The nonprofit arts community, like other charitable sectors, relies on the generosity of individual donations from people of every income level who believe the public good is served by supporting charitable organizations. For nearly 100 years, the Charitable Deduction has been one of the primary sources of revenue for arts and culture by incentivizing giving with a modest federal tax deduction.
As Congress and the President struggled with addressing federal budget deficits, the deduction has been discussed as one possible way to increase revenue by either capping the value of the deduction to the taxpayer, reforming it or by elimination of the benefit. The Obama Administration has already proposed limiting the value of the deduction and proposals ranging from elimination of the deduction in last summer’s “supercommittee” considerations to changes that would effectively curtail tax deductions to charity.
Comprehensive tax reform will be one of the central issues that Congress will be working on this year. Please take the opportunity to urge your member of Congress to preserve charitable incentives by visiting the Americans for the Arts Action Fund.