Sorry for my error below, in the "For comps with bugs" 3rd paragraph belowk,
"1) recent donations." should have read: "1) recent sales."


From: Entomological Collections Network Listserve
[mailto:[log in to unmask]] On Behalf Of William B. Warner
Sent: Saturday, January 4, 2020 1:22 PM
To: [log in to unmask]
Subject: FMV vs. replacement value; RE: vouchering query: Types deposited in
private collections


Off the original subject here, but:  There seems to be a persistent
misunderstanding of "Fair Market Value" amongst collections administrators,
who are asked to place values on donations for their administation, vs.
donors that have to place a FMV on their collections in able to write off
the donation for taxes.  Note that there is really no difference between
donated bugs and any other donated property other than real estate where
more formal statues exist.   In the case of a donee institution receiving
donations and being required to place a value on them for administrators, it
would be best to view that case the same as someone establishing an
"insurance value" on art or jewelry, because the replacement cost of the
property comes into play.  For the donor, fair market value (basically what
a willing buyer would pay a willing seller in an unforced situation), NOT
replacement value (i.e. what it would cost you to replace the item if lost)
is required, and if the total donation of like items (i.e. all the bugs a
donor donates in a given year, no mater to how many institutions) exceeds
$5000, the donor is required to get an appraisal from an independent
appraiser.  Just like for real estate, jewelry, cars, art, etc., that
appraisal better be supported by an analysis of comps if challenged by the
IRS.  IT IS ILLEGAL for the donee to establish FMV for a donor, so again
there are two different processes here, and the actual numbers are usually
larger for replacement value than for FMV.  So, it might be best to keep
such "replacement values" as an internal number, or if you want to inform
donors, make sure that you very distinctly label such numbers as your
internal valuation for replacement value only and that you are definitely
not trying to establish FMV for them to use with IRS.


There is also much misunderstanding of FMV by donors, who sometimes mistake
replacement value estimations by institutions as FMV; I've even had friends
occasionally say how thay like one or another institution because they "give
me higher value for my donation!!"  If challenged, I'd hate to be that donor
(or donee worrying about their administrators' wrath) trying to explain that
situation in front of an administrative law judge!!  Ditto for an appraiser
that provides an out-of-whack high appraisal value!


For comps with bugs, your choices basically boil down to: 1) recent
donations of whole collections (this is both an uncommon situation, and
actual prices paid are usually not public information), and 2) pricing
information readily available from insect dealers, online auctions, etc.
Those change over time, so the information needs to be captured in the case
file at least for the donation year in order to provide comps if IRS
challenges the FMV (for estates, the number apparently expires 6 months from
date of death).  Also, nearly all vendors have large discounts (sometimes
25-50%) for large orders on the magnitude of larger donations, so in an
appraiser's analysis a big donation needs to be reasonably discounted for
FMV.  On the bright side, check out Bioquip's price list (or that of any of
the dozens of other dealers) and you will rarely see prices below $5 for a
single identified specimen of any insect.  And some of the collectable,
showy species can go for $X00 or more apiece (i.e. fire your appraiser if
they value your drawer of rare Chrysina or Morpho or giant dynastines at $5


So, donors, make sure you (if under $5k) use FMV (including a defendable
discount, not straight-line value from a pricelist), maintain comps annually
at least until the statutory time limit expires for that tax year, and if
over $5K, make sure your appraiser maintains a good case file with the
comps, uses an actual analysis of FMV (not straight-line pricing) that
includes discounts.and is willing to show up in court to defend their
analyses if it comes to that.  (And appraisers, note you have both statutory
and civil liability for misrepresentation in your appraisals-less onorus
than a real estate appraiser, but no different than an art appraisor; you
could be sued by donors for malpractice!!)  


For institutions:  If I was a collections manager or curator being required
to place value on donations by administrators, I would use replacement cost,
not FMV; again, donation value and replacement value are different numbers
for different uses!





From: Entomological Collections Network Listserve
[mailto:[log in to unmask]] On Behalf Of Furth, David
Sent: Saturday, January 4, 2020 11:24 AM
To: [log in to unmask] <mailto:[log in to unmask]> 
Subject: Re: vouchering query: Types deposited in private collections


The U.S. Internal Revenue (IRS) official who spoke at an ECN meeting years
ago told us that although he understands that some specimens (e.g., types)
may be considered more valuable, they (IRS) only consider evaluation at a
"fair market value", i.e. money of similar value being exchanged for a
similar item (e.g., from catalogs, auctions, etc.).  Generally it is not a
good idea to assign values for institutional collections, but some are
forced to do so by administrators.  However, a good, presumably legal case
with IRS, could be made to factoring in the resources necessary to
re-collect the specimens, if they even can be.  But such a process would be
extremely laborious.


Many of us have experienced not being to access a type in a private
collection and we are forced to write in our publications that " ..access to
the type was not possible..."  The reasons for such inaccessibility in
"private" collections are variable, e.g., embarrassment about the collection
condition, presence of material collected illegally or belonging to others,
professional jealousy or dislike of certain colleagues, etc..  By private I
mean an individual not a private institution (e.g., MCZ, Field Museum, AMNH,
etc., etc.).  Even institutions that do not loan types can be visited - it's
not the same as an individual refusing access to types in their collection.


