Contemporary policies for private cultural funding

This chapter examines contemporary policies in the Nordic countries regarding private cultural funding. It begins by categorising the measures implemented across the region mainly during the 2000s, followed by a review of policies and specific initiatives in each country. The chapter then provides a brief international perspective and discusses the effects of various measures on private funding, drawing on evaluations and international research.

Measures to increase private cultural funding

As discussed in the previous chapter, cultural policy in the Nordic countries has increasingly emphasized the value of private funding, both through support from private actors and by encouraging cultural organisations to generate their own revenues. However, when it comes to specifying concrete policy measures, it is often difficult to determine what should be considered a measure aimed at increasing private cultural funding.

First, some measures have been introduced for purposes other than boosting private funding. For instance, the Nordic countries’ special VAT rates for cultural goods and services have primarily aimed to promote bildung and access to culture. However, it has also served as a means of enabling increased revenue for cultural activities. A similar mix of reasons lies behind the countries' definition of culture as a public benefit purpose, which has long made it easier for foundations in several of the Nordic countries to allocate funds to art and culture. In terms of cutbacks and demands for increased self-financing, there may also be various underlying reasons. It may be that politicians see a need for public savings, but it may also be that they see increased self-financing among cultural organisations as desirable.

Secondly, there are measures and policies that are not intended to increase private cultural funding, but which may nevertheless have that kind of effect. This could for example include general public budget cuts. The Norwegian debureaucratization and efficiency reform (ABE reform) between 2015-2021 resulted for example in savings in the allocation to state-supported cultural activities. Similar examples can be found from other Nordic countries (see, e.g., Finansdepartementet, 2023; Marker & Rasmussen, 2019; Oppegaard & Seip, 2019; Svalund, 2021; Undervisnings- och Kulturministeriet, 2024). Such measures can also include a country's general tax policy, as well as the status given to art and culture in other sectors of society, such as different parts of the education system. It may also be that cultural policy measures aimed at broadening participation, for example, also have a positive effect on the self-financing of cultural activities. The following section primarily describes measures that are, at least in part, intended to contribute to increased private cultural funding. These measures are examined across three areas that recur in several of the Nordic countries. The areas overlap but can be divided into the following categories:

Skills development and collaboration: strengthening cultural activities' competence in private financing, and supporting collaboration between cultural and business actors
economic incentives: introducing financial incentives for increased private cultural funding, aimed at funders, cultural organisations, distributors and consumers
cuts and requirements: making changes in public funding and increasing the demands and expectations for cultural activities to increase their income from private sources.

The account of measures below is not exhaustive, partly due to the difficulties in defining the scope described above. However, the aim has been to identify and describe the most important measures in each country. One aspect to bear in mind is that in many cases the measures also involve public costs, either through public expenditure or reduced public revenue.

Policy for private cultural funding in Denmark

At the end of the 1990s, the concept of the experience economy was introduced into Danish cultural policy. This concept is associated not only with new initiatives in the country’s cultural and creative industries but also with policies targeting the traditional cultural sectors. In terms of cultural policy, the ambition was articulated to be that “culture and business are moving closer together,” with the goal that more artistic and cultural activities should offer experiences capable of contributing both to economic growth in Denmark and to increased revenues for the cultural organisations themselves. (Kulturministeriet, 2000, p. 14ff; see also Bache, 2021, p. 276f).

During the 2000s, this approach developed further. The 2011 the government stated that cultural policy should have a special focus on promoting Denmark's economic growth (Regeringen, 2011). Two years later, in 2013, the government presented Vӕkstplan for de kreativa erhverv (Growth Plan for the Creative Industries) with the aim of strengthening the collaboration between artistic activities and the business community (see, e.g., Erhvervs- og Vækstministeriet, 2013; Erhvervsministeriet, 2019). In this context, the need for increased private funding is emphasised in various policy documents. From 2015 onwards, there has been a clear ambition that cultural activities should become less reliant on public subsidies by increasing both their earned income and their funding from various private actors (see, e.g., Bache, 2021, p. 289f; Erhvervs- og Vækstministeriet, 2013, Erhvervsministeriet, 2019; Kulturministeriet, 2004, 2006). Policywise, this has led to measures in the areas of skills development and collaboration, economic incentives, and cuts and requirements.

Skills development and collaboration between culture and business

In Denmark, several publicly-funded initiatives have been established to enhance the capacity of cultural organisations to work with private funding and to strengthen the connections between cultural and business actors. Examples from the 2000s include the establishment of NyX – Forum for Culture and Business, the Centre for Culture and Experience Economy (CKO) and the Centre for Applied Artistic Innovation (CAKI). All of these have been established with public support and have worked on behalf of the Danish Ministry of Culture, among others. Their missions have varied. NyX was established in 2002 as an arts and business forum with the task to increase contact and improve networks between artists and cultural creators, on the one hand, and business actors on the other. NyX has, for example, been responsible for projects that have worked to match artists and companies with the aim of enabling them to benefit from each other (see, e.g., Antal, 2009; Regeringen, 2003).

CKO was established in 2008 and, until it was dissolved in 2015, had a broad mandate to contribute to the development of the Danish experience economy, but it also aimed at strengthening the entrepreneurial skills in the cultural sector (Bache, 2021, pp. 278, 297; Deloitte, 2012). CAKI is an organisation that, since 2010, has been tasked with strengthening the elements of entrepreneurship and business competence in the country's higher education programmes for artists and cultural professionals (CAKI, 2019; Kulturministeriet, 2021). CAKI is the only one of these three organisations that is active today. Efforts in this area have also included initiatives by the Ministry of Culture to develop guides and educational materials aimed at supporting networking between cultural and business actors (see, e.g., Nyx, 2003; Regeringen, 2003).

