Kristin,

I'm staying out of the general discussion, but you bring up one point that 
if I understand you correctly, should be addressed immediately.  If the 
Military Museum is giving appraisals for donated items, that is not 
unethical, it is ILLEGAL.  IRS regulations specifically prohibit the 
recipient from providing the donor with any indication of value.  The item 
must be appraised by an independent third party, which must be paid for by 
the donor.  The recipient only provides evidence of receipt of the item. 
More info on this is on the IRS web site, including a downloadable document. 
If the Military Museum is operating under your 501(c)(3) non-profit 
designation, you have full authority to order them to cease this practice.

The proof of donation must come from your organization to be valid, since 
the Military Museum does not have tax-exempt status.  Thus, technically, you 
own the donation and can make decisions about it, including refusing items. 
If the Military Museum wants to operate under its own rules, then it should 
apply for its own 501(c)(3) status.  Even if they do, they will have to 
cease giving appraisals.

Marc

American Conservation Consortium, Ltd.
     4 Rockville Road
     Broad Brook, CT 06016
     www.conservator.com
     860-386-6058

*Collections Preservation Consultation
*Conservation Assessments & Surveys
*Low-Tech Environmental Control
*Moisture Management Solutions
*Collections in Historic Structures
*Collections Care Grant Preparation
*Conservation Treatment of:
     Furniture
     Painted Wood
     Horse-Drawn Vehicles
     Architectural Interiors

Marc A. Williams, President
     MS in Art Conservation, Winterthur Museum Program
     Former Chief Wooden Object Conservator, Smithsonian Institution
     Fellow, American Institute for Conservation (AIC)


----- Original Message ----- 
From: "Kristin Mravinec" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Friday, August 17, 2007 5:32 PM
Subject: Re: [MUSEUM-L] Policies with Umbrella Organizations


> 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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