Transcript Ep.398: How to Find Luxury Art Collectors (the Charity Circuit Strategy)

THE INSPIRATION PLACE PODCAST

Miriam Schulman: Hey, artists, if a charity asks you to donate something you just have lying around your studio, the answer is always no, this never works. So today, I’m going to show you three ways that you can get in front of luxury art collectors, using charity in a way that actually attracts high end art collectors.

Speaker 2: It’s the Inspiration Place podcast with artist Miriam Schulman. Welcome to the Inspiration Place podcast, an art world insider podcast for artists by an artist, where each week we go behind the scenes to uncover the perspiration and inspiration behind the art. And now your host, Miriam Schulman.

Miriam Schulman: Hey there! I’m Miriam Schulman here and welcome back to the Inspiration Place. In case we haven’t met yet, I’ve been a professional artist for over 25 years. I’m author of the book Artpreneur and I’m founder of The Inspiration Place podcast. One of the things that I noticed very early on in my art career is I was doing one of those ideal customer avatar exercises, and I was looking at my best customers and noticing, oh, these collectors are mostly people who are philanthropists, and a lot of the best ones I had gotten from doing something involved with philanthropy. So that’s when I started to lean into it a lot harder. So this episode is for you on how to use those techniques that I’ve learned over the years and how to apply it for yourself, because what was true for me is not true just for me. Some of the best art collectors truly are philanthropists, and if you want to get in front of high end art collectors, this is an excellent strategy. So first, let’s start off with talking about what not to do, because I’m not talking about just donating for donating sake. A lot of us artists are constantly getting asked to donate a piece of art, and people mean well, but sometimes it sounds like this. Hey, do you have something sitting around your studio? I’m like, why would I want to donate something that hasn’t sold yet? Because it’s probably not my best work.

Miriam Schulman: And put that in front of everybody. And on the flip side, if I want to donate something, that’s my best work because it’s supposedly it’s advertising me. I’m giving up thousands of dollars sometimes in sales. And you can’t take a tax donation as an artist. So let’s talk about this. If something isn’t selling in your studio, putting it on a folding table at a fundraiser isn’t going to make it magical. It’s going to make it look like the leftovers that it is. And luxury buyers can smell clearance energy immediately. And here’s the other truth. Auctions don’t necessarily create desire. They’re going to amplify whatever your positioning is already. So if your work already reads premium, the auction can act like a spotlight. But if your work reads small and apologetic, the auction is just going to broadcast that sooner. Now, on the flip side, this is not really about the episode. If you are an art collector, charity auctions are one of the best ways to collect art because there are some really good bargains to be found. But that’s besides the point. Okay, let’s talk about the part that artists get blindsided by. Because a lot of times the volunteers who come looking for artists for donation think that we can use it as a tax donation and we can’t. And I know a lot of artists think, well, at least I can write it off. No, no you can’t.

Miriam Schulman: You cannot deduct the fair market value of a donated artwork. So if you donate a painting or an artwork, whatever, whatever it is that you’re talking about that you normally sell for $1,000, you don’t get to deduct $1,000. And if it sells at auction for $500, you don’t get to deduct $500 either. In general, what you can deduct is your costs, the materials, not your time and not the retail price. So if you’re giving away real value and the tax benefit is basically the cost of your canvas and paint, that’s it. Now if this doesn’t seem fair, but the reason they have this rule in place is because what you’re basically trying to deduct, other than the cost of your materials, is the time, and volunteers cannot deduct their time off of their tax returns. Otherwise, that would create a huge loophole for every rich gala organizer. So that’s why artists end up feeling used, because they’re thinking they’re making a donation. But the tax code treats it like cool. Thanks for your art supplies. I want to share how this recently came up inside of my Artist Incubator community. One of the artists donated a few paintings to a charity auction and it sold. Actually, I don’t know if it was more than one, but what she donated. Sold. But she didn’t get the bid sheet. It took forever to find out what sold. How much. They didn’t share her bio.