Incentives for funders, cultural actors and consumers

Regarding financial incentives to encourage private cultural funding, Danish companies have been allowed since 2004 to claim tax deductions for donations to cultural organisations in the country. An important condition for eligibility is that the donations must be directed towards organisations’ cultural activities, rather than to ancillary activities. Another requirement is that deductions are only granted for donations to cultural activities that also receive public support. The right to deduction also applies to gifts in the form of, for example, works of art or cultural and natural history objects. Gifts in the form of objects have also been made deductible for private individuals (Kulturministeriet, 2006b; Skatteforvaltningen, 2025a). In Denmark, private individuals may also deduct gifts of up to DKK 19,000 per year. This deduction applies to a range of cultural activities listed by the government (Skatteforvaltningen, 2025d). Another measure to encourage companies to purchase art is that, since 2002, it has been possible to make a one-off deduction, or to write off over time, the costs of art purchases (Kulturministeriet, 2006a; Skatteforvaltningen, 2025b).

Among the Nordic countries, Denmark is the only one that has not introduced production rebates for film production as a way of attracting film projects to Denmark. However, the introduction of a production rebate is planned for 2026. The aim is, among other things, to attract more commercial film productions and investments to Denmark (Kulturministeriet, 2025b).

Reduced VAT on cultural activities has long been a way of encouraging private consumption of cultural goods and services in Denmark. The general VAT rate is 25 per cent in Denmark, which in principle also applies to cultural activities. However, there are several cultural services and activities that are exempt from VAT in the country. Examples highlighted on the Tax Administration's website include admission fees to museums, art exhibitions and botanical gardens. On the other hand, admission fees to theatres, cinemas and concert events are generally subject to VAT (Skatteforvaltningen, 2025e). The same has applied to VAT on books, which is, however, planned to be abolished completely from 2026 (Finansministeriet, 2025, p. 17).

In Denmark, special VAT rules also apply to visual artists in order to facilitate their sale of art. For example, artists' sales below a certain value (300,000 Danish kroner) are VAT-exempt. If sales exceed 300,000 Danish kroner in a year, the VAT rate is 5 per cent, provided that the artist sells the art themselves. However, if a work of art is sold through an intermediary, such as a gallery, there is 5 per cent VAT on the income received by the artist and 25 per cent on the income received by the gallery (CAKI, 2025a; Skatteforvaltningen, 2025c). As we shall see, various types of special rules for the sale of visual art also exist in other Nordic countries.

Another example concerning individual artists in Denmark is that artists and authors for a long time have been able to take advantage of tax equalisation. This means that they can spread their taxable income over several years, which can be an advantage for professional groups with irregular incomes (Hansen, 2024; McAndrew, 2002).

Cuts and demands

In Denmark, demands on cultural institutions to increase their private funding have also intensified during the 2000s. This has been linked to the launch of the concept of the experience economy, which was discussed earlier. In 2002, the conservative Minister of Culture, Brian Mikkelsen, expressed the political desire as follows:

Many cultural institutions have traditionally been far too virginal in their dealings with the business community. Now this will be a parameter on which all state institutions will be assessed in the future. The goal is for them to start raising some extra money for their work of communicating culture to the public. (Danish Minister of Culture Brian Mikkelsen, 2002, quoted in Rosenkrands, 2002, p. 14 (Translation by Kulturanalys Norden)

The discussion about increased private funding has also been linked to rhetoric suggesting that the country's cultural institutions need to become better at meeting audience demand. In 2008, Brian Mikkelsen expressed it as follows:

Appealing to a broad audience and creating experiences that the public is willing to pay for is the challenge of the experience economy for cultural institutions. (Brian Mikkelsen quoted in Bache, 2021, p. 299) (Translation by Kulturanalys Norden)

In concrete terms, expectations and requirements for increased cooperation with the business community have been written into the agreements (performance contracts) signed between the Ministry of Culture and the state cultural institutions (Regeringen, 2003). The requirements for obtaining status as a state-recognised museum, for example, have also been tightened in recent years. The requirements now stipulate that such museums must have a certain number of visitors per year and a certain proportion of income in addition to state subsidies. At the same time, a variable subsidy has been established which, among other things, rewards museums for their ability to increase the proportion of revenue that does not come from the state (LOV No. 1680 of 30/12/2024; Kulturministeriet, 2023, 2025a, 2025c).

One important change in public cultural funding that has taken place is that in 2016, the state introduced an annual saving of 2 per cent for all state-supported cultural institutions. This is said to have put pressure on many cultural organisations to increase their private funding relatively quickly. The savings requirement applied every year until 2020, when the general savings requirement was abolished (Kulturministeriet, 2019a; Marker & Rasmussen, 2019, p. 19f).

Policy for private cultural funding in Finland

The Finnish government’s 2024 cultural policy report takes as its point of departure the cultural and creative industries and their contribution to Finland’s economic and social development (Statsrådet, 2024). The emphasis on the economic importance of culture has over time also been accompanied by a political will to increase the private funding of the cultural sector (see, e.g., Jakonen & Pyykkönen, 2023). The 2009 cultural policy strategy states that the goal is to

evaluate how private funding, such as sponsoring and corporate collaboration, could be promoted through taxation and legislation. (Ministry of Education, 2009, p. 28)

The 2017 cultural policy strategy explains that the strained state of public finances leaves no room for increases in the state culture budget, and that other sources of funding, such as foundations and citizen contributions, will need to assume greater importance (Ministry of Education and Culture, 2017, p. 28). The cultural policy vision for the future is described as that “the sector can rely on a broad range of different funding sources” (Ministry of Education and Culture, 2017, p. 32). Concrete initiatives to increase private cultural funding in Finland have, however, a shorter history than in Denmark. The following description therefore addresses both measures that have been implemented, and the plans announced in the latest government declarations and the latest cultural policy report from 2024. Overall, measures are being taken in the areas of skills development and collaboration, financial incentives, and cutbacks and requirements.

