In a message dated 1/9/02 5:51:30 PM Eastern Standard Time,
[log in to unmask] writes:

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Erica,

Your thinking seems correct.    To get the tax credit (at least here in
Georgia), the money has to be donated to the museum and processed through the
museum's budget and bank account.    Sometimes, it is very difficult to get
this idea across to the devoted volunteer workforce at the local history
society who just take it into their own hands to do what needs to be done.

Professionalizing the museum means that these activities get coordinated by
an executive director or  the staff member who is in charge.   Also, some
things must be approved by a board or at least hopefully acknowledged by
them.

Otherwise, these ad hoc efforts that exist outside of the museum's formal
financial organization are just in-kind services.  You will want to keep
copies of the invoice from the contractor and the thank you letter to the
donor so that you have a paper trail for counting these in-kind donations as
a match in grant applications.  As well, it is useful to keep a copy of the
invoice detailing the work done in your facility's maintenance records, in
case these repairs become an ongoing problem in the future or some other
restoration of the building might take place later.

You can explain to this goodhearted donor that it is extremely important if
the museum is to attract serious grant support, that these donations be
channeled as actual cash contributions into the museum's bank account.  Of
course, the museum staff must take proper pains to record and acknowledge
these gifts and send an annual tax letter to donors.   Ultimately, and sooner
instead of later, the museum needs a formal audit each year by an outside
agency (the accounting firm cannot be owned by a board member!).   The audit
shows potential donors, both private individuals, foundations, government
agencies, and the community that the museum's finances are being managed
properly with transparency so that the public knows nothing funny is going on!

Sorry if I've gone off the deep end, but in my current occupation I write
business, financial and marketing plans for small museums.   I'm constantly
amazed at the poor bookkeeping and accounting practices that go on.   The
museum boards always think that it is just a matter of attracting bigger
donations, not realizing that good financial management is the first step in
doing any kind of serious fundraising.

End of soap box!   You raised a good question and in my mind, opened an area
for discussion on the list:    how do we get board members at small museums
to think in more professional ways about the financial management of these
institutions?

Anyone care to respond?

Ciao,
pamela sezgin

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