museum kunst palast foundation

„PPP“ – in this day and age we encounter this magic acronym more and more frequently in economic-political debates. Elsewhere, such as in the United States, the cooperation model of a so-called Public Private Partnership has long been established. In Germany, this concept is relatively new.

Public Private Partnership can be defined as a fusion of interests of public and private sponsors to their mutual benefit. This arts sponsorship in terms of a shared responsibility provides a successful win-to-win strategy, especially when there is a shortage of public funds and the potential of a private sponsor taking on the responsibility for an urban, cultural engagement on a long-term basis. Thus, the model of a foundation almost inadvertently derives itself as an appropriate organisational form.

Right from the outset, the mission of the museum kunst palast foundation arose from the task to renovate the dilapidated “Kunstpalast” and to administer the entire museum complex including the adjacent former “Kunstmuseum”, which previously had been run by the local municipal authorities.
Due to the fact that the city of Dusseldorf was unable to undertake the ambitious project by means of its own funds, a partner and a legal form was sought with the aim to secure a long-term cooperation. The legal form of the gGmbH (charitable limited company) or foundation were the obvious solution.

Among the founding members of the museum kunst palast foundation were the city of Dusseldorf and the energy corporation E.ON (operating under the name of VEBA AG at the time). The objectives of the foundation’s charter, which in 1998 set the seal on the cooperation between the two partners, were the sale of the plot of land on the rear side of the Kunstpalast to E.ON, in order to enable the company to build a new office building on the plot, while E.ON, in turn, contributed to financing the reconstruction of the Kunstpalast and committed themselves to continually supporting the adjacent museum complex and its ventures on a long-term basis.


The Partnership

Initially, the city transcribed the entire plot of land of the Kunstpalast to the foundation. In addition, the foundation took over the administration of the Kunstmuseum in the year 2000. In terms of operations, the city transferred all running costs of the Kunstpalast to the foundation and committed itself to adjusting the funds according to the development of salaries.

In parallel, E.ON acquired the rear part of the Kunstpalast grounds at the usual market value and established their headquarters on the site. Furthermore, the company paid a contribution of 5 million Euro to the foundation, which was used for the reconstruction of the Kunstpalast including the Robert Schumann Hall, by adding the income of 9.75 million Euro from the sale of the grounds (after deduction of around 6.5 million of disengagement costs), as well as a further 4 million Euro from another estate transaction in the vicinity, and a generous state subsidy of 12.55 million. In addition, E.ON committed to contributing 1 million Euro per year until 2009, and to paying 1.5 million per year for the first six years towards the costs of the museum’s exhibitions.

The staff of the foundation is headed by the board of executive directors represented by the General Director, Beat Wismer, and the Commercial Director, Carl Grouwet. The board is monitored by a board of trustees consisting of a minimum of 14 members, whose task is to ensure the observation of the founders’ interests. Probably for the first time in a German museum, it was agreed that the board of trustees is not to interfere with the exhibition and events programme, but merely acknowledges it. Another particularity is the composition of the board of trustees: neither the city (7 seats), nor E.ON (4 seats), nor the additional members, consisting of representatives from industry and the arts sector, hold the majority. The aim, which to-date has been complied with, is to reach unanimous decisions on all crucial matters.