7. Financing and support
Estonia
Last update: November, 2020
The Estonian GDP at current prices per capita grew strongly at the beginning of the century and again after the economic depression since 2012 (see Table 7).
In the 2020 Estonian state budget, expenditure and investment is EUR 11,6 billion, of which 1,05 billion is external aid. In the Estonian 2020 State Annual Budget from total expenses, about 2,07% -(EUR 254 million) is the budget of the Ministry of Culture. (Explanatory Memorandum to the 2020 State Budget).
Chart 1: Estonian state budget expenditure structure between ministries and constitutional institutions, 2020
Source:
Estonian 2020 State Budget Act
Table 7: Estonian GDP at current prices per capita, Government expenditure to culture and proportion of the budget of Ministry of Culture in Estonian State budget, 2000-2018
| Year | Estonian GDP at current prices per capita, EUR | Government expenditure to culture, millions EUR | Share of Ministry of Culture in State budget |
| 2000 | 4424 | 73,0 | 3,57 % |
| 2001 | 5037 | 82.5 | 3,51 % |
| 2002 | 5675 | 99.5 | 3,52 % |
| 2003 | 6382 | 106.9 | 3,40 % |
| 2004 | 7175 | 126.7 | 3,17 % |
| 2005 | 8368 | 150.4 | 3,17 % |
| 2006 | 10069 | 157.8 | 3,16 % |
| 2007 | 12232 | 180.6 | 3,15 % |
| 2008 | 12444 | 220.0 | 2,86 % |
| 2009 | 10649 | 179.0 | 2,69 % |
| 2010 | 11163 | 160.9 | 2,61 % |
| 2011 | 12678 | 171.3 | 2,89 % |
| 2012 | 13647 | 172.3 | 2,55 % |
| 2013 | 14441 | 204.6 | 2,08 % |
| 2014 | 15351 | 207.6 | 2,14 % |
| 2015 | 15809 | 213.1 | 2,48 % |
| 2016 | 16487 | 220.6 | 2,39 % |
| 2017 | 18049 | 238.8 | 2,25 % |
| 2018 | 19737 | 242.6 | 2,24 % |
| 2019 | 21160 | 255,9 | 2,15% |
Sources:
Estonian Statistics, 2019; Estonian State Budget Acts 2000-2018; Ministry of Finance; Ministry of Culture
According to OECD Classification of the Functions of Government (COFOG), the Estonian central government expenditures to recreation, culture and religion has been around 2% of GDP in recent years: 2015 – 2%, 2016 - 2,1%, 2017 - 2,2% and 2018 - 2,0% (Eurostat General government expenditure by function (COFOG) updated 12.02.2020). It is one of the highest figures in the EU, together with Hungary and Croatia.
Last update: November, 2020
See chapter 7.1.1.
There is no clear overview of local governments’ spending on culture. In their annual reports, local authorities report the aggregate amount of "leisure, culture, sports and religion", where, for example, the capital Tallinn has also consolidated a zoo, botanical garden and other non-cultural expenditure according to national and international standards. Chart 2 shows local governments spending in this field over the last decade, which filters out sports, zoos, botanical gardens and religion, as well as grants for local hobby schools. At the same time, it should be noted that in Estonia, the Ministry of Culture budget also includes expenditure on sports.
Chart 2: Local authorities spending to free time, culture, professional and hobby culture organisations, thousands EUR, 2010-2019
Source:
Local authorities annual reports 2010-2019, Ministry of Finance, www.fin.ee
Last update: November, 2020
The budget of the Ministry of Culture is divided primarily into three main areas, the objectives of which are set out in the State Budget Strategy 2020-2023 and in the sectoral strategy papers: General Principles of Cultural Policy until 2020, Integrating Estonia 2020 and Basic Fundamentals of Estonian Sports Policy until 2030. The three areas are culture (including the arts and heritage), sport and integration. The biggest share of the Ministry’s budget in 2020 is culture (79%), followed by sports (18%) and integration (ca 4%).
