| What is FOUNDATION™ ? |
FOUNDATION™ is a supporting partner for galleries, collectors and artists in the primary art market. |
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We address economic and administrative needs in this particular segment of a highly specialized-business. |
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The team behind FOUNDATION™ has created a bespoke concept to improve cash flow in compliance with the art industry's code of conduct . |
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| How does it work ? |
In order to provide instant liquidity, we act as an intermediary during the sales process of an artwork. |
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We buy and re-sell art work offered to us by our members on a short term basis and act as a merchant intermediary. |
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| Who are the members of FOUNDATION™ ? |
Potentially all participants in the primary art market, but mainly young and mid-tier galleries. |
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About 3.500 galleries operating at the forefront of the contemporary art world who do not have much support with their economic and administrative needs. |
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We are aware of the enormous pressure these small and mid-size enterprises are generally under: costly art fairs, expensive exhibition projects, the day-to-day gallery business and quite often a combination of all these factors. |
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| How does FOUNDATION™ learn about the sales ? |
Through our Quick-Tickets. Members notify FOUNDATION™ about a sale and we send a digital form (Quick-Ticket), which collects all the data for our due diligence. |
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| Does the collector know about FOUNDATION™'s involvement ? |
Yes. It is mandatory that the collector has agreed on using our service. FOUNDATION™ will operate according to the etiquette of our trade and respect the confidentiality of all transactions. |
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| How long does it take for FOUNDATION™ to make payment ? |
After approval of the ticket, we wire 90% of the sales price to the seller within 48 hrs. |
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| What happens to the remaining 10% ? |
After 35 days FOUNDATION™ automatically wires the remaining 10% minus our handling fee to the seller. |
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| How much is the FOUNDATION™ handling fee ? |
3.8 % of the sales price. We charge a flat fee of € 120 (US$ 150) only for our small tickets € 1.200 (US$ 1.500) to € 3.199 (US$ 3.499). |
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| Why 3.8 % ? |
The fee of 3.8% is within the range of common credit card charges, PayPal or similar instant cash services although FOUNDATION™ offers substantial added value. |
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FOUNDATION™ provides |
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• industry standard invoicing |
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• issuing of art expertises |
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• shares the implied risk of the sales procedure. |
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FOUNDATION™ helps to avoid potential addititional costs, such as: |
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• possible overdraft and/or interest costs |
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• late fee charges |
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• opportunity costs |
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| Who is invoicing to the collector ? |
We do. Five (5) days after we approve the sale and pay the gallery (or primary seller), we send an invoice to the collector (or final buyer). |
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Together with an industry standard invoice, the collector receives an expertise of the acquired artwork and a high resolution image. |
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Since FOUNDATION™ aims to be a green enterprise, all documents are sent digitally. |
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| How have collectors reacted so far ? |
To date, we have processed tickets in various combinations: |
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a. Sales from galleries to private collectors |
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b. Sales from galleries to corporate collections. |
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c. Private sales between collectors |
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d. Direct sales from artists to collectors (in agreement with the representing gallery). |
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e. Sales from galleries to museums |
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Although FOUNDATION™ is a new and unusual implementation to this trade, our service has been unanimously welcomed. |
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| Is FOUNDATION™ a financial service ? |
No. We are neither a bank or a collection agency. |
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FOUNDATION™ is a merchant intermediary. We buy the art work and sell it after a short holding time to the final collector. During this time, we hold title without the need to possess the art work. |
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| Can the art work get delivered before the collector has paid ? |
Yes. Once we approve a sale, the procedure can follow its normal course of action. The art work has to be prepared for shipping and insured by the selling party unless agreed otherwise. |
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| What happens if a buyer does not pay ? |
There is always a chance a deal might run into certain impediments. As always, communication is key and FOUNDATION™ will keep in close contact with the gallery and the collector. |
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| How do I become member of FOUNDATION™ ? |
Please use our contact form on this website and send us an email. We will get back to you and send a short online application form. It should take you no more than 15 min to complete. Once submitted and all requested information is provided, FOUNDATION™ generally grants membership within 24 hrs. |
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| Do I have to use FOUNDATION™ for all my sales ? |
No. Our service is selective for both parties. The member is at liberty to choose our service on a case by case basis and FOUNDATION™ reserves the right to deny a deal, as well. |
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| Is the admission free ? |
The application is subject to a € 160/ US$ 200 admission fee. This is a one-time payment and helps us to cover our administrative costs. |
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| Is the membership free ? |
The first year the membership fee is absorbed by the admission fee. From year 2 onwards the annual membership fee is € 120/ US$ 150. |
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| When can I cancel my membership ? |
Any time - provided no transactions (tickets) are pending. |
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