Art of donating art
What should donors be thinking about when making a donation of a piece of art, during life or at death? Art is a common non-traditional UHNW investment. As you consider how to plan for the disposition of your art, a gift to a charitable entity will often come to mind. So what should donors be thinking about when making a donation of a piece of art, during life or at death? While you may gift your art to whomever you wish, museums are often a top choice. In addition, a gift of art to a museum may offer a tax benefit. There are three common misconceptions people often run into when donating art to museums: The amount of a donor’s charitable income tax deduction for a lifetime gift of art is always the same. In fact, it depends in part on the recipient charity’s status. Gifts to public charities have the lowest limitation on deduction for artwork, and most museums are treated as public charities. How the museum uses the gift has no impact on the amount of a donor’s charitable income tax
