Donation Tax Savings Calculator
Compare the estimated U.S. tax outcomes of donating appreciated artwork to a qualified museum versus selling it outright.
Estimated Results
A comparison of donating vs. selling the artwork.
Enter values and click Calculate.
Disclaimer: This calculator provides an estimate for informational purposes only and does not constitute tax advice. Assumes a long-term capital asset donated to a qualified 501(c)(3) organization for a "related use." Tax laws are complex; consult a qualified professional.
Benefits of Art Donation
Donating appreciated artwork to a qualified institution like a museum is a powerful philanthropic tool with significant financial advantages, particularly under U.S. tax law.
- Fair Market Value Deduction: You can deduct the full current fair market value (FMV) of the artwork after a one year hold time, not just your original cost basis. This allows you to write off the appreciation in value without ever paying capital gains tax on it.
- Avoid Capital Gains Tax: By donating the artwork directly, you avoid realizing the capital gains that would be incurred if you sold the piece. This is a major benefit for long-held, highly appreciated assets.
- Positive Ecosystem Impact: Removing artworks from the market and placing them in public, non-selling institutions reduces the available supply. This can increase the scarcity and potential value of the artist's other works, creating a positive feedback loop for the artist and other collectors.
- Legacy and Philanthropy: Your donation supports cultural institutions, makes art accessible to the public, and contributes to the artist's legacy, creating a lasting impact beyond financial returns.
This model is contributive, not extractive. It provides a tax-efficient way to manage a collection while supporting the broader art ecosystem.