For the Smithsonian Institution, the 2001 fiscal year was a difficult one. After September 11, visits to Smithsonian museums decreased. The terrible events of that day cut badly into tourist visits to Washington and resulted in loss of revenue in the museum stores, restaurants, and theaters.

At the same time, the Smithsonian’s mission and strategy were the focus of a painful but important public discussion. The National Museum of American History—specifically the difficulties surrounding the gift of the Catherine B. Reynolds Foundation—was a high-profile part of this discussion. More generally, the Museum shared the challenges that faced the Institution as a whole, as well as several of its own.

In this context, the Museum began a large-scale transformation, including the reconstruction of its building and a redirection of its portrayal of American history. At the end of the fiscal year, Museum director Spencer Crew announced his departure to take on new opportunities.

But this difficult year was also a year of achievement for the Museum, as we created a solid foundation for our transformation. The work of the Blue Ribbon Commission gives us a number of high-level yet focused recommendations that will greatly help to improve the Museum. Our fund-raising success—including a major commitment of $40 million from the Lemelson Foundation—shows donors’ confidence in the Museum’s potential.

Other significant accomplishments are described in this annual report:

• Successful new exhibitions, including The American Presidency, Paint by Number, and Within These Walls…
• Evolving plans for future exhibitions such as America on the Move
• Research contributions by Museum staff, including a report on the Star-Spangled Banner Preservation Project
• Educational programs for teachers and students—in Washington and in cyberspace—that lived up to our reputation for excellence
• Three outstanding new websites that expand outreach possibilities—HistoryWired, Within These Walls…, and The American Presidency

As director for nine years, Spencer R. Crew was instrumental in moving the Museum forward. The Board joins me in expressing our deep appreciation to Dr. Crew for his service and his leadership. During the search for a new director, we are fortunate that Marc Pachter, director of the Smithsonian’s National Portrait Gallery, agreed to serve as acting director.

By the year’s end, we had launched a major transformation, and we had fashioned a suitable base for this transformation in spite of a difficult environment. We realize that a great challenge lies ahead, but we enter the new year with confidence and high expectations.