Phil,
  The ammo isn't too too rare as they still make 30-40
Krag Ammo, I have 3 Krag's and buy ammo on and off to
shoot.  The fact that they are period 19th C. rounds
and hopefully military makes them special.
  They are not unstable on their own and should likely
last indefinitely as long as no one goes banging on
their primers with a hammer.  People who are
unfamiliar with firearms usually get pretty scared at
the prospect of having "live ammunition" around but
its all how you handle the objects.
  If you would like to "disarm" the ammunition someone
could professionally drill and empty the shells if
you'd like.  At the very least contact Springfield
Armory in Springfield MA or shell collectors.  Civil
War artillery shells can be defused as someone
mentioned by being drilled underwater.  People do that
for a living for collectors too, just don't try it at
home yourself.
  Take care and I could give you the names of those
who defuse C.W. shells.  I have a feeling that it may
be a hassle to send the Krag shells to these people
though.  At the very least keep the shells in a dry
location, maybe in a fireproof safe.  I have original
early C.W. shells for Henry & Spencer rifles that are
live and I would never think of disarming.  It's all
how comfortable you and your institution are with the
situation.
  Dave

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