During this unprecedented year, many artists have joined the fundraising efforts of the art institutions worldwide providing collectors with an opportunity to buy art that they wouldn’t otherwise have access to.
"In donating a work to a charity auction, there is a risk that it may sell for below market value or not sell at all, devaluing the artist’s market. To boot, artists seldom enjoy the perks of a tax deduction." Amanda Gray, Partner in Art Law, provided a comment discussing tax implications when gifting art to charity.
"In the UK, gifts of art to charity generally do not qualify for income tax relief, so artists can’t claim deductions for the full market value of their work. “HMRC’s concern is that if the artwork is overvalued, the donor would receive too much income tax relief.
In Amanda's words, "While it is sometimes possible to claim a deduction on the fair market value of the donated artwork in the US, there are often strict conditions attached, which … generally won’t be met if the donor is the artist or the art is sold at a charity sale."