Good point, Ross!

I asked our CFO who checked with our attorneys and the IRS.
In general, when income from a cafe/restaurants or shop
exceeds 30% of total income, that throws up a red flag for
the IRS.  For this reason, most museums (and other
not-for-profits) do not advertise their cafes/restaurants
and shops.  (Note: Everyone should check, as state tax codes
may affect IRS regulations.)  As Joslyn Art Museum is way
below that income percentage, there is no risk from the IRS.

My concern is, I suppose, ethical/moral rather tax-related.
Shouldn't museums concentrate on the exhibitions (art,
history, etc.), and keep their cafes/restaurants and shops
as amenities?

Sincerely,

Jay Heuman, Visitor & Volunteer Services Coordinator
Joslyn Art Museum, 2200 Dodge Street, Omaha, NE, 68102
342-3300 (telephone)     342-2376 (fax)
http://www.joslyn.org



> -----Original Message-----
> From: Museum discussion list
[mailto:[log in to unmask]]On
> Behalf Of Ross Weeks
> Sent: Wednesday, August 08, 2001 1:06 pm
> To: [log in to unmask]
> Subject: Re: Admission for cafe access?
>
> I believe the IRS has very specific regulations pertaining
> to access to gift shops and other income-producing
> amenities at non-profit museums.  Charging admission
> to enter a cafe, or gift shop, (the last I knew) could
> jeopardize a non-profit's 501 (3) (c) status.
>
> Ross Weeks Jr.

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