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the artist as philanthropist strengthening the next generation of artist-endowed foundations a study of the emerging artist-endowed foundation field in the U.S. 2 the artist as philanthropist strengthening the next generation of artist-endowed foundations a study of the emerging artist-endowed foundation field in the US VOLUME 1I PART B. CONSIDERATIONS IN FOUNDATION PRACTICE PART C. COLLECTED BRIEFING PAPERS Published November 2010 (Updated December 2010) www.aspeninstitute.org/psi/a-ef-report The views expressed are those of the authors and are not of the Program on Philanthropy and Social Innovation or the Aspen Institute, its trustees, or its funders. The Aspen Institute’s Program on Philanthropy and Social Innovation (PSI) seeks to inform and maximize the impact of grantmaking foundations, nonprofit organizations, social enterprises, and public-private partnerships through leadership development initiatives, convenings, and communications so that each can contribute to the good society at home and abroad. The Program’s theory of change rests on the premise that if their leaders have clarity about their values, are collaborative in their approach to problem-solving, and are aware of the strategies and potential partnerships available to them, they are more likely to succeed in advancing the social good. The Aspen Institute mission is twofold: to foster values-based leadership, encouraging individuals to reflect on the ideals and ideas that define a good society; and to provide a neutral and balanced venue for discussing and acting on critical issues. The Aspen Institute does this primarily in four ways: seminars, young-leader fellowships around the globe, policy programs, and public conferences and events. The Institute is based in Washington, DC, Aspen, Colorado, and on the Wye River on Maryland’s Eastern Shore, and has an international network of partners. ! 2010 The Aspen Institute One Dupont Circle NW, Suite 700 Washington, DC 20036-1133 202-736-5800, fax 202-467-0790 http://www.aspeninstitute.org/ Published in the United States of America. the artist as philanthropist strengthening the next generation of artist-endowed foundations SUMMARY OF CONTENTS VOLUME I Preface Acknowledgments Executive Summary PART A. FINDINGS: OVERVIEW OF THE FIELD I. INTRODUCTION 2. FIELD DIMENSIONS AND TAXONOMY 3. FIELD HISTORY AND INFLUENCES 4. FIELD CHARITABLE ACTIVITY 5. FIELD PROSPECTS Appendix A.I The Study A. Focus Group Convenings and Presentations B. Participants: Interview and Focus Group Convenings C. Research Partners D. Study Committee Members E. Donor Consortium Appendix A.2 The Field A. Bibliography of Philanthropy B. Snapshot Profiles: Largest Artist-Endowed Foundations C Foundation Publications Appendix A.3 Quantitative Profile of the Artist-Endowed Foundation Field VOLUME II PART B. CONSIDERATIONS IN FOUNDATION PRACTICE 6. GLOSSARY OF TERMS IN PRACTICE 7. FORMING, SUSTAINING, AND TERMINATING FOUNDATIONS 8. PLANNING AND CONDUCTING CHARITABLE PROGRAMS Appendix B: Foundation Practice A. References B. Sources of Practical Information C. Artist-Endowed Foundations in the Literature of Estate Planning PART C. COLLECTED BRIEFING PAPERS 9. BRIEFING PAPERS i ii The Artist as Philanthropist: Strengthening the Next Generation of Artist-Endowed Foundations TABLE OF CONTENTS: VOLUME II Part B. Considerations in Foundation Practice 6. GLOSSARY OF TERMS IN PRACTICE.................................................................................. 3 7. FORMING, SUSTAINING, AND TERMINATING FOUNDATIONS..........................13 7.1 Considerations in Forming Artist-Endowed Foundations...................................13 7.1.1 Motivations and Challenges in Foundation Formation...........................15 7.1.2 Considerations in Foundation Planning .....................................................27 Common Foundation Models Nonoperating Foundation with Noncharitable-Use Assets Nonoperating Foundation with Exempt-Purpose Assets Private Operating Foundation Multiple Entities and Evolution Key Factors in Planning Donor Intentions Technical Matters People and Expertise Economic Capacity 7.2 Considerations in Sustaining Artist-Endowed Foundations................................ 