Defunding The Arts Defunds Our Local Economies

The Englert is proud to be part of a network of cultural institutions that contribute to a combined $5 billion in economic activity statewide each year, but impending legislation threatens to fundamentally destabilize our community.

Every dollar matters in the arts—but not just for ticket sales or curtain calls. In Iowa, for every $1 invested in the arts by the National Endowment for the Arts (NEA), organizations like The Englert returned $134 in federal, state, and local tax revenue. That’s not an estimate—it’s a proven outcome backed by data from the Arts Action Fund’s most recent economic impact report (source).

For every $1 invested in the arts by the NEA, organizations like The Englert returned $134 in federal, state, and local tax revenue.

Americans for the Arts Action Fund Report

This is why a new federal tax proposal making its way through Congress is so troubling. If passed, it would jeopardize the financial stability of nonprofit organizations across the country—including those that drive local economies, like The Englert.

The arts are not a luxury. They are an industry. We employ workers, hire contractors, draw visitors to downtown businesses, and provide cultural infrastructure that helps cities and small towns thrive. A weakened nonprofit sector doesn’t just impact creativity—it undermines jobs, tourism, and economic momentum.

Here’s why this legislation is dangerous:

• It would give the Treasury Department unchecked power to revoke a nonprofit’s tax-exempt status—without due process.
• It would impose new taxes on charitable endowments, reducing the long-term sustainability of programs, scholarships, and services.
• It would unfairly tax employee benefits for nonprofit workers, while exempting certain institutions, creating an uneven and unjust playing field.

We must speak up now.

Iowa’s congressional delegation, including Senator Chuck Grassley, has the power to influence this legislation. They need to hear from us. Tell them: Protect the arts. Protect nonprofit jobs. Protect Iowa’s local economies.

The Iowa Nonprofit Alliance and the National Council of Nonprofits have made it easy to take action. They’ve created templates, talking points, and contact lists you can use to make your voice heard today. Find these resources for use HERE.

This is bigger than one organization—it’s about every community we serve.

Thank you for being part of our story, and for standing with us to defend not just the arts, but the economic lifeblood they help sustain.

John Schickedanz
Executive Director, The Englert Theatre