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