Tax Incentives for Nonprofit Charitable Giving
What Is At Stake
Background on Charitable Giving Advocacy
Tax policy that supports charitable giving has been critically important to the development and sustained vitality of the nonprofit performing arts sector. Incentives that encourage charitable giving to the nonprofit performing arts acknowledge the important role these organizations play in supporting vibrant and healthy communities.
On average, 40% of the annual revenue to the nonprofit performing arts sector comes from private contributions. Efforts to limit deductions have been proposed by Congress and the current administration. These include imposing a 28% cap on all deductions and implementing a floor where donors must give more than 2% of their adjusted gross income to take the charitable deduction. These actions would hamper giving and result in a significant decrease in contributions, thus reducing the services these organizations provide their communities.
What We Are Asking Right Now
We urge Congress to:
- Preserve incentives for charitable giving by protecting the full scope and value of the tax deduction for all forms of charitable gifts.
- Reject any attempts to divide the charitable sector by favoring certain types of charities over others.
- Enact the Artist-Museum Partnership Act (S.931) which would allow artists to take an income tax deduction for the fair market value of their work when they donate it to charitable collecting institutions.
Learn more and take action in the Performing Arts Alliance Arts Advocacy Issue Center.
Information provided by the Performing Arts Alliance.
APAP is a member of the Performing Arts Alliance.