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Franklin Furnace

Advise on Tax Issues Related to Grants


Assist a nonprofit supporting avant-garde artists by advising on tax issues related to the issuance of grants.

Referred by:

Jurisdiction(s): U.S.
About the Organization: Franklin Furnace is a nonprofit whose mission is to present, preserve, interpret, and advocate on behalf of avant-garde art. The organization is dedicated to serving artists by providing both physical and virtual venues for the presentation of time-based art, including but not limited to artists’ books and periodicals, installation art, performance art, and unforeseen contemporary avant-garde artforms; and to undertaking other activities related to these purposes.
Legal Entity Type: Nonprofit/Charity
SDG(s): Decent Work and Economic Growth, Gender Equality, Partnerships to achieve the Goals, Peace, Justice, and Strong Institutions, Quality Education, Reduced Inequalities
Legal Issue(s):

This year, Franklin Furnace received funding to support artists from countries outside the United States. Among the 13 artists receiving grants from Franklin Furnace are citizens of Mexico, Canada, Germany, and Brazil. The Franklin Furnace team is now seeking guidance on how best to pay these artists and advice on any tax considerations/implications. They are currently considering three avenues: (i) retaining 30 percent of the award and paying the taxes themselves; (ii) requesting that the artists partner with organizations in their home countries to receive the money; or (iii) asking the artists to apply for a TIN and pay US taxes individually.