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Cultural philanthropy is alive and well in Australia
The Cultural Gifts Program encourages gifts of significant cultural items to public art galleries, museums, libraries and archives, by offering donors a tax deduction for the market value of their gifts. The Register of Cultural Organisations allows qualifying cultural bodies to offer donors the incentive of a tax deduction for gifts of cash.
So, from 1999 to 2000 donors of cultural property under the Cultural Gifts Program, may elect to spread their deduction for gifts over a period up to five income years. In addition, the previous capital gains tax impost will not apply, thus maximising the appreciated value of a gift for tax deduction purposes. The removal of former disincentives should enable public art galleries, museums and libraries to attract larger and more valuable collections. This includes the many regional galleries, museums and libraries which rely on the program to augment their acquisition budgets.
Institutions participating in the Cultural Gifts Program-as well as those organisations listed on the Register of Cultural Organisations-will benefit from the relaxation of conditions on gifts of assets such as real estate, shares and equipment with a market value in excess of $5 000. They will also benefit from the removal of capital gains tax on testamentary gifts, and the ability for individuals to set up private foundations to support cultural causes without the requirement that donations be received from the public.
These initiatives are part of the Government's commitment to establishing a social coalition of individuals, business, government and community leaders as a crucial element in sustaining our community infrastructure. They bring our model of patronage more into line with pluralist systems, like the one in the United States, where organisations are supported by mixed funding largely outside the public sector.
The Cultural Gifts Program and the Register of Cultural Organisations are administered by the Department of Communications, Information Technology and the Arts.
Contact
Ruth Richardson, Cultural Sponsorship & Tax Reform
phone: (02) 6271 1642 or
email: ruth.richardson@dcita.gov.au