Open Forum

Hi Noel, 

Though I've never been in your exact circumstance, I could see why some artists (and their gallerists) would cringe at the thought of a 'bought-in' lot being transferred to a public auction house. Since most charity auctions are not on the public record (i.e. included in historical price databases), artists don't have much to risk by putting up a work for auction. It also tends to help them since buyers are typically willing to pay more at a charity auction, and since these events tend to get them increased exposure.

The biggest risk of selling at public auction is to artist's perceived retail value. This is because most emerging/recently established artists who find themselves in an auction achieve only a fraction of their retail value (for example I've seen artists with RRV of $45,000 go for $4,000 at auction). 

If you proceed, be sure to discuss the proposed auction house, their proposed pre-sale estimates, reserves, and track record selling contemporary art with your artist. 

I hope that helps!

------------------------------
Kaitlyn McElwee
Fine Art Appraiser
Charlotte NC
------------------------------

Original Message:
Sent: 02-28-2018 07:59 AM
From: Noel Valentin
Subject: Auctioning Donated (Non-Accessioned) Artwork

Dear Colleagues,

I am hoping to get some feedback or advice regarding the following scenario.

The museum I work for is gathering artwork donations from artists or their galleries whereby the donated art will be auctioned during the museum's annual private gala, with funds to support the museum.

However, my museum may want to sell / auction off any donated artworks - that don't sell during private gala - at a public auction.

What language / clauses do you use in your agreements with artists & galleries donating art to a fund-raising cause regarding the museum's use & sale of the donated art?  Do any of you have an experience where an artist/gallery is ok with donating art for a private auction, but cringe on having the donated art sold via a public auction?

Your feedback regarding this is greatly appreciated.

Thank you,

Noel Valentin

Permanent Collection Manager

El Museo del Barrio

1230 Fifth Avenue

New York, NY. 10029

212 660 7120 voice

347 749 4890 mobile

212 831 7927 fax

nvalentin@elmuseo.org

www.elmuseo.org

Sent from my iPhone

This message is intended only for the use of the individual or entity to which it is addressed and is covered by the Electronic Communications Privacy Act, 18 U.S.C.2510-2521. This message is legally privileged and confidential and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. E-mail transmission cannot be guaranteed to be secured or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. If you have received this communication in error, please notify us immediately by sending an email to hr@elmuseo.org, and delete the original message, and all copies, from your system.

I know your museum and also artists supporting it for many years. I don't know any legal clauses for auctioning donated works at a public auction. However, I would advise my artists to object to such an attempt. Sales at a private gala are okay, but selling the unwanted at a public auction may expose a below-market price of their works. Some organizations ask artists to put a price below their gallery price, which is okay in some cases. Eventually the bidding continues and the work is sold at a price close to the retail price. As an art organization consultant, I would ask your museum to consider solicitations on some identified future donors/corporations (hospitals are good these days; they collect and display art) and to offer an attractive price with some perks offered by your museum.  We need to project the sales price and the reputation of artists. I don't want some works to be seen as unwanted or as left over from something.

------------------------------
Kyunghee Pyun PhD
College Art Association
KyungheePyunCollege Art Association
------------------------------

Original Message:
Sent: 02-28-2018 07:59 AM
From: Noel Valentin
Subject: Auctioning Donated (Non-Accessioned) Artwork

Dear Colleagues,

I am hoping to get some feedback or advice regarding the following scenario.

The museum I work for is gathering artwork donations from artists or their galleries whereby the donated art will be auctioned during the museum's annual private gala, with funds to support the museum.

However, my museum may want to sell / auction off any donated artworks - that don't sell during private gala - at a public auction.

What language / clauses do you use in your agreements with artists & galleries donating art to a fund-raising cause regarding the museum's use & sale of the donated art?  Do any of you have an experience where an artist/gallery is ok with donating art for a private auction, but cringe on having the donated art sold via a public auction?

Your feedback regarding this is greatly appreciated.

Thank you,

Noel Valentin

Permanent Collection Manager

El Museo del Barrio

1230 Fifth Avenue

New York, NY. 10029

212 660 7120 voice

347 749 4890 mobile

212 831 7927 fax

nvalentin@elmuseo.org

www.elmuseo.org

Sent from my iPhone

This message is intended only for the use of the individual or entity to which it is addressed and is covered by the Electronic Communications Privacy Act, 18 U.S.C.2510-2521. This message is legally privileged and confidential and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. E-mail transmission cannot be guaranteed to be secured or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. If you have received this communication in error, please notify us immediately by sending an email to hr@elmuseo.org, and delete the original message, and all copies, from your system.

I would add the caveat that the unsold works be retained for the following year's gala auction, if the artists agree.  Who knows?  Their fame may rise during the following year.

------------------------------
David Beard
Executive Director
USS KIDD Veterans Memorial Museum
Baton Rouge LA
------------------------------

Original Message:
Sent: 03-02-2018 09:17 AM
From: Kyunghee Pyun
Subject: Auctioning Donated (Non-Accessioned) Artwork

I know your museum and also artists supporting it for many years. I don't know any legal clauses for auctioning donated works at a public auction. However, I would advise my artists to object to such an attempt. Sales at a private gala are okay, but selling the unwanted at a public auction may expose a below-market price of their works. Some organizations ask artists to put a price below their gallery price, which is okay in some cases. Eventually the bidding continues and the work is sold at a price close to the retail price. As an art organization consultant, I would ask your museum to consider solicitations on some identified future donors/corporations (hospitals are good these days; they collect and display art) and to offer an attractive price with some perks offered by your museum.  We need to project the sales price and the reputation of artists. I don't want some works to be seen as unwanted or as left over from something.

------------------------------
Kyunghee Pyun PhD
College Art Association
KyungheePyunCollege Art Association

Original Message:
Sent: 02-28-2018 07:59 AM
From: Noel Valentin
Subject: Auctioning Donated (Non-Accessioned) Artwork

Dear Colleagues,

I am hoping to get some feedback or advice regarding the following scenario.

The museum I work for is gathering artwork donations from artists or their galleries whereby the donated art will be auctioned during the museum's annual private gala, with funds to support the museum.

However, my museum may want to sell / auction off any donated artworks - that don't sell during private gala - at a public auction.

What language / clauses do you use in your agreements with artists & galleries donating art to a fund-raising cause regarding the museum's use & sale of the donated art?  Do any of you have an experience where an artist/gallery is ok with donating art for a private auction, but cringe on having the donated art sold via a public auction?

Your feedback regarding this is greatly appreciated.

Thank you,

Noel Valentin

Permanent Collection Manager

El Museo del Barrio

1230 Fifth Avenue

New York, NY. 10029

212 660 7120 voice

347 749 4890 mobile

212 831 7927 fax

nvalentin@elmuseo.org

www.elmuseo.org

Sent from my iPhone

This message is intended only for the use of the individual or entity to which it is addressed and is covered by the Electronic Communications Privacy Act, 18 U.S.C.2510-2521. This message is legally privileged and confidential and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. E-mail transmission cannot be guaranteed to be secured or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. If you have received this communication in error, please notify us immediately by sending an email to hr@elmuseo.org, and delete the original message, and all copies, from your system.