Support for the Arts?
A wealthy manager of a multi-billion dollar mutual fund loves music, but strongly believes that government agencies should not subsidize the arts, arguing: “Why should the single mother who makes $6 an hour as a clerk be subsidizing my seats at the symphony through the local, state, and federal taxes taken out of her paycheck?” This person has offered a donation of $40,000 a year to fund a music festival for a local community for the next 10 years. It comes with the condition that the organizers/lawmakers not accept a grant of $10,950 from the National Endowment for the Arts, an agency of the federal government, who has offered to support the festival for 5 years.
You are on the Board of Directors for this festival—which will decide for the community whether or not to accept the offer from this potential investor. Do you vote to accept or reject the offer? Explain your reasoning.