Re: cataloging, I worked creating a community museum a while back and we used PastPerfect to log everything. It was a pain, but in the end, it was a great way to keep track of what we had. You could even make it searchable on the web.

The city attorney required every donation or loan come with a form signed by the donor or loaner. I probably have a copy around here if someone wants it. We had a few families trying to get back donations after the person was deceased claiming they were on loan.