Deploy catch-up cultural budget for more private money culture

If the government wants to encourage more private contributions to the cultural sector, it must set a good example itself and reinforce the importance of culture financially. Over the past twenty years, government spending on arts and culture has fallen in relation to economic growth and inflation. During the same period, private contributions have remained more or less unchanged. The earlier assumption that a lower government budget would lead to more contributions from the private sector has proven to be a myth in practice.

This is stated in the advisory report published today by the Council for Culture: ‘Everyone’s share. Towards a balanced financial ecosystem for the cultural sector’ . At the request of the Minister of Education, Culture and Science (OCW), the council investigated what is needed to achieve more stable funding and a resilient cultural sector.

“Only if governments, private financiers and the sector each do their part can a balanced financial ecosystem for the cultural sector be created. This is important in order to strengthen the value of culture for everyone in our society., says Kristel Baele, chair of the Council for Culture.
She points to rising prices, higher costs and relatively lower income from public and private sources. These factors are putting increasing pressure on the financial stability of many cultural organisations.

Since 2005, government spending on culture has increased in absolute terms, but as a share of the total national budget, the culture budget has fallen from 0.471% to 0.351%. Compared to other sectors, this means that the culture sector is now losing more than 500 million euros annually.

There is a need to catch up in this area. The Council recommends starting with an increase of 250 million euros in the annual national culture budget. Furthermore, it appears that no standard inflation adjustment is laid down in law for culture, as is the case for other sectors. The Council recommends that this be enshrined in law.

The money can be used to achieve a more balanced regional distribution of culture, reach new audiences, broaden the understanding of art and quality, and develop talent. A boost is also needed for cultural education. These goals are in line with the recommendations in the advisory report. ‘Access to culture. Towards a new system in 2029’, which the council published in early 2024.

In addition, the council advises public financiers to allow cultural organisations more resilience when granting subsidies. This strengthens their financial position. Private financiers also often drop out if an organisation does not have enough reserves. Through clustering and match funding Cooperation between private parties and public authorities can generate more funding for culture.

Cultural organisations, for their part, could make greater use of their ANBI status. Focusing on more private contributions is promising, especially in view of the enormous intergenerational transfer of wealth that is expected in the near future. The Council points out that maintaining favourable tax arrangements, such as the Geefwet (Gift Tax Act), is essential in this regard. Uncertainty about the continuation of these arrangements deters private donors, companies and private funds, according to the Council.

Between 2005 and 2023, private contributions to culture remained relatively stable. Since 2015, this amount has been around 400 million euros per year. That is 10% of what the government as a whole spends annually on culture.
The advice is addressed to outgoing Minister Gouke Moes (Education, Culture and Science). Former senior civil servant Geert van Maanen is chair of the expert committee that prepared the advice. Michel Knoppel, Ellen Loots and Edo Righini are also members of the committee.