Chart 3: Ministry of Culture budget distribution between three main areas of responsibility, 2020
Source:
State Budget, 2020
The Ministry of Culture, for its part, divides the budget into various measures in the field of culture: development and implementation of library policy, literary policy, museum policy, folk culture policy, design and architecture policy, audiovisual and media policy, performing arts policy, visual art policy and music policy.
Chart 4: Ministry of Culture budget distribution by fields, 2020
Source:
Budget of Ministry of Culture, 2020
Last update: November, 2020
Support to arts, folk arts and other creative activities has mainly been distributed through arm's-length-policy bodies, such as the Cultural Endowment of Estonia (see chapter 1.2.2.). The support from the Ministry of Culture is divided over different fields.
For architecture, the Ministry has the grant programme “Development projects in the field of architecture”. The programme finances projects that aim to promote and enhance Estonian architecture (including architectural design, planning, interior architecture, landscaping, spatial planning and urban design).
In the audio-visual field, the Ministry of Culture gives out activity support to the Estonian Film Institute, but also directly finances Black Nights Film Festival and the international festival of documentaries and anthropological films in Pärnu.
Grants for performing arts institutions are given out by the Ministry of Culture annually. The aim of the programme is to support the artistic and institutional diversity of Estonian theatres and dance companies, and to support the availability of performing arts to different target groups across Estonia. The applicant must be a legal person registered in Estonia whose main activity is performing arts and the applicant must have been active in the field for at least the three last years. Activities financed by public bodies and foundations established with the participation of the state shall take into account the cost of storing and preserving state property that has been made available to the respective performance agencies. The minimum grant awarded per applicant is EUR 16 000 and the total budget for the 2020 activities specified in the application must exceed EUR 150 000.
There are four grant programmes in the field of music. The purpose of the grant programme “Supporting music festivals and major events” is to ensure the continuity and development of music festivals that are important for the Estonian national culture and professional music, to increase the opportunities for Estonian musicians and composers to introduce their work, and to improve public access to professional music events.
The aim of the support programme “Support for music groups and concert organisers” is to ensure the continuity and development of non-state music collectives and concert organisers in the field of professional music. The purpose of the programme “Music subscription and music publications” is to enhance the value of Estonian composers, to enrich Estonian music life through new compositions and to store and ensure access to nationally significant works of music and musical texts, as well as to publish scores, books, studies, monographs, etc.
Through grants, the programme “Supporting music competitions” ensures the continuity of national and international music competitions that are important for Estonia’s national culture as well as events organised at a professional level for and with young musicians.
Support programmes in the field of folklore are administered by the Estonian Folk Culture Centre (see chapters 3.3. and 6.4).
International projects are supported through the grant programme “Estonian Culture in the World”. The programme assists projects that enhance the international visibility of Estonian culture and the export thereof into the world, the introduction of Estonia globally through culture, and the creation of wider opportunities for Estonian creative persons. It also helps various cultural groups and creative enterprises to enter the international stage.
There is basic income support for freelance artists pursuant the Creative Persons and Artistic Associations Act. The support is administered by the artistic associations (see chapter 1.2.5).
Last update: November, 2020
The Cultural Endowment of Estonia supports the creative work of artists by providing scholarships, study and travel grants as well as project support (see chapter 1.2.2).
According to the Copyright Act, authors of books (writers, illustrators and translators) loaned from public libraries are compensated based on the frequency of loans. The purpose of the copyright compensation fund is to compensate authors and copyright holders for their loaned works in public libraries. The Authors' Foundation was established in 2004 by the Estonian Writers' Union, the Estonian Publishers' Union and the Estonian Graphic Designers' Union.
