The interest of companies in investing in art and collectibles is constantly growing, as it offers a series of tangible and intangible benefits.
In this article, we will explore the advantages of this practice, the hypothesis of including works of art in social capital and the specific case of philately.
The benefits of collecting for businesses
Investing in works of art and collectibles can strengthen corporate identity, improve reputation and prestige, create a stimulating work environment, diversify assets, and offer opportunities for marketing and social responsibility.
A well-curated collection can reflect the values, history, and vision of the company, becoming a powerful communication tool.
Possessing valuable works of art gives the company an aura of prestige, attracting clients, partners, and talents.
Art in offices improves psychological well-being, reduces stress, and increases creativity, promoting productivity.
Collecting as a long-term investment
Some collectible items increase in value over time, representing a profitable investment and diversifying the business portfolio.
The collections can be used for exclusive events, exhibitions, and marketing content, strengthening relationships with clients and employees, improving the company’s public image.
Capital Contribution
The inclusion of cultural assets in social capital is an innovative opportunity to enhance a heritage often underestimated, transforming it into a strategic asset.
Advantages:
- Strengthens the company’s capital solidity.
- Improves reliability in the eyes of investors and credit institutions.
- Makes the company more attractive to investors interested in the art and culture sector.
- It can involve tax advantages, such as the deduction of acquisition and maintenance expenses.
Even if less common, stamp collecting can represent an interesting investment for companies.
Examples of successful corporate collections
Numerous companies around the world have successfully invested in collecting, creating collections of great artistic and cultural value.
Some notable examples include the art collection of Intesa Sanpaolo, the luxury watch collection of Patek Philippe, and the vintage car collection of Mercedes-Benz.
Practical advice to get started
To embark on a path of corporate collecting, it is advisable to define the objectives, rely on experts, document the collection, insure it and create an inventory.
In conclusion, collecting represents a strategic opportunity for companies that wish to strengthen their image, diversify their assets, and create long-term value.
The inclusion of cultural assets in the social capital represents a further evolution of this strategy, offering innovative and lasting advantages.
The attraction of businesses towards investment in works of art and collections is increasing, as it offers a series of both tangible and intangible advantages.
Historical Evolution of Collecting by Companies
The connection between art and business has deep roots. Two seemingly distant worlds have long established a solid and lasting connection. Art has sparked the interest of companies, which have invested considerable resources.
The artists, with their creative and unconventional nature, seem distant from the business structure and logic, but companies have recognized the potential of art, becoming true “collectors”.
The First Forms of Collaboration
The term “Corporate Art Collection” refers to a specific form of collecting, practiced by companies in various sectors, which experienced significant growth in the ’70s and ’80s in America.
However, the history of corporate collecting is older, with companies purchasing artworks and funding masterpieces for centuries.
The first corporate collection in history could be that of the Medici family in Florence, patrons of art and architecture and promoters of the Renaissance.
The first collaborations between art and business date back to the early decades of the twentieth century, when companies commissioned artists for the creation of packaging, calendars, and posters, testimonies of the artists’ creativity.
Notable examples include Toulouse-Lautrec, the author of the visual identity of the Moulin Rouge, and Italian artists such as Bassi, Boccasile, Carboni, and Depero, who collaborated with consumer goods companies.
Fashion houses also had a connection with art, like Elsa Schiapparelli, who collaborated with Salvador Dalì and Alberto Giacometti. With the evolution of society, companies have understood the potential of art not only for advertising, but also to improve image, economic performance, and the work environment.
Until the 1950s, collections were born from the personal interest of the presidents or to support young artists. In the 1960s, there was an expansion of corporate collecting.
The Golden Age of Collecting for companies
David Rockefeller, President of Chase Manhattan Bank, initiated the first corporate art collection in 1959. His commitment is evident in the 1966 speech: “The arts are vital to the human experience… companies must take on a greater role in supporting the arts.”
Over time, corporate collections have become strategic assets, capable of generating value and influencing the territory.
In the USA, tax advantages have incentivized collecting, with tax deductions for donations. However, the Reagan tax reform in 1986 reduced those deductions.
The Italian Situation of companies in collecting
In Italy, the regulatory framework on corporate collecting is complex. It is necessary to distinguish between companies that trade in works of art and those that hold them long-term. The former consider them “inventory”, the latter “non-depreciable tangible fixed assets”.
The tax deductibility of the costs of artworks is clearer: companies can deduct the costs if the artworks are displayed in the representative premises.
In 2014, Minister Franceschini proposed a law to allow companies to reduce taxes by transferring works of art to the State, but the proposal received little response.
Corporate Collections in Times of Crisis
The economic crisis of 2008 affected corporate collecting, with cuts to cultural expenses. However, the companies that continued to invest in contemporary art reacted better to the crisis.
Art, particularly contemporary art, can stimulate creativity and innovation. Gordon Knox, director of the Arizona State University Art Museum, believes that art can save the economy from the crisis.
Investing in art strengthens corporate identity, improves reputation, creates a stimulating work environment, diversifies assets and offers opportunities for marketing and social responsibility.
The inclusion of cultural assets in social capital strengthens the patrimonial solidity, improves reliability, and attracts investors.
Examples include the art collection of Intesa Sanpaolo, the watch collection of Patek Philippe, and the vintage car collection of Mercedes-Benz.
