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Ex-Marine General John R. Dailey served two tours in Vietnam and logged flight time with everything from helicopters to F-18s. These days, he's on a different mission. As director of the Smithsonian's National Air & Space Museum, Dailey is trying to raise millions of dollars from the private sector to finance construction of an annex to house the bulk of the aviation museum's holdings.
That's an especially tough assignment these days. Arts funding overall has dried up for the nation's museums, theaters, and symphonies, as corporations cut back on donations. Traditionally, the Smithsonian funded new projects with taxpayer dollars. But when Congress gave the go-ahead in 1993 to build the Air & Space annex, it withheld cash, putting the onus on the Smithsonian to raise the $225 million for the project from the private sector.
Three years into the job, Dailey has pledges totaling $136 million. Of that, $65 million would come from one man, CEO Steven F. Udvar-Hazy of International Lease Finance, and the new Air & Space annex will bear his name. Under construction at Washington-Dulles International Airport, about 25 miles west of the District of Columbia in the suburbs of Fairfax County, Va., the partially completed facility is set to open on Dec. 15 -- a self-imposed deadline that coincides with the 100th anniversary of the Wright brothers' first flight.
"It's going to be magnificent," Dailey says. "But we have to get the money to get the job done. America's pride is on the line here."
HEFTY HANGER. To keep America's pride intact, Dailey still must raise the $97 million needed to complete the project, so he's trooping to air shows, pitching deep-pocketed guests at intimate dinner parties, and giving speeches wherever he can. Dailey has help from the Air & Space Museum's board, which includes Herb Kelleher, founder and chairman of Southwest Airlines (LUV
), former Federal Aviation Administrator Jane Garvey, and Kenneth E. Gazzola, publisher of Aviation Week, which, like BusinessWeek Online, is owned by The McGraw-Hill Companies.
When it's finished, the center will be the largest construction project in the Smithsonian's history and the only one built completely with private funds. The main hangar, which will house some 200 aircraft, will be the length of three football fields and 10 stories high. On June 12, the annex accepted delivery of an Air France Concorde. Work is also under way to refurbish another big draw, the Space Shuttle Enterprise. And a newly reassembled Enola Gay, the bomber that flew the missions to Hiroshima and Nagasaki, will be displayed as well.
On July 9, Dailey spoke to BusinessWeek's Lorraine Woellert about the project. Edited excerpts of their conversation follow:
Q: Why isn't the federal government paying for this?
A: There wasn't a willingness on the part of Congress to support the project with federal funding. The federal government used to fund Smithsonian buildings at 100%. Now even the American Indian Museum and our operational funds aren't 100% funded by the government [anymore]. We get about half our money to operate from [Congress]. We have to raise the rest of it from our retail activities.
Q: Why is the annex so important to the Air & Space Museum?
A: It will contain 80% of the national collection. The museum downtown on the Mall averages more than 9 million visitors a year. And it has only 10% of the collection. Another 10% is on loan, 80% has been in storage for 35 to 50 years.
Q: Sounds like you'll need a lot of room.
A: We'll have 760,000 square feet. But a more important number is 40 million cubic feet. We're hanging airplanes from the ceiling, we're using the volume. When we're done, we'll have 100% of our collection on display, though there will always be at least 10% on loan somewhere. This is unusual for museums, particularly for the Smithsonian. We will have the highest percentage of artifacts on display of any Smithsonian.
Q: Will you have to break with Smithsonian tradition and charge admission?
A: No. But when we open on Dec. 15, all our retail facilities will be open, so we'll start generating revenue. There will be our restaurant, a theater, simulators, and parking. There will be a parking fee. It hasn't been set, but it will be around $12. We have to charge because we're on the complex at Dulles. It's part of our lease agreement.
Q: Did you know what you were getting into when you took this job?
A: I didn't know how big it was. The numbers were underestimated in terms of [how much in pledges] we had on hand -- we had less than a third. Now we have two-thirds. There's no real deadline because we're not going to be able to finish the place until we get the final third.
Q: How much of your job is fund-raising?
A: About 90%. I'm either thinking about it or doing it or talking about it. The museum is run on a day-to-day basis by our staff. I am available to go any place, any time to talk about this subject. Most people think we have federal funding. They're really surprised to find out that we don't.
Q: You're not throwing the big gala fund-raisers so typical in Washington. What's your approach?
A: Fund-raisers will tell you that at least 80% of your money comes from individuals as opposed to corporations or foundations. Our efforts are aimed at individuals. Our biggest challenge is getting the word out to people about what we want to do. We're giving speeches, we're going to Rotary Clubs, we're writing articles.
And we're going to dinner parties. We find individuals who share our interests who are willing to host a party. We've done 10 or 12 of them around the country. We have several more scheduled. To be honest with you, I can't point to any direct result. But we're meeting more and more people.
The problem is I haven't met anyone who is capable of giving us large donations who doesn't have a series of worthwhile causes that they're already supporting. We're another consideration for them, competing with things they're totally committed to. It's networking, I guess.
Q: And you're a retired military man. What are your credentials as a fund-raiser?
A: Absolutely none. I've never raised a nickel except for church socials, that sort of thing.
Q: Is it frustrating?
A: I'm not frustrated. I'm a realist. I know what's going on in the world today. Things aren't as easy for people as they were in the past. And I would never argue with someone that our project was more important than, say, a medical project. But I would argue that we're doing something that's worthwhile and worthy of support.
It's a national program, so it's not limited to any area or region. It's our country's collection, and it's the largest and most complete in the world. It deserves to be on display.
Edited by Patricia O'Connell
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