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unchanged, there have been revisions to the fiscal year 1989 trust and Federal projections. The $2 million reserved against the possibility that the sale of the Capitol Hill properties of the National Museum of African Art might not be consummated has been returned to General Unrestricted Trust funds; net proceed from the sale, approximately $2,175,000, were credited to pledged income for the Quadrangle construction. Projections of net income for fiscal year 1989 reflect considerable caution about revenues for [[underlined]] Smithsonian [[/underlined]] magazine and a decrease for Museum Shops and Mail Order, partially offset by some gains. Major funding from the Secretary's contingency included $233,000 to accelerate the funding of the Office of Membership and Development operating plan in advance of previous scheduling. The fiscal year 1989 projected increase to fund balance for the General Unrestricted Trust funds is now $1,100,000 or $400,000 less that originally budgeted. 

An unrestricted bequest of $682,000 has been received from the estate of Roy R. Phillips, and the following motion was approved:

VOTED that the Board of Regents authorizes the Secretary to establish, as part of the Institution's Endowment funds, a quasi-unrestricted fund to be known as the Roy R. Phillips Fund and to authorize the transfer of the unrestricted monies identified for this purpose.

It was also noted that a contract has been signed for the purchase of the Fox House, a townhouse adjacent to the Cooper-Hewitt Museum, for $3.6 million. Approximately $2.6 million has been provided by the sale of the Beatles' Rolls Royce plus accumulated interest and $1 million advanced out of unrestricted Trust funds to be repaid through a fund-raising campaign.

The budget for Federal funds in the current fiscal year is approximately as projected, with a significant increase in guard salaries (totalling almost $1 million) being met through general belt tightening and reprogrammings. The staff awaits the House and Senate markups on the fiscal year 1990 appropriations, in which some $1.5 million is pending to sustain equal opportunity and affirmative action initiatives which show considerable promise.

[[underlined]] ENHANCEMENT OF DEVELOPMENT AND GROUNDWORK FOR A DEVELOPMENT CAMPAIGN [[/underlined]]

The Office of External Affairs has proposed and begun to implement strategies to enhance the current level of private sector support of the Institution and to identify the prerequisites that could be used to plan a pan-Institutional development campaign. Current activities include: the implementation of an Office of Membership and Development Operating Plan; initiation of a list management system; increased reliance on the National Board of the Smithsonian Associates and other supporters; expansion of the Institution's strategic planning process and closer monitoring of all revenue sources; acquisition of support for the Quincentenary observance; and acquisition of support for the National  Museum of the American Indian. A proposal to plan a major development campaign will be determined by the results of the combined results of the foregoing activities and the appointment of a Board of Regents' Committee on Planning and Advancement.