Donating Art?

[Julianna]

I was asked to donate a sculpture to my university for their charity auction (fundraising for the arts program). Does anyone have any suggestions/warnings about this kind of thing?

Thanks!

[sculptor]

hi Julianna

couple caveats:

It can be a tad depressing if the piece auctions off at less than the price of production.

If you want to take a tax deduction----have the "charity" folks appraise it before the auction and sign off on the appraised value.

Then go ahead and donate.
I've donated several small pieces(macquettes and bass&meso reliefs) over the years for scholarship funds, building funds, and others. If I have the time and the money, I have attended the auctions and bid a little over what it cost me to produce the artwork-----out of maybe 12-15 such auctions I've only bought back one-----the swimmer (http://www.sculpture.net/community/attachment.php?attachmentid=845) (from a fundraiser for my sons' school).

rod
sculptor (www.mindspring.com/~mandali)

[Steven Haas]

Another consideration to back up Rod's comment is the fact that only material costs can be deducted as your donation, therfore, if you re-buy your piece you still get the deduction and the piece back.

[fritchie]

Another consideration to back up Rod's comment is the fact that only material costs can be deducted as your donation, therfore, if you re-buy your piece you still get the deduction and the piece back.

I’m pretty sure that, as of about Jan. 1 a year ago in the US, full market value is deductible on federal returns. Russ posted a notice when this change was made, and there was quite a bit of discussion about pros and cons of estimating market value.

[oddist]

Somewhere I read that artist's shouldn't consider themselves to be to altruistic. After all, they have to make a living too.

The advice was that if a piece of art is wanted for an auction, request that the organization buy the work outright and then enter it in the auction. That way the artists gets the value of the piece. The organization can always start the bidding at the art's cost to them.

If I come across the article I'll re-post the reference.

But, if name exposure is what you want, accept the possible losses.

[Julianna]

Thanks for all of the tips!

I ended up donating a smaller piece, and I was able to set a reserve price so they couldn't sell it for less than the material cost. I've been trying to get ahold of the selling price, but I think everyone's probably on holidays or administering exams. The auction night conflicted with other plans I had, so I wasn't able to sit in on it.

They offered the choice between a 100% donation and a 50/50 donation (i.e. they sell the piece and give me half of the selling price). I chose the 100% donation because I thought that was the only option for the category into which I was donating. But now that I know it's not the only option, I'll probably go for a 50/50 donation in the future.

I'm not sure what we Canadians can write-off as a tax deduction, but I don't think it's the same as what it is in the States. When I find out, I'll let you know.

[ironman]

Hi, I believe that full market value can now be deducted for any piece donated, based on the average price of the work you've sold. If your pieces typically go for $500. each, don't try deducting $1500. for a piece that you've donated.
Although I have donated pieces in the past, I generally refrain from doing it.
One of my sculpture teachers used to say " Want something for nothing, ask an artist!"
This is a little bit different, but I have a piece on loan to a hospital (it's been there so long, they thought they owned it). I thought that I should remove it, but their response has always been, "no, we love it, the patients love it, and we always take group photos around it." So, I always say, "since you love it so much, why don't you buy it?" Their answer, "we don't have any money". BUT, they've bought other artists works since my piece was installed! After the holidays, I'm going to approach them about a couple of ideas on this.
1- since it's price is quite a bit above anything I've sold previously, I'd like them to find a donor willing to buy it from me and donate it to the hospital, I'll eat the sales tax on it.
2- a rent to own plan
3- let the hospital get small (or large) donations to buy the piece from me out right. Again, I'll eat the sales tax.
Any other thoughts or suggestions about this?
Have a nice day,
Happy Holidays,
Jeff

[jsimms]

Does anyone have any info on current rules or rulings regarding an artist's donating a work of art. My accountant believes I can only deduct actual cost of materials, regardless of the value of the work. If it sells for $5,000, I can still only deduct the $200 I paid for materials. I hope he's wrong, but I fear not!
john

[oddist]

The attached is from Harvard.

We should check further into this.

http://www.law.harvard.edu/faculty/martin/art_law/denial_of_fmv.htm

[iron ant]

I think you are right unfortently,and proff of cost can be a joke to firure out.Instead of donating works I donate a future commision,so a client writes a check to the organazation for the amount they want to write off,then you wind up with a commission.It seems to be a wiw/win for everybody.........

[rickb]

Does anyone have any info on current rules or rulings regarding an artist's donating a work of art. My accountant believes I can only deduct actual cost of materials, regardless of the value of the work. ...john

Mine said the same -- that one can deduct the production costs only.

Anyone know the status of this Leahy bill refererenced in the Harvard article?

-- RB

http://www.richardbecker.com