Income tax checkoffs are commonly used to benefit popular causes including wildlife preservation, child abuse prevention and political campaigns. In fiscal year 2025, just four states offered income tax checkoff programs to benefit the arts. California far outpaced its peers, raising $250,000 through its checkoff, while the remaining three states collected between $10,000 and $65,000 apiece. Given these modest returns, several other states have since discontinued their arts checkoff initiatives.

States with Current Arts Checkoffs

States with Past Arts Checkoffs

Key Advantages of Income-Tax Checkoff Programs

• Simplicity and low overhead: Checkoffs require minimal administrative setup and are easy for taxpayers to use, making them a cost effective fundraising tool.
• Legislative appeal: Because they merely redirect voluntary contributions rather than impose new taxes, checkoffs tend to draw bipartisan support and face fewer political hurdles.
• Opportunistic revenue stream: In tax returns with few competing causes listed, arts checkoffs can capture a larger share of donors’ attention and contributions.
• Enhanced visibility: Simply featuring the arts on the tax form raises public awareness of the state arts agency and its programs, potentially driving further engagement and support.

Key Drawbacks of Income-Tax Checkoff Programs

• Limited revenue potential: Checkoffs often generate only modest sums, falling short of the funding needs of many arts agencies.
• Tax preparer disincentives: Preparers may steer clients away from checkoffs to minimize liabilities, reducing participation rates.
• Crowded field: When multiple causes appear on the same form, competition for attention dilutes contributions to each individual program.
• Administrative burden: Processing and tallying voluntary contributions adds complexity for state tax agencies, which must adapt forms and systems.
• Misleading participation metrics: Low checkoff uptake can be misinterpreted as public apathy toward the arts, even when broader support exists.

Issues to Consider

• Will the presence of checkoffs change the perceptions of state legislators? In some cases, state elected officials may perceive the ongoing appropriation of general fund dollars as less urgent if a dedicated funding mechanism, such as a checkoff, is available.
• How many checkoffs are on the state’s tax form? Studies indicate that the greater number of options given to taxpayers, the less money is generated across the board.
• Is there a budget available to promote the checkoff? Promotion is essential to the success of this funding strategy, but some organizations find that the costs of promotion exceed the dollars generated. States recommend public service announcements targeted to taxpayers, as well as some sort of promotion targeted specifically to tax preparers.

For more information about income tax checkoffs or other dedicated revenue strategies, contact NASAA Research Manager Nakyung Rhee.