Entertainment, Arts, and Sports Law Commons^™

Recognition Under Section 501(C)(3) Of The Internal Revenue Code As A Prerequisite To Arts Grants: A Special Problem For Literary Publishers And Art Galleries, Michael E. Skindrud

Cleveland State Law Review

This Article will examine the origin and impact of section 501(c)(3)recognition as a prerequisite to arts grants. Arts organizations which have the most difficulty obtaining recognition under section 501(c)(3) include small presses and literary magazines, organizations which assist visual artists with marketing, and certain arts service organizations. Their special problems in obtaining recognition will be examined. This Article suggests the appropriate test for recognition of exemption under section 501(c)(3) for organizations whose sole activity is a business which furthers their exempt purposes. This includes most small presses and literary magazines. The appropriate test is whether an exempt purpose, or profit, …