There should be some initiatives to start to deal with some of these issues
(e.g., vouchering, types, private vs public collections, valuation of
collections, etc.) across the discipline,perhaps from places like Australia
that have.  Good topics for the next ECN meeting.



From: Entomological Collections Network Listserve <[log in to unmask]
<mailto:[log in to unmask]> > on behalf of James Kenneth Liebherr
<[log in to unmask] <mailto:[log in to unmask]> >
Sent: Saturday, January 4, 2020 11:47 AM
To: [log in to unmask] <mailto:[log in to unmask]>
<[log in to unmask] <mailto:[log in to unmask]> >
Subject: Re: vouchering query: Types deposited in private collections 


External Email - Exercise Caution

The question of collection valuation via a vis types  is somewhat
counterintuitive. We've valued the CUIC at somewhere near $50-75M US
depending on subjective criteria such as rarity. BUT, the vast majority of
value is represented by authoritatively determined specimens. Cornell has
somewhere over 7500 species represented by types, primary or secondary.
Using standard valuations, those type specimens amount to about $1-2M US;
surprising little, at least to me, of the total. Our infrastructure--only
cabinets and drawers--is even less; perhaps $1M (not counting building cost
and maintenance). So the argument that a private individual should be able
to maintain a private type collection to recoup--upon death or sale--their
outlay for collecting and preparing specimens does not hold water. It would
be much safer to insist that upon publication, holotypes are deposited in an
institutional collection. Of course, countries such as Australia have their
act together on this issue by insisting on such deposition.

Jim Liebherr

Curator (ret.)

Cornell University Insect Collection


From: Entomological Collections Network Listserve <[log in to unmask]
<mailto:[log in to unmask]> > on behalf of Robert Anderson
<[log in to unmask] <mailto:[log in to unmask]> >
Sent: Friday, January 3, 2020 3:14 PM
To: [log in to unmask] <mailto:[log in to unmask]>
<[log in to unmask] <mailto:[log in to unmask]> >
Subject: Re: vouchering query: Types deposited in private collections 


A number of years ago there was a move for all holders of private
collections to "register" their collections with an institution.  This was
done to ensure that private collections, upon the death of the owner, would
not fall through the cracks and be lost.  Perhaps this idea needs to be

Recently the Elbert Sleeper private weevil collection (including types), not
previously accessible to anyone, was donated to the California Academy of
Sciences.  Chris Grinter, collection manager for the CAS, will have more
details, but it's my understanding that this donation was delayed for
sufficient time for dermestid damage to have taken place such that many of
the larger specimens were destroyed. The donation may also have come very
close to not happening at all with the family unsure what to do with it for
some time prior to the donation. This is the fate risked when advance plans
are not made for private collections to pass to a public institution upon
death of the owner.   

I edit for Zootaxa and deal with all type depositions on a case by case
basis. I encourage deposition in a public institution but if an author makes
a strong case for a private institution I will accept that. 

One argument I heard that I do not like is that many people pursue taxonomy
as a hobby and do not get paid for it.  They spend much money on building,
curating and storing a personal collection and that the one way such an
individual can get reimbursed for this investment is to sell their
collection. And since collections with more types sell for more money there
is a reason to house types in their private collections.  Such is textbook
conflict of interest as a taxonomist can oversplit in order to get more
types thus increasing the value of their collection.   

Cheers, Bob 


From: Entomological Collections Network Listserve <[log in to unmask]
<mailto:[log in to unmask]> > on behalf of Max Barclay
<[log in to unmask] <mailto:[log in to unmask]> >
Sent: January 3, 2020 9:22:52 PM
To: [log in to unmask] <mailto:[log in to unmask]>
<[log in to unmask] <mailto:[log in to unmask]> >
Subject: Re: vouchering query: Types deposited in private collections 


I have to say as an editor and a collection manager, that I don't agree with
the comment one person made that journals should 'require' (rather than
'recommend' like the ICZN Code does) that Types be deposited in an
institution. This relies on an ideal-world belief that 'all institutions'
are better managed and more accessible than 'all private collections' - and
this is simply (sadly) not true. Some institutes have a near-total embargo
on loaning types and are totally 'inaccessible to all science' unless you
can afford to show up at the door - while some private collectors make their
material very available. Think of Charlie and Lois O'Brien's private
collection during their heyday, compared to certain major type-holding
museums- and which you would rather consult a specimen from...?


I am editor in a journal that has a written policy against type deposition
in private collections, and we lost a very good paper recently because a
German expert did not want to deposit a unique holotype specimen away from
his reference collection, because he was continuing to work on the group and
did not want his own access to the taxon he described to be curtailed in
future- his collection will pass to a major museum on his death, like
Charlie's did, and he attends many international meetings, so the
accessibility of the type (which was of course published in a different
journal) is as good as most museums and better than some- so the only
consequence of the 'rule' was that one journal shot itself in the foot and
lost a good paper and some goodwill!


The life-span of a private collector is of course a tiny proportion of the
life-span of a specimen, and most sensible collectors make arrangements for
their collection to pass to what they judge to be a good institution, so in
the end it is all the same. Of course many private individuals prefer to
deposit their holotypes right away, and that is good (we gratefully received
several at NHM this year, and they are well cared for and accessible) but it
shouldn't be because a journal demands it. 








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cmn2019-10-04 to March 29, 2019.