Charitable Donations of Art: Advising the Donor and Donee (OnDemand)
Originally held on Wednesday, May 12, 2021 | 1:30 pm - 5:00 pm
Program Fee:
$199 for Members | $299 for Nonmembers
Members who are Recent Law Graduates, Newly Admitted Lawyers (admitted for the first time in any state or country 2020-2022), In-House/Corporate Counsel, Judges, and attorneys who practice within the Government, Academic or Not-for-Profit sectors attend this program for free.
CLE Credit:
New York: 3.5 Professional Practice
New Jersey: 3.8 General
California: 3.0 General
Pennsylvania: 3.0 General
Connecticut: Available to Licensed Attorneys
This live program provides transitional/non-transitional credit to all attorneys.
Description:
As a work of art moves from the collection of a donor to that of a
nonprofit museum or other charitable institution, multiple
considerations are implicated; and the advisor to a collector or to an
institution must consider numerous issues of tax and contractual law and
other ethical and practical concerns to properly represent their
client. This program is a unique collaboration among the City Bar’s
Estate & Gift Taxation, Art Law and Non-Profit Organizations
Committees, and will guide practitioners through the life cycle of a
charitable contribution of art, from the individual donor to the
charitable donee. While focusing on works of art, the program will also
provide general insights to lawyers representing donors and non-profit
organizations on planning for and managing charitable donations.
Members of the Estate & Gift Taxation Committee will focus first on
the income, gift and estate tax rules that must be considered by the
donor of a work of art when making a charitable contribution, and review
ways in which the character of both the contributed property and the
charitable donee may affect the donor’s tax position. To protect the
public’s interest in fostering charitable contributions, stringent
appraisal and filing obligations are imposed on donors and charitable
donees – these requirements and regulations will be addressed and
illustrated through case studies. Practical consideration and drafting
tips on the ways the transfer of the artwork may be accomplished to meet
the donor’s personal goals within a favorable tax position, including
the use of split interest gifts and other partial interest transfer,
contributions to private foundations and museums versus publicly
supported museums, and charitable loans of art, will be discussed by
this panel.
Members of the Art Law Committee will then bring to the fore the
interaction between the two parties – donor and donee – highlighting
issues to consider in negotiating the contribution, and the legal
consequences of various contract provisions between donors and donees
with respect to donations of art. Often times these negotiations are
between individuals and institutions with long-standing relationships.
This panel will focus on both the legal and practical components of
charitable contribution negotiations. Topics to be addressed will
include considerations regarding structuring the gift, restrictions
related to the art, logistical considerations and related expenses,
publicity concerns, and the importance of preserving relationships.
Finally, members and guests of the Nonprofit Organizations Committee
will address the tax, non-profit and contractual law and other ethical
and practical concerns faced by nonprofit museums regarding charitable
donations long after the donation is complete. Donated objects in a
collection demand resources on a constant and ongoing basis even as a
museum’s mission or focus may shift with the times. In the
fast-changing economic and cultural landscape – most recently relating
to the coronavirus pandemic and movements demanding greater
accountability for diversity and inclusion – museums are examining
opportunities to monetize valuable art and objects in their collections
through “deaccessioning” in an effort to keep the lights on or pursue
other institutional goals. This panel will explore challenges that
museums and other nonprofits are currently facing through the lens of
the deaccessioning debate, including navigating contrary donor intent
and restricted giving, compliance with internal governance and ethical
guidelines, and other legal and ethical considerations.
Click Here to View Program Agenda & Faculty
Program Co-Chairs:
Jackie Ewenstein, Ewenstein & Roth LLP
David E. Stutzman, Seward & Kissel LLP
Diana Wierbicki, Withers Bergman LLP
Sponsoring Association Committees:
Art Law, Diana Wiebicki, Chair
Estate & Gift Taxation, David E. Stutzman, Chair
Non-Profit Organizations, Jackie Ewenstein and Amarah Sedreddine, Co-Chairs