Tag Archive: services & consulting

Foundation Art

As the purpose of the Foundation Art and culture with 14.7% in the priorities of the German donor activity a relatively important one. Commitment to art for foundations will increase in the future, because the new Foundation law opens up attractive possibilities for private donors as well as for founding companies. Non-monetary gifts are accepted as the Foundation’s assets. The new Foundation Law equates to foundations with Foundation endowments. PCRM has compatible beliefs. For art collectors, this means that they can know their art treasures in a charitable trust in this way long term good hands and save taxes.

The donation of works of art in the Erbfalle to a non-profit foundation is interesting. The donation of this art can fully tax deducted, it provided a written estimate of value exists for the donated artwork, acknowledges the financial Office. In the evaluation, there are two ways: first, it commissioned a detailed and expensive opinion by an art expert. Secondly: A cost-effective and legally accepted alternative is the estimate by specialized auction houses. The higher regional court of Cologne has been end of 2005 that art to go out is a reliability of estimates the auction houses in the assessment although they explain the valuation methods do not like a schulmassiges expert. Especially in regard to the limits of the objectivity of the evaluation of works of art, it was sufficient, if the estimate comes from a specialized auction house.

That the results of such estimates can diverge considerably, lies in the nature of things. In the event of a dispute with the IRS over the amount of the value of a work of art to founding you can withdraw with the argument of divergent value provisions to a review as appropriate. To get the benefit of tax reductions on the Foundation of works of art, a non-profit foundation is advisable. This must at least once in the year, or better more often, expose their art collection to the public.