Author: Jeffri, Joan

Publication Year: 1981

Media Type: Report

Summary:

Abstract:

This article focus on a series of examples of real estate projects in which arts groups play a prominent part. Some examples are drawn from large arts institutions, and may be applicable to smaller arts groups. Examples include the selling of the air rights over the Museum of Modern Art in New York, and the creation of the 42nd Street Development Corporation as well as the restoration of downtown squares, and the creation of local arts centers|Getting and spending, we lay waste our powers. William Wordsworth. The world is too much with us.

Wordsworth's famous phrase is an accurate description of the frustration felt by many arts groups trying to gain control of their destinies by providing their institutions with earned income, rather than by relying on grants, gifts, and contributions. With a basic understanding of the tax law and of the Internal Revenue Code sections (501) (c) (3), some groups have developed ingenious schemes to keep their organizations afloat. These schemes include the creation of separate for-profit corporations, subsidiary corporations, and licensing arrangements wherein an arts institution receives royalties rather than active income.

While such alternatives may provide increased income for a group, the small arts organization may find that their strain on staff time, morale and already tight resources is too great a liability, particularly since any new venture requires time to develop and grow. The very real cost to the institution and the difficulty in sustaining enthusiasm for such a project over time may not be outweighed by a source of income that is new, but by no means guaranteed.

CONTENTS
Towers in the sky: air rights for arts organizations.
Local development corporation.
Public buildings and city space.
Amenity strategies.
The arts at the center.
Profit vs Purity.

Arts & Intersections:

Categories: Fundraising