In 1913 the Federal Income tax was from 1% to 7% and increased between 1917-1942 from 4% to 17%. It was an excellent time to start cheating on taxes. So philanthropy had social reasons, but what began as a good intention ended as a legal form of tax avoidance. Suppose the capitalists had paid their taxes, or even before that, if the government determined the right amount to be paid for the society to guarantee its needs, there wouldn’t be a need for philanthropy. What is seen as a moral gesture is nothing more but a consequence of a previously created unfair wealth distribution. With its appearance, philanthropy immediately became another tool of the capital to exercise its power. Capitalists were/are using the needs of society for education, health, and arts as they are better pleased. For 120 years, resolving social problems was/is not a priority of the system. It goes the same. In 2021, were established and functioning 142,831 private and 3,098 corporate foundations in the United States. Combined, these private foundations employ 8,300 people, earn more than $132 billion in revenue annually, and have assets of $1.1 trillion. The American government is okay with it. In form 501(c)(3) IRS changes the rules for tax exemption this way. “Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. A corporation may deduct qualified contributions of up to 25 percent of its taxable income. Contributions that exceed that amount can carry over to the next tax year.”- and “There is no limit to how much money a nonprofit can reserve. The key is in the organization's financial management, whether that means reinvesting the reserve back into the nonprofit's mission or ensuring financial security by saving money .” - and lastly, “There is no limit on how much a nonprofit organization can earn.” 3 Returning to arts and culture, according to the New York Times, “Wealthy collectors, of course, have long saved millions of dollars in federal taxes by donating art and money to museums and foundations. A growing number of private tax-exempt exhibition spaces like it is that their founders can deduct the full market value of any art, cash, and stocks they donate, even when the museums are just a quick stroll from their living rooms. Thanks partly to the skyrocketing value of art and the growing number of collectors who buy it as an investment, private museums — sometimes in out-of-the-way locations and with strictly limited public access — have proliferated in the last decade. While these jewel-box museums can house extraordinary work and offer a small group of art lovers an unusual viewing experience, critics wonder whether taxpayers are helping subsidize wealthy collectors’ multimillion-dollar purchases with little public benefit. And at a time when
3 https://bizfluent.com/info-8490232-much-can-make-nonprofit-organization.html
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