Today we’re unpacking the myths and realities of American arts funding. While many artists envy Europe’s government subsidies, the U.S. actually sustains a vast cultural sector through a decentralized system of tax incentives that channel billions of private dollars into the arts each year.

This approach empowers individuals to decide which projects to support, sparking innovation and independence while also creating inequality, since established institutions often attract the lion’s share of donations. Unlike government-controlled systems that rise and fall with political winds, the American model relies on a mix of philanthropy, civic engagement, and transparency—but it’s far from perfect.

At its core, it reflects a distinctly American belief that culture flourishes best when it’s funded by communities themselves, for better or worse.