Please Treat the Information in the Digest as Confidential. Do Not Circulate Outside of the Lex Mundi Network.

If you are interested in a matter, please let us know as soon as possible by emailing Isis Bous and Allison Laubach through the “Ask About a Matter” button on the details page or directly (ibous@lexmundiprobono.org; alaubach@lexmundiprobono.org) and let us know which project(s) interests you. We will place matches with Lex Mundi member firms on a first-come, first-served basis.

You can view all matter summaries on the “Digest” page(s). To view summaries by legal need, select the category of interest. See details of individual matters via the “Read More” link in a matter. To view all details of all available matters, choose “View All”.

Franklin Furnace

Advise on Tax Issues Related to Grants

Summary:

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.