Skills development and collaboration between culture and business

In Finland, several cultural policy initiatives have been taken for skills development and network building with regard to increased collaboration between culture and business. A current example is that the Arts Promotion Centre Finland (Taike)

Finland's largest funding authority in the cultural field.

now offers training courses aimed at supporting the skills development of professional cultural creators in areas relating to cultural entrepreneurship and enhanced collaboration with business actors (see Taike 2025b).

The issue of skills development and strengthened collaboration between the cultural and business sectors is also highlighted in the 2024 cultural policy report, which puts forward several proposed measures. Among other proposals, it is suggested that higher education in the arts and culture in Finland should incorporate training and skills development in entrepreneurship and business management. (Statsrådet, 2024, p. 28). The report also proposes the establishment of an annual forum where cultural actors and cultural industry associations meet private funders, regional actors and government representatives, with the aim of expanding the cultural sectors financial base (Statsrådet, 2024, p. 31).

In Finland, several programmes, networks, and organisations have been involved in developing the cultural and creative industries since the 2000s. Today, for example, the organisation Creative Finland collaborates with both the Ministry of Economic Affairs and the Ministry of Culture to support this development, including by facilitating contacts and cooperation between cultural activities and businesses (see Creative Finland, 2025; Jakonen & Pyykkönen, 2023).

Incentives for funders, cultural actors and consumers

In Finland, companies have been able to deduct donations to certain causes for several decades. However, the possibilities had been limited to donations to government agencies, colleges and universities (see Finlex 1535/1992). In 2007, however, these opportunities were extended to include corporate donations of less than €50,000 to a small selection of cultural activities (Čopič et al., 2011; Vero skatt, 2024). The current government now intends to extend the donation deduction for companies and individuals to cover art and cultural activities to a greater extent. This change, which will take effect in 2026, applies to donations of up to €250,000 (see Finansministeriet, 2024; Vero skatt, 2020).

In Finland, there have been several examples of matching systems where the state encourages donations by matching private contributions with public ones. These systems have again mainly focused on donations to universities and colleges, but in a few cases, they have included cultural institutions (see Braunerhjelm, 2021; Finlands Nationalgalleri, 2024). Since 2017, Finland has also had an established incentive system aimed at attracting film productions to shoot in Finland (Business Finland, 2025; Ministry of Economic Affairs and Employment of Finland, 2017).

As in the rest of the Nordic countries, VAT rates on cultural goods and services are differentiated in Finland as a way of encouraging cultural consumption and supporting the income of cultural creators. The general VAT rate in Finland is 25.5 per cent and covers, for example, the sale of music, videos and computer games. However, several cultural services are subject to 14 per cent VAT, including books and admission to cultural events such as theatre, circus, concerts, museums, cinema and art exhibitions. Before 2025, VAT on these goods and services was mostly 10 per cent (Vero tax, 2025a, 2025b).

With regard to VAT on the sale of works of art, there are specific VAT reliefs and, in some cases, VAT exemptions for the sale of works of art up to €30,000 per year, which is similar to the rules in Denmark. Otherwise, a lower VAT rate of 14 per cent (previously 10 per cent) is applied when the artist sells their own art. If the art is sold by an intermediary instead, the VAT rate is 25.5 per cent on the entire sale amount or on the commission fee in the case of resale on commission (Vero skatt, 2025c). In addition to this, Finland also offers tax equalisation opportunities for artists, which aim to enable them to spread their taxable income over several years, for example for income from the sale of artistic works (Vero skatt, 2025d).

Cuts and new financing models

When the Finnish government announced expanded tax deductions for donations to cultural activities, planned cuts to the Finnish culture budget were also announced for the coming years (Finansministeriet, 2024). This has led, among other things, to reduced funding for certain museums and performing arts activities that receive funds directly from the state budget (Undervisnings- och Kulturministeriet, 2024). In the latest cultural policy report, this is coupled with plans to develop new funding models for the arts and culture sector, incorporating private elements to a greater extent. (Statsrådet, 2024). With regard to public funding for various art forms, the funding agency Taike also encourages cultural organisations to increase their self-financing, for example by presenting it as an advantage when applying for certain grants (Taike, 2025a).

Policy for private cultural funding in Iceland

In Iceland, the Ministry of Culture and Business was established in 2021 and later replaced in 2024 by the Ministry of Culture, Innovation and Higher Education. This means that cultural policy in Iceland is organisationally linked to various aspects of economic policy. Within the ministry, cultural issues are also grouped together with policy for cultural and creative industries, and the ministry's role is described as

combin[ing] the powers of culture, universities, science and innovation, thereby enhancing prosperity and creating knowledge-based jobs. (Ministry of Culture, Innovation and Higher Education, 2025)

Regarding private cultural funding, this is highlighted in the 2013 cultural policy strategy, which emphasises the importance of both private and public actors for a broad and vibrant cultural life in Iceland in a similar way to other Nordic countries (Ministry of Education, Science and Culture, 2013). It is described as an explicit objective of cultural policy to

look for ways to further strengthen private support for cultural endeavours and make it a worthwhile pursuit. To foster mutual understanding and recognition of the common interests of the cultural and economic spheres of society. (Ministry of Education, Science and Culture, 2013, p. 14)

The strategy also states that Iceland will work to improve conditions for artists and cultural creators, including through changes in tax legislation (Ministry of Education, Science and Culture, 2013, p. 14). The government therefore stresses both the need for tax incentives and closer cooperation between private and public actors (Ministry of Culture & Business Affairs, 2023; Ministry of Education, Science and Culture, 2020). It is primarily in this area that the literature review has identified concrete measures.