Miriam Schulman: They didn’t share her email. They didn’t share her newsletter sign up. And then later, she learned there was no tax receipt she could actually use in the way she expected, just as we discussed just now. So she did what almost every artist does. And then she came to me and says, should I make them sign a contract? Should I demand a minimum bid? Should I just stop donating altogether? And I want you guys to be generous and support causes, but I want you to be smart about it. And that’s why I put together this episode. So the first step is educating charities without being condescending or sounding combative. So you don’t need to lecture them. You just need one calm line that’s going to reset the expectations. Just so you know, artists can’t deduct the value of the artwork donation only materials. So I support fundraisers in a different way. The other thing you can do, which is not one of my three things. So this is kind of a bonus thing that if one of the people from the charity wants to purchase the artwork from you and they donate it to the charity. They can deduct the full market value. It’s only the artist who can’t do that. So there have been rare occasions where somebody who loved my art and loved the charity has done exactly that. They bought artwork from me. I get the full value and then they donated it for the silent auction or for the charity.

Miriam Schulman: A second way that I have done this is where we’ve come up with a minimum bid, and then we split what the donation was. So I think the one time I did it this way, it was a portrait. They paid me a certain amount of money and so it was set that I was getting paid. But then they would make everything above that amount. Those are two things that do work, but I’m going to run through really three more things. I’m really giving you five ideas today of ways you can support a charity without cheapening your brand. Real quick, if this is already hitting a nerve and you’re realizing you’ve been asked to donate discount, flash sale your work to get attention. I have a free masterclass that will completely reset how you sell. It’s called How to sell more art without being Insta famous, and I break down five mistakes that are keeping artists stuck in low ticket, low confidence selling and what to do instead. You can go start it now over at SchulmanArt.com/Sellmoreart. Okay, let’s get back to the charity strategies that actually attract luxury buyers.

Miriam Schulman: Donation idea that works. It’s the entry offer for silent auction. So if that last segment was mostly about what not to do, let’s flip it and talk about what you can do instead. So when there’s a silent auction, it’s very rare.

Miriam Schulman: If you’re donating a piece of art, let’s say a sculpture or a landscape that it’s going to get anywhere near its market value. So if that’s the kind of art you do, I would skip this section entirely. But if you are a portrait photographer, if you are a portrait artist, listen up. This section is for you. So what I would do not donate a random piece of art, but I would donate a portrait package. But not just any portrait package. One portrait of nine by 12, which was my starter size of one person. Very simple, very clear, very boundaried no confusion. And for the donation. I always said it was from their photo. Normally I take photos when it’s a family portrait, but for this one it was from their photo. And here’s the non-negotiable part, and the one that most artists miss. And I want the bid sheet. Yeah, the bid list. I want names because the real value isn’t just from the winning bidder. The real value is that the bid list becomes an interest list. A list of people who just told you in public with their wallets open. Yes, I want to have a portrait that’s not random exposure. That’s targeted lead generation in a room full of philanthropists. And if you’re wondering why this works so well with luxury buyers, here’s why. Everyone’s best art collectors are philanthropists. That’s not a guess. This is just the way the world works.

Miriam Schulman: They’re already used to supporting causes. They’re already used to spending, and they’re already in rooms where people buy. And at a charity auction. It’s kind of performative spending, too. They are showing off. They’re spending a little bit. So that’s one of the reasons it works so well. And here is the kicker. The strategy is that the portrait winner often isn’t done. They upgrade because people don’t just have one kid, especially rich people or one person they want painted. So what happens when they win that nine by 12 and they say, can we do an 11 by 14? Hey, can we do all three of my kids and add my dog in? So I would deduct the cost of the nine by 12 of one child from whatever portrait package they ended up upgrading into. So it worked beautifully. The charity makes money. I make money and we get to support a good cause and make my art collector feel really good about the whole experience. So one donation can become multiple paid upgrades, and even more importantly, it opens a door to follow up with everybody else who bid. And here’s the key thing I want you to remember. It’s less about the one winner. It’s about the list of people who raised their hands and said, I’m interested in a portrait. Now, quick note did I always get the bid list even if I asked for it? No.

