Joshua,

There is a small caveat to Ms. Boyer's message.  the IRS requires that a
gift be retained by the receiving institution for 2 years.  If the museum
should sell or transfer the gift during that time the IRS requires that IRS
and the donor be notified.  As I understand it IRS had disallowed deductions
for gifts sold within that period.  Our collections policies require the
Philadelphia History Museum to retain gifts for a minimum of three years so
that both the donor and the museum are protected.

If your donor received a tax deduction and the gift was free and clear,
and/or unconditional then no reconciliation is required.  You certainly
cannot return the painting to the donor because of the tax deduction.

We have been evaluating our collections and very actively deaccessioning and
as a courtesy I have contacted donors to let them know we are selling
something t hey gave us.  The usual reaction is to ask if their deduction is
still good and I have explained that it is.  Some have misunderstood the law
and wanted the things back and I have explained that that cannot happen.
The vast majority have had no problem, some were disappointed and only one
got really mad and let me have it.

I hope that this helps.

Jeffrey Ray
Senior Curator
Philadelphia History Museum

On Thu, Aug 12, 2010 at 10:57 AM, Cindy Boyer <[log in to unmask]>wrote:

> I don't think there is anything to reconcile.  The donor made a gift,
> received the tax credit. Even if the museum turned around and deaccessioned
> it the next day and sold it, that would not change the action and resulting
> tax benefit received by the donor - unless the object was returned to the
> donor.
>
> Am I missing something here?
>
> Cindy Boyer
> Director of Museums and Education
> The Landmark Society of Western New York
> 133 S. Fitzhugh St.
> Rochester NY  14608
> (585) 546-7029 ext. 12
> [log in to unmask]
> Fax:  (585) 546-4788
>
> The Landmark Society:  Revitalizing Yesterday, Protecting Today, and
> Planning for Tomorrow
>
> www.landmarksociety.org
> Confessions of a Preservationist: The Landmark Society blog
> Facebook / MySpace
>
> -----Original Message-----
> From: Museum discussion list [mailto:[log in to unmask]] On
> Behalf Of Joshua K. Blay HSBC
> Sent: Thursday, August 12, 2010 9:57 AM
> To: [log in to unmask]
> Subject: [MUSEUM-L] Donation/Deaccession Question
>
> Let's say a donor gets a tax deduction on a $10,000 painting after
> having it appraised and donating it to their favorite museum.  Ten years
> later, the museum decides to deccession it.
>
> Whether or not it is sold, traded, or disposed of, how (if) is this best
> reconciled with the donor?
>
> Happy Thursday,
>
> Joshua K. Blay
> The Historical Society of Berks County Museum & Library
>
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-- 
Jeffrey R. Ray
Senior Curator
Philadelphia History Museum at the Atwater Kent
15 South 7th Street
Philadelphia, PA 19106-2313
215.843.1713 voice 215.685.4837 fax

Please note my new e-mail address: [log in to unmask]

Philadelphia History Museum at the Atwater Kent: discover the city’s
foundations while we renovate ours, www.philadelphiahistory.org.
Reopening 2011.

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