b'DONATING ART: Unrelated Use Related UseENSURING RELATED USEChoices for CAF America treatment of the donation 1)Sell the art and grant the proceeds. 1)CAF America loans the art 2)Grant the art directly to the charityto the charity for a period with no loan agreement. Art leavesof three years to meet the CAF America receives many requests from donors wishingArt Loans CAF Americas ownership. related use requirement.to donate art to benefit charitable causes around theIt is CAF Americas position that granting pieces of art within world. Whether we are granting the piece or collection to athe three-year period during which donees must ensure relatedCAF Americas Answer to the question Does theYes Nobeneficiary charity or we are liquidating the item and grantinguse, even if they are being granted to a reputable and establishedorganization intend to use the property for an unrelated the proceeds, there are a number of considerations thatGallery or Museum, does not fulfill the related use provision.use? in Part IV of Donors Form 8283all donorsand their advised beneficiariesmust take into account when considering art as a charitable donation. In order to best serve our donors who advise us to put theirImplied deduction allowed Cost Basis Appraised Valuedonation of art to a related use (and therefore qualify the gift Form 8283: Related vs. Unrelated Use for a FMV deduction), CAF America will loan the donatedBeneficiary must be deemed Equivalent to a U.S. 501(c)(3)Yes YesDonors may only deduct the Fair Market Value (the valuepiece(s) to the beneficiary for this full three-year period,public charity?determined by a Qualified Appraisal) of their donated art ifafter which we will be able to fully transfer ownership of the the donation is used to further the mission of the charity toproperty to the grantee. Charity can display the work Immediately Immediatelywhich they are givenif they are deemed to be furthering a related use. Deductions on gifts made for unrelated usesDonations for Unrelated Use CAF America may sell the work and grant the proceeds Yes After three (3) yearsare restricted to the cost basis of the art in question; in otherIf a donor wishes to contribute art and is willing to accept a words, what the donor paid to acquire it. cost-basis deduction, CAF America will check yes in Part IV of Form 8283 when asked if the donation will be put to an unrelated use. This means that the donor may advise the art as an immediate grant, or advise that the art is sold and the proceeds are used for future grantmaking.A Recent CAF America LoanCAF America is currently loaning A Portrait of Miss Elizabeth Adney by Thomas Gainsborough to the Dorset County Museum in Dorchester, England. This painting came to us through an estate gift, and our loan reunited it with a paired portrait of the subjects husband, Mr. Adney, painted at the same time during Englands Regency period.8 CHARITIES AID FOUNDATION AMERICA | DONATIONS OF COMPLEX ASSETS 9'