It is currently Sat Aug 22, 2026 2:59 am

All times are UTC - 5 hours [ DST ]




Post new topic Reply to topic  [ 17 posts ]  Go to page 1, 2  Next
Author Message
 Post subject: Selling collections to fund general operations
PostPosted: Mon Apr 14, 2014 10:40 pm 

Joined: Mon Feb 17, 2014 4:20 pm
Posts: 487
I was reading, The Center for the Future of Museums Blog, and came across a post that asks, "Is it ethical for a museum to use the money it gets from selling collections to fund general operations?". Well what's your view? Read on.

Quote:
Tuesday, November 29, 2011

The Third Rail of Museum Ethics: Selling Collections to Pay for…What?

Is it ethical for a museum to use the money it gets from selling collections to fund general operations?

How about using the proceeds from the sale for “preservation” (the term used by AASLH’s Statement of Professional Standards and Ethics) or “direct care” (cf. AAM’s Code of Ethics for Museums)? Does preservation or direct care include fixing the roof? Hiring a conservator? Paying the salary of your collections manager?

According to Financial Accounting Standards Board regulations (and those of its government counterpart, GASB), using the funds from deaccessioning for anything other than buying more collections means the museum has to capitalize the whole collection, an action that some parts of the field believes to be unethical in and of itself.

(continued...)
Read the entire post here: http://futureofmuseums.blogspot.com/201 ... lling.html

(Hint: Use the search box at the very top left of the blog to find other interesting discussions.)


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 4:06 am 

Joined: Thu Nov 22, 2007 5:46 am
Posts: 2611
Location: S.F. Bay Area
Depends an awful damn lot on who you're selling it to... and what THEY intend to do with it.


But yes, if you are "scrapping the place out" just to keep the lights on, "yer doin it wrong".

That would also be true if the "scrapping the place out" amounts to merely deferred maintenance.

Also true if it is just accumulating new debt.

Also true if it means settling out old debt for a fraction.

All of the above is included in the term "equity stripping".


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 8:03 am 

Joined: Sun Aug 22, 2004 7:38 am
Posts: 1013
Location: Philadelphia
Working for a museum, this is a concern I deal with frequently and thought I might share some of my notes:

A Legal Primer on Managing Museum Collections

• The prime concern of a museum is the enhancement and protection of its collection.
• The common practice to use proceeds only for the acquisition of new collection material has been the subject of intense debate and the profession is split on the use of proceeds.
• When museums seek to deaccession for reasons other than collections improvement, the underlying problem is invariably a history of board failure to exercise prudence in fiscal management.

National Standards & Best Practices (AAM)

• All museums are expected to abide by the AAM Code of Ethics that specifies that proceeds from sales resulting from deaccessions can be used only for acquisitions or direct care of collections.
• While the interpretation of “direct care” varies between museums and disciplines, there is a strong consensus that that it does not include use of funds to pay for operational expenses.
• AASLH specifies that history museums can use such funds only for acquisition and preservation.

ICOM Code of Ethics

• Museum collections are held in public trust and may not be treated as a realisable asset. Money or compensation received from the deaccessioning and disposal of objects and specimens from a museum collection should be used solely for the benefit of the collection and usually for acquisitions to that same collection.

Deaccessioning should be a very careful, very thought out process with discussion on the use of funds realized. Mission statements, collection policies, and some of titles above should be use to guide the deaccession as well as accession process.

Joshua


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 9:13 am 

Joined: Wed Oct 22, 2008 8:18 pm
Posts: 2226
its time to put out those public service ads radio and TV do to say..hey! Come see our stuff we have some fun things to do! (and those ads are free)

If your a non-profit you should be able to do that.

by the time your done selling you have no displays left and a blank museum.


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 9:23 am 

Joined: Sun Aug 22, 2004 7:19 am
Posts: 6464
Location: southeastern USA
I've never worked for a museum at which any generated revenues from deaccession weren't immediately eaten up with the cost of caring for the collection, and still found to be insufficient.

We've all heard the horror stories here about scrappings used to fund the continued operating expenses - in some cases, salaries of those who should be charged with caring for the collections but are authorized to dispose of them without oversight.....anybody see a possible conflict of interest here?

