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When a museum accepts donated art, that art becomes part of what is referred to as the museum's "permanent collection." Most donors assume that the permanent collection is made up of all the art in a museum, including donations, and that every piece of that art remains in the collection for all time. Include a letter of intent. Send copies (no original artwork) of color printouts (approx. 8 x 10 inches) or JPEG files at dpi. Video work should be submitted on a single DVD. Include a biography, Curriculum Vitae (CV), artist's statement, website address, and selected copies of press materials.
Reasons to downsize your art collection may include fine-tuning a focus of a specific style, time period, or artist. You may be downsizing because you learned your family members have no interest in certain pieces as you were planning the future of your estate.
Or, you may have discovered an opportunity where your collection can be appreciated by a broader audience. There are a number of reasons that could lead you to donate your artwork. The first step to downsizing a collection is tracking down and compiling the provenance documents, artist name, materials used, recent appraisal, and dimensions.
With diligent attention to these documents in your Artwork Archive collection inventory, you can easily locate and export everything you need to prepare ahead of time.
Additionally, these documents will also be important when filing your taxes in April. Donating art is what is interactive response technology two-sided decision. Museums generally have a committee that reviews gifts and decides whether they are a positive addition to their current collection. Even if your gift is accepted, it is possible that it will be brought to storage and not displayed.
You might only be comfortable donating the art on the condition that it is on display. You may also have specific requirements for the display such as including your name or seeing your piece in a certain wing.
It is necessary that you specify this in the donation agreement. If you are what happens if you skip a month of birth control about donation requirements, you can work with an art advisor on prospective museums that would be a good fit to house your collection.
An unconditional gift means there are no stipulations the museum has to abide by. As discussed above, a condition would be something like displaying the artwork in a specific wing.
When you agree to donate the piece as an unconditional gift, you are giving up all rights to the artwork. This means, your piece can be displayed wherever the museum chooses, stored wherever and whenever, or sold at any time. When donating your art you may feel like the museum is your partner. However, as a donor it is important to understand the relationship that the museum is willing to participate in. Unfortunately, it is possible that the museum is not willing to support any relationship.
The museum may take the donation and forgo any further communication about the piece. At the time of the donation, you may be informed of where the piece will how to donate art to a museum displayed and for how long. Curators usually have a good idea of the plan for a new piece of art. That being said, things change. When coming from a private collection and starting to work with a larger institution, new management and goals can affect the future of your piece at the drop of a hat.
Once you have donated the artwork, the exhibit may change or your piece may be moved into storage. You curated your collection with intention. Especially when choosing a museum with a similar taste, you may assume that your pieces will be displayed together. This is is not always what is the largest domesticated cat case.
The museum also may only accept parts of your intended group gift. There are many charities that accept art donations. Make sure you consult with your tax attorney and file the appropriate forms. Be sure the value is up-to-date and done by an experienced appraiser. You can be penalized for misstating values in a donation.
You also want to be sure that you receive the correct, and most beneficial, tax deduction. You put a lot of time and emotion into making these purchases, and your collections deserves the same attention when it comes to finding a new home for all or portions of it. If you are forthright about your needs and concerns, you will find an amicable candidate to acquire a precious part of your art collection.
Otherwise, you can explore options for selling artwork compared to donating. Take time to explore your options, and the best decision is the one you are confident will carry out the vision you have for your collection. Want more about donating, lending, and insuring works in your collection? Download more collection tips and know-hows in our Essential Guide to Collecting Art.
Back to Blog. Life Balance Resources. Downsizing an art collection is an important part of managing your assets Reasons to downsize your art collection may include fine-tuning a focus of a specific style, time period, or artist.
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Where will your art collection end up? Will you pass it on to heirs, or will you donate it to a charity? If you want to donate art and take a tax deduction, make sure the donation meets IRS criteria. Your art collection won't always hang on the walls of your home. Like other cherished belongings, you'll have to make a decision about where you want your collection to end up, either before or after you die.
If you choose to make charitable donations of artwork, you or your estate may qualify for associated tax deductions. But there are a number of decisions to make and things to consider in determining the tax benefits for which you qualify. If you choose to transfer your art collection — or even individual works of art — to charity during your lifetime, you must follow several rules in order to claim a charitable income tax deduction:.
The IRS does not allow donors to take a charitable income tax deduction for donations to non-U. However, you may still be able to take a deduction for a donation to a U. Make sure the charity you choose is a U.
If you plan to donate art to charity upon your death, there is no requirement that a charity be U. Artwork must be considered long-term capital property to qualify for a tax deduction. So don't purchase a work of art with the intention of donating it so you can take a deduction that same year. In order to claim a work's current fair-market value as the value of the charitable deduction, you must have held the property for longer than one year. This rule surprises many art collectors and investors.
In order to claim a charitable income tax deduction equal to the work's current fair-market value, the IRS requires that the donated work be used by the charity in a way that is related to its mission. For example, art that is donated to a museum should be used in the museum's collection, and art that is donated to a university should be used to further the education of the students displayed and used in art history lectures, for instance.
If the intent from the beginning is for the charity to sell the work, the donation will not qualify for tax deduction under the related-use test. When you decide to donate a work of art to charity, it's important to communicate with charity representatives to determine their plans for the artwork.
It is not necessary that a charity hold the donated art in its collection forever; museums often sell works in order to raise funds to acquire other pieces. There is an exception for emergencies, but in that case, the charity must provide the IRS with an affidavit stating that it used the gifted property for its exempt purpose for a period of time, or that it became impractical to carry out this purpose.
The Pension Protection Act of redefined the qualifications for acceptable appraisers, requiring that they have certifications, experience and have completed formal professional-level coursework. Once an appraisal report has been acquired, a donor must attach IRS Form to his or her personal income tax return to claim the deduction. This form includes a summary of the appraisal, the signature of the appraiser, a signature from the charity acknowledging the gift, and a statement by the appraiser that he is qualified to perform this kind of appraisal.
In addition to meeting all these criteria, you must also fit the classification of an art collector or investor as defined by the IRS in order to to claim a tax deduction. If you're an art dealer or an artist, you are not entitled to take deductions on charitable donations of artwork. Are Collectibles a Good Investment? Art appreciation goes beyond the aesthetic. If you truly appreciate art, you may spend significant amounts of money to support that hobby.
Purchasing art can include expenses for transportation, storage, display and insurance, as well as fees for appraisals, conservation and restoration. Collectibles offer investors the opportunity to combine their personal passions with the potential for financial return. Yet, there are some unique risks involved. Here is what you need to know before getting started. Brian Lang, curator of BNY Mellon's extensive art collection for over two decades, has some tips for collectors interested in pursuing their passion for art.
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