Miriam Schulman: Not always. Some charities are organized and some just aren’t, and sometimes you get the bid list only to find out that the bid list was anonymous. In other words, they gave everybody a number and the people could put their anonymous number on the list. And then, like I said, sometimes you just don’t get it at all. Normally, I donated that type of thing when I was going to be at the event myself, so that I could talk to the people who were bidding. It wasn’t I didn’t do this with charities that I wasn’t involved with, but you can set the expectation up front very politely and professionally. You can literally say, I’m happy to donate this portrait package. And in exchange, I would like the bid sheet after the event so I can follow up with the winner and coordinate scheduling. So you’re positioning it as logistics, not give me your contacts. Because the truth is, if you’re donating something of value, you do have every right to know who want it and be able to deliver that properly. Now, once you have that list, treat it like gold. Do not ignore it. Follow up invite conversations. Create a pathway for not only the upgrade of the winner, but also everybody else, because that one silent auction donation can become multiple clients without discounting your work and without making your brand feel cheap. Next strategy. The next strategy. Bring the art collectors to you.

Miriam Schulman: The studio tour party. Now, let me give you my second favorite donation because this one is sneaky and powerful. So instead of donating a piece of art. So these are for the people who say, but Miriam, I’m not a portrait artist. That idea won’t work for me. And you don’t want to donate a random piece of art just like we talked about. So instead of doing that, you can donate an experience. Call it the studio tour party. And here’s the offer a private studio tour for up to whatever number you feel comfortable. Up to ten friends or five couples or whatever that is you want to do. And you provide wine and cheese. That’s it. Simple, clear. And honestly, people love this. They love it. And if this sounds familiar, it should because it’s basically the art world version of a Tupperware party or a jewelry party, except elevated. You’re not asking someone to come over to buy plastic containers, you’re giving them a behind the scenes look at an artist’s world where they get to feel cultured, connected, and a little bit special. By the way, props. The way I came up with this idea, it was not my original idea. I got this idea from a gallerist in a gallery I was in in Tarrytown, and he said whenever charities came to him, this is what he donated a private gallery night. So you see, it works really well.

Miriam Schulman: And I just love this idea. I mostly stuck to the portraits, but sometimes if a charity wanted a second donation, that would be my second donation to them. Now here’s why this works so well. The winner kind of becomes your promoter. They’re not just winning a thing, they’re winning the role of the host. So they show up with their ten friends, and those friends are pre-sold on the idea that this is going to be fun, exclusive experience. And again, we have that same idea of performative shopping. Now, if you want to sweeten it even more, the person bidding on it would love to hear that all the art sold during their private studio tour will also support the cause. No, not 100%, but whatever amount you feel good about. Maybe it’s you give 30%. Heck, you’re giving 50%. Galleries. So give a 30% donation to whatever sells that night to the hosts charity. They’re going to feel so good about doing this with you. And this is so much easier because instead of standing in a booth at an art show, trying to convince strangers to care about your art, you’re in your own space, your own studio, in your own element, and the buyers show up already warmed up with other buyers. And now let’s talk about luxury psychology for a second. Because luxury buyers love exclusive access. They love behind the scenes process, story exclusivity. And I got a private invite energy and the private studio tour checks every single one of these boxes.

Miriam Schulman: They get to see your work in progress. They get to see how you think. They get to see what’s on your easel, and they get to hear the stories behind the art. And here’s the thing most artists miss. People don’t just buy art. They don’t buy medium. They buy meaning, they buy identity. They buy a story that they can retell at their next dinner party about the time they went to the artist’s studio. And this is what they picked out. That’s what they’re buying. They’re buying conversation. When someone buys at a studio tour, they’re not just buying an artwork, they’re buying the ability to say, I met the artist. I saw where this was made. Let me tell you about it. That’s luxury. So if a charity asks you for a donation, you’re like, oh, I don’t want to give away my art. You can say to them, I’d love to support your cause. And here’s what I want to donate a private studio tour for the winner. Up to ten guests. I’ll provide wine and cheese and anything that sells that night. I’ll give 30% to the charity. They’ll get a behind the scenes look at my process and it’s a really fun experience for your supporters. So the charity is going to make money on that silent auction. Whoever bids it up, they’re going to make that money, plus the money from the sales of your art.

