French museums are alarmed that the Trump administration may eliminate a key tax deduction mechanism known as the “equivalency determination,” which allows foreign organizations to receive tax-deductible donations from American patrons. The status is critical for museum-affiliated “American Friends” groups, such as the American Friends of the Musée d’Orsay and the American Friends of the Louvre, the latter of which raised $10 million last year. Lionel Sauvage, president of the Museum of Decorative Arts in Paris, noted that about one-third of his museum’s annual donations—over $2 million—come from American donors. While no concrete action has been taken, Bloomberg reported in April that the administration was considering the move as part of a broader crackdown on tax-exempt nonprofits. Jewish philanthropic organizations have also expressed concern, with the Jewish Funders Network advising compliance amid uncertainty.
This matters because the potential policy change threatens a significant revenue stream for major European museums, which rely heavily on American philanthropy. The “American Friends” model has raised hundreds of millions of dollars for institutions abroad, including $450 million for the Israel Museum since 1972. Eliminating the deduction could disrupt international cultural funding and trigger legal challenges. The story also highlights the broader vulnerability of arts and cultural organizations to shifts in U.S. tax policy, especially under an administration that has signaled hostility toward certain nonprofits. Despite current increases in American donations—up 21 percent overall and 35 percent in arts and culture—the uncertainty could have long-term chilling effects on cross-border philanthropy.