Q&A Regarding AAMDs Censure of Randolph College June 21, 2010

Q: Is the Maier Museum a member of AAMD? Has it ever been a member? A: The Maier Museum has never been a member of AAMD.

Q: Why does AAMD take such a strong stand on deaccessioning for operating expenses? A: One of the most basic and important of AAMDs principles is that a museums collection is held in the public trust and must not be treated as a financial asset.

Q: Randolph College deaccessioned a work in May of 2008 to raise operating funds? Why has it taken AAMD so long to take a stand on this issue? A: AAMD spoke out against Randolph Colleges proposed sale of works from the Maier Museum when the plan was announced in 2007. The proposed deaccessioning was taken to court and when the case was resolved and Randolph College moved forward with its plans, AAMD met with College leadership to offer support in finding alternatives to deaccessioning to raise operating funds. When the College decided to continue this course of action, the AAMD Board voted to censure Randolph College.

Q: What was the process for coming to this decision regarding Randolph College? A: AAMD carefully reviewed the situation, met with the leadership of Randolph College to learn more about their position and offer its support in exploring alternatives to the deaccessioning plan, and made a site visit to the Maier Museum. On the basis of these meetings and AAMDs deliberation, AAMDs Board of Trustees voted to censure Randolph College.

Q: If the court ruled that Randolph College could sell works from the Maier Museum for operating funds, why is AAMD taking the position that it should not do so? A: AAMDs policy exists to prohibit institutions from selling works of art to support operations because doing so fundamentally compromises a museum and does not effectively address the underlying causes of financial distress. This is an issue of best practice for art museums.

Q: Why does AAMD take the position that it must respond to the actions of institutions that are not AAMD members? A: The principal of not treating works of art as fungible assets is a fundamental aspect of professional practice in the museum field as a whole, not just for members of AAMD.

Q: Is this is the first time the AAMD has taken an action such as this towards an art museum? A: No. In December 2008, AAMD censured and imposed sanctions on the National Academy Museum in response to the sale by the National Academy of two paintings from its collection, the proceeds from which were used to cover operating costs. AAMD met with National Academy leadership to discuss how AAMD could help the museum in finding ways to achieve financial stability and institute policies to preclude the proceeds of any future deaccessions being used for operating funds. As a result, the National Academy restructured its board and revised to its underlying governing policies, developed and began implementation of strategic and financial plans to set the museum on a solid footing

for the future, and made a commitment to follow AAMDs policy on deaccessioning. Due to this significant progress, AAMD suspended its sanctions on the National Academy in October, 2010.

Q: What is the purpose of the censure that AAMD has imposed on Randolph College? A: Our hope is for a similar outcome to that of the National Academy Museum that Randolph College will put in place a financial plan to set the College on a solid financial footing without future deaccessioning of works from the Maier Museum to meet expenses. As with the National Academy, we have offered our support in finding alternatives to the course of action currently being pursued by the College. If the College remains unwilling to consider alternatives to the sale of art, then we hope that they will stop promoting the College as home to an art museum, or using the notion of having a museum on campus as a tool for recruiting students and donors.

Q: If Randolph College dissolves the Maier Museum and then sells works, would that be a satisfying resolution from AAMDs perspective? A: We would regret that decision, as AAMD believes that art museums play a vital role in the academic life of an educational institution and its community.

Q: But doesnt AAMDs censure actually encourage Randolph College to stop operating the Maier Museum as an art museum? A: No, quite the opposite. We have met with the leadership of Randolph College to discuss alternatives to their current plans and encourage them to preserve both the collection and the Maier Museum.

Q: What actions will AAMD take if Randolph College moves forward with the sale of additional works? A: AAMD hopes Randolph College will not move forward with the sale and will continue to offer our support in reaching other solutions to its challenges.

Q: Does the censure of Randolph College mean that AAMD members cannot loan or borrow works from the Maier Museum? A: No. AAMD has not sanctioned the Maier Museum at this time.

Q: Why didnt the AAMD impose sanctions on the Maier Museum, in addition to its censure? A: AAMD hopes that Randolph College will work with the AAMD to change its current plans and AAMD believes the current censure is the best approach at this time to achieving that goal.

