We have done a number of these transactions. Marie Malaro (A Legal
Primer on Managing Museum Collections) goes into exactly the paperwork
you need to do in order for this to be legal and usable for the IRS.
There's a whole sub-section in her book dedicated these types of
transactions. If you do these types of purchases it would be good to
read this section. We actually call it a "bargain sale" for accession
method. It keeps things nice, neat and clear. The credit line tends to
be along the lines of 'Museum purchase with donation from Mr. and Mrs.
Smith'. 

 

-Michelle

 

Michelle Gallagher Roberts

Chief Registrar

New Mexico Museum of Art

(formerly Museum of Fine Arts) 
107 West Palace Avenue
Santa Fe, NM 87501 

505-476-5066 phone

505-476-5076 fax

[log in to unmask]

________________________________

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Chad Petrovay
Sent: Monday, October 12, 2009 11:08 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

Wow - didn't realize that would spark quite a discussion - but thanks to
everyone for their input.

 

~Chad

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Glosson, Eunice
Sent: Monday, October 12, 2009 7:28 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

In most instances the need for a tax write off is the reason for the
bargain/sale.  The owner would like to give the entire object, but is
not in a financial position to do so.  Thus the reason for both a deed
of gift and a sale agreement.  Sometimes, even a vendor will offer a
bargain sale; they feel altruistic, but they also need to make a sale.
I find these a win-win arrangement, even though the paperwork is ten
times the usual transaction!

 

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Christine Droll
Sent: Monday, October 12, 2009 10:15 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

But doesn't the donor/seller want a tax write-off for the "gift" (value
of object minus the selling-price) portion to the museum?  Hence, the
museum must furnish a deed of gift?

 

Christine

 

Christine Droll

Collections Database Administrator

The Nelson-Atkins Museum of Art

4525 Oak Street

Kansas City, MO  64111-1873

t: 816.751.1333

f: 816.751.0499

 

 

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Aylsworth, David
Sent: Monday, October 12, 2009 9:11 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

I have a hard time in seeing such a thing as a gift at all, which is
probably my being obstinate.  I think that if the Museum paid someone,
the person who got paid has a role of "seller"; the accession method is
"purchase".  I try to retain the whole notion of a "partial gift" for
cases where a donor has only given a percentage interest in the artwork,
and the Museum does not yet fully own it.

 

But that's just me...

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Glosson, Eunice
Sent: Monday, October 12, 2009 9:08 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

We do a two part document, a Purchase and Sale Agreement, along with a
Deed of Gift for the gift portion.  I was wondering how you document
these in the constituent portion of TMS?  Right now I am calling these a
Partial Gift, but have never been completely satisfied that the purchase
portion is represented up front.  

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Aylsworth, David
Sent: Monday, October 12, 2009 9:58 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

Hi Eunice,

 

Those are a little complicated when the "donor" wants a gift form for
their portion of a bargain sale.  I try to encourage them to handle it
more on their side with their accountant than on ours.  In my mind, a
bargain sale is nothing more than a deeply discounted purchase.  The
relatively few times that it occurs, I like to see a purchase agreement
drawn up that acknowledges what the insurance value of the piece is, as
well as what price the Museum has agreed to pay.  The "donor" (actually,
the "seller") can then work out their own tax forms to recognize this as
a bargain sale. 

 

Does that make sense?

 

David 

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Glosson, Eunice
Sent: Monday, October 12, 2009 8:43 AM
To: [log in to unmask]
Subject: Re: Accession Method

 

How do you handle bargain/sales?  

 

Eunice Glosson

Registrar for Collections and Museums

Colonial Williamsburg Foundation

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Aylsworth, David
Sent: Friday, October 09, 2009 6:00 PM
To: [log in to unmask]
Subject: Re: Accession Method

 

In Houston, we very much consider this to be a PURCHASE.  It's something
that is always being confused by our curators, but I try to drill home
that anytime the institution cuts the check, the accession method is
PURCHASE.  If we do not cut a check, it is a GIFT.

 

Similarly, the role of the person who gives funds for a purchase is a
FUNDER.  If they give an object, they are a DONOR.  Something that is
purchased should not have anyone with a DONOR role linked to it.  

 

I actually set it up procedurally that we cannot buy a work of art
unless the purchase order is accompanied by an "art purchase form" which
is a crystal report out of TMS.  The "art purchase form" will not run if
there is not someone identified as a "dealer or seller" as well as
someone identified as "funder" and the accession method switched over to
"purchase".  It's worked surprisingly well

 

David

 

 

David Aylsworth

Collections Registrar

Museum of Fine Arts, Houston

telephone:  713-639-7824

fax:  713-639-7780

 

Opening Sunday: The Moon: "Houston, Tranquility Base Here. The Eagle Has
Landed"

 

 

From: The Museum System (TMS) Users [mailto:[log in to unmask]]
On Behalf Of Chad Petrovay
Sent: Friday, October 09, 2009 4:32 PM
To: [log in to unmask]
Subject: Accession Method

 

How do you handle Accession Method when an object is purchased by the
institution with funds from a donor. Is this considered a Gift, a
Purchase, or do you have some other designation for it?

 

Many thanks,

 

Chad Petrovay  |  Collections Database Administrator
MIM-Musical Instrument Museum | 8550 S. Priest Drive  |  Tempe, AZ 85284

480.481.2460 main  |  480.353.2746 direct | 480.481.2459 fax  |
www.themim.org

 

Blog: www.petrovay.com/tmsblog

 

 

________________________________

This inbound email has been scanned for malicious software and
transmitted safely to you using Webroot Email Security. 

________________________________



Confidentiality Notice: This e-mail, including all attachments is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited unless specifically provided under the New Mexico Inspection of Public Records Act. If you are not the intended recipient, please contact the sender and destroy all copies of this message. -- This email has been scanned by the Sybari - Antigen Email System. 



______________________________________________________________________
Confidentiality Notice: This e-mail,including all attachments is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review,use,disclosure or distribution is prohibited unless specifically provided under the New Mexico Inspection of Public Records Act. If you are not the intended recipient, please contact the sender and destroy all copies of this message. 

This email has been scanned using Webroot Email Security.
______________________________________________________________________