It's been Christmas all year at American art museums. While the recession has nipped away at acquisitions budgets--in some cases, gobbling them up entirely and taking a big bite out of operating funds--museums have been blessed with a feast of donated artworks.
Comparing the estimated value of art gifts received so far this year with 1990's gifts, museum directors report that percentages are way up: 400% at the Los Angeles County Museum of Art, 500% at the Museum of Contemporary Art in Los Angeles, 1,000% at the Bowers Museum of Cultural Art in Santa Ana, 6,000% at the Toledo Museum of Art in Toledo, Ohio.
For the Record
Los Angeles Times Friday December 27, 1991 Home Edition Calendar Part F Page 2 Column 5 Entertainment Desk 1 inches; 21 words Type of Material: Correction
Misspelled names-- The last name of art collectors Hans and Varya Cohn was misspelled in an article on 1991 gifts to art museums in Wednesday's Calendar.
For the Record
Los Angeles Times Saturday December 28, 1991 Home Edition Calendar Part F Page 3 Column 3 Entertainment Desk 1 inches; 23 words Type of Material: Correction
Incomplete name-- The name of the San Diego Museum of Contemporary Art in La Jolla was incomplete in an article about 1990 gifts to art museums in Wednesday's Calendar.
"It just shows what tax incentives can do," said David Steadman, director of the Toledo Museum of Art.
Indeed, the bonanza is largely due to a one-year provision--recently extended for six months--allowing donors to deduct the full market value of gifts from their federal income tax. The Tax Reform Act of 1986 wiped out deductions of appreciated value for most high-income donors by requiring them to count appreciated value of gifts in calculating the alternative minimum tax. The change effectively reduced gifts of artworks by at least 50% at most museums.
This year's window of opportunity is limited to objects that are directly related to qualified institutions' activities. Donors may deduct the appreciated value of paintings given to art museums, for example, but they may only deduct the purchase price of objects meant for resale, or donated securities.
President Bush on Dec. 11 signed into law a six-month extension of the provision, allowing Congress to consider a permanent change as part of a new tax package. During hearings, scheduled for Jan. 28 and 29, representatives of nonprofit institutions hope to persuade Congress to not only open the window permanently but also to reinstate full market-value deductions for gifts of all kinds of appreciated property.
For now, however, museum directors are thrilled with the temporary opportunity to build their collections.
"I haven't been able to do this for a long time," said Earl A. Powell, director of the Los Angeles County Museum of Art, flipping through a thick sheaf of papers listing 1,387 gifts accepted so far this year by the board of trustees. The museum's final board meeting is expected to place a stamp of approval on dozens of other gifts, bringing the total value to about $30 million--up from about $7.5 million last year.