Incentives for financiers, cultural actors and consumers

Important measures in Iceland in the 2000s have been the establishment of production rebates and investment support in the film, music and literature sectors. These measures have been aimed at strengthening the incentive structure for both private investment and cultural producers. In the film sector, a production rebate has been in place since 1999, which today provides access to public support equivalent to between 25 and 35 per cent of the costs of film or television productions in Iceland. The size of the production rebate depends on a number of criteria, including how much work is located in Iceland (Act No. 43/1999; Film in Iceland, 2025; Ministry of Industry, 2012; see also Kabeer, 2022).

Between 2014 and 2019, between ISK 800 million and ISK 1.6 billion was allocated annually in production rebates (Ministry of Education, Science and Culture, 2020, p. 34). Since 2017, investments in music production and music recording made in Iceland have also been eligible for similar production rebates. Since 2019, there have also been production incentives for literature in Icelandic (Act No. 110/2016; Act No. 130/2018; Kabeer, 2022, p. 100; KMPG, 2024, p. 21). The government's national film policy further highlights the need to develop tax breaks for both individuals and companies investing in Icelandic film production:

A wider variety of incentives should be introduced, including tax breaks for both individuals and companies that invest in Icelandic film projects. Private investment is an important part of film production and it is necessary to encourage it. (Ministry of Education, Science and Culture, 2020, p. 30)

In the 2020s, new opportunities for tax relief on donations and sponsorship of cultural activities have also been introduced (Kabeer, 2022, p. 100). Today, it is possible to receive a deduction of up to ISK 350,000 for donations to non-profit organisations, which includes several cultural activities (Skatturinn, 2025a, 2025b).

With regard to VAT, the cultural sector benefits from extensive exemptions from the standard rate of 24 per cent, aimed at encouraging the consumption of cultural goods and services. Several goods, such as books, magazines and music recordings, are subject to the lower VAT rate of 11 per cent, and admission to museums, concerts and theatres is VAT-exempt. The sale of works of art is also VAT-exempt when the works are sold directly by the artist (Skatturinn, 2025c). Regarding cinema, VAT is differentiated so that tickets for foreign films are subject to the standard VAT rate of 24 per cent, while tickets for Icelandic films are exempted from VAT (see Nordicom, 2021).

Policy for private cultural funding in Norway

In Norway, the importance of cultural and creative industries, increased cooperation between private and public actors, and increased private funding have been highlighted as important aspects of cultural policy during the 2000s (see, e.g., Det kongelege kultur- og kyrkjedepartement, 2003; Det kongelege kulturdepartement, 2018; Det kongelege kultur- og likestillingsdepartement, 2023; NOU 2013:4, p. 46). In the 2018 cultural policy bill, this is related to limited possibilities for increasing the public funding:

As we are now entering a period of expected weaker economic growth and increased public expenditure, it is particularly important to stimulate private funding as a supplement to public transfers and to establish long-term cooperation with private actors. (Det kongelege kulturdepartement, 2018, p. 59 (Translation by Kulturanalys Norden)

The bill states that cultural organisations’ earned income, as well as private financial support and investment, will become increasingly important components in funding the cultural sector. The presence of more funders and higher levels of earned income is also highlighted as a strength and value in its own right. This is linked, for example, to increased autonomy and flexibility for cultural organisations, their audience development efforts, and ultimately to the cultural policy objective of broadening participation in cultural life (Det kongelege kulturdepartement, 2018, p. 59ff).

Skills development and collaboration between culture and business

Several initiatives have been taken to enhance collaboration between culture and business in Norway. One example is the organisation Arts and Business Norway operating between 2001 and 2014, supported by both the Ministry of Culture and the Ministry of Trade, Industry and Fisheries, with the aim to increase private funding and private investment in the cultural sector. The organisation also offered skills development in cultural entrepreneurship (Econ Pöyry, 2011).

Another is Talent Norway, which was established in 2015. Talent Norway works to strengthen public-private partnerships with a particular focus on funding talent development in the cultural sector. The programme provides career support for newly-trained talents in various artistic fields through coaching, counselling, and bridge-building between culture and business. Another of its stated tasks is to nurture the relationship between public and private funders. Talent Norway was also established in partnership between the Ministry of Culture and Equality and two private foundations, and projects within Talent Norway are co-financed by public and private actors. In addition to the three owner organisations, there are many more foundations and companies linked to Talent Norway and its various projects. In practice, public and private actors often issue joint calls for funding talent development initiatives across various cultural fields. Talent Norway’s activities have expanded since its inception in 2015, and in 2023 it had a total funding of approximately NOK 130 million, of which 60 per cent was private funding (Det kongelege kulturdepartement, 2018; Det kongelege kultur- og likestillingsdepartement, 2023; Talent Norge, 2025).

