Brief Overview of How it Works
1. Approval by our Art Advisory Committee
Before moving forward with a donation of artwork to KBFUS, it is important that we know more about the specifics of your intended gift. We will ask you to provide information on the artwork or collection, its provenance and appraisal value. We will also discuss your recommendation for a host museum or other cultural institution in Europe or Africa (if any), your expectations as to the use of the artwork, and your wishes in terms of donor recognition.
This information will be reviewed by our Art Advisory Committee, which approves all donations of artworks to KBFUS. The Committee will also consider your recommendation for a host museum. If you do not have such a recommendation, the Committee will assist KBFUS in identifying an appropriate location in the country or region of your choice.
2. Donation of the artwork to KBFUS
Upon approval by our Art Advisory Committee, we will formalize your donation through a gift agreement, which will transfer the ownership of the artwork to KBFUS. The gift agreement will confirm that KBFUS will use the donated artwork in a manner that is related to its mission.
3. Loan agreement with the host museum overseas
KBFUS will then sign a long-term loan agreement with the approved host museum or other cultural institution overseas. The loan agreement will stipulate the institution’s responsibility to protect the artwork from potentially damaging conditions, and its commitment to display the artwork, make it available for research, and/or include it in temporary exhibitions. The agreement will also confirm expectations in terms of donor recognition, and clarify whether shipping, insurance and handling expenses will be covered by the donor or by the institution.
4. Re-granting of the artwork to the host museum
When requested at the time of the donation, KBFUS allows a donor to later recommend that KBFUS re-grant a previously donated artwork to a designated cultural institution in Europe or Africa. While we can not be bound by such recommendation, KBFUS will give it serious consideration. The transfer will be approved if KBFUS determines that the re-granting of the artwork would indeed best advance its exempt purposes.
5. Management fees
All contributions of artworks to KBFUS are subject to a management fee to help us cover the operational expenses of KBFUS ART. The amount of the management fee is calculated as follows: 5% of the first $100,000 of the appraisal value; 2% of the next $300,000; 1% of the next $300,000; and 0.5% of the value in excess of $700,000. A minimum fee of $2,500 applies. Payment of the management fee can be made by the donor or by the museum receiving the loan.
Return to KBFUS ART
Read more about Gifts of Artworks – Important Tax Considerations
Any further questions? Please contact us at [email protected] or (212) 713-7660.
|Giving Artworks to Museums Overseas|