This is the second part of a two-part feature examining how art collectors can blend their passion for the subject with a desire to give to philanthropic causes.

This is the second half of a two-part feature looking at some of the more technical issues arising from collecting and making bequests of art for philanthropic purposes. The article’s authors are Randall  Willette, founder and managing director of Fine Art Wealth Management and a regular guest expert for this publication, Jilleen Nadolny, principal research associate at Art Analysis & Research, and Nicholas Eastaugh, director of research at Art Analysis & Research. The editors of this publication are delighted to share these expert insights with readers and, as ever, readers are most welcome to respond with their comments and views. The views of guest contributions are not necessarily fully shared by this publication. (To view the first half of the article, click here.)

Funding for research in technical art history and art technology science
As described in the first part of this article, the majority of the research undertaken on the materiality of art works has to date taken place in major museums and academic institutions, whose needs are not always the same as the needs of the art market and of private collectors. Often, research goals are more focused on care and study of collections held in public trust than on issues of authentication. This is especially true for institutions with contemporary collections, where a great deal of work remains to be done on the histories development and use of modern art materials.

Without a solid material chronology, it is very difficult to analyse and date newer works of art, as the contextual data is lacking. We know though that the explosion in development of new materials in the twentieth century makes this a highly fecund area of research, rich with possibility. This is a critical issue for the modern art market and for collectors, for whom assigning age and attribution is a particularly important issue. Funding in these areas of research is unlikely to be met by the museum axis at any time soon, as institutional research interests tend to change slowly. Thus, it is up to the art market to find ways to both generate the research needed to keep its own interests safe and well secured, and in turn, to stimulate research in such areas.

Private funding of art technology projects can serve this need and fill the extant vacuum. Few private individuals and philanthropists have sought to support this area of research to date, nor have the private equity and venture capital sectors. At present there exists a funding gap that could usefully be addressed and art research more democratised by the application of modern funding models. Reward based and/or equity funding with key stakeholders including sophisticated collectors and “venture philanthropists” would be a possible route to guide research into sectors of the art market where it is most needed, at the same time stabilising market sectors undermined by an influx of forgeries and solidifying the knowledge base for the attribution of key collections, thus increasing value.

Opportunity for philanthropists to contribute to art research
Today’s discussion on philanthropy is abound with new terms — “venture philanthropy”, “impact investing”, “entrepreneurial philanthropists”, “social venture capital” — suggesting a new generation of philanthropists that have used successful business models in order to address global challenges as big as poverty, education and health. They belong to the family of strategic philanthropists and are celebrated by the media for their hands-on approach to philanthropy with a focus on achieving outcomes and a willingness to take risks and embrace innovation.

As philanthropic concepts evolve it is difficult to draw the line between these new types of pilanthropists and in many cases the terms are used interchangeably. Also known as strategic philanthropy, this new trend is extending to the preservation and protection of art assets and cultural heritage.

Historically philanthropic objectives associated with art have focused primarily on supporting established art organisations; promoting the creation and reinterpretation of art and methods of creative expression; or supporting cultural participation from all socioeconomic and ethnic backgrounds. Equally, there has been a rise in the number of private collectors wishing to share their passion for art by enriching a museum’s collection, or to give their artworks on loan to an exhibition in order to share their enjoyment with others. However, up until now, few private individuals have contributed to the advancement of art research or made donations to important art historical studies.

Given that many private collectors have made their fortune out of their entrepreneurial talent, the opportunity to use both their wealth and skills to unlock the entrepreneurial potential in art research offers exciting possibilities. Supporting a private art collection with scholarly research and increasing awareness surrounding a body of work are often effective ways to add investment value. Private philanthropists and sophisticated collectors are in a unique position to support entrepreneurial development in art research by providing access to capital; bringing their business knowledge and experience; and engaging academics in entrepreneurial opportunities in selected projects. Done properly, donating to art technology science can benefit not only the collector but also future generations of art lovers.

Shifts in the global economy have led many wealthy individuals to view philanthropy with renewed, more entrepreneurial focus. A new breed of philanthropist and a new model of giving have emerged. Venture philanthropy has emerged with the increase in new entrepreneurs who apply business acumen, passion and technology in the fulfilment of philanthropic goals, solving problems rather than treating symptoms. With the unprecedented creation of wealth in today’s knowledge-based economy, a change in thinking about philanthropy has taken place among many wealthy families. For many philanthropists, giving has become synonymous with investing, as people seek ways to give back to their communities and make philanthropy more personal. Generosity is stimulated by compassion and a passion for an issue or an idea.  

