Giving collectible objects to institutions is charitable.

It generally makes the donor and the institution feel good.

Donors typically believe they will receive a tax deduction for their generosity.

Every once in a while, as a collector, I am exasperated. It has little to do with forming my collection, which is a joy. Rather, it has to do with gifting objects from my collection to museums and like organizations. This happens because institutional employees who write thank-you letters to donors for their gifts do so either thoughtlessly or because they have not been trained to execute the letter correctly. Though the communications seem so sugar-sweet, and I suspect the same template is sent to every donor regardless of what was given, they often omit crucial terminology the IRS requires to substantiate a charitable deduction.

This is less than good news for the donor, because she cannot claim the tax deduction she expected for her gift and suffers a monetary loss as a result. Needless to say, the institutional employee who wrote the letter is not harmed unless a rigorous supervisor catches the negligence and admonishes the employee. The donor, however, suffers not only a financial loss but also feels the sting of loss aversion if/when a tax deduction for her generosity is denied.

This may happen with increasing frequency. The IRS was granted roughly $80 billion in new funding under........

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