Miriam Schulman: And this is when you let the magic happen because the donation isn’t your wine and cheese. The donation is that you’ve created a luxury buying environment where people feel special, comfortable, and excited. And the charity winner does the inviting for you. That’s why this one works. Here is your last and final idea. The strongest play partner with a charity and split sales like a gallery. So this is. I’m going to call this the Spring soiree model. This is my favorite strategy. And this one doesn’t just get you exposure. This one gets you sales, relationships, and a bigger reputation without feeling like you’re giving your work away. So here’s the model. Instead of doing a one off donation or donating the studio tour partner with the charity and you run an open studio fundraiser where you donate 40 to 50% of the sales, just like a gallery split. That’s the key framing you’re not discounting. You’re not giving away. You’re doing what galleries do. You’re sharing revenue in exchange for access, trust and a qualified room. And here’s why this is so powerful. First of all, the charity usually comes with an entire infrastructure you don’t have on your own. They have volunteers who can help run the event. They have an invite list and they have built in credibility because people already trust them. Next, and this is the part artists underestimate. People are always more motivated to buy when it supports a cause because it helps them justify them spending money on themselves.

Miriam Schulman: I had people literally say to me, I’m buying this because it’s helping the cause, and that’s somebody right now I’m thinking of a very specific one that I did, which I’ll tell you about in a moment. But she was buying one and then she wanted to buy another one. She’s like, oh, well, it’s supporting a good cause. That’s the mentality. Not I’m buying this because I’m redecorating, not I’m buying this because I’ve been meaning to invest in art. They were buying because the purchase gave them permission and meaning and momentum. It’s like the cause becomes an emotional accelerator. And buying art is an emotional purchase, so partnering with a charity helps give the emotional fuel that helps close the sales. And this is not manipulative. This is something you should feel really good about because you are helping a charity. All right. And the third reason that this is so powerful is press. It is so much easier to get attention when the headline is about the charity rather than you. You’re not out there saying, come look at me, I’m the artist. Come to my open studio. You’re saying come support the name of the charity. Come support this mission and your art becomes the vehicle. So let me give you a real world example that made me a believer. This was back in 2016.

Miriam Schulman: So gosh, that was ten years ago. For years I was involved with the Friends of Music and Arts at Scarsdale High School, and it’s basically a PTA, but Specifically for arts and music. And every year there was this boutique fundraiser hosted in someone’s home. It was a lot of work. People had to bring food. There were lots of vendors, lots of set up, lots of cleanup, lots of pretty tables, lots of volunteers, lots of people carrying trays. And each vendor would donate around 15% of their sales to the charity. And when you’re in it, it feels like, oh, this was a good fundraiser, but I did the math. If $10,000 worth of stuff sells that night, which sounds like a big number, 15% is only $1,500. That’s it, that’s it. And for the amount of work to pull those events off. Enormous. It was like planning. Like a wedding. So you can raise not a lot of money. So I went to them and I said, you know what? I can make a lot more for you with less work. And then I proposed a different model. Instead of the boutique night, I offered to host an open studio fundraiser in my home and donate 40% of my sales back to the Friends of Music and Arts. And here’s the genius part because I knew exactly who the buyers were. I did it during the day, a full day event, because a lot of the women had kids in school so they could swing by between drop off or pickup, and they could come in shifts.