53 7.2.1 Economic Models............................................................................................55 Sources of Income Common Economic Models Assumptions about Art-Related Income Starting Up an Economic Model 7.2.2 Professional Advisors.....................................................................................65 Art Dealers Attorneys Certified Public Accountants Investment Advisors Philanthropic Administration Services 7.2.3 Conflict of Interest Policies and Practice ..................................................79 Private Foundations: Conflict of Interest and Self-Dealing Generally Preparing and Implementing Conflict of Interest Policies Artist-endowed Foundations: Conflict of Interest Policies and Practice Confirming Potential Exceptions 7.3 Considerations in Terminating Artist-Endowed Foundations ...........................91 iii 8. PLANNING AND CONDUCTING CHARITABLE PROGRAMS ..............................101 8.1 Considerations in Planning and Conducting Grantmaking ...............................102 8.1.1 Making Grants to Individuals......................................................................103 8.1.2 Making Grants to Organizations ...............................................................119 8.1.3 Making Grants with Artworks...................................................................133 8.2 Considerations in Planning and Conducting Direct Charitable Activities.....145 8.2.1 Archives ..........................................................................................................147 8.2.2 Art Collections..............................................................................................165 8.2.3 Copyrights and Intellectual Property.......................................................181 8.2.4 Oeuvres: Catalogues Raisonnés and Authentication ...........................195 8.2.5 Real Property.................................................................................................215 APPENDIX B. FOUNDATION PRACTICE A. References .....................................................................................................................229 B. Sources of Practical Information ..............................................................................249 C. Artist-Endowed Foundations in the Literature of Estate Planning ...................253 Part C. Collected Briefing Papers 9. BRIEFING PAPERS...................................................................................................................257 9.1 Foreword to the Collection ....................................................................................261 9.2. Authors' Affiliations ...................................................................................................267 9.3 Foundation Formation: Effective Practice 9.3.1 Creativity and Generosity: Considerations in Establishing.................271 an Artist-Endowed Foundation (Stephen K. Urice) 9.3.2 Enter the Lawyers: Choosing and Working with Estate .....................293 and Foundation Counsel to Secure an Artistic and Philanthropic Legacy (Stephen Gillers) 9.4 Governance: Committing Private Assets to Serve a Public Benefit 9.4.1 Federal and State Laws Regulating Conflict of Interest and ...............311 Their Application to Artist-Endowed Foundations (Marion R. Fremont-Smith) 9.4.2 Public Benefit and Exemption: The Public Benefit Requirement .......347 as a Practical Aid in Designing, Organizing, and Operating Artist-Endowed Foundations (Frances R. Hill) iv The Artist as Philanthropist: Strengthening the Next Generation of Artist-Endowed Foundations 9.4.3 Public Benefit Obligations and Legacy Stewardship Activities............369 of Artist-Endowed Foundations: Are They In Conflict? (Joseph L. Sax) 9.5 Foundation Programs: Philanthropic and Cultural Resources 9.5.1 Artist-Endowed Foundations: Meaningful Philanthropic......................383 Opportunities in the Arts and Culture (Alberta Arthurs) 9.5.2 A Commitment to Support Individual Artists Worldwide: ................395 Reflections on the Experience of One Artist-Endowed Foundation (Charles C. Bergman) 9.5.3 Toward a Public Library of American Culture: Reflections................413 on the Centrality of Art and Importance of Access in Artist-Endowed Foundations (Robert Storr) 9.5.4 Art Sales by Charitable Organizations: A Summary of Rulings..........441 and Determinations (Stephen K. Urice and Valerie Prochazka) 9.6 Cultural Resources: Professional Practice in Art History 9.6.1 Artist-Endowed Foundations and Museums: Observations................455 on the Relationship (James T. Demetrion and Lowery Stokes Sims) 9.6.2 Artist-Endowed Foundations: Archives, Access, and Scholarship.....463 (Joan Marter) 9.6.3 Artist-Endowed Foundations Stewarding Artists' Archives................473 and Libraries: The Importance of Standards and Access (Tom McNulty) 9.7 Artist-Endowed Foundations in Context 9.7.1 Alternatives to Foundations: Other Options for Artists ....................485 (Lowery Stokes Sims) 9.7.2 Artist-Endowed Foundations, the Press, and Public.............................497 Perception (András Szántó) 9.7.3 Artist-Endowed Foundations Internationally..........................................505 (Christine J. Vincent) ADDENDUM...................................................................................................................................527
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