Managing collections isn't rocket science - managing the size of the collection to make sure it is manageable is harder, but with an unemotional and rational approach it is certainly possible.

Collections evolve - it isn't evil unless there's no mission driven reason for the evolution. Our "GRAB EVERYTHING" strategy turns out to have not been a strategy for long term preservation and interpretation at all.

dave

_________________
“God, the beautiful racket of it all: the sighing and hissing, the rattle and clack of the cars over the rails. These were the sounds that made America the greatest country on earth." Jonathan Evison


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 11:34 am 

Joined: Mon Aug 23, 2004 11:07 am
Posts: 630
This is a real issue in Detroit where some would like to sell art from the Detroit Institute of Art to pay some of the city's bills....

Then you get to the cost of appraising a collection to determine it's book value.

Bob H


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 12:13 pm 

Joined: Mon Feb 17, 2014 4:20 pm
Posts: 487
I noticed some people say in another thread that NRM, Green Bay, should sell their British steamer "Dwight Eisenhower" for big dollars and use the money to house and preserve the rest of the collection. That's the sort of issue the blog post is talking about. Is it ethical? Y/N


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 12:56 pm 

Joined: Sun Aug 22, 2004 7:25 pm
Posts: 2559
Location: The Atlantic Coast Line
From ARM Recommended Practices:

Before answering Y/N you need to have a collections policy.

Quote:
5.1 A comprehensive, written Collections Management Policy must address all aspects of
the institution's collections, and relate care and treatment of collections back to the
institution’s mission.

1. Written collecting criteria includes:

a. What the museum will collect, and why

b. How each collection will support the museum's mission

c. How each collection and its individual items will be used and cared for (e.g.,
research, display, operation, education, outreach, etc.)


Then you need the de-accession policy:

Quote:
5.6 A deaccessioning policy recognizing the museum's trust responsibility is to be
developed in advance, for removing items accessioned into the permanent
collections. (Note: Objects not accessioned into the museum's permanent collections
do not need to go through a formal deaccessioning process.) Whenever possible,
and consistent with the museum's fiduciary responsibility, the museum should
dispose of deaccessioned objects to other museums, historical organizations, or
similar education institutions, and by means of gift, trade, or sale, in that order. The
policy addresses:


a. Use of funds generated from deaccessionings, restricting such use to acquisition
of additional objects or care of museum collections.


b. The conditions which must be present for deaccessioning to be considered,
including such concerns as non-relevance to mission, poor condition,
duplication, or lack of authenticity

c. Any conditions or restrictions stated in original deed of gift. If possible, the
donor of an object should be notified of any deaccessioning decisions made
regarding an item he or she has donated, purchased for, or otherwise made
available to the museum

d. Conditions by which members of the museum, its governing body, or staff must
abide in order to receive any deaccessioned object


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 1:05 pm 

Joined: Mon Aug 23, 2004 12:08 pm
Posts: 255
Location: Western Railroad Museum - Rio Vista
dinwitty wrote:
its time to put out those public service ads radio and TV do to say..hey! Come see our stuff we have some fun things to do! (and those ads are free)

If your a non-profit you should be able to do that.

by the time your done selling you have no displays left and a blank museum.


The FCC no longer requires broadcasters to carry public service announcements on radio or television. Many stations no longer broadcast public sevice announcements. Perhaps the best free publicity you can get is talk a local television station to carry a story about some special event at your museum.


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 5:12 pm 

Joined: Sat Aug 28, 2004 3:25 am
Posts: 1025
"Selling collections to fund general operations" reminds me of the old farmers' expression "Eating your seed corn". The term "death spiral" also comes to mind. On the other hand, my "home" museum has sold off a number of trolley cars to places where they were A) more appropriate, and B) where they could be the focus of attention rather than one of many relics competing for resources. Most of the funds derived from these sales have gone into buildings to keep the remaining relics out of the weather.

As a side remark, when I became involved with railway preservation about 50 years ago, terms like "deaccession" and "mission statement" would not become parts of our vocabularies for many years.

