LONDON, ENGLAND.-'A timely proposal [which would] help to rejuvenate regional collections, civic pride and philanthropy. Relief for lifetime giving is especially relevant for developing collections of contemporary art in the regions, which is one of our major concerns...We give the Art Fund proposal our full support.' Sir Christopher Frayling, Chairman, Arts Council England.

Background to the Living and Giving campaign: Museums and galleries across the UK are finding it increasingly difficult to acquire new objects. The sharp decline in available funding for acquisitions, coupled with escalating art prices, means that many works of art and cultural objects are simply beyond the reach of most collections.

The figures make for alarming reading: • Since 1993, government funding for acquisitions to the five major art museums (through grant-in-aid) has fallen by 90%; • Income to the National Heritage Memorial Fund (NHMF), the fund for heritage at risk, has dropped by 58% over the same period; • Income to the Heritage Lottery Fund (HLF) has fallen by 41% since 1997; • At the same time, art prices have soared - in some cases by as much as 1000%.

The Art Fund believes that the future of collecting will be increasingly dependent on donations from private individuals. But there is currently no financial incentive for anyone to donate a painting or ceramic, for example, to their local art gallery, during their lifetime.

'The British Library is whole-heartedly in support of [this] proposal and would like to congratulate the Art Fund on producing such a well thought-through and extremely clear document' Lynne Brindley, Chief Executive, British Library.

The Living and Giving campaign - The Art Fund wants the government to encourage and promote lifetime giving, by introducing a new tax incentive – 'Living and Giving'. This would enable donors to claim a deduction against their income tax bill, if they donate a pre-eminent work of art or artefact to a museum, gallery, library or archive in the UK. The tax relief would stimulate individual giving at marginal cost to the taxpayer, and should result in a significant enrichment of our national and regional collections.

Similar schemes have been operating successfully in other countries – for example, Australia, the Republic of Ireland, the USA and Canada - for many years. This has often led to a remarkable increase in the donation of cultural objects - for example, over 8,000 individual items, worth over A$300 million (£125m), have so far been given to local, state and national institutions in Australia , through their tax relief scheme. These donations include objects as diverse as an Anthony Caro sculpture, Alfred Sisley’s A Path at Les Sablons and costumes worn in the film Muriel’s Wedding.

The Art Fund is leading a campaign to persuade the Government that steps need to be taken to encourage lifetime giving to our public collections. We have submitted a proposal for a UK tax incentive - 'Living and Giving' - to the Treasury, and met with key officials in the Department for Culture, Media and Sport (DCMS), No. 10 and HM Treasury to discuss our ideas. The proposal has the active support of the museum, gallery, library and archive sectors, as well as many collectors and key individuals from the arts world.

'The proposal seems wholly admirable and we welcome and support it wholeheartedly' Sandy Nairne, Director, National Portrait Gallery.