Author: Rodriquez, Edward J.

Publication Year: 1977

Media Type: Report

Summary:

Two revenue rulings recently promulgated by the Internal Revenue Service (IRS) indicate that any art association which maintains galleries in which art is sold to the public may be denied tax exempt status. Since operating galleries in which art is exhibited and sold to the public is an important function of many private, nonprofit art associations, this article considers whether such selling by a private, nonprofit art association necessarily violates the provisions of section 501(C)(3), thus depriving an association of the often life-sustaining benefits tax-exempt status provides. (p. 653)

Abstract:

Two revenue rulings recently promulgated by the Internal Revenue Service (IRS) indicate that any art association which maintains galleries in which art is sold to the public may be denied tax exempt status. Since operating galleries in which art is exhibited and sold to the public is an important function of many private, nonprofit art associations, this article considers whether such selling by a private, nonprofit art association necessarily violates the provisions of section 501(C)(3), thus depriving an association of the often life-sustaining benefits tax-exempt status provides. (p. 653)

CONTENTS
The IRS position.
Requirements for exemption.
The sale of art, private benefit, and exempt purposes.
Conclusion.

Arts & Intersections:

Categories: Funding