Incentives, production rebates and tax breaks

Talent Norway functions, in effect, as a form of match-funding programme, in which public and private actors join forces to finance a range of projects. However, an even more distinct initiative in this area has been in place since 2014: Gaveforsterkningsordningen (the Gift fortification scheme). This has specifically aimed to encourage cultural organisations to seek donations from private actors. The Gaveforsterkningsordningen has worked in such a way that private donations of between NOK 100,000 and NOK 10,000,000 to cultural activities are matched with an additional 25 per cent from the Norwegian state. Initially, the scheme covered museums, but in 2016 it was extended to include activities in the performing arts, literature, music and visual arts (Røtnes et al., 2021). However, the match-funding programme was abolished in January 2022 by the newly appointed Social Democratic–led government, which argued that public funds should not be allocated based on an organisation’s ability to attract private donations. Another reason cited was that the programme had contributed to geographical imbalances in the distribution of public cultural funding (Kultur- og likestillingsdepartementet, 2021). However, the Norweigan match-funding system has so far not been evaluated.

In Norway, unlike in Denmark, companies are not able to deduct donations to cultural activities. However, it is possible for individuals to make tax deductions for gifts of up to NOK 25,000, which also covers gifts to a small number of cultural organisations (Skatteetaten, 2025a). In Norway there are also certain opportunities for cultural creators to offset taxes over a three-year period for income from copyright-protected material. The aim is to enable, for example, authors and artists to avoid high taxes in a specific year for work that has often been done over a longer period of time. However, this right does not apply to income from artistic work in general (Det kongelege kultur- og likestillingsdepartement, 2023, p. 93f).

Since 2016, Norway has had a film production incentive similar to those in other Nordic countries, which aims to increase investment in film production in Norway. The production incentive works by allowing film producers to receive compensation for 25 per cent of the costs incurred in Norway. Between 2016 and 2023, between NOK 40 and 100 million has been paid out annually through the system (Olsberg & SPI, 2023).

Also in Norway, exemptions from the general VAT rate of 25 per cent are made to encourage cultural consumption. As in Iceland, there are goods and services in the cultural sector that are VAT-exempt. This applies, for example, to books and tickets to various forms of performing arts, but also to royalty income for individual music creators and concert income for individual musicians. Other cultural services are subject to reduced VAT. Examples of reduced VAT include admission fees to museums and galleries, which are subject to 12 per cent VAT (Skatteetaten, 2025b). The general rule is also that artists' sales of their own original art are exempt from VAT, even if the sale is made through an intermediary – so long as it is made on behalf of the artist. However, if a gallery sells art that it has purchased, the sale is subject to VAT, which is similar to legislation in the other Nordic countries (Norske kunstforeningar, 2025; Skatteetaten, 2025b).

In Norway, there are also other examples of legislation that in various ways has aimed to promote the self-financing of domestic cultural actors. Examples include the requirement for Norwegian radio stations to broadcast a certain proportion of Norwegian music, as well as the current Book Act, which both strengthens and provides greater predictability for Norwegian authors’ remuneration—for instance, by imposing obligations on distributors to supply books and by limiting the possibility of selling books at a discount. (LOV-2023-06-16-64; Medietilsynet, 2024).

Demands for increased private funding in the cultural sector

Expectations that cultural activities should increase their private funding have evolved in Norway since the 1980s (see, e.g., Gran & Gjærum, 2019, p. 125; Mangset & Hylland, 2017, p. 84). Today, these expectations are, to some extent, incorporated into the design of state subsidy systems, for example through specifying the self-financing as an assessment criterion when grants are allocated by the Directorate of Culture (see, e.g., Kulturdirektoratet, 2025a, 2025d, 2025e).

Policy for private cultural funding in Sweden

In Tid för kultur (Time for Culture), the most recent Swedish cultural policy bill from 2009, the government explicitly stated that there is no inherent contradiction between high artistic quality and commercial potential. It also emphasises that it would be

positive if the proportion of non-public funding increases in Sweden – more cultural projects would be realised and the cultural sector's dependence on political decisions would decrease. How private funding of cultural activities can be increased therefore needs further attention. (Proposition. 2009/10:3, p. 13 (Translation by Kulturanalys Norden)

In the bill, the government states that "culture's opportunities for development and independence" are strengthened by a greater degree of shared responsibility between public, private and non-profit actors (prop. 2009/10:3, p. 13). At the same time, the Government notes that private funding of culture is low in Sweden compared with other countries and that initiatives therefore need to be taken to support an increase in private funding. In Sweden, the more concrete measures have primarily focused on skills development and new funding models, as well as on plans for financial incentives and regulatory changes.

Skills development and new funding models

In connection with the 2009 government bill Tid för kultur (Time for Culture), Kulturbryggan, a grant scheme was established. Among other things Kulturbryggan aimed at promoting new ways of financing cultural activities (see SOU 2012:16). Today, Kulturbryggan is an integral part of the Swedish Arts Council's grant programme and distributes approximately SEK 25 million per year to various cultural projects. A small portion of these funds, approximately SEK 3–6 million, has in recent years gone to projects specifically aimed at developing new funding models in the cultural sector. Funds from Kulturbryggan have been distributed to organisations and companies that have worked to develop training programmes in philanthropic support aimed at cultural activities or developed investment models for Swedish film or models for crowdfunding in the cultural sector (Konstnärsnämnden, 2025a; Myndigheten för kulturanalys, 2024a, p. 133ff).

As in other Nordic countries, Sweden is currently developing its policies for cultural and creative industries and how the collaboration between culture and business can be strengthened. This is described in a strategy launched by the government in 2024 (skr. 2023/24/111). In Sweden, cultural policy has, however, not been as active as several of the other Nordic countries when it comes to establishing arts and business forum for collaboration. There are smaller associations for this purpose, among them the membership organisation Kultur och Näringsliv (Culture and Business) that was established in 1988. Several larger municipalities have also established so-called culture guides to promote better contact between cultural activities and, for example, private property owners (Myndigheten för kulturanalys, 2024a).