Miriam Schulman: It fit in with their life. And we branded it like it was an actual thing, not a garage sale. We called it the Spring Soiree, and that name matters. Spring soiree sounds elevated, intentional, a reason to show up. And when people walked in, they weren’t thinking, oh, I’m at a fundraiser. They were thinking, oh, I’m at something special. And again, people said it out loud. I’m buying this because it’s helping a cause. This is the magic of pairing art with philanthropy. It gives people a reason to act now, and it makes the purchase feel generous and smart, not indulgent. All right. So now I also want to share what I did the following year with the same charity. So we decided that instead of doing it in my home, we would do it at the local library, but then have a night where the kids could perform their music and art. So it kind of turned it into a talent show. And again, I sold lots of art. It was amazing. We raised lots of money. It was great. So luxury art collectors don’t need louder marketing. They need the right reason, the right room at the right time. And a charity partnership is exactly that. Now let’s talk about raffles. Quick but important distinction, because a lot of artists lump all charity requests into the same bucket.

Miriam Schulman: Silent auctions and charity partnerships are one thing, but raffles are a totally different animal, and the types of things we already discussed do not make good raffle donations. A raffle is designed for broad participation. Lots of people buy tickets. Lots of people want a fun little shot at winning something. And it’s a volume game. So for Raffles, you do not want to put your original artwork in that environment. You do not want somebody to win a portrait because they might not even want a portrait or whatever this other thing is. So Raffles are not positioning you as premium. They’re positioning you as a prize and you don’t want your original art, or your portraits, or even a studio tour to become raffle prize energy. That messes up your price anchoring really fast. So here’s the rule for raffles you’re going to give away swag branded lower ticket items, small wins, things like a calendar, a cosmetic bag with your art on it, maybe a beautiful print, a stationery set, something that feels special but doesn’t drag your originals into the bargain basement environment. And I want you to understand something. Swag is not small thinking. Swag can be a seed because the goal of raffle swag is also visibility and conversation. It gets your work into someone’s hands, into their home, into their daily life without discounting your originals. And let me tell you a story that proves it.

Miriam Schulman: One year I donated my peacock calendar as raffle swag. Just a calendar. Easy. Attractive people loved it. And later, that calendar turns into a custom commission for guess what? A six foot wide peacock. Yep. Six by four feet. Because that’s what swag does when it’s done right, it creates a low friction. Yes, that leads to a high ticket relationship. Someone can win a calendar and think, oh my God, I love this one. And it sits on their desk or on their kitchen counter or in their office. And month after month they’re basically living with your artwork. So this could be the slow burn sales tool. So raffles, swag. Only not because you’re playing small, but because you’re playing smart. You want to protect the premium positioning of your originals. And when you use the raffle environment for what it’s best at wide reach, easy entry, long term visibility that can turn into big opportunities. Hey, before we wrap up, if you’re listening to this and thinking, okay, I get the concept, but I need to know how to position my work so it reads premium and how to talk about it so buyers actually want to collect it. Well, my free masterclass I go over the five biggest mistakes that you could be making and what you should be focusing on instead. So you’re no longer wasting your time focusing on the wrong things. You’ll walk away with a smarter sales framework that doesn’t rely on social media gambling.

Miriam Schulman: Watch it for free over at SchulmanArt.com/sellmoreart. All right, now let’s tie this together with one rule that will save your brand. So let’s wrap up. Before you say yes to anything, always ask yourself, does this put me in front of the art collectors I want in a way that strengthens my positioning, and if not, it’s a polite no, but you can always offer a better option. So going back to what Tony Robbins said before, the three skills pattern recognition and pattern repetition and taking advantage of those patterns. So knowing that philanthropists like art and being able to use that to your advantage amazing everything. And once I understood how these strategies work, not only was I saying yes more to the charities that reached out to me, I sought them out. I started looking for charities that I can partner with. Now, before you go, make sure you’re subscribed because next week I am breaking down the Benjamin Moore Color of the year and what it actually means for artists. And no, it does not mean you should start painting everything that color. I’m going to show you how to use it as a positioning tool so your work looks more high end, more collectible, and more of the moment without chasing trends. All right, my friend, I will see you the same place same time next week. Until then, stay inspired. Bye for now.

Speaker 2: Thank you for listening to the Inspiration Place podcast. Connect with us on Facebook, at Facebook.com/SchulmanArt, on Instagram at @SchulmanArt and of course on SchulmanArt.com.

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