Should artists donate work to auctions? My answer, generally, is NO. “Why? It’s for a good cause and I’ll get all of that exposure.” My answer: That’s nice and not likely.
If it’s for a good cause and that’s your only motivation, that’s great. That said, there are better ways for you to support that cause than taking precious work out of your inventory and giving it away without the benefit of a tax deduction. Which is generally what the IRS provides to all of the other individuals and businesses who donate. As an artist, you are only permitted to deduct the cost of the materials, not the value of the work.
“Well, I can clear away work that isn’t selling.” So if you were hoping for exposure then how would showcasing lesser work help you build your brand? One very famous auction stopped asking for donations from artists because they complained that the quality of the art donated wasn’t high enough. Hmmm. I wonder why?
If an art patron really wants to help you gain exposure and they believe in the cause, then they will buy the work from you at full price and donate it themselves. Then they can take the full tax deduction. This is what a wine industry entrepreneur did with one of my paintings two months ago.
Even as the “featured artist” at one of the biggest fund raisers in Napa I received, zero sales, and you guessed it, zero leads. Why? Not because of bad positioning by the organizers or a lack of admiration for my work, which was relevant to the venue. It was because the folks were in eating, drinking, partying, and in schmoozing mode. Not, art collecting mode. Although I didn’t gain much, I didn’t loose much. I only donated the limited license of my copyright and not any art.
When you go to the grocery store are you looking for shoes? No. Even if they are great shoes? No. You’re not there for shoes. So selling art isn’t just about targeting your market it’s about their focus when your target them.
Yes. There are exceptions. Cause marketing is a very effective marketing strategy for the luxury market. And charity is good. But that’s not what we are talking about here. So if you’re donating your art with the hope of generating sales and building your brand, think again. There are far better, more profitable, ways to market your art.
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Absolutely. My motto is “Asking is Free!”
This post is referring to straight up 100% donations versus “good will marketing” which is what you are referring to and which is a great strategy.
One thing artists always miss when it comes to charity auctions:
YOU CAN ASK them to give you a % of the sale. 40-50% is reasonable. Or ask for a flat fee, payable within one week after the auction, to cover your costs and earn you just a little income from the donation.
I started doing this a few years ago, after I realized that we were, at times, donating 2 weeks of INCOME to charities. Do you know many people (average, middle class Americans) that can afford to donate half their months income to a random charity? I don’t.
Anyway, I started telling charities that the only way we could donate is if we are paid a portion of the sale price.
TO MY SURPRISE, most of the charities said “okay.” And they pay up.
I wrote an article about why you shouldn’t give blindly to charities, and I hope it’s okay to share the link here:
https://mariabrophy.com/business-of-art/the-problem-with-donating-art-and-the-solution.html
Most charities are awesome, I just don’t have the funds that Bill Gates does to be able to give blindly. But a cost-sharing arrangement I’m happy to do!
Thank you for sharing this experience. Artists can offer these terms and create a win win. I can happen. Start by proposing what is fair for everyone.
I just wanted to share that I was involved with an auction that was a positive experience for all involved. Artists named their price, the non-profit (Run Free Ranch) kept 30% and anything over the artist’s asking price. The event was filled with wealthy, supportive people (225+ attended). The director of this non-profit wanted it to be a win-win for all involved. The auction was filled with really high end art; not something leftover that hadn’t sold. It was a great atmosphere filled with energy and respect. I loved it and was happy to be a part of it. It was nice to not be asked to give away my art.
Artist’s also attended this event at cost instead of the full ticket price as a thank you for their involvement.