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The approval of the Board of Regents is sought to enable the Institution to move forward with Discover/Novus through further discussions, negotiations, research and testing with the goal of launching a Smithsonian affinity card in 1996.  The Institution would engage contractors experienced in the credit card industry who would assist in protecting the Smithsonian's interests and name and in securing the best possible financial return.

Some members of the Board of Regents will recall that on May 11, 1987, the Board, acting on the advice from the Smithsonian National Board, rejected a proposal to develop a Smithsonian credit card (Minutes, p. 71).  The advice cautioned against the concept of a commercial affiliation, drew attention to the chaotic state of the banking industry with regard to credit cards, and questioned the soundness of income projections.  As suggested above, careful attention will be paid to protecting the Smithsonian's integrity under any affinity card arrangement, and promising financial projections have been developed by knowledgeable independent consultants.  Of course, the apparent chaos in the 1987 credit card market was followed by a continuing period of substantial growth in the industry.

Furthermore, since the Board of Regents last considered an affinity credit card, the Institution has developed the Smithsonian Marketing Database to centralize into one place all of the names and address of individuals who buy from, give to, or join the Smithsonian.  Currently the database includes the names of approximately six million people.  This database has become instrumental in the generation of new sources of earned income and constituted a critical factor in the consultants' assessment of the feasibility of an affinity card.

The following motion is suggested:

VOTED that the Board of Regents authorizes the Smithsonian Institution and its representatives to enter into negotiations with Discover Card Services, Inc., in order to conduct research and testing with the goal of offering a Smithsonian Institution affinity card to the public during 1996.  Final terms of an agreement to issue such a card shall be subject to the approval of the Executive Committee of the Board of Regents.

b.  150th Anniversary Corporate Partner Program

On August 11, 1995, the Smithsonian and CBS News announced the Broadcast Partnership for the 150th anniversary celebration at a press conference in New York City at CBS headquarters.  CBS News will produce at least two prime-time CBS Specials that will be a lively and surprising combination of reports about cutting-edge research projects, expeditions and programs as well as visits to Smithsonian museums and collections, both well-known and behind-the-scenes.  CBS will also produce a minimum of 25 "Smithsonian Minutes" the be broadcast on the CBS Television Network during the 52 weeks of 1996.  Secretary Heyman, live via satellite, and several CBS celebrity correspondents attended the press conference and endorsed this innovative endeavor.  Smithsonian artifacts at the press conference included