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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