Art
A painting, sculpture, or other piece of fine art can
make an ideal gift. Whether purchased or inherited, selected works of
art in your personal collection that you have enjoyed may now provide
more enjoyment and fuller use if given to the Marriott School. Gifts of
art can be widely used for educational and display purposes. Occasionally,
pieces of art may be sold and the proceeds made available to meet high-priority
needs.
The typical donor:
- Has enjoyed using the art.
- Does not desire to pass the art to heirs.
- Wants others to enjoy the art.
- Desires to make a meaningful gift.
- Recognizes a "related use" by the recipient institution.
Gifts features and benefits:
- Immediate income tax deduction
- Avoidance of capital gains taxes
- Deduction based on fair market value
- Gift can be timed to take advantage of changes in market value
How Do I Make a Gift of Art?
A gift of art to the Marriott School must be reviewed
and accepted by LDS Foundation in behalf of the receiving entity. Acceptance
of an art gift is based on a number of factors:
For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.
- Condition of the art
- Availability of appropriate display space
- Harmony with existing art collections
- Potential educational value
- Confirmed "related use" of the art by the institution (or charitable income tax deduction may be limited)
- Approval by the institution's art acceptance councils
For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.
How Do I Make a Gift of Art Using Gift Planning Tools?
Art and art collections can make an ideal gift at
death by Will or Revocable Trust.
A gift of art made through your will or trust allows you and your family
members to enjoy the art during your lifetime. Then, at your death, the
art is transferred to the Marriott School. In isolated situations, art
can also be used to fund a life-income gift such as a Charitable
Remainder Unitrust.
Other Facts You Should Know about a Gift of Art
Art may pose special problems for the artist in his
or her estate. Gifts of art by the artist to the Marriott School are deductible
for income tax purposes only to the extent of the cost of materials used
to produce the art. If art is gifted by the artist to heirs during life
or from the artist's estate at death, it is valued for gift and estate
tax purposes at fair market value. This can result in the art being sold
to pay taxes, often at less than fair market value, leaving heirs with
little or no proceeds. LDS Foundation professionals would be happy to
discuss your particular circumstance with you and your professional advisors.