Q: What action could Randolph College take that would cause the AAMD to lift its censure? A: If Randolph College madeand followeda commitment not to deaccession works from the Maier Museum for operating funds, AAMD would lift its censure. AAMD has communicated to the president of Randolph College that we are very willing to provide support in finding alternatives to the course of action currently being pursued.

Q. Randolph College states that the Maier Museum it is not a museum in the traditional sense, and therefore should not be bound by AAMDs rules. Why does AAMD disagree?

A. Randolph College promotes the Maier Museum as an art museum in many different ways including in its promotional materials, and on its Form 990, which states: the College has an extensive collection which is maintained in a museum under curatorial care and is used for instruction, public exhibition, scholarly research, preservation for future generations, and loan and exchange programs. Thus, Randolph College is clearly and publicly stating that it runs a museum. AAMD believes that colleges and universities that create art museums must operate those museums to the same standards as any other art museum.

Q. Doesnt the current economic downturnwhich is dramatically reducing revenue for colleges and museums along with everyone elsesuggest that AAMDs policy on deaccessions may be inconsistent with these hard times? A. Just the opposite: AAMDs prohibition on deaccessioning art works for operating funds exists precisely to safeguard collections at moments of challenge.

Q: Is it AAMDs position that Randolph College should avoid deaccessioning for operating expenses, even if the alternative is ceasing to exist? A: There are a number of alternatives to deaccessioning that organizations can implement when they are faced with severe economic challenges. We have encouraged Randolph to pursue these alternatives and have offered our help in doing so.

Q. What has the reaction been from AAMDs broader membership to this action against the Maier Museum? A. The feedback received expresses regret that Randolph College pursued this course of action in the first place, and support for the importance of upholding AAMDs fundamental principles.

Q. If another art museum were to deaccession in this way, how would AAMD respond? A. As with the National Academy Museum and Randolph College, AAMDs first response would be to meet with the institutions leadership and try to help avoid such a step. If the institution then proceeded to deaccession works of art to generate operating revenue, our response would be similar: to consider the appropriate response in light of the circumstances including potential censure and sanctions.

Q. Does Randolph Colleges sale of art from the Maier Museums collection raise other concerns for AAMD? A. The use of a museums collection as a source of revenue jeopardizes an essential accounting standard established by FASB that affects all museums, not just art museums: that collections are not "assets" in the sense that a business has commercial assets. For non-profit organizations, the long-standing accounting rules governing our collections are essential. The rules draw a distinction between the tangible assets an institution might use to generate revenue--for example, real estate--and the collections of works of art, which are held in trust for the public, and for the educational benefit and enjoyment of their communities and the nation.

Q: In the past, AAMD has condemned the actions of other art museums when they proposed deaccessioning for operating expenses, but did not censure those institutions. Is this inconsistent with the AAMD actions regarding Randolph College and the Maier Museum? A: AAMD has spoken out when museums raised the possibility of deaccessioning for operating expenses

in order to help prevent such actions. Our goal is to encourage institutions to maintain the integrity of art collections that are held in the public trust so they are preserved for the people of this and future generations. Taking this stand can have a very positive impact, as with the National Academy. Another case in point is the University of Iowa and its Museum of Art, which considered deaccessioning to cover expenses from floods in that state. The public outcry, which was supported by AAMD, helped reinforce the value of the collection to the academic and public community and led to tabling of the proposed deaccessioning.

Q: What about the situation at Fisk University? A: Fisk University has not deaccessioned the works in its collection, which are now on public view for the first time in many years, and litigation is underway to determine whether they can sell a partial interest in their art collection and how the proceeds would be used if so. AAMD is watching the court case and when it is resolved, we will review the situation and act accordingly.

Q: Why does AAMD take such a strong stand on deaccessioning for operating expenses when so many works from most museums collections are actually not on public view, but in storage? A: It helps to understand how a museum uses works that are not on view. A good analogy would be the collection of a research library. Students and scholars come to study the works in a museums collection that are not on view, those works are loaned to other museums across the country so they can be enjoyed by people who cannot travel to a museum far from their area, the works are used in education and training programs, and works that are too delicate to be on permanent display are rotated in and out of the public galleries. The collection that is behind the scenes is vital to a museums public service.