FundSvcs Community

Hello everyone,

We currently don't have a process in place to accept donations of art or art collections.

We have a donor who would like to donate 8 pieces of art from a specific artist which will include frames and ready for display. While they are awaiting the appraisal report, I'm wondering if anyone can share their policies and procedures on this. The donor's estimated value of the art collection is in the $100K - $500K range, but again, awaiting an appraisal report.

1. What's the process of hanging or selling the art after it's in your organization's possession?
2. Is the cost of framing typically part of the appraisal process?
3. Is the cost of transportation factored into the donation amount?

Anything else I should know when considering acceptance of artwork collections?

Thank you for any insight!

------------------------------
Aimee Holland
Director of Development Operations
Alameda Health System Foundation
aholland@alamedahealthsystem.org
------------------------------

Original Message:
Sent: 12/1/2022 9:35:00 AM
From: Aimee Holland
Subject: Inquiry to Acceptance of Art Collection Donations

Hello everyone,

We currently don't have a process in place to accept donations of art or art collections.

We have a donor who would like to donate 8 pieces of art from a specific artist which will include frames and ready for display. While they are awaiting the appraisal report, I'm wondering if anyone can share their policies and procedures on this. The donor's estimated value of the art collection is in the $100K - $500K range, but again, awaiting an appraisal report.

1. What's the process of hanging or selling the art after it's in your organization's possession?
2. Is the cost of framing typically part of the appraisal process?
3. Is the cost of transportation factored into the donation amount?

Anything else I should know when considering acceptance of artwork collections?

Thank you for any insight!

------------------------------
Aimee Holland
Director of Development Operations
Alameda Health System Foundation
aholland@alamedahealthsystem.org
------------------------------

Hi Matt,

Thank you for your reply! Sorry if you're getting this message twice - I posted but it keeps graying out so I'm trying another browser.

I appreciate your help and will be re-looking into those resources you mentioned today.

To answer your question, yes, the donor is not the artist. Therefore, my follow-up question is: How would we know about any copyright considerations if it isn't in the donor's documentation? I had assumed that if the donor procured the art and donated it to us without restrictions, that we could display the art. I'm curious to know more about this for this and any future art we receive. Do we advise the donor to include a statement about copyright considerations?

Thank you,
Aimee

------------------------------
Aimee Holland
Director of Development Operations
Alameda Health System Foundation
aholland@alamedahealthsystem.org
------------------------------

Original Message:
Sent: 12-01-2022 09:54 AM
From: Matthew Bain
Subject: Inquiry to Acceptance of Art Collection Donations

Hi Amy,

There should be good information in the best practices section of AASP under Records Management: "Recording and Receipting Gifts in Kind." You should also review IRS publication 561.

If you sell the art within three years, that should be reportable to the IRS and might have implications for the donor.

Other things to consider:

• Remember you can acknowledge the gift of property, but shouldn't state a value on the acknowledgment/receipt.
• If the donor is planning to claim a deduction at that threshold, you should recommend that they seek advice from their tax professional. (Who should appropriately guide them on qualified independent appraisals and form 8283).
• You seem to imply that the donor is not the artist. Are there copyright considerations that go along with the art? Are you allowed to publicly display it?
• Your organization doesn't appear to be affiliated with a museum. However, you may want to discuss the donor's expectations for appropriate attribution when displaying the art and for deaccession.

Matt Bain

Executive Director, Advancement Services

Division of University Advancement

Kennesaw State University

470-578-7719

Original Message:
Sent: 12/1/2022 9:35:00 AM
From: Aimee Holland
Subject: Inquiry to Acceptance of Art Collection Donations

Hello everyone,

We currently don't have a process in place to accept donations of art or art collections.

We have a donor who would like to donate 8 pieces of art from a specific artist which will include frames and ready for display. While they are awaiting the appraisal report, I'm wondering if anyone can share their policies and procedures on this. The donor's estimated value of the art collection is in the $100K - $500K range, but again, awaiting an appraisal report.

1. What's the process of hanging or selling the art after it's in your organization's possession?
2. Is the cost of framing typically part of the appraisal process?
3. Is the cost of transportation factored into the donation amount?

Anything else I should know when considering acceptance of artwork collections?

Thank you for any insight!

------------------------------
Aimee Holland
Director of Development Operations
Alameda Health System Foundation
aholland@alamedahealthsystem.org
------------------------------