Andrew Taylor on the Business of Arts & Culture
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An unpleasant argument
Posted: October 9, 2007
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Neill Roan flags a re-emerging public conversation about the costs and benefits of charitable giving, particularly to seemingly wealthy nonprofit arts organizations. Says he:
''Shouldn't charitable gifts go to the less fortunate?'' is a policy question that those of us in the cultural sector can expect to hear asked more often and more urgently. This question has been around a long time, and as a former fundraiser, I can attest that this question leads to a rocky and perilous conversational landscape.
Roan points to Jenny Price's essay against philanthropy in Good Magazine, in which she suggests that giving is often just a redistribution of wealth to repair the damages caused by that wealth generation. In another argument, Stephanie Strom proposed in the New York Times that the tax shelters for wealthy donors come at too high a cost to the public (which the National Council of Foundations called ''just plain silly'').
More recently, there was this little tidbit from former Secretary of Labor Robert Reich:
I'm all in favor of supporting the arts and our universities, but let's face it: These aren't really charitable contributions. They're often investments in the lifestyles the wealthy already enjoy and want their children to have, too. They're also investments in prestige -- especially if they result in the family name being engraved on the new wing of an art museum or symphony hall....
He goes on to suggest a modification to the current tax law:
If the donation goes to an institution or agency set up to help the poor, the donor gets a full deduction. If the donation goes somewhere else -- to an art palace, a university, a symphony or any other nonprofit -- the donor gets to deduct only half of the contribution.
It may currently be a debate about the spending, practices, and tax benefits of the ultra-rich and the mega-nonprofit. But the thoughtful cultural manager will prepare for such conversations to trickle down -- to their city council, to their major donors, to their public, and to their local media.
Why should people give to your organization rather than support the poor, the hungry, or the destitute? And why should your donors get a tax break on their gifts? They are horrible questions to answer, but you'd best have an answer at hand.