By Ronald B. Hellman
The United States is one of the very few Western countries without formal government support of the arts. (We don't have universal health coverage either, but that's another story.) Yes, we do have the National Endowment for the Arts, established in 1965 as an independent fund-granting agency, but despite the great deal of political controversy that it has generated, its budget is miniscule, compared by some as equivalent to five inches worth of a B-1 bomber.Out of absolute necessity, many cultural institutions rely on private donations, mainly from the corporate establishment. To survive and be eligible for this largesse, an organization must be nonprofit and tax-exempt. So let me introduce you to the Internal Revenue Code, but no more than a brief hello. When I was at Columbia Law School many years ago, for some misguided reason I took a course in Federal Income Taxation. The professor in his opening comments said that there were only 10 people in the United States who understood the Internal Revenue Code, and he was not one of them. And by the way, that's all I remember from that course.The relevant section of the code is 501(c), which lists 27 types of nonprofit organizations exempt from some federal income taxes. Theater companies generally fall under 501(c)(3), as nonprofit corporations that are organized and operate exclusively for literary or educational purposes.Virtually all of our leading theater companies, such as the Manhattan Theatre Club, which produce new plays and innovative works, are 501(c)(3) nonprofits.Here in Queens we have Queens Theatre in the Park, which, according to Executive Director Jeff Rosenstock, has grown from a budget under $100,000 in its initial 1993 season to its current $3.5 million. But when you see a QTIP production, note all the corporate sponsorships and private donations that make it possible. Ticket prices generally carry less than 50 percent of the costs, so fund-raising has to be a constant activity.I'd have to bet that most taxpayers, if they knew that an additional tax – say, $100 – coming out of their pocket would go to support the arts, would be glad to pay it. After all, the arts play an important part in the quality of our lives, as well as contributing substantial money to our economy – witness the adverse effect that the recent theater stagehand strike had here in New York, a loss estimated in the millions.Relying on donated services and the kindness of strangers, most of our local theater groups manage to get by on a shoestring budget. Many are set up as nonprofit, so donations to them are tax-deductible. So check out the listings, enjoy a good show, and don't be shy about parting with a few extra bucks.Not only do we have lots of theater in Queens, we have a number of musical groups that also deserve your attention. One of the newer ones is Musica Reginae, which has been presenting first-rate classical and contemporary concerts since 2000. Find out what they're up to at www.MusicaReginae.org.Contact Ron Hellman at RBH24@Columbia.edu.