Three percent of the net value of recording devices such as VHS, DVD, CD-R and CD-RW and eight percent of blank audio cassettes, VHS, mini-disks, CD-Rs, CD-RWs, DVD-Rs and DVD-RWs is collected and redistributed between representatives of authors and performers. However, the current regulation is rather outdated compared to the fast developments in technology and recording equipment. Authors’ and performers' organisations have won a case against the Estonian government, which obliges the Estonian government to update the list of recording devices and recording media. So far, there has been no political will to change the regulation.
Last update: November, 2020
The main source of grants and scholarships is the Cultural Endowment of Estonia (see chapter 1.2.2). The Cultural Endowment issues also annual awards in all eight sub-endowments.
In literature, the annual awards ceremony is held on the 14th of March (Native Language Day). The awards are handed out in eight different categories for books published in the last year: prose, poetry, dramaturgy, dissertation, children's literature, translated Estonian literature and translated literature into Estonian.
The ceremony of the music endowments' annual awards is held on the International Music Day, the 1st of October. The ceremony is organised together with the Estonian Music Council. Ten annual awards are being handed out for the most outstanding accomplishments in the field of music. The Estonian Music Council hands out three life-time awards.
The dramatic arts sub-endowment finances the awards handed out by the Estonian Theatre Alliance on the 27th of March (International Theatre Day).
The Cultural Endowments’ annual prizes in architecture, audio-visual arts, visual and applied arts, folk arts and sport are handed out every year in January at an annual award-gala. In addition to the sub-endowment's awards each year, sub-endowments nominate one candidate for the grand award and one for life-time award, which are also handed out at the ceremony, but financed by the Board of Cultural Endowment.
The Cultural Endowment county expert groups give out annual prizes for outstanding achievements in different fields of culture and sport. Many local authorities have their own cultural awards and prizes as well.
According to the State Cultural Awards and Grants Act, the cultural awards of Estonia are designated for outstanding creative achievements in the field of culture. The award shall be designated to a natural person. Each year on the 23rd of February, three awards for long-term outstanding creative activity and five awards for outstanding works that have reached the public in the preceding calendar year will be solemnly delivered.
The State F. J. Wiedemann Language Award is granted each year to one natural person for outstanding merits upon study, organisation, teaching, promotion or use of the Estonian language.
The Kristjan Raud Art Award is the oldest annual art prize in Estonia: It has been awarded jointly by the Estonian Artists Association and the Tallinn City Government since 1973. The award is presented to artists, art historians or creative collectives for a work, art project or event that was made, exhibited or presented for the first time during the previous year. In exceptional cases, the award can also be awarded for artworks made in the past or for a life-long dedicated practice.
The cultural grants and scholarships of Estonia are designated to support cultural projects and creative initiatives that are essential from the perspective of the national cultural policy or to support study in foreign higher educational or research institutions. Twenty annual grants may be designated to a natural person, legal person or authority (see also chapter 4.2.1).
The Ministry of Culture annually awards Edward Wiiralt Scholarships to art students, the funds for which are collected from the fees for the use of artworks.
The Presidential Cultural Foundation was established in 1993 and centralises donations made by individuals, companies, organisations and associations in support of cultural, educational and research activities in Estonia. The foundation issues the Young Cultural Figure Award, the Young Scientist Award, the Young IT Scientist Award, Education Awards and Special Physical Sciences Award. The President of the Republic's Folklore Collection Awards have also become a tradition, as has supporting the history-based research competition for students organised by the Association of Estonian Teachers of History and Social Studies.
Last update: November, 2020
Support for professional artists and creative unions is regulated by the Creative Persons and Artistic Associations Act. According to the Act a freelance creative person is an author or performer, whose main source of livelihood is professional creative work in the fields of architecture, audiovisual, design, performing arts, sound, literature, visual arts, or shorthand, not under employment or similar obligations.
The artistic association unites and represents persons working in one creative field: architecture, audiovisual arts, design, performing arts, sound arts, literature, visual arts or scenography. An artistic association must have at least fifty persons who have been creative in the relevant creative field for at least the last three years and whose works have been published or made available to the public.
