The likelihood of artists having disposable income to donate to foundations or other non-profit organizations is lower. Professional artists can donate art, but only deduct the price of materials from their taxable federal income as business expenses.  This 2020 model agreement allows historical artists to indirectly support a cause they believe will use the fair market value of their work and encourages artists to develop their careers to ensure that their works gain value over time. This agreement could also be an instrument for artists who have created foundations or non-profit organizations to redirect funds to continue to preserve the arts. Designed with the help of lawyer Laurence Eisenstein, the 2020 Model Agreement is an online filling form that contains a charitable donation clause that is activated when the collector who purchased the work directly from the artist sells the work on the secondary market (here called “the artist” and “the collector”). In addition, collectors are bound by this contract, but they or subsequent purchasers may refuse to comply with the terms, which could lead to costly litigation if the artist or non-profit organization wishes to follow this path. What happens if the second buyer does not agree with the mission of the elected charity? Can the buyer choose another non-profit organization? Can we make a donation? Who can enforce the treaty? These questions can be answered under U.S. contract law, which varies from state to state. In June 2020, the non-profit organization KADIST, based in San Francisco and Paris, released a new model agreement allowing artists and collectors to ensure that a portion of the proceeds from the resale of their artworks benefits a charity they support.
Recalls the 1971 Artist`s Reserved Rights Transfer and Sale Agreement designed by artist Seth Siegelaub and lawyer Robert Projansky and designed by a group of artists, Lawyers and scholars prepared for 2020 “the initial transfer agreement of works of art, with resale in favor of a charitable organization” (“the 2020 Model Agreement”) puts a charitable turn on the typical secondary market contracts for the sale of art. In the absence of public legislation, U.S.-based artists had to rely on the willingness of collectors to privately agree on the payment of a resale license, the amount of which could be heavily negotiated. In 1971, conceptual artist and art dealer Seth Sielaub worked with New York lawyer Robert Projansky to develop a model agreement known as the Artist`s Reserved Rights Transfer and Sale Agreement, which should be both a work of art and a legal document to inspire others (“the 1971 Model Agreement”).