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Facility Management Journal
January/February 2003 The Art of Collection Management: Protecting and Managing the Corporate Art Collection
by Dorothy Solomon 11 a.m. The roof's leaking on the executive floor!
Imagine this emergency scenario. You've taken steps to correct the problem, but the water is still pouring in. You need to act quickly to move all the valuable items that are on that floor out of harm's way. Do you know where they are located and how to handle them properly?
As companies continue to grow and change in these turbulent times, the need for up-to-date and easy-to-access information about the whereabouts and current worth of their corporate art collection has taken on added importance.
Likewise, there should be a strategy for taking steps to protect this valuable corporate asset which becomes part of your overall emergency preparedness game plan.
Since the 1970s. corporations. institutions and professional firms have been accumulating huge collections of art, antiques or other collectibles that are scattered between business units and throughout their various locations. In my experience, I have often found that many clients have not kept track of or properly cared for the costly works of art or antiques that they own.
Documents and other records that contain valuable information about their collection have been lost, misplaced or are in total disarray. They lack information about the total number of items or the location of important works in their collection. As a result, valuable objects have ended up damaged or missing because proper controls were not in place. In the event of loss or damage, if your records are incomplete, not kept current or not readily available, it can prove to be a very costly mistake.
Protecting your investment like the companies themselves, corporate collections are diverse and range from fine and decorative arts to antiques, historical documents, photography or other memorabilia. Managing such a variety of items is a complicated process that requires special expertise to ensure that works in the collection are well taken care of and well documented.
In an ideal world, the collection would be suitably documented and safeguarded right from the start. Unfortunately, this is not usually the case. As an art consultant, I always stress the importance of creating a pian for preventive care, as well as having a dedicated computerized system to track and manage the collection's movement and value.
Frequently companies with sizable collections assign the responsibility for its care to someone who has little or no prior art knowledge. Even firms that employ a full-time curator may find that they need to rely on outside specialists in order to keep pace with a rapidly changing corporate environment.
Another problem I've encountered is that, often, the same inventory control systems used to keep track of office furniture, equipment and supplies alsoare used to manage their art collection. They are not the proper tools for managing valuable collectibles!
Although establishing a dedicated collection management system may seem a formidable task, once completed, it will provide a measurable return on investment by: Ensuring proper compensation in the event of loss or
damage; Having a centralized control that provides vital information with speed and accuracy; Helping to eliminate loss of value to individuai items through preventive care and
reducing future labor costs associated with recording and tracking information.
Documenting the collection whether you are just starting out or upgrading a current system, some of the challenges involved with the physical management of a corporate art collection are:
Making sure that the company has adequate insurance coverage in place; Keeping track of ail the accounting information related to purchases, valuations, sales or donations; Maintaining a visual record of each item in the collection; Making sure that all items are carefully maintained whether on display, in storage or in transport; Tracking each item's whereabouts as it moves through the company's various business units, locations, and floors or when given out on loan; and Managing all the supplementary information about works in the collection, such as artist biographies, catalogues and other pertinent materials.
Selecting the right software
Once a decision is made to begin or upgrade a collectionmanagement system, the job of maintaining it should be assigned to one individual within the company. This person would be responsible for the administration of the collection to ensure that complete and accurate records are maintained. He or she would oversee the physical inventory, arrange for its on-going care and keep all new information up-to-date.
You need a collection management system that will search and sort by a number of different criteria. You will want to be able to produce a variety of reports that can be easily shared with different departments or individuals. The system you choose also should automatically cross-link information about each item with contact and transaction details. Today's technology makes this a less cumbersome task, once all the visual and textual data is gathered, organized and entered into the system.
One of the best collection management programs that I recommend to clients is "MyStuff." It is inexpensive. user-friendly and easily tracks and links all vital information about the diverse items that a company may own.
Creating a digital inventory
A common hurdle involved in managing and protecting a collection is making sure that you have a visual record of each item. A good photograph is essential For proper identification, valuation and condition analysis. The first step in creating an inventory control system is to document each item wtth a state-of-the-art digital image, and assign a corporate accession number to each piece. For more valuable works, you also may want to have a 4x5 transparency
or 35 mm slide taken. It is always best to take detailed shots of the item itself, as well as an overall shot that includes a Frame or other display, since these also are a factor in calculating the value.
In addition, it is a good idea to take close-up shots of the artist's signature, other markings, any damage that exists or previous repairs. Next, all pertinent data will need to be entered for each object using existing records and information gathered at the time of the inventory or appraisal. Then the digital images of each object will be imported into the system and matched to their related data.
What data do I need?
Before you conduct the physical inventory, you should begin by organizing ail of your existing records, including: Dated invoices from the original seller; Pertinent documents that can help identify age and provenance; Written appraisals that have been done over time For insurance purposes; Reports describing the date, extent and cost of any repairs or restoration work; Information relevant to site-specific works of art that have been commissioned; and Floor plans showing artwork location.
The amount of data necessary will depend upon each item's value. At minimum, it should include:
Date and source of acquisition;
Original purchase price;
Full name of artist;
Title of artwork;
Date created (if available);
Medium or technique;
Materials used;
Dimensions of item;
Location within company;
Current value of artwork; and
Current value of frame or display.
It also is a good idea to develop a loan policy form to be distributed to those employees that have artwork on display in their private offices. This will clearly establish that the company owns those items. Likewise, make a list of all the art professionals you already rely on or you might someday need. Include art consultants, galleries or dealers, appraisers, conservators, framers, art transporters, installers and storage facilities.
How much is your collection currently worth?
If you haven't done an appraisal of your collection recently, your current insurance policy may not provide adequate coverage. The collection, in its entirety, should be re-appraised every three to five years. This will ensure that you have an up-to-date retail replacement value for each item in the event of loss or damage. Some companies choose to have an appraiser review these values once a year. Many clients are often pleasantly surprised by how much their collection has appreciated in value and are grateful that no claims arose before sufficient coverage was in place. Having this information also will help to reduce the risk of damage or theft of high-value items by helping you reassess how and where the item is displayed within the firm. As a general rule, it is best to routinely inspect all the items in your collection every six months for possible damage.
A professional appraiser, qualified to analyze and value the type of items you own, will provide you with a well-documented. unbiased report that will reduce the possibility of disputes or litigation in the event of an insurance claim. It also may be desirable to have other valuations made at the same time depending upon whether you plan on donating or deaccessing all, or part of your collection. For donations, a fair market valuation is required to establish the appropriate tax deduction for the Internal Revenue Service.
If your firm wants to sell works, you will need a marketable cash valuation which takes into account: insurance, dealer commissions, advertising, travel, shipping and other expenses associated with the sale.
The more valuable the object, the more extensive the report needs to be to meet the Uniform Standards of Professional Appraisal Practice (USPAP). The appraiser's report should contain evidence of market research to support their conclusions and also list which method of valuation was used.
Noon: everything is under control
All your valuable possessions have been safely moved. You have a conservator coming in to inspect the two Monets that were water damaged. You have all the information you need at your fingertips to document your insurance claim, so that your loss will be correctly
compensated. Congratulations, sit back, breathe a sigh of relief, and be happy that you were prepared to deal with this emergency by imagining the worst.
About the author: Dorothy Solomon is an art consultant and president of DSA Fine Arts Ltd. in Watermill. N.Y., USA. Locate the company's Web site at www.dsafinearts.com or contact her at 631-537-1 599.
www.dsafinearts.com
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