Abstract

In 2014, Italy introduced the «Art bonus», a 65% tax credit designed to incentivize private donations for the preservation, protection, and restoration of publicly owned cultural heritage, as well as to support cultural institutions and infrastructure projects managed by public entities within the performing arts sector. Despite its objectives, the Art bonus has been subject to criticism, particularly due to the role it assigns to taxpayer preferences in determining the allocation of public funds, a common concern with tax expenditure measures. Ten years after its implementation, and considering the substantial public resources involved, it is crucial to assess the policy’s outcomes. This article seeks to provide a critical analysis of the design and effectiveness of the Art bonus, with a particular focus on its capacity to incentivize donations. The analysis draws on data updated to 2023, provided by Ales S.p.A., the in-house company of the Ministry of Culture responsible for promoting the Art bonus. The findings reveal an uneven territorial distribution of eligible projects and their ability to attract donations, which does not align with the geographical distribution of cultural heritage across Italy. In particular, the data highlight a pronounced regional disparity, with Southern Italy significantly disadvantaged interms of activated donations, the number of fundraising campaigns that fail to attract contributions, and the overall allocation of resources to cultural heritage. Furthermore, the concentration of donations is disproportionately higher in certain Regions, exacerbating these territorial imbalances. To safeguard the meritbased nature of cultural heritage, the study suggests that private funding should complement, rather than substitute, public investment in cultural activities.