MUSEUMS and galleries must become more "business-like" in their fundraising activities, an MPs' committee said today.

The 17 museums and galleries sponsored by the Department for Culture, Media and Sport together received state grants worth '270 million in 2002-03, and generated additional income of '108 million from fundraising, trading activities and admission charges.

But a report by the Public Accounts Select Committee today revealed that earnings from these activities have been variable, with some fundraising initiatives actually losing cash.

Typically, museums and galleries have good information on retailing and catering, but a less clear grasp of the costs involved in other income-generating activities, particularly publishing and venue hire, the report said.

The committee called on museums and galleries to draw up five-year targets for income growth and on the Department to help them secure funds to invest in money-raising ventures.

"Income raised by the museums and galleries from fundraising, trading and admissions enables them to invest in their collections and provide better access, facilities and education to the public," said committee chairman Edward Leigh.

"Earnings have been variable in recent years, and museums and galleries need to be much more business-like to tap into the potential for further growth.

"Unbelievably, some museums and galleries have made losses on activities that were supposed to generate income, and have an inadequate grasp on the costs involved.

"All museums and galleries must be more robust in their planning.

"They should establish five-year targets for income growth and set out how these will be achieved; in doing so they must properly identify which activities are profitable and the risks to be managed.

"The Department for Culture, Media and Sport also needs to do more, including promoting the sharing of skills, and helping museums and galleries access investment funds for new income-generating ventures."

The committee's report, entitled Income Generated by the Museums and Galleries, detailed innovative money-raising schemes by UK institutions, including:

:: `Air Prom' flying displays to music at the Imperial War Museum in Duxford, Cambridgeshire;

:: Use of laser-cleaning services for church conservation, by National Museums Liverpool;

:: Print-on-demand posters at the National Gallery, London;

:: Virtual parachute jumps and historic train rides at the Museum of Science and Industry, Manchester;

:: The sale of Tate Museum-branded paint through B&Q DIY stores. Tweet