And people still don’t get it; they say you should charge more. . . . But at some point, it’s not really worth it, people won’t pay. . . . We’re in a state park, we’re not an elitist organization.

Revenue Aside from development, the major revenue sources for the SSC were its seasonal camps and other programs, collectively providing 28.4 percent of income in FY 2007. Admissions, set at $3 for adults and $1 for children aged 3 to 12, provided only 7.2 per- cent (see Exhibit 7). The SSC also rented its facilities and grounds for weddings and other private and corporate events. New Hampshire Department of Parks provided pro- gram and custodial support since the SSC served as the visitor’s center for Odiorne Point State Park. Parks, required by the State of New Hampshire to be self-funding, charged $4 per person for admission to the park and $2 for children aged 6 to 11—fees that did not include admission to the Seacoast Science Center and were not typically collected during the winter months. Members of the SSC were admitted to the park without a fee. The SSC also gave Parks a portion of the fee paid by school groups to cover their admission.

The SSC offered individual ($40) and family ($65) memberships, which included free admission to both the center and the park, members-only winter hours, the Seacoast Sun newsletter, and discounts for the nature store and concerts. Members donating at higher levels received additional benefits including the president’s quarterly letter, guest passes, and/or free school programs. As of 2008, the SSC had over 1,300 member households, as well as fifty-eight corporate sponsors. Corporate sponsors ranged from IBM and Bank of America to Public Service of New Hampshire (PSNH) and Piscataqua Savings Bank and to local businesses, such as a catering company. Many sponsored a specific event or program; for example, PSNH was a sponsor of the Heritage Dinner Series and the Seacoast Sun, while Sprague Energy sponsored the Seaside Safari Holiday Camp and “The View from Here” exhibit. The annual fund campaign, held in November and December, also offered the option to donate for a spe- cific purpose, including funds set up to provide financial assistance for school programs, camps and tots, a fund to support maintenance of the exhibits and care for the animals, and a professional development fund for staff training.

Grants, while an important source of revenue, were not included as part of operating income. Most grants received by SSC were for a specific, short-term purpose such as developing software and programming for the Learning Studio. Large one-time gifts and

14 Case Research Journal • Volume 32 • Issue 1 • Winter 2012

Seacoast Science Center: Sailing the Shoals 15

Exhibit 7 Seacoast Science Center—Financial Statement

FY09 FY08 Budget Forecast FY07 FY06 FY05

Ordinary Income/Expenses

Income Admissions 85,666 75,657 64,729 64,575 76,826 Camps 170,430 140,901 129,714 132,918 133,611 Exhibits (grants) 600 5,028 380 1,807 2,989 Facility Rentals 107,850 99,892 82,449 71,491 47,990 Fundraising and Development 295,974 265,118 232,265 240,332 193,137 G&A 0 1,123 0 2,862 3,644 Membership 79,100 73,228 77,725 75,678 77,509 Nature Store 126,936 120,775 125,406 135,645 139,418 Group Programs 129,345 130,383 119,479 129,733 127,025 Parks Contract

Program Support 50,000 50,000 50,000 50,000 50,000 Custodial Support 15,000 15,000 15,000 15,000 15,000

Learning Studio Programs 4,500 4,719 Rental 8,400 2,550

Total Revenue 1,073,801 984,374 897,147 920,039 867,149

Expense

Contributions to Others 21,098 16,300 0 20,059 14,271 Advertising/Media 2,635 9,463 7,137 4,804 970 Bad Debt Expense 312 0 2,350 2,350 Bank Service Charges 566 849 271 110 Benefits 81,411 79,166 78,849 55,848 59,314 Credit Card Processing 6,744 4,975 5,279 7,295 6,615 Design 78 1,057 1,291 Dues and Subscriptions 1,122 1,425 1,077 50 306 Hosting Expense 600 1,509 1,408 1,898 935 Equipment 5,250 12,058 –8,161 0 780 Events Expense 36,764 30,056 46,572 52,977 61,998 Exhibits Costs 1,050 611 –314 1,998 –2,852 Facility—Cleaning Service 4,500 8,602 9,144 16,639 16,414 Insurance 17,340 19,526 18,049 17,213 11,822 Interest Expense 3,885 4,008 2,951 5,212 3,537 Inventory Expense 62,810 63,064 64,776 68,196 76,086 Lease—Equipment 20,820 17,481 22,168 14,451 8,271 Licenses and Permits 1,120 38 800 0 50 Outside Services 13,420 12,931 29,638 19,228 12,797 Payroll Expenses 734,167 702,067 641,333 579,196 554,371 Petty Cash 599 20 0 600 Postage 13,580 10,138 11,202 12,226 11,768 Printing 12,531 12,113 11,973 15,271 16,118 Professional Development 2,624 5,892 1,084 841 2,364 Professional Fees* 20,080 26,948 20,897 19,905 6,721 Program Expense 6,600 3,760 7,762 9,763 15,412 Rental 400 104 350 330 Repairs & Maintenance 4,145 5,308 4,653 6,244 7,117 Shipping 3,345 2,305 3,051 3,196 3,454 Software 2,330 2,476 182 1,415 900 Supplies 24,406 25,250 22,064 15,632 15,087 Travel Expense 5,014 3,036 3,991 5,950 5,473 Voice & Data 16,800 18,310 2,311 6,909 15,619

Total Expense 1,126,903 1,099,983 1,010,926 966,442 930,398

Net Ordinary Operating Income –53,102 –115,609 –113,779 –46,402 –63,249

One-Time Revenue Items Whale Offset 4,500 Sweet’s Development Grant 10,000 20,000 20,000 10,000 Sweet AF Gift 175,000 50,000 Spaulding Bequest 24,800 Geoadventures 5,039 Learning Studio 10,233

Total One-Time Revenue 14,500 20,000 210,272 84,800 0

Net Ordinary Income with –38,602 –95,609 96,493 38,398 –63,249 One-Time Revenue Items

Fiscal year ends March 31. *Attorney fees; accounting audits requried for federal grants greater than $300,000.

