How long until some rich art collector starts a charity to hold their art and protect it from being auctioned?

I'm not a lawyer - but it seems like one obvious factor would take into account where the artwork purchased by the charity resides. Is it in a private residence? A freeport? Probably not really a charity.

Is it hanging on the wall in the Art Institute of Chicago? Might be fine.

Then the question is what happens if the charity tries to sell it back to a private collector at some future point. Might be allowed as long as back taxes are paid assuming some appreciation schedule.

I think the more general point is that policy is _hard_, and to assume that something doesn't work because you've thought about it for 2.5 seconds is probably a bad assumption to make. Most of our existing laws/policies would be similarly easy to attack if distilled to one sentence. There's a reason actual policy and laws are really long.

You however, seem to think that because you can find a corner case in a two line proposal, the whole thing has no merit.