1. WORKS OF ART

Gifts of works of art may be accepted by Arch. In addition to the noted policies on gifts of tangible personal property, Arch, in accepting works of art, will adhere to the following two-tier approach.

1. Works of high quality, individually or in whole collections, will be given to Arch for, and accessioned by, the Georgia Museum of Art, the official collector and keeper of important works of art for the University. "Accessioned" refers to the Museum's commitment to care for and to use the work for Museum purposes. Art accepted by the Museum must meet the following conditions:

a. It must not be encumbered by any restrictions as to use, attribution, exhibition, and disposal. The Museum will, however, honor the donor's wishes regarding gift recognition.

b. It must be approved by the Museum Director prior to acceptance and, if appropriate, the Museum's Advisory Committee on Collections. The principal criteria for acceptance, besides quality, are condition, authenticity, and relatedness to the purpose and collections of the Museum.

c. Works of art must also be accompanied by a bill of sale or other proof of ownership and a complete provenance (the work's history of ownership).

d. A work of art will not ordinarily be accepted with the provision that it be kept permanently.

e. A work of art will not ordinarily be accepted with the provision that it be exhibited permanently.

f. A collection of works of art will not ordinarily be accepted with the provision that it be kept intact.

2. Works not meeting Museum standards may still be of value to units of the University for decorative, instructional, or resale purposes. However used, title to these works remains with Arch and decisions regarding disposition rest with the title.

3. It is recommended that proof of ownership be a condition of acceptance for any artwork because of the increasing problems of repatriation lawsuits for certain ethnic and cultural categories.

4. For further guidance for giving works of art, consult the Georgia Museum of Art's policies. TOP

Gifts of works of art must be recorded by Arch Gift Accounting Office in order for the donor to receive a charitable tax deduction. A Gift Transmittal Form (Exhibit III.F) should be completed by the receiving unit. The transmittal form requires complete donor information and the gift's value to be stated. If the value of the gift is not stated and the donor is not receiving a charitable tax deduction from the gift, then it is the responsibility of the receiving department to request an appraisal for the object. For a list of appraisers, please contact the registrar at the Georgia Museum of Art. After receipt of the transmittal form, together with the appropriate documentation, the gift will be recorded and the donor notified of the charitable deduction, if applicable. Procedures for valuing gifts are outlined herein.

An Art Inventory Report Form (Exhibit III.B) should be completed by the receiving unit and forwarded to Property Control and a copy should be sent to the assistant registrar at the Georgia Museum of Art.

It is the responsibility of each unit that purchases a work of art to report the purchase to Property Control, following the policies for Procurement established by Business Services, as outlined in the Administrative Policies and Procedures Manual. The insurance value should be determined by the purchase price of the object, unless there is an obvious need for an appraisal. If there is uncertainty about the value of an object or whether it needs an appraisal, please contact the registrar at the Georgia Museum of Art. TOP

Guidelines for the Valuation of Works of Art

The guidelines for the valuation of gifts of works of art are established by the Internal Revenue Service and are applied to each donor who wishes to claim a charitable deduction. Copies of the IRS guidelines may be obtained from an IRS office or from a tax attorney or tax accountant. TOP

A. Property worth $500 or less
The donor establishes the value of the gift based upon records he or she must maintain to support the charitable deduction for the gift. An appraisal is not required for gifts valued at less than $500.

B. Property worth over $500 but less than $5,000
The donor establishes the value of the gift based on the property's cost or other basis. The donor must complete Part I of IRS Form 8283 to receive a charitable deduction for the gift.  A qualified appraisal is not required for gifts valued between $500 and $4,999. The gift is accepted and recorded based upon the value substantiated by the donor from either receipts, a statement from an art dealer, or some other proof of value and a copy of IRS Form 8283.

C. Property worth over $5,000 but less than $20,000
The donor must comply with strict appraisal guidelines. The appraisal rules apply to single gifts of works of art or to the aggregate value of a group of similar items of art for which a charitable deduction is claimed.

The gift is accepted and recorded provided the donor meets the following substantiation requirements:

1. obtains a qualified appraisal for the property contributed, and

2. provides a copy of IRS Form 8283 on which the donor claims the charitable deduction.

