Hi @Elvia Rubalcava. From what I can see in AAM ethics resources, a nonprofit museum can indeed generally charge submission fees and offer cash awards for a juried exhibition, provided it is done transparently, fairly, and in support of the museum’s charitable/educational mission.
Here's a little more information from the research I did, as I was curious, too.
AAM ethics context
From what I read, the AAM Code of Ethics emphasizes that museums must serve the public good, maintain integrity, avoid conflicts of interest, and ensure that all revenue-generating activities support the mission rather than private gain. Plus, the code does not prohibit entry fees, prizes, or competitions; instead it focuses on transparency (which you already mentioned), fairness, and avoiding undue private benefit or activities that would undermine public trust.
Submission fees for juried shows
Logically, national standards acknowledge that museums may charge fees for programs and services, including exhibitions, as part of sustainable operations, so long as such charges are reasonable and mission-related. Professional guidelines for juried exhibitions recommend keeping entry fees modest, clearly stating how they will be used (again, the transparency you mentioned already), and avoiding deceptive fundraising framed as opportunity for artists when the real goal is simply revenue.
Cash awards and nonprofit status
Offering cash awards or prizes is not inherently incompatible with 501(c)(3) status; the key legal concern is that benefits to individuals be incidental to the broader charitable/educational purpose and free from self‑dealing or favoritism (so, not structured to primarily benefit insiders). IRS and nonprofit-art-law commentary on exhibition and sales activity emphasizes that juried selection, educational framing, and lack of excessive profit-taking help demonstrate that exhibitions with artist benefits (including awards) still primarily serve public, not private, interests. (Here's where I found some of that information.)
Practices to stay within AAM best practice
Clearly publish: eligibility, criteria, who the jurors are, their qualifications, how jurying works, the amount and nature of any fees and cash awards, and any sales commissions or other financial terms.
Ensure:
- Fees are reasonable and tied to real costs or transparently identified as a fundraiser.
- Jurors are independent and conflicts of interest are disclosed/managed.
- Staff/board do not receive preferential treatment or undisclosed benefits.
- Awards are given according to the stated criteria, without bias or undisclosed constraints.
Practical museum-facing guidance
Frame the exhibition’s purpose in mission language (education, community access, supporting artists, or interpreting themes relevant to your collections or audience). In internal policy, link:
- Entry fees → cost recovery and/or mission-aligned fundraising.
- Cash awards → recognition of excellence that advances artistic practice and public understanding, not compensation for services or purchases of influence.
So I'd say, given those conditions, charging submission fees and offering cash awards for a juried exhibition is generally permissible under AAM ethical standards and nonprofit law; when in doubt, having counsel review your prospectus and internal policy is advisable.
Note: I came to these conclusions based on research. I'm not an attorney, nor am I an AAM representative.