Tax policies that encourage charitable giving and allow artists to take a fair-market value deduction for giving their own works to charities are important to the continuing vitality of the nonprofit performing arts sector.

The IRA Rollover provision, which expired in December 2007, permitted donors age 70-½ and older to make tax-free charitable gifts directly from their IRAs, up to an annual ceiling of $100,000. After its enactment, the IRA Rollover spurred millions of dollars in new charitable gifts.

Since Congress repealed the Artist-Museum Partnership bill in 1969, works donated by artists to nonprofit institutions dramatically declined. Currently, creators may take a deduction only for the cost of materials, such as paper and ink. The Artist-Museum Partnership Act would reinstate the fair-market value deduction, and would include as qualified charitable contributions “musical, artistic or scholarly compositions.”

Advocates should urge Congress to enact legislation to reinstate the IRA Charitable Rollover provision, allowing individuals to roll funds from their IRAs to nonprofit organizations. Advocates should also urge Congress to reinstate the Artist-Museum Partnership Act, which allows artists, writers and composers to take a fair-market value deduction for contributions of their own works to arts organizations.

View the full IRA Rollover Issue Brief and Artist-Museum Partnership Issue Brief then take action to improve tax policies for nonprofit arts organizations. Please visit the America Arts Alliance online to e-mail your elected officials today!

• Report to Congress on Artist-Museum Partnership Act
  In September 2007, NEA Chairman Dana Gioia submitted a report to Senators Leahy and Bennett summarizing the importance and implications of the Artist-Museum Partnership Act.
• Independent Sector
  As a nonpartisan coalition of approximately 600 organizations, Independent Sector serves as the premier meeting ground for the leaders of America's charitable and philanthropic sector. Independent Sector provides resources for nonprofit organizations on a variety of tax-related issues.