Abstract

Abstract In the market economy environment, the financing mechanism of arts and cultural organizations is usually considered to be the core element in achieving stable, sustainable funding. This chapter proposes that the financing mechanism is a dynamic system consisting of a driving system, an operation system, and the external environment. The funding structure, representing the proportions of income from each main funding source, is at the core of the driving system. In analyzing the motivations, values, and evaluation criteria behind different funding actions, this chapter finds that there are several forces behind the funding structure exerting power on arts organizations. The article also reveals the interactions between market force, academic force, innovation force, reputation force, and institutionalization force and their influence on the financing mechanism of cultural and arts organizations.

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