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Museum stores

  • 1.  Museum stores

    Posted 03-13-2019 07:41 PM
    I am on the board of a small museum. Recently our president started bringing in donated thrift shop-type stuff to sell in the store. (Ie cheap costume jewelry, used scarves....). Our director and I are trying to find information on museum store guidelines, and are getting the impression that the store should be sticking to educational and mission-specific items. Can anyone share their purchasing policy with us? ( we can’t afford a membership in the Museum Store Association)Thanks! Sharon Bell, Kent-Delord House Museum

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  • 2.  RE: Museum stores

    Posted 03-14-2019 07:05 AM
    Wow! that's terrible on so many fronts!  Not least of which is the board member asserting an unauthorized influence (power) she should not have!  Is there a gift shop committee?  This is going to take some diplomacy.  Retroactive policies are never good.

    Vivian F. Zoë, Director
    Slater Memorial Museum
    108 Crescent Street, Norwich CT 06360
    860-425-5560 vox
    860-885-0379 fax

    "Inspiration is for amateurs - the rest of us just show up and get to work," Chuck Close, 2003


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  • 3.  RE: Museum stores

    Posted 03-14-2019 08:51 AM
    Edited by Colin Windhorst 03-14-2019 09:36 AM
    To qualify for exemption from sales tax, museum stores may only sell items related to their mission.  All other items must have sales tax collected at point of sale, or you are evading the law.  For example, a hat may be exempt from sales tax if it has a historical  allusion or representation relevant your historical mission or purpose.  If it does not, you must collect the appropriate sales tax.  Museum stores may apply a breadth of interpretation here, but in the end, it is the tax officials who will decide.  For more clarity, speak to your tax consultant, or State sales tax officials.  Its better to be safe than sorry.  I hope this helps.


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    Colin Windhorst, PhD
    Atlantic Preservation, LLC
    Academy/Vestry Museum
    Dennysville, Maine 04628

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  • 4.  RE: Museum stores

    Posted 03-14-2019 11:07 AM
    Hi Sharon,
    You may also be able to receive information about this from the Museum Store Association.
    Hope this is helpful.
    Art


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    Art Manask
    Principal
    Art Manask Consulting, Inc.
    artmanask@gmail.com
    818 358-3588
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  • 5.  RE: Museum stores

    Posted 03-14-2019 11:25 AM
    You also risk being subject to unrelated business income tax if you sell items not related to your mission.  I'd definitely follow up.  Good luck!

    More info:  Unrelated Business Income Tax | Internal Revenue Service
    Irs remove preview
    Unrelated Business Income Tax | Internal Revenue Service
    Unrelated business income tax requirements for tax-exempt organizations.
    View this on Irs >


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    Rena Lawrence
    Historic Site Supervisor
    Log Cabin Village
    Fort Worth TX
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  • 6.  RE: Museum stores

    Posted 03-15-2019 11:33 AM
    One other thought regarding this situation is that depending upon what the used items are and what your mission is, visitors could misinterpret that you are selling collection items in your gift shop...and you don't want to give that impression. Another reason to get board input and vote!
    Diane Ingram
    Manatee County Agricultural Museum
    Palmetto, FL

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    Diane Ingram
    Museum Supervisor
    Manatee County Agricultural Museum
    Palmetto FL
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  • 7.  RE: Museum stores

    Posted 03-14-2019 11:31 AM
    That is a horrible way to stock a store.  I had a Gift Shop manager in Texas who was bringing stuff like that in.  Often it was soiled, broken or otherwise unsuitable.  You need the whole Board to vote NO on wrecking your image because stuff is cheap or free.

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    David Beard
    Executive Director
    USS KIDD Veterans Memorial Museum
    Baton Rouge LA
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  • 8.  RE: Museum stores

    Posted 03-14-2019 11:21 PM
    The main concern with what is sold in museum gift shops (aside from using the shop to deaccession museum collection items - an entirely different problem!) is whether the museum will need to pay tax on the income.    That depends on whether the items are related to the museum's mission or "unrelated business income", which is taxable (UBIT).    Here's a good article to get  you started, geared towards a small museum:  Ignorance Is Not Bliss: UBIT and the Museum Store .



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    Janice Klein
    Executive Director
    Museum Association of Arizona
    Tempe AZ
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  • 9.  RE: Museum stores

    Posted 03-17-2019 02:41 PM
    This is great little article on unrelated business income UBIT.  Thanks!

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    Colin Windhorst, PhD
    Digital Curation
    University of Maine
    Orono, Maine, USA
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  • 10.  RE: Museum stores

    Posted 03-15-2019 09:07 AM
    Besides the business side of the issue, there should also be concern about bringing pests into a historic house museum setting. These clothes are not new and could have been subjected. Silks, wools, and other natural fibers might be a great personal thrift find, but have no place in the museum setting without inspection and treatment.

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    Julie Arrison-Bishop
    Special Projects Manger
    The House of the Seven Gables
    Salem, Mass.
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  • 11.  RE: Museum stores

    Posted 03-18-2019 09:56 AM

    You've gotten some great advice here, and it's not too late to create a "mission statement" for your retail store that clarifies the expectations for products: to connect to the collection, history, and education of your museum, to support your museum's brand in merchandise quality and assortment, and to extend your visitor's experience by offering items that uphold these standards.

    You can also formalize your "selection process"--I like a "jury" process to de-personalize it, even if the jury is only two staff members. That means the decision is impartial and standardized and doesn't hit conflicts of interest with the board.

    Just to clarify one detail from the thread above, however, there is a difference between sales tax and UBIT tax. Sales tax is due to your city and state on all taxable items regardless of whether an item is mission-related or not. It's income tax that is waived for non-profits, and that's UBIT, as linked in an article above. Shops should consult with your accountant or attorney about designations for "mission-related products" and draw guidelines for buyers, and include this designation in whatever point of sale system (or bookkeeping process) that you use.

    -Julie Steiner
    Immediate Past President, Museum Store Association



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    Julie Steiner
    Director of Retail Operations
    Barnes Foundation
    Philadelphia PA
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  • 12.  RE: Museum stores

    Posted 03-18-2019 10:20 AM
    As the previous post has urged, clarification of the purpose of the Museum Store with respect to the organization's mission is needed.  If your Board considers the Museum Store to be simply a source of additional revenue for the organization, then your institution is missing out on the potential branding and marketing benefits of more closely aligning your store inventory with the organization's mission.  Such an alignment has potential beyond the possible avoidance of UBIT that has been mentioned in previous posts.  What does it say to visitors about your institution when its Store offers cheap, used, thrift-store items for sale, as opposed to mission-related educational materials and/or gift items inspired by popular collection objects?  What inventory your organization stocks in its Store also sends a subtle, but important, message to the visiting public.



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    John E. Coraor
    Cultural Management Partners LLC
    Huntington, NY
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