Source: Seacoast Science Center records.

bequests were likewise not an annual occurrence, and were accounted for separately. Frequently, however, these one-time items made up the deficit in the operating budget.

Expenses By far the major expense for the SSC was payroll and benefits. There were eighteen full- time year-round staff, as well as part time and seasonal employees. Other significant costs included the lease of the facility from Parks, the expenses involved in special events, and professional fees. Exhibit costs included only the cost of materials and in some cases were negative because of earmarked donations. Program expenses were also reduced by the use of volunteers and college students for the camp programs.

PARTNERSHIPS

The SSC continued to work closely with two of the founding organizations, Parks, because of its location, and the University of New Hampshire. Wendy characterized the latter relationship as “better now than we ever had before.” The SSC was currently working with more than thirteen departments across the university, including art and history as well as business and the sciences. The remaining founding organization, ASNH, was no longer a partner, although it sent an occasional camp group on a field trip, and its Seacoast chapter still met monthly at the SSC.

Several of the corporate sponsors also partnered on specific projects. IBM donated $30,000 in technology for the Gregg Interactive Learning Studio. PSNH funded an energy audit of the facility, as part of the SSC’s Energy Conservation Initiative. Timberland, a long-time partner, sent several hundred volunteers every year to help with park cleanup, clearing and building trails, and other outdoor activities.

Other organizations and their representatives also partnered with the SSC. Steve Engstrom, the aquarist, worked closely with New Hampshire Public Television as they filmed a segment on “Our Rocky Coast” for the “Windows on the Wild” series. A retired archaeology professor from the University of Maine was one of the leaders of a Get Away Weekend, while a team of faculty from Dartmouth as well as UNH devel- oped the “Great Bay to the Sea” exhibit. The Institute for Exploration and the National Network Marine Institute shared technology and programming.

BACK TO THE QUESTION AND THE ISSUE

Rose Wood, long-time supporter of the Seacoast Science Center, looked at Wendy Lull, president of SSC, with concern. Was Wendy serious about doubling the admission price? If visitation went down because of the increase, there could be repercussions in other areas, notably donor reactions. “What would they be giving money to?” she asked. “You’d be reaching fewer people, fewer school groups. . . .”

Wendy replied that even though attendance was down to 55,000, half of its peak in the early 1990s, the Seacoast Science Center was still reaching more people than most local organizations. She continued,

If the only reason you’re giving to us is because of the number of people we reach, then don’t. But if you look at the quality of the experience that we have . . . the two things that separate us from other institutions are the quality of the live animal exhibits and the experience you get when you get here.

16 Case Research Journal • Volume 32 • Issue 1 • Winter 2012

The issue, for Wendy, was the future direction for the Seacoast Science Center in a world of high energy prices and reduced school budgets for travel. Even if programs were paying for themselves, there was still overhead; “somebody’s got to pay for Jim and Suzy,” she told Rose. The Learning Studio offered great opportunities for programs— “it’s such a new type of museum experience that there isn’t a name for it yet . . .”—but she didn’t think they could charge extra for it.

Rose agreed: “Donors to nonprofits usually prefer to fund bricks and mortar, or projects, rather than people—but the people are necessary to run the facility and to raise money, and nobody wants to donate for that!”

Wendy smiled ruefully. “Our people are what make us a unique experience. With that perennial ‘$50,000 problem,’ how do we make sure that we continue to provide that experience? Maybe we need a new way of doing business.”

NOTES

1. Shoal: “a sandbank or sandbar that makes the water shallow.” http://www.merriam- webster.com/dictionary/shoals.

2. Macalaster, Gretyl. (June 24, 2007). New Gregg Learning Studio opens in Rye to rave reviews. Foster’s Daily Democrat. Retrieved from http://www.fosters.com/ apps/pbcs.dll/article?AID=/20070624/FOSTERS01/106240324/-1/services0501.

3. Ibid. 4. About us. Seacoast Science Center. Retrieved from http://www.seacoast

sciencectr.org/about/. 5. Ibid. 6. Quoted in Shepherd, Jan. (April 22, 2007). Not all is fishy at NH seacoast museum.

Boston Globe. Retrieved from http://www.boston.com/travelarticles/2007/04/20/ not_all_is_fishy_at_nh_seacoast_museum/.

7. New exhibits open! Seacoast Science Center. Retrieved from http://www.seacoast sciencecenter.org/about/news/detail.php?news_id=30.

8. Ibid. 9. Ocean literacy. Retrieved from http://www.coexploration.org/oceanliteracy.php.

10. Marine and coastal science brochure. Seacoast Science Center. Retrieved from http://www.seacoastsciencecenter.org/programs/groups.php.

11. Distance learning with the Seacoast Science Center. Seacoast Science Center. Retrieved from http://www.seacoastsciencecenter.org/programs/distance_learning.php.

Seacoast Science Center: Sailing the Shoals 17