The Art of Giving Art, Part 1: Qualifying for a Charitable Deduction
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Welcome to EO Radio Show – Your Nonprofit Legal Resource. I'm Cynthia Rowland, and this is episode 166 of EO Radio Show. Today, we begin a two-part series on a topic at the intersection of art, wealth, and the tax code: charitable donations of artwork. If you are a collector, advise collectors, or work with nonprofits or museums that receive major gifts of artwork, this series is for you.
So here's the roadmap for this episode.
The first segment covers what a gift of art must satisfy to be deductible. It must meet technical requirements for the right type of donee, the related-use rule, actual delivery of the artwork, and substantiation requirements.
In the second segment, we'll cover how much the donor can expect to deduct, income tax deduction limits, carryforward rules, the new floor on charitable contributions starting in 2026, and comments on the bargain sales rules.
In the third segment, I'll cover some traps for the unwary: appraisal problems, penalties for overstating value, prearranged sales, fractional gifts, and some comments on applicable state tax law.
In the fourth segment, I'll introduce the IRS art advisory panel, which reviews high-value art appraisals on audit.
Together, these segments follow a gift of art from start to finish, whether the gift qualifies for a charitable contribution deduction, how the gift benefits the donor, where things can go wrong, and how the IRS will test it.
In episode 167, my friend and appraiser, Andrea Roth, joins me to discuss the five most expensive mistakes collectors make when donating art.
Show Notes:
EO Radio Show #17: Charitable Contribution Substantiation Requirements and a Conversation About Art Appraisals With Sarah Vandeweerdt From Christie’s
DISCLAIMER: This podcast is for general informational purposes only. It is not intended to be, nor should it be interpreted as, legal advice or opinion.
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