The problem is that U.S. tax laws prevent artists from deducting fair market value for their donations. You can only deduct the cost of materials.

In light of this rule disfavoring artists, you might think these philanthropists are testing the limits of your love and commitment to their cause. But they’re only doing their job.

Rather than get upset about being asked, resign yourself to the fact that you will be asked for donations. You need to be prepared with a response that reflects your boundaries while educating those doing the asking.

It’s perfectly fine to have a policy against donating your art under any circumstances.

If you choose to donate, you’ll be well served with written guidelines that you can share in a moment’s notice. These donation guidelines could include the following 3 aspects.

Two Alternatives for Donating Your Art

Rather than donating outright and creating guidelines like those listed above, you might offer a couple of alternatives that could allow you to donate much more frequently.

The first option is for the organization to buy your art at wholesale and sell it for as much as they can get. I like this option because it incentivizes them to maximize the sale price.

The other option is for you or the organization to find a donor that can buy the work, donate it for the auction or sale, and receive a full-value tax deduction.

Too many artists have been burned by disorganized events, lousy auctioneers, and devastating sales prices after donating their art. With policies and expectations in writing, you should be able to spread the love of your art to the nonprofits whose work you support.

The post Artist Donations: Testing the Limits of Your Love appeared first on Art Biz Success.

Something To Smile About

Photographer Larry Lourcey raised money to pay for 16 surgeries for kids to correct cleft palates and other facial deformities.
Larry offered “mini” photo-shoots (portraits) for a small donation of $24 per shoot and set aside one day for the event.
Ten scheduled mini-shoots could pay for one surgery (just $240!).
If my math is right, this means Larry took at least 160 photos that day!

Honoring Sandy Hook Victims

Moved by the tragic events in Newtown, Connecticut last December, Angeli Petrocco-Coover made 26 mixed-media pieces to give to the families of Sandy Hook Elementary School victims.
She took special care to see that each one reflected the individual personality of the child or school administrator.
Angeli is now selling greeting cards based on those collages to raise money for Sandy Hook Promise.
You can see each work read about the life of the person it honors on this page.

Relief for Moore, Oklahoma

As a native Okie, this one really hits home and I tear up every time I think about all of the good people in the Sooner State.

The post The Generosity of Artists appeared first on Art Biz Success.

Guest blogger: Fiona Purdy

There is one sure thing that will happen to every artist who sells their work. You will be constantly approached by organizations asking for a donation for their good cause.

There are four ways to deal with donation requests.
1.    You can donate.
2.    You can ignore the request.
3.    You can decline the request.
4.    You can offer another solution, and explain why you are offering it.

Instead of getting annoyed by another begging letter, email or phone call for my work, promising me big exposure that never eventuates, I opt for #4.

To be fair, most fundraisers are unaware of what it means for artists who donate their artwork. 

I believe it is our responsibility to gently & diplomatically educate them.  If enough of us do this, maybe sometime in the future we won’t be bombarded as much – and maybe the charity will make a lot more money.

Here is a reply that I sent recently to an organization requesting I donate a painting or a portrait gift certificate.

Dear M,
Thank you for contacting me regarding your event. The  “X” Zoo is a wonderful place.

When a patron purchases a piece of artwork at a fundraising event, they can claim the entire purchase price as a charitable deduction.

However, when an artist donates a piece of artwork, they cannot claim the retail price of it as charitable contribution. An artist can only claim the cost of the materials, which normally is a fraction of the price of the finished artwork.

A piece of art is different than say a vacation, or a spa visit, or donation of that kind. Artwork has an intrinsic value, especially portraits, a deeper value than say a golf package.

After donating many paintings (or portraits), I’ve come to realize that many of the people that attend these events expect to get a “deal,” to be able to purchase artwork at less than market value. This devalues my artwork and it is extremely unfair to my clients who have paid full price for my work.

I would never do this to my clients. It is unacceptable to me.

In light of this I no longer donate my artwork outright to any charity.

I do want to help you in your fundraising efforts however, and there is a way that we can still do this.

