Skyler E. Dykes (J.D. 2025, Washington University), Note, Taxing Cultural Endowments, 102 Wash. U. L. Rev. 1299 (2025):

Scholars and politicians have long recognized that the charitable sector is not a monolith. And yet, America’s cultural industry, a significant portion of our charitable sector, has received little attention in tax policy scholarship. This Note takes the first step in filling this scholarly lacuna. It argues that cultural endowment growth produces negative externalities that can and should be mitigated through measured taxation reform. It contends that endowment taxation reform should focus on encouraging institutions to divert funds toward their charitable missions and influencing philanthropic behavior so as to ensure more equitable distribution of charitable dollars. And finally, it argues for subsector-specific taxable bases as a means of equitably curbing wealth accumulation across America’s charitable sector

As tax policy scholarship continues to cast a critical eye toward personal and corporate wealth accumulation in America, scholars should consider how wealth inequality impacts creativity and cultural production. Cultural activity in America matters. It fosters a sense of community, preserves historical traditions, stimulates innovation, and inspires social change. But as this Note demonstrates, our current tax laws have contributed to a system that benefits elite artistic institutions, while harming others and straining pluralism. Tax policy reform is necessary to redress these harms and to cultivate a diverse, equitable, and vibrant creative economy.

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