Eugene And Margaret Medermott Art Fund Inc.

The Eugene and Margaret McDermott Art Fund Inc. is a private operating foundation, not a conventional grant-making organization. Understanding this distinction is the single most important fact for any arts organization considering this funder. With $281 million in assets and annual external disbursements of only $30,000–$70,000, the fund operates its own programs — specifically the acquisition and display of art objects through the Dallas Museum of Art — rather than distributing grants to third parties. No grantee records appear in any public 990-PF filing, and the database flag `application_instructions: none` confirms that no application process exists for external applicants.

The fund represents the enduring legacy of Margaret McDermott (1912–2018), wife of Eugene McDermott, co-founder of Texas Instruments and one of Dallas's most consequential philanthropists. Margaret died at age 106, and her estate — including a personal art collection of 32 masterworks spanning Monet, Renoir, Degas, O'Keeffe, and Picasso — flowed into the DMA and this fund. The asset base quadrupled between 2016 and 2019, reflecting that bequest.

The board of four volunteer directors — Mary M Cook (Chairman), Patricia J Brown (Secretary/Treasurer), Schatzie Lee, and Grace Cook — steward the fund with zero officer compensation. The Cook names suggest ongoing family or close-associate governance, a common pattern in legacy philanthropic vehicles of this type.

For arts organizations seeking to benefit from the McDermott legacy, the correct entry point is the Dallas Museum of Art itself, not the fund. Meaningful opportunities include: institutional partnerships with the DMA for exhibitions or programming, art donation or long-term loan arrangements, collaborative curatorial projects, and engagement with DMA's development office. The fund exists to support the DMA's collection — not to distribute grants to the broader nonprofit arts sector.

The McDermott Art Fund's financial structure is atypical and must be read carefully. Its $281 million portfolio generates approximately $1.7–2.5 million in annual investment income (dividends and capital gains), yet external disbursements have never exceeded $72,000 in any recorded year — a payout rate of less than 0.03%.

Annual giving trend: - FY2019: $71,874 (highest recorded; first full fiscal year after Margaret's May 2018 death) - FY2020: $43,762 - FY2021: $33,188 - FY2022: $31,817 - FY2023/2024: $46,159 - FY2025: ~$39,306

These figures represent program expenses for "acquisition and display of art objects" — they are operational costs of the fund's own art programs, not grants to external organizations. The 990-PF lists `grants_paid: $0` in every year where the field is populated, confirming no external grant disbursements.

Asset growth is the real story. From approximately $68–74 million in 2012–2016, assets grew to $272.9 million by FY2019 following Margaret McDermott's 2018 bequest. By FY2025, the portfolio had reached $281.1 million. Investment income composition in FY2025: 34.7% dividends ($881,715), 65.3% asset sales ($1.66 million). No outside contributions are received.

Why the low payout? As an operating foundation, the IRS allows the McDermott Fund to satisfy its minimum distribution requirements through its own program activities (art acquisition through the DMA) rather than external grants. The program expense of $17,024 recorded in recent filings represents direct art-related costs. There is no evidence of multi-year granting cycles, RFP processes, or geographic expansion of funding.

The McDermott Art Fund sits among a peer group of large, asset-heavy arts foundations, but its operating foundation structure sets it apart sharply from peers that actively grant to external organizations.

The most instructive comparison is with The Poetry Foundation, which — despite a similar asset profile (~$313M) — operates robust public grant programs with published guidelines and application cycles. The Joan Mitchell Foundation ($182M in assets) actively grants to working visual artists through invited and nominated processes. The McDermott Fund, by contrast, functions more like the Christo & Jeanne-Claude Foundation or Wayne Thiebaud Foundation: a legacy vehicle preserving and deploying an artist couple's collection, not a public grant-maker. For arts nonprofits seeking Dallas-area support, the Moody Fund for the Arts is a far more accessible entry point with open grant programs specifically designed for Texas arts organizations.

The most significant recent event in the fund's history was Margaret McDermott's death on May 3, 2018, at age 106. Her estate transformed the fund from a $74 million endowment into one of Texas's largest arts foundations at $272+ million. The DMA's July 2018 exhibition "An Enduring Legacy" — featuring the 32 donated masterworks — marked the formal public recognition of this transfer.

Since then, the fund has been operationally quiet. No new grant programs, leadership announcements, or strategic pivots have been publicly disclosed through March 2026. The board composition (Mary M Cook as Chairman, Patricia J Brown as Secretary/Treasurer, Schatzie Lee and Grace Cook as Directors) has remained stable across multiple 990-PF filings, with all four serving without compensation.

The DMA — the fund's de facto operating partner — continues active programming. Its upcoming June 24, 2026 exhibition, "The Impressionist Revolution: Monet to Matisse", curated by Chief Curatorial Officer Dr. Nicole R. Myers, draws on the Impressionist holdings strengthened by the McDermott collection. This is the most visible recent expression of the fund's legacy in action.

The September 2025 990-PF filing shows assets at $281.1 million with $39,306 in charitable disbursements — consistent with prior years and no sign of transition to external grant-making. No open RFPs were found across any grant discovery source.

Because the McDermott Art Fund does not accept external applications, the following tips address how arts organizations can position themselves within the broader McDermott philanthropic ecosystem:

1. Engage the DMA directly, not the fund. The fund's sole programmatic outlet is the Dallas Museum of Art. Contact the DMA's development office for institutional partnership discussions, exhibition loans, curatorial collaborations, or programming co-sponsorships.

2. Do not contact the fund address for grants. The address at 1935 Malone Cliff View, Dallas TX 75208, and phone (214) 369-9222 reach the McDermott family office, not a grants office. Unsolicited applications will receive no response.

3. Build Dallas civic credibility first. The McDermott legacy is embedded in Dallas's premier cultural institutions — the DMA, Dallas Symphony, Dallas Opera, and UT Southwestern. Organizations with demonstrated ties to this ecosystem, including support from Dallas-area community foundations, are better positioned for any relationship with DMA leadership.

4. Pursue Philanthropy Southwest membership. The fund is a member of Philanthropy Southwest, Dallas's regional philanthropy network. Membership enables arts organizations to network with foundation trustees and officers at regional convenings — the indirect relationship-building that precedes any invitation from a legacy fund of this type.

5. Consider the Eugene McDermott Foundation separately. This is a distinct entity (EIN: different from 75-2567893) that does make grants in STEM education, arts, and Dallas-area nonprofits. The Eugene McDermott Foundation has published grant guidelines and is the appropriate target for organizations seeking a McDermott-named grant.

6. Align to collection acquisition. If your organization has artworks, archival materials, or cultural artifacts that align with the DMA's collection focus (Impressionist, modern, American art), a proposed gift or bequest discussion is more likely to attract attention than a program grant request.