The Good and Bad of Charity Auctions

NEW YORK—When it comes to charity art auctions, the hottest commodities might be the flowing wine, chill music, camaraderie and conversation with fellow art lovers—and, of course, the warm fuzzy feeling that comes with donating to a good cause.

But what about the art? These auctions are primarily social and philanthropic events, but for savvy serious collectors, they appear to be an excellent opportunity to find quality works below market value. Or are they really—as some critics have proposed—just a repository for artists’ and dealers’ undesirable works?

Quality or Cast-offs?

Beverly Hills-based art consultant Barbara Guggenheim, founder of Guggenheim, Asher Associates, said she’s generally skeptical when it comes to finding investment-quality art at charitable events.

“Many charity auctions are put together by companies that sell the charity on the idea that they’re going to auction off Chagalls and Dalis and such, and split the profits with the charity some way,” Guggenheim said. “Those auctions are filled with low-quality material—if not fakes. Other charity auctions are filled with things that collectors want to get rid of, or lesser works by artists who’ve been imposed upon. Because that’s the rule, you shouldn’t expect to find serious material there.”

Even New York artist Steve Joester—who has contributed artworks to five benefit auctions and also purchased several pieces for his own collection at charity events—isn’t sold on the concept. “You can always find some people who use these shows as a dumping ground (for lower-quality works),” he said.

However, he added, “I think to make a sweeping statement about so many different shows all being sub-standard cannot be accurate. Some of the charity shows are very high end.” (As for his own work, Joester said he never uses the cast-off approach. “I would not put out there anything I would not enjoy seeing,” he said.)

Sharon Burton, of the Washington-based Authentic Art Consulting, was more optimistic about the sales, although she does advise her clients to approach philanthropic events with caution. “There is always a chance that collectors might be able to get a good buy at a charity auction,” she explained.

Spotting a Good Auction

One of the best ways to find a quality benefit auction is to seek out organizers with solid reputations, advised New York gallery owner Jonathan LeVine. “You have to look at how well the event is organized and the charity the artists are doing the work for,” said LeVine, who hosted a benefit auction with BrazilFoundation in January.

Reputation also comes into play when it comes to auctioneers, Burton added. Although celebrity auctioneers might add glitz and glamour to an event, it’s best to stick with tried-and-true auctioneers from reputable auction houses, she advised.

There is also the issue of quality control at fundraisers—and who, if anyone, is providing it. “Unless the event has a good reputation for auctioning fine art or has an art historian working with them, whatever you purchase may not come with an expert evaluation on the art that is featured,” said Burton. “I would focus on those auctions that have a (history of) featuring quality fine art and personnel who have a good knowledge about the art that they feature.”

Some of the best charitable events are often hosted by large art institutions, since they come with a guaranteed staff of experts and a high enough public profile to preclude shoddy workmanship.

“The Museum of Contemporary Art in Los Angeles, for example, has a terrific annual auction, with exciting objects,” offered Guggenheim. “Many of the artists donate good works because they know it’s a showcase for serious collectors in the community. Works from their last auction were bought by people all over the world.”

Our Best Tips for Great Buys

As for the art pieces themselves, charity auctions can be an excellent venue for collectors to discover new artists—and vice versa. Take the MOCA LA art auction. Many of its artists are emerging names, while the well-heeled attendees are from older generations, providing both with favorable new connections.