How does this apply when only one organization is the actual non-profit? 
Neither the Library or the Military Museum has non-profit status. 
Everything is filed under our non-profit. If a donor takes a tax 
deduction, then it is under our federal id number.  The Military Museum, 
however, does have by-laws. We are all in the same building which is 
owned by our Museum. Our concern is more with the Military Museum than 
the Library. With them, there is the understanding that while we own the 
collection the Library volunteers are responsible for management. We are 
still working on outlining how everything is handled though.

Donors believe they are donating to each different organization. The 
Deeds of Gift for both list: Library or Military Museum, Annex of our 
Museum. We are concerned about upholding museum standards or that items 
might be donated without our knowledge that could introduce mold or pest 
infestations. If a something ever happens as say a donor receiving an 
appraisal that is incorrect, then we will be the one's sued. We know 
that is unethical but convincing the Military Museum is another story. 
In the past, we had some potential legal problems resulting from how the 
Military Museum handles things. Our Museum ended up being threated with 
a lawsuit. This has resulted in the current operating agreement but it 
is lacking in many areas and could conflict with current museum practices.

To my understanding, there was never a discussion as them operating 
under our umbrella. Both were opened in the early 1990s, which was after 
our Museum in 1989.  The issue was not discussed until the Museum hired 
its first professional in 1996. The operating guidelines outlining all 
collections issues as to ownership and incoming donations but were not 
followed. The guidelines were later redrafted, not by us, to a one-side 
agreement that does not give us oversight.

Is this standard? Are we wrong to think that we should have some control 
or oversight, especially over the collections, because of the potential 
liability? Even with the current agreement, would not we be still the 
legally responsible?


Maggie Harrer wrote:
> Key to this question  is what was your discussion when they first came 
> under your umbrella?  Are they an OFFSHOOT of your museum, or did they 
> simply ask if they could come under your umbrella and operate in some 
> shared ways. 
>
> It is NOT standard that you own what they own....as they are a 
> separate organization merely operating under your umbrella, but it 
> sounds as if this discussion has NOT been had prior to their coming 
> under your umbrella, and it should have.  If they handle their own 
> collections, including purchasing, when desired, then it would seem 
> they own their own collection, despite the fact that you have allowed 
> them to be covered under your insurance.  This is not an a priori 
> situation - rather it is one that requires immediate and honest 
> discussions to understand how each organization understands your 
> relationship.  If they are "ok" with you actually owning their 
> collection - what exactly is the purpose of the separate organization?
>
> Maggie
>
>
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