Tax breaks and regulatory changes

Sweden has introduced specific economic incentives to a lesser extent than for example, Denmark and Norway. However, a review was carried out in the 2000s regarding the possibilities for foundations to make deductions for support to cultural activities. Sweden has historically stood out from other Nordic countries in that culture has not been considered a public benefit purpose, which has contributed to relatively few endowment foundations having culture as their purpose. This has made it difficult for endowment foundations with culture as their purpose to benefit from the tax advantages normally available to foundations. Following a public inquiry presented in 2009 (SOU 2009:65), this changed, and as of 2014, culture is considered a public benefit purpose in a similar way to other Nordic countries (prop. 2013/14:1, Finansplan och skattefrågor, s. 284f).

In 2022, Sweden introduced a production incentive to attract investment and film productions to Sweden (SFS 2022:1386). For 2025, the appropriation is SEK 87 million, and the incentive means that productions can recover 25 per cent of the expenses in Sweden, such as salaries for employees who are liable for tax in Sweden. Another initiative worth mentioning is that in autumn 2024, the liberal/right-wing government appointed a committee to review companies' opportunities to obtain tax deductions for sponsorship of cultural activities (dir. 2024:103). This is because it is partly considered difficult to sponsor culture in Sweden under the current regulations (see Myndigheten för kulturanalys, 2024a). In June 2025, another committee was appointed to review the possibilities of introducing a match-funding system. The same inquiry will also investigate the conditions for introducing tax deductions for donations to cultural activities in Sweden (dir. 2025:61).

Sweden has tax equalisation opportunities similar to those found in other Nordic countries. The rationale is the same: income derived from work carried out over several years can be spread over a longer period. (Skatteverket, 2025a). When it comes to VAT on cultural goods and services, Sweden also has a number of exceptions to the standard VAT rate of 25 per cent. For example, admission fees to publicly-owned museums are VAT-exempt, as is artists' remuneration for public performances. Otherwise, several cultural goods and services are subject to 6 per cent VAT. This applies, for example, to admission fees for performing arts events and the sale of books. However, other cultural goods and services, such as cinema tickets and the sale of music and streaming services, are subject to the standard VAT rate.

Artists' sales of their own original art are VAT-exempt up to SEK 300,000, which is similar to the regulations in Finland and Denmark. However, if an artist sells for more than SEK 300,000, 12 per cent VAT must be paid from the first krona. The reduced VAT rate of 12 per cent now also applies to intermediaries, such as galleries and art halls (Skatteverket, 2025b).

Greenland, the Faroe Islands and Åland

The cultural policies of Greenland, the Faroe Islands and Åland have for a long time been generally in line with those of the other Nordic countries (see, e.g., Duelund, 2003). Similarly, Åland's cultural policy strategy emphasises the importance of the cultural and creative industries for the country's economy, tourism and labour market. The strategy also articulates more general statements on the importance of favourable conditions for companies in the creative and cultural sectors (Ålands landskapsregering, 2024). In specific relation to private funding, the Government of Åland states that it will investigate “alternative local and external funding channels” and work to raise awareness of the possibilities for different types of “external” cultural funding (Ålands landskapsregering, 2024, p. 17). In general, though, Åland follows Finnish tax legislation with regard to VAT rates and deduction rules (see, e.g., Ålands Näringsliv, 2025).

Greenland differs from the other Nordic countries in that goods and services in the country are VAT-free, which also applies to the cultural sector. According to the information available, Greenland and the Faroe Islands do not have tax deductions for donations equivalent to those in Denmark (PwC, 2025). However, access to information on the autonomous countries' approach to the issue of private cultural funding is very limited.

International outlook and effects of measures

The measures implemented in the Nordic countries to increase private cultural funding are also common in a broader international context. Production incentives in the film industry are the rule rather than exception in European countries today and, in many cases, more extensive than in the Nordic region (Čopič et al., 2011; Orankiewicz, 2022). Similarly, tax relief on consumption through special VAT rates on cultural goods and services is common (see, e.g., Borowiecki & Navarette, 2018; García-Enríquez & Echevarrìa, 2018; Molenaar, 2017; prop. 1996/97:10).

Tax deductions for donations and sponsorship of cultural activities are common outside the Nordic region (Hemels, 2017; Rushton, 2018). The same applies to tax equalisation opportunities. There are also several examples of artistic and creative work being taxed at a lower rate than other work. A distinct example is Ireland, where annual incomes of up to €50,000 are fully tax-exempt for writers, musicians, visual artist and design artists (Molenaar, 2017). In other countries, tax breaks are available for ancillary income from cultural activities, such as earnings from cafés and shops (McAndrew, 2002; Molenaar, 2017; Mulcahy, 2020).

So-called match-funding systems also exist in several other countries. In some cases, these have been combined with skills and capacity-building initiatives. In some cases they have included financial support to increase the capacity of cultural activities to work more actively with private funding (Čopič et al., 2011; Greer, 2021; Hemels, 2017; Karlan & List, 2006; Loots et al., 2023; Rushton, 2008; Traverso et al., 2020; see also Arts Council England, 2019, 2022; Mèndez-Carbajo & Stanziola, 2008; Rykkja et al., 2020; Stanziola, 2007, 2011).

Other measures, illustrated by examples from Switzerland, Italy, and Spain, involve actively integrating business expertise and knowledge of private funding into the boards of public cultural institutions (see, e.g., Betzler, 2015; Dubini & Monti, 2018; Rubio-Aropstegui & Villarroya, 2022). Requirements for cultural activities to achieve a certain level of self-financing also exist outside the Nordic region (see, e.g., Casado-Molina et al., 2023; Hemels, 2017, p. 109). In practice, however, these requirements are often a consequence of lower levels of public cultural funding. The clearest example of this is cultural policy in the United States, but also the United Kingdom, where the level of funding necessitates a greater reliance on earned income and private support.