_________________
Bob Davis
Southern California


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 5:51 pm 

Joined: Sat Sep 04, 2004 10:54 am
Posts: 1186
Location: Tucson, Arizona
rock island lines wrote:
I noticed some people say in another thread that NRM, Green Bay, should sell their British steamer "Dwight Eisenhower" for big dollars and use the money to house and preserve the rest of the collection. That's the sort of issue the blog post is talking about. Is it ethical? Y/N


This illustrates another set of questions that must be addressed. Just because it might be ethical to sell an artifact does not necessarily mean that that is a smart idea. This depends on the nature of the specific item involved. In the specific case of the Dwight Eisenhower, it could well be argued that selling the locomotive could be more harmful then beneficial. The Eisenhower is different in that it was a gift from a foreign nation given in thanks for our support to them in World War II. Seeing such a significant item sold could at the least be very off putting to potential donors and political supporters. Similarly, even transferring the ownership of such an item might be damaging to the organization unless the process is given careful consideration and carefully executed.

_________________
"When a man runs on railroads over half of his lifetime he is fit for nothing else-and at times he don't know that."- Conductor Nimrod Bell, 1896


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Tue Apr 15, 2014 7:33 pm 

Joined: Sun Aug 22, 2004 1:51 pm
Posts: 12151
Location: Somewhere east of Prescott, AZ along the old Santa Fe "Prescott & Eastern"
This. Exactly.

Even if it were somehow decided that the NRM's A4 were no longer part of the Museum's mission statement, the loco went to a billionaire who promptly turned it over to the LNER A4 Preservation Society in the UK and paid for its repatriation, and the NRM put the millions raised towards a new climate-controlled display hall that put every last exhibit in a perfect setting, there's still that little matter of the original gesture.

I know personally of relationships that have soured VERY hard between museums and groups that acquired and donated artifacts to museums only to see them "traded" or "deaccessioned" off a few years later after a management or policy change.


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Wed Apr 16, 2014 3:44 pm 

Joined: Fri Dec 03, 2004 9:42 pm
Posts: 3011
robertmacdowell wrote:
Depends an awful damn lot on who you're selling it to... and what THEY intend to do with it.


Does it really?

Once you sell it, it's out of your control. Maybe you sell it to the scrapyard, or maybe you sell it to the Smithsonian, but in either case, you no longer control its destiny.

Even if it isn't scrapped, will it be properly cared for? Will it be properly displayed? The only way to truly ensure it's done the way you feel is proper is to do it yourself.


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Wed Apr 16, 2014 5:18 pm 

Joined: Sun Aug 22, 2004 1:51 pm
Posts: 12151
Location: Somewhere east of Prescott, AZ along the old Santa Fe "Prescott & Eastern"
Bobharbison wrote:
Once you sell it, it's out of your control. Maybe you sell it to the scrapyard, or maybe you sell it to the Smithsonian, but in either case, you no longer control its destiny.

Not. Necessarily.

I recently had the privilege to blunder into the original sales agreement between one history-preservation group and another regarding a certain piece of rolling stock, a piece most American rail preservationists would rate as "iconic."

The group that ended up with the piece was just starting up at the time, and made a purchase offer, with good cause, to the group that originally saved the piece from almost certain destruction. The agreement states that the original owner has right/option of first refusal to repurchase the item in question, for the original purchase price.

That was nearly a half-century ago. The original price was in the low three figures.

Both groups still exist today. The latter group has since put a good six figures of dollars into the piece during a complete restoration. The latter group shows no signs of going away any time soon, but just in case, I happened to have an opportunity to mention the deal in passing to an officer of the latter group, with a smile...... He replied "We'll worry about that if and when it ever happens."


Offline
 Profile  
 
 Post subject: Re: Selling collections to fund general operations
PostPosted: Wed Apr 16, 2014 5:33 pm 

Joined: Sat Sep 04, 2004 10:54 am
Posts: 1186
Location: Tucson, Arizona
Bobharbison wrote:

Once you sell it, it's out of your control. Maybe you sell it to the scrapyard, or maybe you sell it to the Smithsonian, but in either case, you no longer control its destiny.



As Sandy said, not necessarily. Same goes for donated materials. It all depends on the substance of the contractual agreement between the parties.

_________________
"When a man runs on railroads over half of his lifetime he is fit for nothing else-and at times he don't know that."- Conductor Nimrod Bell, 1896


Offline
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 17 posts ]  Go to page 1, 2  Next

All times are UTC - 5 hours [ DST ]


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to: