I was idly skimming around Inc.com today when I came across a story which raised some concern for all the already overburdened arts organizations out there.
Apparently, a provision of the new health care law will require that any company making a purchase of more than $600 issue a 1099 form to the seller. Even for arts organizations who don’t generally have a lot of money, it is pretty easy to spend $600 with a single company in the course of a year. I can see a lot of arts organizations being driven to distraction trying to comply with this. Especially since arts organizations may also end up receiving as well as giving because of rentals or blocks of tickets people may have purchased for their business.
This law actually may provide a disincentive to shop around for the cheapest price. If it is easier to keep track of everything you spent on hardware at one store, you may avoid the other stores even though they often have good prices on certain items.
Non profits may be exempted for all I know, but there was no mention of that in the six different articles I read trying to get more information on the subject. There are a few amendments that have been proposed. One was voted down today because it tried to dismantle a couple other elements of the bill along the way.
This is supposed to go into effect in 2012 so more information may emerge as Congress tries to sort all the intended and unintended consequences out.