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The mixed funding economy of arts and culture is generally perceived as a model of financial sustainability. While different sources of financing for cultural activities include public support, private support and earned income, this study is dedicated to the analysis of private investment in culture.
This study seeks to analyse the various forms of private investment from the point of view of cultural policies and existing stimulatory measures. The study aims to provide the European Parliament with a better understanding of the importance of public incentives for the private funding of culture.
The main focus of this research is on the importance of the economic, political and cultural aspects of the funding modes and mechanisms developed by governments to encourage private investment in the culture sector and the spread of the use of such modes and mechanisms.
The study tries to identify general trends in the EU regarding private financing of the cultural sector, along with providing examples of new practices and policies in EU Member States. Its focus is on investigating the main motivations for financing the cultural sector and the main obstacles faced by private investors.
The study addresses the need for comparative cultural policy research in this field and emphasises the common responsibility of EU member states to provide comparative data on the EU level. A short analysis of trends and main differences in comparison with the United States is also included.
The term private investment, as defined in this study, includes any investing in, giving to or spending on culture done by individuals, businesses or non-public organisations. This definition extends beyond a concept of private investment that is primarily associated with capital returns to include private support and earned income derived by individuals, business and not-for-profit organisations, whether they invest in, sponsor, donate to or consume culture.
Therefore, the relevant forms of support discussed in this study are direct investment, sponsorship, patronage and donations, and earnings from self generated income such as tickets, entrance fees and other merchandise.
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