Senator Starts Investigation of Major N.Y. Museum

Sen. Charles E. Grassley, Republican of Iowa, pushed for legislation that reduced the tax breaks art donors can receive when they pledge their artworks to a museum over a long period of time.

Now he has asked the Museum of Modern Art, a vocal opponent of the new legislation, to provide full documentation for every so-called fractional gift it has received, and has also asked the institution to explain the compensation it pays to its executives, its business relationships with companies related to its trustees, and a loan it received from one trustee, reports The New York Times.

Even though the New York museum and many others have complained about the reduced tax break available to art donors, Mr. Grassley stands by his effort to press Congress to tighten the law.

“Call it what it is, a subsidy for millionaires to buy art,” Mr. Grassley told The Times in a profile that examines his reasons for passing the controversial provision. “Where I come from the word ‘giving’ doesn’t mean keeping.”

Read The Chronicle of Philanthropy’s article about the new law, plus a commentary from our regular columnist, Pablo Eisenberg.

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