WASHINGTON, D.C.—The Smithsonian Institution plans to rename its troubled for-profit unit and change significant aspects of its operating procedures, the Washington Post reports.

Smithsonian Business Ventures, founded in 1999 to coordinate the for-profit divisions of the institution, will be renamed Smithsonian Enterprises, effective July 1, acting secretary Cristián Samper announced in a recent e-mail to his staff. In another symbolic move, the head of the unit will now have the title of president, as opposed to chief executive officer.

The institution also plans to change the way profits are distributed to its individual museums. In the past, each museum had a separate formula for how much money it received from its gift shops and other for-profit ventures — an arrangement, many complained, that was unfair and created tension with SBV executives. Starting Oct. 1, each museum will receive a 50 percent share of the profits after expenses, with the remaining 50 percent going to the overall institution.

Tom Ott, the director of the Smithsonian's media division, will serve as acting president of Smithsonian Enterprises until a permanent selection is made by the incoming secretary of the institution, G. Wayne Clough, who is scheduled to start July 1.

Gary M. Beer, the last permanent CEO of SBV, resigned last year after an internal investigation found that he had misused his business credit cards and billed thousands of dollars in unauthorized expenses. During his tenure, the business unit’s profits fell 14 percent, from $27.9 million in 1999 to $23.9 million in 2006.

Last year, profits rose to $26.6 million, but they are expected to show substantial losses this year, as an independently owned distribution center went bankrupt, forcing the institution’s catalogue and online stores to shut down for several months.