{"id":1756,"date":"2014-12-20T13:50:21","date_gmt":"2014-12-20T21:50:21","guid":{"rendered":"http:\/\/www.artsjournal.com\/worth\/?p=1756"},"modified":"2014-12-20T13:50:21","modified_gmt":"2014-12-20T21:50:21","slug":"should-nonprofit-museums-have-free-admission-because-they-are-tax-exempt","status":"publish","type":"post","link":"https:\/\/www.artsjournal.com\/worth\/2014\/12\/should-nonprofit-museums-have-free-admission-because-they-are-tax-exempt\/","title":{"rendered":"Should nonprofit museums have free admission because they are tax exempt?"},"content":{"rendered":"

\"And<\/a>No. But Christopher Knight<\/a>\u00a0at the LA Times<\/em> thinks they should:<\/p>\n

Yes, every art museum needs multiple sources of revenue. It does cost money to run the place.<\/p>\n

However, because they are tax exempt, art museums already count the public as a major, indirect source of revenue. Required admission fees add a second hit \u2014 a kind of “double jeopardy” \u2014 and it is one that falls harder on those who can least\u00a0<\/span>afford it.<\/span><\/p><\/blockquote>\n

But being tax exempt is not<\/em> an indirect source of revenue. Exemption from the property tax is one less cost to bear, but all the other expenses of running the museum still need to be met (If the museum costs are $10 million, you cannot say ‘well, the property tax exemption has an implicit value of $500,000, so we just need to find $9.5 million in revenue and we are all set!’). Exemption from the corporate income tax only matters in the first place to the degree that there is net revenue at all – receipts in excess of expenses. The deduction in the personal income tax for charitable deductions certainly helps, and represents an important public subsidy, but it doesn’t help balance the accounts. If your museum has annual expenses of $10 million, it needs to find $10 million to stay in the black; the tax exemptions are not a reason to choose an admission or membership fee of zero.\u00a0Should all nonprofit colleges have zero tuition fees? Should nonprofit hospitals provide free medical care? Should all nonprofit orchestras, theatres and dance companies have free admission?<\/p>\n

And in terms of fairness, why shouldn’t<\/em> the people who actually go to view the art bear some of the burden of the costs of the museum? Yes, they contribute indirectly through the tax expenditure that arises from the charitable tax deduction and the property tax exemption, but so do people who never visit the museum. And the tax expenditures for nonprofit organizations in the arts are not progressive. The benefits flow disproportionately to the better-off; that’s who attends museums and plays and symphony concerts. The people who get more of the direct benefits of the museum, or any nonprofit arts, ought to contribute a greater amount to its financing than people who never attend.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

