Patronage of art violin making
Or how to create value through the patronage of lutherie d'art, these works of art of instrument making.
If you've come across this page, it's because you're interested in art violin patronage. Even if it's just out of curiosity, I'm going to explain how it works in detail. So you'll know all about how you can use it to support French know-how, the economy and culture. And if you like the idea, let me tell you how I can help you put it into practice.
Patronage of art violin making
First of all, let me introduce you to these two terms, which may not be obvious to everyone.
What is sponsorship?
Premièrement, le mécénat, selon le site officiel du ministère de la culture, se définit comme suit : « le soutien matériel apporté, sans contrepartie directe de la part du bénéficiaire, à une œuvre ou à une personne pour l’exercice d’activités présentant un intérêt général.«
In our case, this involves acquiring musical instruments known as "lutherie d'art" for the benefit of a musician or orchestra, without financial consideration.
What is art lutherie?
Secondly, art lutherie is a concept as vague as it is precise. Generally speaking, however, it covers both instruments(in our case, the violin family) and bows, modern or antique, whose maker we can identify, and whose appreciation is not based on purely commercial considerations(i.e., not an industrial instrument).
However, the limitation is a little less clear-cut when it comes to antique instruments, if they are now part of a certain craft or industrial heritage.
How does sponsorship work?
Retail investment
Any private individual is capable of investing in a musical instrument. This represents an investment that appreciates significantly over time, as Dr Angela ORTIZ-MUNOZ compares in her thesis. Her study shows that, on average, an annual ROI of 3.7% to 6.9% has been achieved since the 1980s, depending on the instrument. Not to mention the peaks of over 12% achieved by the most popular instruments.
For many professional musicians, acquiring an instrument early in their career was an excellent retirement investment. But it's also possible for those with a passion for music and lutherie.
Company investment
Terms and conditions
For companies, sponsorship is even more advantageous than for individuals. Indeed, to encourage support for the economy, culture and know-how, the French government has set up a sponsorship program that offers a tax deduction as described here :
The company benefits from a tax reduction equal to one of the following amounts:
- 60% of the amount of the donation up to €2,000,000
- 40% for donations over €2,000,000
However, the amount of donations used to calculate the reduction may not exceed the higher of €20,000 or 0.5% of the donor company's annual sales excluding tax, in any one financial year.
When the ceiling is exceeded in a given year, the excess donation is spread over the following 5 years, after taking into account any new donations made during these years. The rate applied to this excess is the rate applied to the initial amount.
Examples
Example 1
A company makes donations of €46,000 in fiscal year N. Its annual sales (excluding VAT) are €5,500,000. The ceiling applicable to this financial year is therefore set at 0.5% of its sales excluding VAT(€27,500).
For this financial year, the company benefits from a tax reduction equal to 60% of €27,500(the ceiling) = €16,500 reduction.
The excess donation of €18,500(46,000 - 27,500) can then be taken into account in the next accounting period N+1.
Example 2
In the following financial year N+1, the company makes donations of €20,000. Its sales before tax have risen to €8,000,000. The ceiling applicable to this financial year is therefore set at 0.5% of its sales excluding VAT (40 000 €).
For this fiscal year, the company benefits from a tax reduction equal to 60% of €20,000 + 60% of €18,500(surplus from the previous year) = €23,100 tax reduction for fiscal year N+1.
Conditions for patronage of art violin making
The main characteristic of art violin patronage is that the instruments must be made available to the public. In other words, for the investment to be considered patronage, the instruments must be made available to musicians for the benefit of their audience. And in this case, there's no question of putting the instrument in the hands of everyone, it must absolutely be allocated to a professional who can justify sufficient exposure.
In this way, there are many ways of handing over to a particular musician or orchestra so that the instrument can be used and validated. Thanks to my constant exposure to musicians, this is also an element on which I'll be delighted to advise you and make relevant proposals.
Costs associated with art violin patronage
Even if the aim of investing in a musical instrument is to grow your assets, it's important not to overlook the associated costs. The same applies to the costs that may be incurred by real estate assets or share management fees.
Here are some things to keep in mind:
- Insurance costs
- Restoration costs(if the instrument is unusable)
- Maintenance during use
To give you a precise idea of the various costs, I propose to discuss them with you in relation to your projects. You'll be able to calculate your minimum expenses in advance.
FAQ : Patronage of Art Lutherie
How do I choose the best instrument for my investment?
It's a vast question, and one that's difficult to answer in a single sentence. We can, however, take the time to consider the different scenarios together, so that we can work out the best prospects:
Depending on
- your budget
- expected ROI
- your preferences
I help you choose the best instrument. In other words, to choose the one that will maximize your return on investment, in addition to benefiting from the acquisition of a piece with greater historical significance.
How can I guarantee my investment?
There are several ways to guarantee your investment in all the instruments that fall into the Art Lutherie category. Firstly, insurance, which will protect the life of your asset throughout its use. These need to be perfectly adapted to the life of the instrument, and I can offer you solutions at any time. Even before your purchase, it can be insured to ensure that the instrument you acquire is not a counterfeit. This is known as certification, and guarantees the value of your purchase.
On the other hand, a thorough inspection, also known as a condition report, validates the current state of the instrument before purchase, to avoid hidden defects that could depreciate the investment.
How can I obtain an instrument as part of the art violin patronage scheme?
There are many ways to acquire instruments as part of a sponsorship program. However, you will need to obtain an invoice in order to claim the tax deduction.
The first, and very popular, solution is to take part in major auctions, where the most prestigious instruments are placed in competition with each other. However, the costs can be quite high, and there may be no after-sales service.
The other way of acquiring an instrument is through a lutherie workshop, which will be able to offer you a modern or antique instrument, while adapting to your budget project. For example, you can find a rare piece you like in a collection like mine. This way, you'll have all the documents you need (certificates, condition reports and insurance certificates) without making expensive bets.