For objects over $5,000 in value that are to be gifted to an institution or foundation, an appraisal for tax purposes will be needed.
What is a qualified IRS donation appraisal?
We can provide IRS-compliant donation appraisals, including the required 8283 tax form, as well as full cataloguing, high-resolution color images (with option for full page printing), illustrated comparables and full market analysis to justify the appraised value. The appraisal report also includes a narrative and details on the place of donation and object(s) being donated, to comply with IRS requirements.
Donations exceeding $50,000 are automatically reviewed by the IRS Art Advisory Panel. We work closely with the Panel and national appraisal organizations to ensure we exceed all requirements for a successful review process.
- Fair market value (FMV)
- Full cataloguing including artist/make, title, size, medium, age, and general condition along with any supporting details such as provenance, literary references and exhibition history
- Discussion of the current marketplace in relation to the types of objects being donated
- Narrative discussing the context of the place of donation and the objects to be donated
What is related use?
According to the IRS tax code, in order for a donor of tangible personal property to take full advantage of a tax benefit, the charity must use the object in a manner that is related to its exempt purpose. For example, a painting donated to a university with an art museum and an educational program around the collection. Or a tall case clock created by a regional clock-maker, given to a historical society in that region.
Sources used to determine fair market value and to provide narrative specific to the donation:
- Auction market for assessment of current market for the particular artist and/or type of work being valued
- International auction house records, using several databases that search more than 12,000 sellers and 58 million global records
- Living artist and artist estates to confirm authenticity, editions, etc.
- International art fair reports
- Private collectors and advisors
- Over 75 contracted specialists familiar with global, national and regional market pricing
- Review of the donee’s collection and donation policies
Please click here for a downloadable list of the details needed in order to for us to prepare a donation appraisal.