No. But Christopher Knight\u00a0at the LA Times thinks they should: Yes, every art museum needs multiple sources of revenue. It does cost money to run the place. However, because they are tax exempt, art museums already count the public as a major, indirect source of revenue. Required admission fees add a second hit \u2014 a […]<\/p>\n","protected":false},"author":3,"featured_media":1758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[26],"tags":[],"class_list":{"0":"post-1756","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issues","8":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/12\/pony.jpg","jetpack_shortlink":"https:\/\/wp.me\/p3dIW5-sk","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2910,"url":"https:\/\/www.artsjournal.com\/worth\/2023\/07\/producing-and-exhibiting-arts-as-a-nonprofit-entity-is-a-qualified-tax-exempt-activity\/","url_meta":{"origin":1756,"position":0},"title":"Producing and exhibiting arts as a nonprofit entity is a qualified tax exempt activity","author":"Michael Rushton","date":"July 18, 2023","format":false,"excerpt":"Here's what the Internal Revenue Service says: Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes and that meet certain other requirements are tax exempt under Internal Revenue Code Section 501(c)(3). Organizations whose primary focus is literary or educational are\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/07\/Mitchell_Opera_House-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":377,"url":"https:\/\/www.artsjournal.com\/worth\/2013\/02\/targets-the-cost-of-bread-and-nonprofit-arts-pricing\/","url_meta":{"origin":1756,"position":1},"title":"Targets, The Cost of Bread, and Nonprofit Arts Pricing","author":"Michael Rushton","date":"February 25, 2013","format":false,"excerpt":"My previous post drew lessons for museum pricing from what we observe in the prices set by cable television providers. But how can for-profit pricing be relevant to nonprofit museums, to orchestras and opera? Don\u2019t the nonprofit arts, unlike cable companies, have a mission to be accessible to all patrons,\u2026","rel":"","context":"With 5 comments","block_context":{"text":"With 5 comments","link":"https:\/\/www.artsjournal.com\/worth\/2013\/02\/targets-the-cost-of-bread-and-nonprofit-arts-pricing\/#comments"},"img":{"alt_text":"Focus on the target","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2013\/02\/archersDM1304_468x364-300x233.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1629,"url":"https:\/\/www.artsjournal.com\/worth\/2014\/10\/deaccessioning-a-puzzle-and-a-speculative-answer\/","url_meta":{"origin":1756,"position":2},"title":"Deaccessioning: A puzzle, and a speculative answer (updated)","author":"Michael Rushton","date":"October 19, 2014","format":false,"excerpt":"Why is it considered unethical for nonprofit or public sector museums to sell art, except for cases when the proceeds will be directly used to acquire new art? At the Art Law Blog, Donn Zaretsky points out that if a private collector decided to open a space to display some\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"so, why no deaccessioning?","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/ask-a-curator12.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/ask-a-curator12.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/ask-a-curator12.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/ask-a-curator12.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2014\/10\/ask-a-curator12.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":2191,"url":"https:\/\/www.artsjournal.com\/worth\/2017\/04\/on-charging-admission-at-the-met\/","url_meta":{"origin":1756,"position":3},"title":"On charging admission at the Met","author":"Michael Rushton","date":"April 28, 2017","format":false,"excerpt":"The New York Times reported that the Metropolitan Museum of Art is looking at options to make its \"suggested\" entry fee into something a little stronger than a hint, at least for people who live outside the city or state. A few years ago Derek Thompson reported that about six\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"i should pay","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/04\/met.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/04\/met.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2017\/04\/met.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":2926,"url":"https:\/\/www.artsjournal.com\/worth\/2023\/08\/museums-are-not-expensive-2\/","url_meta":{"origin":1756,"position":4},"title":"Museums are not expensive","author":"Michael Rushton","date":"August 2, 2023","format":false,"excerpt":"New Yorkers who are interested in seeing the film Barbie at the local multiplex will pay $25.49 per ticket. If, on the same weekend, they wish to also see Oppenheimer, as I read, in about one hundred and forty-seven news reports, people were doing, then we are up to $51.\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/08\/image.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/08\/image.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/08\/image.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2023\/08\/image.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":3667,"url":"https:\/\/www.artsjournal.com\/worth\/2024\/12\/on-indirect-support-for-the-arts\/","url_meta":{"origin":1756,"position":5},"title":"On “indirect” support for the arts","author":"Michael Rushton","date":"December 10, 2024","format":false,"excerpt":"Thomas Wolf has\u00a0posted a short piece\u00a0on the history of the National Endowment for the Arts, whether it is likely to survive the coming second Trump administration, and the tax deduction for charitable contributions. I\u2019m going to focus on that last bit\u2026 People who itemize their income tax deductions can claim\u2026","rel":"","context":"In "issues"","block_context":{"text":"issues","link":"https:\/\/www.artsjournal.com\/worth\/category\/issues\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/12\/image-3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/12\/image-3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/12\/image-3.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.artsjournal.com\/worth\/wp-content\/uploads\/2024\/12\/image-3.png?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/comments?post=1756"}],"version-history":[{"count":2,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1756\/revisions"}],"predecessor-version":[{"id":1759,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/posts\/1756\/revisions\/1759"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media\/1758"}],"wp:attachment":[{"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/media?parent=1756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/categories?post=1756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.artsjournal.com\/worth\/wp-json\/wp\/v2\/tags?post=1756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}