D. Property worth over $20,000
The donor must comply with strict appraisal guidelines and must include an 8 X 10 inch color photo or a 4 x 5 inch color slide of each item donated (this data must be attached to the donor's tax return.) The appraiser must sign part III of IRS Form 8283.

The gift is accepted and recorded provided the donor meets the following substantiation requirements:

1. obtains a qualified appraisal for the property contributed,

2. attaches photographs of the subject works of art, and

3. provides a copy of IRS Form 8283 on which the donor claims the charitable deduction.

Whenever possible, the receiving unit should request the transfer of the work of art to that unit by a Deed of Gift signed by the donor (see Exhibit III.C). TOP

Guidelines for Requesting Transfer of Copyright for a Work of Art

Whenever possible, the receiving unit should request a transfer of the copyright to the work of art (see Exhibit III.D).

Under federal law, copyright protection is available to all works of authorship that have been fixed in a tangible medium (this includes pictorial, graphic, and sculptural works; photographs, prints, and art reproductions; maps, globes, charts, diagrams, models, technical, and architectural drawings). TOP

Owners of copyright have the following exclusive rights: to reproduce the work, to prepare derivative works, to distribute copies to the public, and to perform/display the work publicly. These rights are divisible and may be conveyed separately or in entirety. Ownership of the copyright of a work of art is distinct from ownership of the material object. Ownership of copyright remains with the artist unless copyright was conveyed by written agreement.

Copyright protection for a work created after January 1, 1978 endures for the life of the artist, plus another fifty years. Works created prior to 1978 were granted two 28-year terms of protection, with renewal required after the first 28-year term. Once copyright protection has expired, the work falls into the public domain and can be used freely by anyone. TOP

Works of art protected by copyright are available to anyone for "fair use," such as for criticism, teaching, or research. "Fair use" is determined on a case-by-case basis, based upon four factors: the purpose and character of the proposed use, the nature of the copyrighted work, the amount and substantiality of the portion used, and the effect of the proposed use upon the potential market for, or value of, the work.

Federal copyright law has a provision pertaining exclusively to visual artists. It grants the creator of a work of visual art a limited right to maintain control over the work even after it has been sold. The artist has the right to claim authorship of the work and the right to prevent any intentional distortion, mutilation, or other modification of the work. These rights belong to the artist, even if the artist is NOT the copyright holder. They extend for the life of the artist and cannot be transferred, although they can be waived.

All questions on the complex issues of copyright should be referred to the Office of the Executive Director for Legal Affairs.TOP

Guidelines for Appraisal of Works of Art

The term "qualified appraisal" means an appraisal by a professional appraiser no earlier than sixty days before the contribution of the appraised property, and no later than ninety days after the contribution date. To be independent of the donor, the qualified appraiser cannot be the donor or the donee, a party to the transaction in which the donor acquired the property, a person employed by any of the foregoing parties, a person related to any of those parties, or have any other financial interest in the works being appraised. TOP

The appraisal must be signed and dated by an appraiser who charges an appraisal fee. An appraisal of a collection or a work of art must include the following:

A. A detailed description of the object, including title, size, subject matter, medium, name of the artist, approximate date created, and interest transferred;

B. The physical condition of the property;

C. The date, or expected date, of the contribution, the date on which the property was valued, and the manner of acquisition;

D. The terms of any agreement or understanding entered into, or expected to be entered into, by or on behalf of the donor, that relates to the use, sale, or other disposition of the property contributed;

E. The name, address, and taxpayer identification number of the appraiser;

F. A detailed description of the appraiser's background and qualifications; TOP

G. A statement that the appraisal was prepared for income tax purposes;

H. A history of the item, including proof of its authenticity and a record of any exhibitions at which the particular art object was displayed;

I. A photograph of the subject, of a size and quality sufficient to identify the subject matter fully; TOP

J. A statement of the factors on which the appraisal was based. This statement should include:

1. The specific basis for the valuation, such as any specific comparable sales transactions, particularly sales of other works by the same artist on or around the valuation date;

2. Quoted prices in dealers' catalogues of works by the artist or comparable artists;

3. The appraised fair market value of the property and the method used to determine the fair market value, particularly with respect to the specific property;

4. A statement as to the standing of the artist in the profession and in the particular school, time, or period in which the work was produced. TOP