Hi Debra,
I agree with the others. A very slippery slope. Your staff
member is out of line with general museum practice.
For sources, I found these of potential interest:
IRS documents 526 and 561 as noted by others are good sources of
information.
The USPAP standards for appraisals include an ethical code of
conduct, which states: “An appraiser must perform assignments with
impartiality, objectivity, and independence, and without accommodation of
personal interests.”And “An appraiser must protect the confidential
nature of the appraiser-client relationship.” Formal appraisals are
confidential documents between the appraiser and the client. That is why we cannot
require our donors give us a copy of their appraisals.
Marie Malaro discusses the topic at length on pp. 384-387 of the
second edition of the Legal Primer on Managing Museum Collections. She
notes that the Tax Reform Act of 1984 specifically disqualifies museums/donees
from appraising for tax purposes, and that the same restriction calls into
question the impartiality of third-party appraisals done/paid for by museums/donees.
The impartiality is called into question if we even suggest specific appraisers
consistently, much less provide the appraisal itself.
It is not so much a matter of illegality as a focus on the
independence and impartiality of the appraisal. A negative IRS review of such a
procedure could go very bad for your institution.
Malaro suggests the easiest solution is to simply add this limitation
into your institutional policy for future reference.
Hope that helps.
Mark
Janzen
Registrar/Collections
Manager
Ulrich
Museum of Art
Martin
H. Bush Outdoor Sculpture Collection
316-978-5850
From: Museum discussion
list [mailto:[log in to unmask]] On Behalf Of Debra
Loguda-Summers
Sent: Thursday, May 29, 2008 7:59 PM
To: [log in to unmask]
Subject: Question regarding appraisals and Museum
Hello,
I have a question
regarding Museums and appraisals.
I know were are not
to give appraisals on donations but, I am having trouble convincing some of the
staff that we should not be paying for a donors appraisal and then letting the
donor write the amount off on their taxes. Am I wrong in thinking this???
I am stuck between a
rock and a hard place at the moment because a staff member told the donor we
would have the items appraised and let them know. It isn't the first time
it has happened and I need hard facts to back up my thoughts that this is wrong.
HELP
You can contact me
off line [log in to unmask]
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