In a Nordic context, there are few studies that examine the effects of various measures to increase private cultural funding. However, international research examines the issue to a greater extent. Firstly, the dynamics between public and private funding are being explored. Secondly, the effects of different types of measures are investigated and discussed, often in relation to various contextual factors. In general, however, there is a lack of knowledge about the effects of measures in relation to their costs. The results of research and studies on this topic are summarised and discussed below.

Crowding out or crowding in?

In the context of political initiatives aimed at reducing public funding while demanding increased private support, research has examined the relationship between public and private funding. This research is mainly focused on two hypotheses: crowding-out and crowding-in. The crowding-out hypothesis suggests that excessive public funding can inhibit private funding—for example, because private actors find it harder to perceive the benefits of their contribution, and because the incentives for cultural organisations to increase private funding becomes insufficient (see, e.g., Dokko, 2009). The crowding-in hypothesis, by contrast, highlights the importance of public funding for the capacity of cultural organisations—and the cultural sector as a whole—to attract private funding (see, e.g., Smith, 2003, 2007). For example, it is pointed out that public funding, especially from certain donors, acts as a quality mark for an activity (see, e.g., Borgonovi, 2006; Smith, 2023). Activities with a stable financial base may also be better positioned to work on broadening their funding. In the film sector, for example, public support is described as a financial lever for obtaining private funding, even for productions that may ultimately become commercially viable (SOU 2025:24, p. 95f). In this context, Nordic studies indicate that private actors rarely want to provide basic funding for cultural activities, but mainly want to fund specific projects, initiatives or areas of activity (see, e.g., Marker & Rasmussen, 2019; Myndigheten för kulturanalys, 2024a).

Research on crowding-out and crowding-in is relatively extensive but dominated by research from an American context, which makes the conclusions difficult to translate to a Nordic one. However, there is support for both hypotheses (see, e.g., Dokko, 2009; Kim & Ryzin, 2014; Neto, 2018; Smith 2003, 2007). However, the relationship between public and private funding appears to be relatively complex. Based on a Danish context, for example, Marker and Rasmussen (2021, p. 101) note that private funding for Danish museums has generally increased as a consequence of reduced public funding. At the same time, they point out that the increase has not been able to offset the reduction in public support, and that this has led to cutbacks and a reduction in the number of full-time employees in the museum sector (see also Svalund, 2021).

In addition to the above there are some further trends in the research on crowding out and crowding in. For example, several researchers point out that public support up to a certain level often promotes private funding. The same research indicates that there is a tipping point where the level of public support instead begins to inhibit private funding (see, e.g., Borgonovi, 2006; Brooks, 2000; Neto, 2018). Based on the available research, it appears likely that public funding, beyond a certain level, can have a negative impact on private funding. However, it is difficult to determine what that threshold is, or which mix of public and private support, within reasonable limits, produces the most effective outcomes for individual activities and the cultural sector as a whole. One example of this difficulty is that demands for increased private funding at publicly funded cultural institutions can also have repercussions for cultural activities operating outside the public support systems. In the performing arts sector in Norway, criticism has been levelled in recent years that the focus on increased earned income among publicly-funded performing arts activities has distorted competition and worsened the conditions for operating performing arts on purely commercial terms. The criticism is that publicly-funded activities, in their pursuit to increase their earned income, have begun to offer a similar repertoire as private theatres, but at lower prices, due to their access to public funding (see Gran & Gjӕrum, 2019, p. 41ff; Mangset & Hylland, 2017, p. 38). Overall, the research results indicate that the relationship between public and private funding can function quite differently depending on the context.

Financial incentives and their context dependence

When assessing the potential of specific measures to stimulate greater private funding, the guidance provided by international research is somewhat limited. Financial incentives – such as tax deductions and matching schemes – are generally regarded as effective in encouraging private contributions, yet the anticipated impact of individual measures is often described as modest (see, e.g., Hemel, 2017; Morel, 2005; Stenström, 2008). In this context, the overall scope and design of such measures are likely to play a crucial role.

With regard to individual measures, such as the Gift Reinforcement Scheme in Norway, compilations show that between 2014 and 2021, NOK 710 million was paid out in matching funds to cultural activities, which corresponds to private donations of just over NOK 2.8 billion during the same period (Norges museumsforbund & Kultur- og likestillingsdepartementet, n.d.). However, it remains difficult to determine how much of these donations would have been made to the cultural sector in the absence of the Gift Reinforcement Scheme. A comparable situation is seen with Talent Norway, where private actors co-finance a substantial share of projects. Yet, it is still challenging to assess the overall effect of the programme on private cultural funding.

With regard to the impact of film production incentives, evaluations of the Icelandic production incentive show that it has led to film productions and private investments in the country that would not have taken place otherwise. In addition, positive side effects are pointed out in terms of knowledge building, talent development and employment opportunities (Olsberg & SPI, 2024). Similar conclusions are drawn in evaluations of the Norwegian production incentive in the film sector (Olsberg & SPI, 2023). Studies conducted in a broader international context also indicate positive effects. However, some research suggests that the competitive advantage of production incentives is gradually diminishing as an increasing number of countries adopt similar schemes (see, e.g., Swensen, 2016).

