There seem to be two areas of possible concern here.

First--your artists guild has its own 501(c)3 status.  If they are
independent organization legally and in practice, then you have no real
control over what they are doing in the museum's name.

Second--the exhibition/auction seems to be open and above board  given your
brief description.  Our museum has run art auctions for thirty plus years
and the problem areas that have occured are a) when the artist doesn't feel
he or she got enough money from the sale of their work.  Under the setup
you describe all the money goes to the artist along with the decision to
accept the high bid.  The other problem area is possible confusion that a
work was from the museum's collection.

In general as long as the auction is clearly separate, something that
benefits the museum but primarily aids local artists and that conflicts of
interest, real or imagined, are dealt with promptly and publicly, then I
don't see a problem with the auction.  You may experience more problems in
the long run with an auxiliary group being able to walk away with funds
that were raised in the name of the museum.

Frank E. Thomson, III
Curator, Asheville Art Museum
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----------
> From: Kathryn Desulis <[log in to unmask]>
> To: [log in to unmask]
> Subject: Displaying art for sale
> Date: Monday, June 02, 1997 12:50 PM
>
> I have a legal/ethical question to bring up.
>
> Our museum has an Artists Guild, which is involved with the museum
> but is its own 501(c)3.  They collect their own dues and disburse
> their income for their own projects.
>
> Each year, the museum holds an exhibit of Guild members' artworks.
> The exhibit lasts for one weekend.  All of the artwork is for sale
> through a closed bidding system. The bids are submitted to the
> individual artists.  If a piece is sold, the money goes to the
> artist.  The Guild requests artists to donate a portion of their sales
> to the museum, but it is not required.
>
> My question is:  Is this within the legal and ethical boundaries of
> accredited museums?  I just have a funny feeling about this, and was
> curious to see what other museums are doing and others think of
> this arrangement.  Thanks for any help.
>
> Kate Desulis
> The Morton Arboretum
> [log in to unmask]