An ideal business model for wealth giving to art research may be found in such institutions as the J Paul Getty Trust - a cultural and philanthropic institution dedicated to critical thinking in the conservation and interpretation of the world’s artistic legacy. The Getty Trust is the world’s wealthiest art institution and was established by oilman J Paul Getty in 1953. The trust operates one of the most visited museums in the US and also provides grants and training to other museums and cultural institutions.  

Through the collective and individual work of its constituent programmes—the Getty Conservation Institute, Getty Foundation, J Paul Getty Museum, and Getty Research Institute—it pursues its mission serving both the general interested public and a wide range of professional communities with the conviction that a greater and more profound sensitivity to and knowledge of the visual arts and their many histories is crucial to the promotion of a vital and civil society. The Getty Foundation fulfils the philanthropic mission of the Getty Trust by supporting individuals and institutions committed to advancing the greater understanding and preservation of the visual arts. Through strategic grant initiatives, it strengthens art history as a global discipline, promotes the practice of conservation, and develops current and future leaders in art research. It carries out its work in collaboration with the other Getty programmes to ensure that they individually and collectively achieve maximum effect.

Today, the private collections of ultra-high net worth families can rival those of major art institutions. Sophisticated collectors and private philanthropists can make a significant contribution to the world’s artistic legacy by advancing conservation practice through scientific research, education and training, and the broad dissemination of the work of others in the field. In doing so, they will be helping the creation and dissemination of knowledge that will benefit the professionals and organisations responsible for the conservation of the world’s cultural heritage and provide a unique environment for research, critical inquiry, and scholarly exchange.

New trends in crowdfunding
Crowdfunding platforms are changing the way we finance projects and services globally. Crowdfunding is a tool that allows anyone to attract a pool of people via the internet to invest in their research project or business idea. A funding target is established, and rewards to backers are offered.  

This new type of start-up business model has the opportunity to disrupt traditional methods of fundraising and change the way we determine success and let the best ideas flourish, rather than the best access to capital.  

Because crowdfunding platforms allow people from anywhere in the world to start a campaign, it opens up a whole new realm of possibilities and has the potential to democratise new art research initiatives. The platform can potentially not just raise capital for art research, but can engage and impassion sophisticated high net worth collectors to become investors in vetted art research projects by providing material rewards instead of financial return. These might include:

1. Exclusive access to proprietary art market research and data.

2. Introduction to best art researchers in their field of expertise.

3. Opportunity to leave a lasting legacy.

4. Desire to enhance the value of the investor's own private collection.

5. Wish to help others with whom they have a shared interest.

Crowdfunding is fundamentally changing the way people solicit resources from the crowd to realise new ideas. The crowd contributes millions of dollars each month to entrepreneurial creators throughout the world. Continued participation can have a profound influence on the creative economy by influencing how, why, and which ideas are introduced into the world.

Conclusion

We are amidst an exciting movement with philanthropists using targeted and innovative approaches to address art authentication.  To continue this important work, researchers will need improved access to capital and business knowledge and an enabling environment to grow and thrive. Strategic philanthropists are in a unique position to support this entrepreneurial development by combining their passion for art with wealth giving. In so doing they can not only enable research that will benefit the art scholarship and the art market as a whole, but by targeting areas of research related to their own collections, they can also encourage greater stability in trading by expanding the knowledge around art of specific markets. This may in turn result in an increased ability to attribute contested works with greater security, ultimately enhancing the value and understanding of art investments.

About the authors:

Randall Willette is the founder and managing director of Fine Art Wealth Management, a professional membership-based advisory platform that provides independent consulting to wealth managers and their private clients on wealth structuring for art assets. www.fineartwealthmgt.com

Dr Nicholas Eastaugh is founder and director of Art Analysis & Research, a firm specialising in technical investigations of paintings applying both technical art history and science-based analytical approaches with offices located in in London and New York. www.artanalysisresearch.com

Dr Jilleen Nadolny is principal research associate at Art Analysis & Research and has published widely in the fields of technical art history and is currently researching the material history of art forgery and authentication studies. www.artanalysisresearch.com