How many patrons will give when they can't deduct the donation?
How many of your donors do you think will continue to give at their current levels when they can no longer claim the gift on their taxes?
The tax bill currently in conference would have devastating impacts on donations to non-profit organizations. Arts Action Fund has broken down the two versions of the bill and its impact on arts organizations.
In addition to eliminating business expense deductions for artists (which will drive up your artist fees and cause you to lose some performers entirely), we're facing the elimination of the charitable giving deduction for an estimated 31 million taxpayers. Only the top 5% of taxpayers would remain eligible to take the deduction.
Don't underestimate the cost to performers of those expense deductions. Currently, when a professional musician buys a new instrument, they deduct it the same way a company would write off the purchase of a new computer. That will no longer be possible if this passes.
We're not just talking travel expenses and the nickel-and-dime daily stuff like dance shoes, sheet music, and reeds. Violins are easily $40-100K for a decent professional instrument. Pro-quality oboes are $10K and have to be replaced every 4-5 years.
Even the most dedicated artist will have to increase their fees significantly if they suddenly lose thousands of dollars a year in business expense deductions. How is your organization going to cope with this increase when your patrons have all lost their charitable tax deduction?
Contact your Congressperson and Senator now and often at (202) 224-3121 to let them know what you think about this!