Tax and Nonprofit Policy

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Preserving Charitable Giving Incentives

Many of the professional dance groups in the U.S. function as 501(c)3 organizations. As such they rely on contributions to create new works, to provide arts education programs, and engage audiences and communities. According to Dance/USA’s current snapshot of the dance ecosystem, more than 40% of the revenue to dance companies and non-profit organizations came from private contributions.

Dance/USA works in partnership with the #ReliefForCharities Coalition, Independent Sector, and the Charitable Giving Coalition to urge Congress to maintain and increase federal charitable giving incentives – such as the charitable deduction – which supports dance companies and non-profit organizations which make their communities stronger, healthier, and more vibrant.

What’s at Stake

Each year, there are several federal legislative proposals to limit federal incentives for charitable giving in an effort to increase revenue to the federal government. Such proposals include a lower percentage or monetary cap, replacment of the deduction with a tax credit, or implementation of a floor for giving (such as a minimum percentage of adjusted gross income) that would trigger the deduction.

Making Your Case

Tax Reform: Encouraging Charitable Gifts to Support Community Access to the Arts

Relevant Legislation (117th Congress) – Legislation needs to be reintroduced for consideration during the 118th Congress

Universal Giving Pandemic Response and Recovery Act – H.R. 1704 and S. 618
- Reinstates the universal non-itemized chartiable deduction for cash contributions that expired December 31, 2021; extends the deduction into 2022; and expands the deduction to $4000 for individuals/$8000 for joint filers.

Tax Fairness for Artists

Dance/USA is also working to revive the Artists Fair Market Deduction, also known as the Artist-Museum Partnership Act, which would allow creators of original works to deduct the fair-market value of self-created works given to and retained by a nonprofit institution. Original works in the dance community could mean costume and set designs or choreographic notations.

Making Your Case

Tax Fairness for Artists and Writers: Creating America’s Artistic Heritage

Relevant Legislation (117th Congress) – Legislation needs to be reintroduced for consideration during the 118th Congress

Performing Artist Tax Parity Act of 2021 – H.R. 4750 and S. 2872
- Modifies the tax deduction for the expenses of performing artists (including commissions paid to managers or agents) to provide for a phaseout of such deduction for taxpayers whose adjusted gross income exceeds $100,000 ($200,000 for joint return filers). The $100,000 phaseout threshold is adjusted for inflation annually for taxable years beginning after 2021.