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re: Will we ever see another "new' Broadway Theater ever again?

Posted by:	ryhog 03:00 pm EDT 04/02/14
In reply to:	re: Will we ever see another "new' Broadway Theater ever again? - tmdonahue 01:18 pm EDT 04/01/14

The unusual-ness was a surprise to me, as discussed in the other post. But your suggestion that the arrangement could be challenged in court is (as you seem now to acknowledge) simply wrong. What makes the arrangement unusual is that the foundation wholly owns the corporation. If the Shuberts owned 49% of Jujamcyn and Nederlander, it would not be an issue. The compensation of anyone paid from the foundation is fully reported publicly. But you seem to be chasing the wrong fox. The cash flow (and it is quite substantial) is from the corporation to the foundation, not the other way around. So if there is an issue that raises a concern it is that the arrangement avoids scrutiny on a private inurement theory because the principals get to decide how much to ship upstream after taking care of themselves, and that is unchecked. Were the Shuberts to recede as by far the most substantial benefactor of non-profit theatre (as well as the broader arts community), there might be real cause for concern at the IRS. But that's not the case. And since no one other than the corporation contributes to the foundation, there is no constituency for anyone else to complain.

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