Questions & Answers

What is FOUNDATION™ ? FOUNDATION™ is a supporting partner for galleries, collectors and artists in the primary art market.
  We address economic and administrative needs in this particular segment of a highly specialized-business.
  The team behind FOUNDATION™ has created a bespoke concept to improve cash flow in compliance with the art industry's code of conduct .
   
How does it work ? In order to provide instant liquidity, we act as an intermediary during the sales process of an artwork.
  We buy and re-sell art work offered to us by our members on a short term basis and act as a merchant intermediary.
   
Who are the members of FOUNDATION™ ? Potentially all participants in the primary art market, but mainly young and mid-tier galleries.
  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.
  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.
   
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.
   
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.
   
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.
   
What happens to the remaining 10% ? After 35 days FOUNDATION™ automatically wires the remaining 10% minus our handling fee to the seller.
   
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).
   
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.
  FOUNDATION™ provides
  • industry standard invoicing
  • issuing of art expertises
  • shares the implied risk of the sales procedure.
  FOUNDATION™ helps to avoid potential addititional costs, such as:
  • possible overdraft and/or interest costs
  • late fee charges
  • opportunity costs
   
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).
  Together with an industry standard invoice, the collector receives an expertise of the acquired artwork and a high resolution image.
  Since FOUNDATION™ aims to be a green enterprise, all documents are sent digitally.
   
How have collectors reacted so far ? To date, we have processed tickets in various combinations:
  a. Sales from galleries to private collectors
  b. Sales from galleries to corporate collections.
  c. Private sales between collectors
  d. Direct sales from artists to collectors (in agreement with the representing gallery).
  e. Sales from galleries to museums
   
  Although FOUNDATION™ is a new and unusual implementation to this trade, our service has been unanimously welcomed.
   
Is FOUNDATION™ a financial service ? No. We are neither a bank or a collection agency.
  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.
   
   
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.
   
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.
   
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.
   
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.
   
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.
   
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.
   
When can I cancel my membership ? Any time - provided no transactions (tickets) are pending.