"The Fine Art of Tangible Assets: Transforming Collections into Philanthropic Opportunities, " October, 2007. From a symposium convened by Rockefeller Advisors with support from US Trust, 94 pages in pdf.
- Investment professionals sometimes see art as part of a diversified portfolio, and a way to increase return and reduce overall portfolio risk.
- With over $1 trillion in art in private hands, planning for its disposition during life or at death is a major philanthropic opportunity.
- As with, say, a vacation home, art raises intergenerational issues. Will the children treasure or detest the parent's Warhol? Will the parents want a child to have a painting if the child sees it just under the aspect of money? If the Warhol is worth 50% of the estate and there are 3 children, who get the Warhol and who gets short changed?
- A gift of art to a museum is clearly philanthropic. But another way to play it is to sell the art and have the proceeds used for another charitable purpose.
- Families can also establish their own museum (private operating foundation).
An interesting white paper for those of us who do planning, or for donors with an art collection. I must say it got me thinking of Williams College, where I went to school, and the many curators and art mavens trained there. I sure blew it studying the art of literary satire, rather than the fine arts. The market for satire is pretty much in the doldrums. Few hedge fund operators collect it. Drug Lords, CEOs, and conquering generals pass it by untouched. No cat burglar breaks into my Dumpster to steal it. Today, after 40 years of toiling at Our Noble Trade, I still can't give even so much as an aphorism away. Arguably, though, satire, if it hit home and reformed the person, would do the collector more good than any Jackson Pollack. If you know anyone in the market for their Juvenalian word portrait do let me know. Satire, like painting, holds the mirror up to nature. Ut pictura poesis, for all the good it has done me. Collectors, Buy now! Prices of satire have nowhere to go but up!