PxlDan

I am often asked to donate a painting for a charity auction to support any number of causes, and I often do donate to non profit organizations that I am involved with or have close ties to. Organizers of these events will always tell me the work is tax deductible. However, the truth is, it isn't. The organizers often don't realize this themselves. If I were to sell a painting to a buyer and that buyer donated the work, then they could deduct the fair market value of the painting. However, If i donate the same painting directly I could only deduct the materials (a small fraction of market value).

There is currently a congressional bill that would allow Artists to deduct the full value of their donation to non profit organizations that purchase the work to retain in their collections. This would be public institutions that depend on donations to build their collections. However, what isn't clear is how this effects works of art that is donated to a non-profit for a charity auction. At any rate, this is a worthwhile effort to support. Visit The Americans for the Arts website for a simple way to urge your members of Congress to Co-Sponsor the Artist Deduction Bill.

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