Dear China Coast Friends,
THE ART OF DONATING ART: THE CHARITABLE CONTRIBUTION OF ART, ANTIQUES AND COLLECTIBLES
by California attorney Joy Gibney Berus.
http://www.pgdc.com/pgdc/art-donating-art-charitable-contribution-art-antiques-and-collectibles
The article referenced here is the best I have ever read about charitable contributions of art. As an appraiser I explain to every donation client, the donor, what is required to make a charitable art contribution to a qualified institution, the donee – and what documentation I need to have in hand before embarking on a donation appraisal. Sometimes it appears that I want to avoid a donation appraisal but if certain criteria are not present, the appraisal by a qualified appraiser does not help. If you are donating an Asian painting to the local Human Society (and no museum is part of this society) then we do not have related use. If you have created the work of art yourself, even if you have sold similar pieces for thousands of dollars, you probably can only deduct material and labor costs. If the appraisal does not satisfy the IRS and follow their rules, the donor and the appraiser can be subject to penalties – this is why many of us appraisers are very carefully evaluating the situation before we take on a donation appraisal.
If you are thinking about donating a work of art or if you just want to learn more about our charitable contribution laws, please read this article by Joy Gibney Berus, partner with the law firm of Barth, Berus & Calderon, LLP. I found the article under the Planned Giving Design Center website. The article appeared originally in the April/May 2008 issue of the Journal of Practical Estate Planning. Charitable contribution appraisals are often discussed among our appraisal organizations, especially since the passing of the Pension Protection Act in 2006 when some of the rules have changed for qualified appraisers and qualified appraisals.
Let me know if I can answer any questions.
Have a wonderful summer!