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so decreased in recent years that these funds now no longer suffice. (From 38 to 44% of museum income comes from endowments; funds coming from foundations, corporations, and Federal, State and County levels of government represent less than 2% of the total annual income for all museums; thus, museums are heavily dependent upon private contributions, i.e., from individual taxpayers, for their support.) But, as museums do not qualify for the extra 10-percent "charitable contribution" deduction for gifts to educational organizations under the Internal Revenue Service's present interpretation of the meaning of #170(b)(A)(ii) of the Code, they are placed in an unfavorable position to obtain either sustaining funds through charitable contributions of individuals or gifts that make possible important additions to their collections.

We urge, therefore, that the sense of Representative Keogh's bill (HR 498) and Representative Curtis' bill (HR 2078) be followed in extending the additional 10% charitable deduction to cover contributions to museums, historical agencies, and libraries, and this be accomplished by amending the definition of an educational organization under #503(b)(2) to the Internal Revenue Code to include these institutions.

We do not seek preferred treatment. We only urge that museums be given equitable treatment with other educational institutions in the matter of charitable deductions.


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