Top 4 Risks of Art Contribution to Charity

If you are thinking about donating artwork to charity, this blog is for you. It explains the risks of donating art to charity, and how you can avoid them.

So, you have some art that you are thinking about donating to a charity auction or raffle. Before you do so, take the time to learn about the top 4 risks that you might face if you donate artwork to a charity.

1) The Artwork May Not be Sold

This is perhaps the biggest risk of donating artwork to charity. Charities often receive more donations than they can sell, and this can lead to a loss of revenue. If the art is not sold, it will be sent back to you at your expense. This can indicate that your donation was not appealing enough, or even worse, that you donated the wrong thing.

2) The Artwork May Be Sold For Less Than it’s Worth

If your donated artwork is sold for less money than what it is worth, there may be trouble ahead. The IRS generally requires that any donation of property over $500 be taken at fair market value. This ultimately means that if your donated artwork sells for less than market value, then you may have to pay taxes on the difference. Keep in mind that the selling price may not actually reflect fair market value; this is especially true when donating artwork locally where lack of awareness of the artwork’s value may result in a lower selling price. A good

With a 30-year career in the art world, Todd White Art has been involved in numerous charity auctions. This blog is the result of our experiences, and includes tips on how to avoid the 4 most common pitfalls when donating artwork to charity.

Toward the end of his life, Vincent van Gogh handed over a large collection of his artworks to two institutions. The first was the State Museum of Fine Arts in Amsterdam, and the second was the French state itself. Each institution received almost exactly the same collection, though with some variation in titles: 77 paintings, most famously including Starry Night, Sunflowers and The Bedroom. For more than 100 years after Van Gogh’s death, these paintings were locked away from public view. In 1990 a few fortunate art lovers were able to catch a rare glimpse of them at an exhibition in Amsterdam.

But Van Gogh’s will stipulated that these works should never be sold or loaned out. They remain out of reach for all but the most privileged few.

Why? Because Van Gogh wanted his art to be shared with all people, not just those who could afford it. He believed that art should be free for all and not just available for those who could afford it. And so he be

Many businesses and organizations ask artists to donate their artwork to be auctioned off or raffled as fundraisers. The charities are usually well-intentioned, and may even have a history of supporting the arts. But before you donate your work to them, it is vital to understand the risks that are inherent in these contributions.

Tawdry copies: Some charities will have no qualms about selling poor-quality prints instead of originals. In one case, a charity sold signed copies of a print for $49 each in its online store, but when the artist asked for an autographed copy so he could sell it himself for $100, he was told none were available because they had all been sold at the charity’s fundraising event.

Theft of copyright: Artwork donated to charities is often used for commercial purposes after being sold. One artist donated drawings to a breast cancer charity that were used in posters and on calendars for advertising. She never received a penny from any of the merchandise sales.

Artwork not returned: If you commission artwork from an artist, make sure you get it back if you don’t want it displayed or sold. A professional artist once donated a painting to a charity auction, which was won by a local businessman who claimed he would put

If you have a work of art, or other valuable possession, that you are thinking about donating to a charity auction, it is important that you learn about the risks and pitfalls that can come with such an act. The most common and damaging pitfall is the inflated tax receipt.

Because you must subtract the value of your donation from your taxable income, it is always in your best interest to ensure that the value of the donation you receive is not more than the value of your donation. In some cases, this can amount to hundreds of thousands of dollars.

This article will help you avoid four common pitfalls.

According to the Association of Fundraising Professionals, “The nonprofit sector is one of the largest industries in the United States—larger than agriculture and automobiles.” Why then, do people often find it difficult to donate art?

There are several reasons. First, many donors believe that their intent is not respected by charities receiving their artwork. They fear that the organization will sell or use their donation for other purposes. This concern is valid and should be addressed up front by an organization. If they cannot assure donors that they will receive tax receipts and that the art will be displayed and appreciated, donors should look elsewhere. And if an organization cannot make those promises, they should not be soliciting art donations.

Secondly, some donors feel that giving art to charity is a waste of time. There are many arts organizations in need of funding to continue providing services for children and adults. Donations of fine art can be a way to support these programs in addition to receiving a tax receipt from the donation. Donating art can even help raise funds for arts organizations when all else fails.

But perhaps the most worrisome concern among many charities is that they do not have enough galleries/storage space available. Fine arts organizations can be burdened with high costs for maintaining collections and lack adequate funding

There are many good reasons to make a charitable donation. You may want to help a worthy cause. You may want to support a friend. You may have some unwanted items that are just taking up room in your house.

The tax deduction is another good reason for making charitable donations, but it’s an important safety tip that one should not donate anything of significant value without receiving something of at least equal value in return, because the IRS has taken too many people by surprise.

Leave a Reply