Key Issues

Tax Matters

December 18, 2017: With the House and Senate voting on final approval of tax reform legislation this week, we have posted a summary of provisions of greatest interest to art museums and to charities in general. Overall, we believe the bill would depress charitable giving because far fewer people will have a tax incentive to donate than under current law, even though the charitable deduction technically remains untouched.  The bill's backers believe that increased economic growth will lead to more charitable giving, though research suggests otherwise.

On the positive side, the bill does not include harmful provisions on noncash gifts and on corporate sponsorships that had been in an earlier House version. 

Recent testimony on charitable giving, tax law, and related subjects is available in the side bar to the right.

 

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As Congress discusses reforming the tax code, nonprofits of every variety worry that it could reduce or cap itemized deductions, including the deduction for charitable giving.  With most museums depending on giving for a quarter, a third, or even more of their annual budgets, AAMD is actively involved in both non-profit-sector-wide and arts-specific coalitions to protect the deduction in general, avert any museum-specific problem such as restricting deductibility for gifts of art, and oppose any attempt to establish categories of charities such that gifts to museums would be less favored than gifts to other organizations.

Recent testimony on charitable giving, tax law, and related subjects is available in the side bar to the right.

For more information, contact Andy Finch in AAMD’s Washington office.