Donating Artwork TIPS

The decision to donate your artwork is more of a personal choice than a business one. Many groups soliciting artwork donations for their silent auctions business-related results such as exposure, recognition, and a tax deduction but in the end what the artist is most likely to receive is a warm feeling for donating to a good cause.

Exposure and recognition are powerful motivations for an artist; putting money into marketing, materials and studio space is a good investment. Fundraising organizers may claim that donating a piece of art can be translated into paying money for publicity, but the reality is the publicity gained is rarely worth the amount of the artwork. A very successful fundraiser was overheard recently gloating over the amounts her auction brought in stating “and the art was all free!”

Donating to non-profits is a wonderful way to support great causes, but artists like everyone else must be judicious in picking the right events for them personally. Before artists donate artwork to an auction or for another fundraiser, there are a few things to be aware of.

• Because the fundraisers are typically about another topic, the artwork is rarely the focal point and thus does not generate the great exposure the organizers sometimes promise.
• The artwork is typically purchased for much less than its fair market value and thus the patron may be less likely to purchase the work outside of an auction setting for the full price.
• Even though the organizers may tell you otherwise, it is important to be aware that under current federal law, artists may only deduct the cost of the materials when donating artwork to a non-profit organization. You, as the artist, may not deduct the fair market value of the work.

With these facts in mind, it is okay to say no to a fundraiser. Artists should plan out their charitable giving allowing for a certain amount of donations per year. When that allotment is up, just say no and explain your allotment for the year has already been donated. In the end, your donations to these organizations should be given because you believe in and support the cause and the mission of the group, not because you will get a tax deduction or great exposure, which rarely happens.