National Funding for Culture: Continental Model

 

  • Public Funding

Traditionally significant in continental countries means that the entrepreneurial mind set tends to be less encouraged than  in Anglo-Saxon countries. However, due to the crisis and  spending cuts, Continental countries are seeking to expand private support.
 

* The levels of subsidy in arts & culture vary:
- Federalized states: culture is mostly funded at the regional level.
- Germany -> Federal state (11,1%), Länder (36,6%) and Communes (52,3%)
- Belgium -> Communautés support 52% of cultural spending.
- Centralized states (France, Netherlands, Luxembourg): cultural spending is handled by a centralized ministry. In France, significant sums are re-distributed regionally.
 

  • Private Funding

- Fundraising is increasing in Continental countries to counterbalance public spending cuts through individual giving, corporate giving, development of fundraising skills, in-kind contributions.

Example of Good Practice : France
Aillagon Law, August 2003: Tax incentives to encourage individual and companies to become patrons of cultural institutions.
- Individual giving: Individuals can claim a tax deduction equal to  66% of their gift, within the limits of 20% of their taxable income.
- Company giving: companies can claim deductions up to 60% of their gift (including online gifts), limited to 0.5% of their turnover.
-> Increases in corporate giving: in 2010, 35 000 French companies made tax-deductible gifts. Overall, they have given 2 billion €. However, due to the crisis, culture is in 3rd place for overall giving (37%), behind social/education/health causes (58%) and sports (48%).
 

  • Overall Trends

- Austria: 2,3 billion € for culture in 2013 / 1,55% of total public expenditure / 0.82% of GDP
- Belgium: 4,2 billion € for culture in 2013 / 1,25% of total public expenditure
- France: 7,4 billion € for culture in 2013 (-2%) / 2,5% of total public expenditure / 0,36% of GDP
- Germany: 1,28 billion € for culture in 2013 (+8%) / 1,5% of total public expenditure / 0,38% of GDP
- Luxembourg: 122 million € for culture in 2013 (+1,4%) / 1,06% of total public expenditure
- The Netherlands: 1,86% of total expenditure / 0,95% of GDP / -25% for culture in 2013
- Switzerland: 2,4 billion Swiss Francs / 1,5% of total public expenditure / 0,45% of GDP

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