You can purchase one of my paintings at full price, and then offer it in the auction, where you will be able to price it at more than the cost to you. You could also get the attendees to understand that the event is a fund raising venture and they should get behind the Zoo by bidding big to raise as much money as possible for this worthwhile cause.

Please let me know if you would like to pursue this avenue.

Regards,
Fiona Purdy

So the next time you are approached to donate your artwork, please feel free to use this letter and modify as you wish!!

Alyson’s note: Here’s another letter you can adapt from artist Alicia Leeke.

About the Guest Blogger
Fiona Purdy makes vibrant, contemporary animal paintings and portraits that portray her passion and deep love for her subjects. She lives in Scottsdale, Arizona.

The post Educate Those Who Ask for Donations of Your Art appeared first on Art Biz Success.

The post 6 Limits for Donating Artwork appeared first on Art Biz Success.

Let’s look at the situation and start with the gift certificate itself, pictured here.

The small lettering on the bottom row consists of these three components.

1. The artist’s contact information–phone and email.
2. The certificate number, expiration date (12/31/2010), and the words “Not redeemable for cash.” Having an expiration date is important! And the “not redeemable” phrase proved key when the recipient tried to cash it in. Geri was able to point to this language and quickly put an end to that discussion. The words “No Cash Value” could also be used or added.
3. A place for the authorized signature (presumably the artist’s or the organization that auctioned it off).

Without knowing the context of how this was promoted in the sale (Was there any text that went along with it or in a catalog?), I see one crucial piece of information missing on the gift certificate–>What can it be used for?

A simple phrase like “To be used toward the purchase of original art or prints by Geri Dunn” might have covered it.*

You could also add the phrase “Non-Transferable” if you want to ensure that only the purchaser is able to use the certificate.

Go over details with the organizers

It’s difficult to have control over your donations if you aren’t involved with the organization or in attendance, but there are some things you can do to have a smoother experience.

Whenever you donate a gift certificate, talk details with the organization. The nonprofits I’ve been involved with have had forms for donors to fill out. Write out the specific terms of your donation on the form and make sure you sign it somewhere. If the organization you’re supporting doesn’t have a form, make up an official letter of your own. Address your donation letter to the organization and include it when you deliver the gift certificate.

If you really want to go all out, see that anything in print (a catalog, brochure, or label) is more specific than “Gift Certificate.” Perhaps “Gift certificate toward the purchase of art by Geri Dunn” would be sufficient. I know this might sound like going overboard, but I’m amazed at how few people read the details of an offer. The more bases you cover, the fewer headaches you’ll have in the long run.

If necessary, provide a separate “Terms of Use” document to go along with the certificate or, better yet, print the terms on the reverse of the certificate itself.

You can also use and adapt many of the above tips for certificates that are purchased from you and given as gifts.

*Disclaimer: I’m not an attorney. I’m sure that state laws differ on such matters, so please do some research before you create your gift certificates.

The post What to Put on a Gift Certificate for Your Art appeared first on Art Biz Success.

In response to my post about how to respond to people who ask you for your art for free, Alicia Leeke was reminded of a newsletter I wrote about soliciting donations.

After reading that article, Alicia listed the charities she supports and posted it to her website. Great idea! If people don’t see it first, she has a resource she can direct them to.

Alicia also created a standard letter to respond to requests for donation. She has given me permission to share it here. (I have added the phrase “to address my concerns” to the final sentence.)

Thank you for the opportunity to donate art to your organization. I have heard such good things about the work you do and I would be honored to have my name associated with yours. However, because the current U.S. tax laws are unfavorable to artist donations, I am only able to donate to those organizations in which the organization returns a percentage of the work back to the artists. I urge you to consider this as an option as you will receive better quality artwork. That way the artist is given a percentage of the art they create, the buyer gets the tax write off and you receive a donation.

If your policy changes to address my concerns, I would be glad to participate.

Alicia writes:

I got this idea from your newsletter and it worked surprisingly to my advantage in selling one of my prints at a price that was fair to the market and to me and not devalue the work. The finished piece was a framed print of a palm that was 24 x 24 [pictured here], double matted and framed with glass, so they got a very large quality piece they might not have otherwise gotten had it been a straight donation.

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