Skates pp.11 13
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This document discusses various aspects of art collection management, including collecting objectives, sources, and systems. It covers establishing the scope and value of a collection through inventory and valuation. Collection maintenance includes insurance, shipping, handling, installation, and conservation. The public and private worth of collections is examined through sharing, displaying, lending, publishing, and investing. Parting from collections addresses de-accessioning, gifting, estate planning, and various sales strategies.
Skates pp.11 13
- 1. 13 November 2013 Art Collection Management sothebysinstitute.com
- 3. Collecting Objectives • • • • • • • Personal Vision Conceptual Theme Vertical Collecting (Buying in Depth) Horizontal Collecting Crossover Collecting “The Very Best” Medium
- 4. Collecting Sources • • • • • At Auction Dealers Artist’s Studio Online Via Agent Due Diligence
- 5. Collection Management Systems (CMS) • Software Artsystems/Gallery Pro ArtBase The Museum System Filemaker Pro (My Art Collection) vs. • “The Cloud” iCollect/CollectorSystems (Sotheby’s Official Client CMS)
- 7. My Art Collection Art List
- 8. Valuation Valuation v. Appraising What Kind of Value? Valuation Factors Authenticity Quality Rarity Condition Provenance Publications and Exhibition
- 9. Insurance • Art Insurance • Explosion of art market = Explosion of insurance business • Premium revenues have increased by 30% in last 5 years • U.S. is fastest-growing market; Brazil • Increased values also mean increased liability
- 10. Why Insure? DESTRUCTION Jackson Pollock, Drips on Black partially destroyed in Corral Canyon Fire 2007
- 11. Why Insure? DAMAGE PARTIAL LOSS Picasso’s $138 million La Reve – post elbow
- 12. Issues for Insurer At-Risk Addresses: Florida
- 13. Issues for Insurer: HOTSPOTS Momart Warehouse Fire, London, 2004
- 14. How much to insure for? Richard Prince, Man-Crazy Nurse No.2 sold for $7,433,000 at Christies, May 2008 2003: Nurse painting purchased for $100,000 2006: Same Nurse painting valued at $250,000 New buyers from Russia, Middle East and Asia concentrate on artists with momentum
- 15. Title Insurance When is title not clear? Theft, Liens, Divorce Provenance Gap Reassure Buyer Muddy Ownership .Note: most reputable dealers guarantee clear title and auction houses offer warranty • Suffland Holdings v. Gagosian Gallery (Mark Tansey) 2010 – Consignor forgot work had been partially gifted to Met when signed representation of warranty to title
- 16. Shipping International Freight • 9/11 Commission Act of 2007 – TSA screens 100% cargo on passenger aircraft (some shipping companies are Cargo Screening Facilities)
- 17. Shipping Mitigate Risk • Reputable Art Handlers → ICEFAT (International Convention of Exhibition Fine Art Transporters) www.icefat.org • Before anything is shipped: → Condition Report with Images • Correctly Packed: Crate, Travel Frame, Conservation→ Grade Soft Packing Materials • Most Direct Route Possible
- 18. Shipping Road Freight − − − − − − Air-Ride Suspension; Humidity, Temperature Control Security Tracking Alarm Consolidated Shipment? → LOFO (Last On, First Off) Is Someone with Artwork At All Times? Can Art Be Unloaded in Building? By Courier Delivery − Must be supervised − Signature constitutes owner’s approval of arrival condition − Conservator should be on hand for valuable and vulnerable pieces
- 19. Shipping Customs Generally: Fine Art is Duty Free → But what is “Fine Art”? • “executed entirely by hand” -- YES • Antiques over 100 years old – YES • Disassembled “light art” – NO! (EU) → Haunch of Venison Case (2010) = VAT 20% instead of 5% + Customs » Viola and Flavin works are “wall lighting” and “fixtures”
- 20. INSTALLATION
- 21. INSTALLATION • Does it fit?? • Avoid Direct Sunlight – Ultraviolet radiation (cumulative damage cannot be reversed) − solar shades − UV filters/Glazing − Rotate works • Location (Radiators, Fireplaces, Under Sprinkler Systems, Near Heaters) • Humidity fluctuations (optimal: stabilized between 40-60%) − Beware of spotlights (heat) • Sculpture and Objects: consider plinths, display cases, bases and mounts
- 22. Conservation Only 5% of the world‘s artworks will survive the next 100 years!
- 26. SHARING COLLECTIONS Don and Mera Rubell
- 27. SHARING COLLECTIONS • Exhibition Loans • • • • • • • • • Duration?/How many venues? Security?/Climate control? Publication? Insurance? Costs? Courier? Replacement work? Immunity from Seizure? UCC-1
- 28. SHARING COLLECTIONS Foundations Rubell Family Collection/Contemporary Art Foundation
- 29. PARTING WITH COLLECTIONS DE-ACCESSION No more room/doesn’t fit 27 Rue de Fleurus, Paris
- 30. PARTING WITH COLLECTIONS • Tired of the Artwork/Change of Taste • Raise money to buy more art • No more room/doesn’t fit • Approaching end of life/priorities shifting
- 31. PARTING WITH COLLECTIONS DE-ACCESSIONING: SELLING • Auction - open, public (not discreet), transparent, but all at once can be a risk • Private Sales − Dealer – or not − Conflict? Selling • For multiple pieces: De-accession Plan − Analyze Each Market Sector − Don’t Flood the Market
- 32. PARTING WITH COLLECTIONS ESTATE PLANNING GOALS 1.Respect collector’s wishes vis-àvis collection 2.Reduce tax burden on estate
- 33. PARTING WITH COLLECTIONS ESTATE PLANNING: GIFT/BEQUEST DONATE WORKS TO CHARITIBLE INSTITUTIONS Dorothy and Herbert Vogel National Gallery of Art Washington, DC (Collectors Deduct FMV)
- 34. PARTING WITH COLLECTIONS “BARGAIN SALE” Sammlung Berggruen Heinz Berggruen Sold works to Berlin’s State Museums for $129 million, 1/10 market value
- 35. PARTING WITH COLLECTIONS “BARGAIN SALE” = Sell Works to Museum for Reduced Price •Cash strapped museums acquire desirable works •Collector gets deduction + funds to enjoy or use to defray estate costs
Editor's Notes
- #32: Executors prefer auctions
- #33: Blockage: Artist’s estate or estate of their families. Can bring value of estate down significantly 20 – 90%– BUT NOT CASE WHEN CHILDREN INHERIT
- #34: Files IRS Form 8232 Noncash Charitable Contributions with tax return, subject to audit. If FMV is worth more than 5k, must obtain qualified appreaisal not more than 60 days prior to donation date. Appraisal must be signed and dated and included in tax return. /MISTAKE: accept artwork as gift from artist and donate because valuation limited to cost of materials