Gifts of Art and Tangible Property

Everyone’s Doing These!?!

wsj 2.2.16

Planned giving in the news!  Click the picture to check out an article on funding CRUTs with appreciated art.

Ironically, the article makes it sound as if these are done often (ha, ha!  CRUTs funded with art are even rarer than Lead Trusts!).  Still, it’s a nice piece.

Actually, take a look at this chart from the article – very interesting. Notice that there are hardly any lead trusts but the total assets are high.  And, notice that CRUTs have more assets than donor advised funds!

Planned Giving Advisors Now Offering Webinars!

Click here to learn more about upcoming Webinars on various planned giving topics from Planned Giving Advisors!

Following-up to our highly successful Planned Giving Boot Camp program, we are now offering webinars on timely topics to help broaden your knowledge base in planned giving.  To kick off this program, we have two guest speakers on special topics and Jonathan Gudema discussing Lead Trusts in late October and early November.

As always, we aim to offer the most convenient and cost effective programs.  For these special webinars, one registration can be used for as many people as you wish at one location and a link to the recording will be provided for all registrants, in case you or anyone on your team are unable to join the live session.

Thank you for reading the Planned Giving Blog!

Best regards,

Jonathan Gudema, Esq., Managing Editor of the Planned Giving Blog and Founder of Planned Giving Advisors


Planned Giving, Art and the Art of Unusual Gifts

When it comes to fundraising and planned giving, be open to the possibilities!

The following news piece is about a very generous couple donating not only their extensive art collection, but also the money to build a space to house it!

Of course, if you are wondering about tax consequences, it is important to note that museums are clearly the best place for donations of art.  If you don’t know or have forgotten, there are different rules for donations of art when it comes to taxes.

For a donor to take a full fair market value income tax deduction, the donated art has to be used in a way that is related to the mission of the recipient organization.  Museums show art, so the donor can reasonably expect that their art gift will be used in a manner related to the mission.   And, if your institution sells a donated work of art within three years of the gift, your organization needs to report the sale and the gift is retroactively considered non-related use and your donor needs to hire tax counsel!  Actually, your organization might need counsel at that point!

Conveniently, I can guarantee that many museums just happen to have a three-year rule when it comes to art donations.  Hint, hint.

Lastly, and the most challenging aspect of gifts of art or other tangible personal property: the qualified appraisal.  I have heard one of the top nonprofit attorneys in country say many times that not once in his 30+ year career has he ever seen an appraisal for gifting purposes that meets all of the rules.  Yes, there are cases that confirm deductions based on an appraisal substantially complying with the qualified appraisal rules but the last thing any charity wants is for their donors to have to go to court to defend their deductions!

Seriously, the appraisal might just be the most tricky part of these gifts.  Who pays for it? The timing of the appraisal? Finding a qualified appraiser who knows how to do a qualified appraisal for gifting purposes?

In other words, be open to unusual gifts – especially art – but don’t try it alone.  Get knowledgeable counsel involved as early as possible in any such discussions!  Trust me, it will be worth it.