When Music Became Tax-Exempt: The New York Philharmonic

Founded in 1842, the New York Philharmonic is the oldest symphony orchestra in the United States. I haven’t had time yet to look at its corporate history; I still have to find out when it became an entity and, when it did, whether it was originally incorporated as a nonprofit. But I did want to highlight one detail I came across this morning: the New York Phil has a long history as a tax-exempt organization. In fact, according to the IRS, the Bureau of Internal Revenue formally recognized it as exempt in February 1928.

I honestly don’t have much more to say about this. I’m curious about why, 15 years into the modern income tax, the Philharmonic applied for tax-exempt status. Had it been operating as a tax-exempt organization before then? Did something change that year that led it to change its status? Whatever the answer to those questions, though, music had become tax-exempt within the earliest years of the modern income tax, a status that has become the preeminent (or perhaps only?) status today for symphony orchestras and other classical ensembles.

Samuel D. Brunson

Photo: [New York Philharmonic Orchestra in Paris and reception]