Legend offers an opportunity for the Patron to champion the role of “The Enlightened Sponsor.” Through the role of Patron, the collector is able to structure, support, and participate the fashioning of the artful process . Creating a Legend Galleries Alliance, with you in the role of Patron, can create a unique opportunity to forge a system of social ties that blend the participants into a complex network of extended family and localized alliances. Works of Art communicate signals designed to highlight and expound the Patrons’ tangible wealth and intangible social status. Art is an investment that pays dividends.
Patron Services – How We Do It
Increasingly, we find that establishing a private alliance is the most effective way to structure one’s adventure into creating an art collection. Not only does this structure offer substantial tax and estate planning advantages, but also for many, it provides a means of establishing a close personal working relationship with artists, administrators, and professional advisors, all of which maintain a similar interest, art. There are two common misconceptions about creating such an alliance. The first is that it requires significant wealth. In fact, alliances can be established with varying levels of funding. Many Patrons establish an alliance with less than the full, final amount of funding, electing to provide the remainder at some future date.
The other misconception pertaining to private alliances is that they demand a great deal of the patron’s time and attention. While the successful administration of the alliance requires effort - including grant making, portfolio parameters, regulatory compliance and asset management - many delegate such tasks to professionals. Legend Galleries has brought together all the required fields of expertise. Legend offers its Patrons, Investment Alliances structured to meet their individual needs.
For those requiring minimal assistance, the gallery stays entirely in the background, handling the alliance's administrative requirements, while Patrons take the lead. Many prefer this type of arrangement, because it transforms, investment and charitable giving from a passive transaction into an ongoing activity that permits and encourages participation by members. To protect one’s privacy from non -profit solicitors and fundraisers, we serve as co -trustee of the alliance, if the patron desires, the only name that the public will ever see is ours.
Legend Galleries also assists in establishing administrative procedures for effective alliance management. This includes drafting mission statements, formulating application guidelines for acquisitions, implementing procedures for regulator y compliance, establishing community outreach strategies via portfolio showings in galleries and other appropriate venues, all of which create considerable networking opportunities.
In addition to receiving administrative services, some patrons may want us to act as their alliance office. While they want to play a role in the final selection of art, they may be apprehensive about the prospect of screening art and artist’s. In such cases, Legend Galleries can serve as co -trustee for the alliance. Through our involvement with other galleries and organizations, we are able to identify creative new ideas and initiatives to meet the emerging needs and objectives of our patrons.
For patrons interested in a comprehensive level of service, we offer consult ing. This level of service covers virtually every aspect of the process - from formulating a strategic approach to art investment to complete portfolio management and administration. Our advisors provide detailed recommendations as to the appropriate structure of alliances. We also conduct thorough evaluations and monitor expenditures. In addition, through one on one relationships, we guide young patrons and help them prepare for the responsibilities of serving on their alliance board.
Thoughts on Philanthropy & Investment
Philanthropy & Investment - like any endeavor that involves finances should be part of a carefully coordinated wealth management plan. Legend Galleries enables its patrons to pursue their charitable and investment interests, while achieving important planning objectives, through our Philanthropic / Investment Alliance.
Experienced professionals help patrons choose the appropriate vehicles to meet their needs, often a private alliance, or perhaps a charitable trust. Let us show you how a portfolio can help you instill values , build confidence and create identity for your family, corporation, institution, or trust, while providing enjoyment and financial rewards.
Charitable Remainder Trusts
By establishing a charitable remainder trust, patrons can pursue several important financial planning goals:
- Deferring or avoiding capital gains taxes
- Earning current income
- Receiving an immediate tax deduction
A charitable remainder trust is particularly appropriate for owners of low-cost-basis stock. By transferring ownership of the stock to the charitable remainder trust, the individual receives an immediate income tax deduction on the donation. The trust, which is exempt from capital gains taxes, then sells the stock and reinvests it in income producing assets. One or more individuals - who may include the grantor - receive payouts for a term specified in the trust, after which one or more charities receive the remainder interest.
Charitable Lead Trusts
A similar concept for benefiting split interests is the charitable lead trust, which essentially reverses the construction of the charitable remainder trust. Rather than making initial payouts to the grantor, the charitable lead trust makes payouts to a charity for a fixed number of years, at which time the remainder is left to the grantor's heirs. This technique addresses the desire of grantors to have their heirs be the ultimate recipients of their assets, and at the same time, it reduces the estate taxes that are eventually paid. When calculating the inheritance tax on the remainder of a charitable lead trust, grantors must take into account that the present value of their assets would be worth more to their heirs now than that same amount would be worth to them in the future. By delaying the inheritance, grantors can reduce the estate tax obligation for their beneficiaries.
A supporting organization is a philanthropic entity with ties to a specific public charity. Since supporting organizations are effectively treated as the equivalent of the charities they support, they can avoid many of the restrictions placed on private foundations, such as prohibitions against self -dealing (e.g., loans to family members) or minimum annual payout requirements. Perhaps most important t o donors, they can contribute virtually any type of property - including real estate and other intangible assets - to a supporting organization and receive an immediate tax deduction.
On the other hand, supporting organizations face their own unique restrictions and limitations, including a purpose test and a control test. The purpose test requires that supporting organizations serve to advance the purpose of the supported public charit y. In order to pass the control test, donors to a supporting organization must yield control of the organization to the public charity being supported.
Information in this section does not constitute legal or tax advice. We disclaim any responsibility to update you as to the changes in law or make changes to this section. You should consult with your legal, tax and financial advisors before making any decisions.