Nonprofit artists-in-residence program benefits the general public for purposes of charitable tax exemption.(Recent Court Decisions)(Town of Peterborough v. MacDowell Colony, Inc.)

A nonprofit corporation operating an artist-in-residence program served the general public by promoting the arts and was entitled to a charitable tax exemption, according to the Supreme Court of New Hampshire. The court ruled that the corporation did not need to offer services directly to the public to qualify for the exemption.

The MacDowell Colony, Inc., (McDowell) a nonprofit corporation for promotion of the arts, owns approximately 450 acres in the town of Peterborough on which it operates an artist-in-residence program. Artists admitted to the program may spend up to eight weeks on the property, which contains 32 art studios, common buildings, and dormitories. In 2005, MacDowell sought a charitable property tax exemption, which is available to a public charity that uses its land directly for its charitable purpose, uses any profits for its stated purpose, and benefits the general public, not only its members. The town denied the exemption, finding that MacDowell did not satisfy any of the criteria. The trial court reversed the town's decision, holding that MacDowell was entitled to the exemption. The town appealed.

On appeal, the town argued that MacDowell's use of its property did not benefit the public, but only the artists-in-residence who received room, board, and studio space. The state supreme court disagreed, finding that MacDowell's promotion of the arts contributed to society as a whole. The court emphasized that the relevant inquiry is whether ...