A drop in donations, including huge spending from its endowment means The Los Angeles Museum of Contemporary Art (MOCA) is faced with a financial crisis of its own making. However, it has announced a $75-million rescue plan designed specifically to stave off a merger or having to move to another location.

The rescue plan spearheaded by billionaire philanthropist Eli Broad, first chairman and co-founder of the museum, promises MOCA $15 million over five years, plus another $15 million, if the museum is able to raise the same amount by touching other donors. It is possible that by cutting its annual budget, replacing its long time director and building its decimated endowment, will help the museum fend of a merger with the Los Angeles County Museum of Art.

The restructuring of MOCA includes replacing director Jeremy Strick with Charles Young, a former University of California chancellor. Young expects his position as Chief Executive of the museum is temporary while he helps stabilize MOCA's finances, including helping it look for a permanent director.

Young believes that most cultural institutions will be facing similar situations like MOCA, even as the recession continues, attendance and annual membership to down, while costs go up.

MOCA's hand-to-mouth budget got the museum in trouble, as it generally relied on current-year contributions for 80% of its operating budget. However, that wasn't feasible during times of economic strains like in 2001 and again over the past 18 months, with investment incomes and donations drying up. With no option but to raid its endowment to cover operating expenses, the museum cut down from a peak of $38-million in 2000 to just several million dollars this year.

While, the $3-million received annually from Mr. Broad's foundation will help cover exhibition costs, the museum will have to reduce its overall budget from an average $20-million a year to $13-million or $16-million a year. This means reducing museum staff numbers and cutting back on travelling exhibitions staged every other year.

Former director Strick, who has run MOCA since 1999 declined to comment on his professional plans going forward.