Jung: Does the Lack of Diversity in Nonprofit Museums Make Them Undeserving of Tax-Exempt Status?
Currently, visitors to nonprofit art museums are not diverse; rather they represent a small portion of the community — thus the museums are providing benefits to a narrow group. Continuing the practices that result in homogenous visitorship may not be aligned with the congressional intent of 501(c)(3) in terms of failing to provide public benefits and uphold public policy by “denying” access to museums based on socioeconomic and racial backgrounds as well as being seen as providing “private benefits” to a select few. By using legal (critical race theory), economic (theory of the commons), and organizational theories (open systems theory), this article presents a legal argument for greater diversity and inclusivity in museum practices, such as a more concrete and compulsory rationale for museums to strive toward more diversity and inclusivity in their practice in recruiting board members and staff and in serving diverse communities. Critical race theory and the theory of the commons are used to establish the issue of museums’ exclusive practice and the need to provide more public access. A legal analysis of two nonprofit tax law provisions (no substantial private benefit provision and public benefit doctrine) provides compulsory rationale for requiring museums to change and be more inclusive. Open systems theory provides a framework for transformation and a rationale for stronger and enforceable legal standards for nonprofit art museums to merit tax benefits. In comparing 501(c)(3) museum practices to nonprofit hospitals, the paper further proposes community benefit standards for museums as an affirmative action plan which can help move museums toward more inclusive and equitable practices thereby justifying tax benefits that come with being 501(c)(3) nonprofits in the United States.
Lloyd Mayer