Evidence on the extent to which reduced VAT on cultural consumption increases private revenues is mixed. Nonetheless, it generally appears to boost revenues—partly because prices are not always lowered in proportion to the VAT reduction. For certain goods, there is uncertainty as to whether increased revenues accrue to cultural creators or rather benefit actors in the distribution chain (Borowiecki & Navarette, 2018; Gòmez-Antonio et al., 2022).

What makes it challenging to draw general conclusions about the effects of different measures are the contextual conditions under which they are implemented. Two important factors are the prevailing culture of giving and the societal views on public versus private responsibility for funding the cultural sector—both of which evolve over time. Morel (2005), for instance, highlights substantial differences in this regard between the United States and Europe, as well as notable variations among European countries. Helgesson (2004) compares the culture of giving in Sweden with that in the United States. He notes that in the United States, few barriers to wealth creation and a historically weak central government have both necessitated and fostered private solutions and initiatives. According to Helgesson, this has contributed to the development of a culture of giving that extends beyond donations from the very wealthy. Sweden, by contrast, has been shaped by a social contract in which individuals and companies pay taxes, and the state in return finances a wide range of public activities. Helgesson (2004, p. 152) also points out that low taxes on wealth accumulation in the United States, combined with high inheritance taxes, have led to the creation of numerous foundations, partly for the purpose of avoiding inheritance taxes. This, in turn, has led to reinvestment in public benefit purposes, such as art and culture.

Additional contextual factors identified in the research include the influence of the overall tax system on the willingness to donate. For example, lower taxes can increase private wealth and thereby potentially stimulate higher levels of giving, while the relative value of tax deductions becomes more significant when tax rates are higher (see Biles & Morris, 1982; Rushton, 2008; Hemels, 2017). To this can also be added factors such as the general level of aesthetic education and cultural interest, for example among entrepreneurs, in a society or in a specific geographical context (Durand et al., 1996; Lewandowska, 2018).

Effects of Policies Promoting Skills Development and Collaboration

Evaluations and research on measures aimed at skills and capacity building are relatively rare in the Nordic countries. In Norway, an evaluation of Arts and Business Norway’s activities from 2011 found that the organisation played an important role as a meeting place between the cultural sector and the business community. However, the evaluation also concluded that the concrete outcomes — in terms of actual collaborations between culture and business — were relatively limited (Econ Pöyry, 2011). In comparison, an evaluation of CKO’s activities in Denmark provides a somewhat more positive assessment, indicating that knowledge-raising initiatives have had a greater impact on the establishment of tangible collaborations between cultural actors and businesses (Deloitte, 2012).

In the United Kingdom, evaluations of programmes designed to support cultural activities in their efforts to increase private funding through a combination of knowledge building, financial support for fundraising, and public matching of private donations have been conducted. These evaluations indicate positive effects on the funding structures of participating cultural organisations, although there is uncertainty regarding the long-term impact, particularly because much of the private funding generated tends to be project based. The studies also highlight considerable variation in effects across different types of cultural organisations (Greer, 2021; Traverso et al., 2020). A further lesson from these programmes is that changing the funding structure of an activity is a long-term and strategic process. This conclusion is echoed in evaluations conducted in a Swedish context (Wennström et al., 2023, 2025)

Summary

Overall, there are various examples in the Nordic countries of policies aimed at facilitating and encouraging increased private cultural funding. There are several similarities in terms of how exemptions from standard VAT are used to encourage consumption of cultural goods and services. All countries have also introduced, or are planning to introduce, production rebates in the film sector, and they have taken various initiatives to develop knowledge and increase collaboration between culture and business.

But there are also differences. Denmark has introduced greater tax deductions for corporate donations to cultural activities and the purchase of works of art compared with the other Nordic countries. In Finland, greater tax deductions for donations to cultural activities are planned to be introduced from 2026. Another difference is that Norway has implemented a matching system for donations to cultural activities. Table 1 summarises several of the measures described in this chapter.

Table 1. Summary of measures for strengthening private funding

	Denmark	Finland	Iceland	Norway	Sweden
Lower VAT for certain goods and services	Yes	Yes	Yes	Yes	Yes
Match-funding system	No	A few examples	No	Yes, 2014–2021	No, but under inquiry
Deductions for donations from companies	Yes	To a limited extent/to be expanded	To a limited extent	No	No, but under inquiry
Tax deductions for donations from private individuals	Yes, to some extent	To a limited extent/to be expanded	Yes, to some extent	Yes, to some extent	No, but under inquiry
Arts and business forums	Yes, several	Yes	Yes, with a focus on KKB	Yes, several	Yes, to some extent
Production incentives	No, but to be introduced for film	Yes, for film	Yes, for film, music, literature	Yes, for film	Yes, for film
Possibility of tax equalisation	Yes	Yes		Yes	Yes
Deductions for cultural sponsorship	Yes	Yes	Yes	Yes	Yes
Culture as a public benefit purpose	Yes, for a long time	Yes, for a long time	Yes, for a long time	Yes, for a long time	Yes, since 2014

An important historical difference between the countries lies in how legislation governing foundations’ ability to finance cultural activities has been designed. In Denmark, the framework has been particularly favourable for foundations’ support of culture, whereas in Sweden it has been restrictive. Expanding the perspective to countries outside the Nordic region highlights additional, more comprehensive measures to promote private cultural funding. In these countries, examples include more extensive tax relief, donation deductions, and match-funding schemes than those typically found in the Nordic context.

The potential different measures possess of fostering increased private cultural funding presents a mixed picture. In general, various measures are considered to potentially contribute to both increased earned income and support from various private actors. At the same time, research points to complex relationships between public and private funding and the fact that various contextual factors can be of great importance for the potential of different measures to have the intended effect.