Non-cash charitable donations of artworks valued over 5,000 USD require a Qualified Appraisal report for income tax purposes. Donors receive a current Fair Market Value tax deduction. An accompanying 8283 form must be signed and acknowledged by both the qualified Appraiser who issued the report and the receiving institution. The donee is required to acknowledge compliance with the use rule - the use of the donated property aligns with the mission of the 501c3. If the artwork is deaccessioned by the donee within three years of acceptance of the donation an IRS 8282 must be filed.
An Appraisal Report for the purpose of non-cash charitable donation may be issued up to 60 days ahead of the Effective Date of the report, which is recorded as the official date of transfer of property. The ratification date may be either a fully executed Deed of Gift or physical transfer to the donee. The report may also be issued after the date of transfer of property, and up to anytime ahead of the donor’s tax filing deadline.
Notes: The IRS heavily regulates appraisals for purposes of income tax deduction. It is crucial to comply with all standards as reports are often flagged and further reviewed by the IRS Art Advisory Panel.
Tony Cragg, Versus, 2013
Memorial Art Gallery, University of Rochester,
Donated by David and Karen Brush
Appraisal Bureau is proud to be the valuations partner of Museum Exchange, the first online platform to facilitate art donations between collectors and institutions. As pioneers of a new approach to philanthropy, Museum Exchange offers an invaluable tool in collection management for private collectors and institutions alike.
The Art of Donating Art: A Conversation with Michael Darling, Co-Founder, Museum Exchange
A Conversation with Michael Darling, Co-Founder, Museum ExchangeAs the valuation partner of Museum Exchange, the first digital art platform for art donations, Appraisal Bureau specializes in the appraisals necessary for philanthropic giving and art collection legacy planning. We’ve highlighted key components of best practices, filing for a tax deduction, and sat down with Michael Darling, Co-Founder…
Embracing Technical Innovation in the Artworld: The Art Basel and UBS Art Market Report 2023
The Art Market 2023 is an annual publication presenting research-based findings in the global Art and Antiques market. The report is published by UBS and Art Basel, and prepared by the cultural economist Dr. Clare McAndrew, Founder of the research and consulting firm Arts Economics, which focuses exclusively on the art economy.Appraisal Bureau Founder, Caroline…
Appraisal Bureau Founder presents at Goldman Sachs APEX Family Office Conference, New York City
Caroline Taylor of Appraisal Bureau and Jack Spallone of Hifi Labs discussed the impact of NFTs on the art and music sectors at Goldman Sachs’ APEX Family Office Conference, moderated by George Lee, Co-Chief Information Officer of Goldman Sachs. The NFT Panel, on May 12, 2022 at Goldman Sachs’ New York City headquarters broke down the…
New York Magazine: How Museums are Trying to Figure Out What NFT Art is Worth: Determining value in the age of Bored Apes is a work in Progress
The Institute of Contemporary Art Miami was the first major museum to acquire an NFT. New York Magazine covered this novel acquisition and just what was required to make it happen, and how Appraisal Bureau was involved. Read the article here.