A freelance creative person, who is a member of one of the recognised artistic associations and fulfils the conditions laid down in the Creative Persons and Creatives Associations Act, is entitled to receive support for six months through the artistic association. The amount of this support is the national minimum wage established by the Government of the Republic and the recipient is also guaranteed health insurance.
To be eligible for funding, a freelance creative person must apply to their creative union. In case the creative person belongs to several artistic associations and has not applied for support at only one association, the application must be submitted to all creative unions of which he or she is a member.
A freelance creative person, who does not belong to a recognised artistic association, but who meets the conditions specified in Creative Persons and Artistic Associations Act, is eligible to apply for creative support from the Ministry of Culture. The Ministry of Culture forwards the application of the creative person to the creative association representing the respective creative field, which evaluates the compliance of the creative person with the requirements of the Creative Persons and Creative Associations Act and decides on granting the support.
Last update: November, 2020
Among the private organisations funding culture, the largest is the Estonian National Culture Foundation (established 1991). The foundation is a legal person governed by private law. The objective of its activity is charity aimed at supporting Estonian national culture through the purposeful accumulation and distribution of financial resources. An eleven-member council of the foundation is composed of Estonian cultural persons who direct the activity of the foundation and are independent in their decision-making.
The Estonian National Culture Foundation supports:
- individuals with scholarships for studies and research work, and for creative and athletic activities;
- organisations with grants for charity in launching and financing projects that are important from the standpoint of developing, preserving and transmitting Estonian national culture.
The Estonian National Culture Foundation’s main sources of revenue are:
- property donations, gifts and bequests made to the Foundation;
- revenue received from the investment of the foundation’s fixed capital;
- revenue received from other economic activities, which is necessary to attain the foundation’s objectives.
The Estonian National Culture Foundation is entered in the register of non-profit associations, foundations and religious associations with income tax concessions according to the Income Tax Act § 11 (see chapter 4.1.4). This means that legal persons may give tax-free gifts and donations to associations entered in the register within certain limits. The limits for tax exemption are:
- 3% incrementally of the total of payments that include individually registered social tax from the beginning of the calendar year, or
- 10% of the taxpayer’s profit of the last fiscal year ending on 1st January of the calendar year.
Certified gifts and donations can be deducted from a natural person's income, if these are made to the person entered into the list of non-profit associations, foundations and religious associations benefiting from income tax incentives. A natural person taxpayer may deduct gifts and donations in the total amount of EUR 1 200, but not more than 50% of the taxpayer's income during the year of taxation.
While in 2008 nearly 38 000 people and 2 000 institutions donated almost EUR 21 million to NGOs for various purposes, in 2018 there were many more donors: 125 000 people and nearly 4 000 institutions donated just over EUR 41 million. This includes the social sphere, as well as culture, education and sport. All kind of congregations and religious organisations are on the list as well.
There are some private prizes and awards donated by private companies.
The Köler Prize is an art award established in 2011 by the Contemporary Art Museum of Estonia. Its main objective throughout the years has been to give recognition to important artists and art collectives that are active in Estonia and to popularise contemporary art in general. Five artists or art collectives of Estonian origin or who reside permanently in Estonia are nominated for the Köler Prize on the basis of their creative work over the past three years. The nominees for the Köler Prize are selected by the board of the museum. From 2016, the Köler Prize takes place biennially. Financial support comes from one logistic company (Smarten Logistics) and a private family.
Since 2016, LHV Bank and the Composers’ Association issue the annual AU-Award for a new composition. It will be awarded to a composer that made outstanding new music, which premiered the year before. The prize is designed to value both new and established Estonian composers, focusing on new music that speaks volumes and deserves a wide international presence.
Since 2005, the newspaper Postimees has been awarding the Cultural Locomotive, the recipient of which will be chosen by the Postimees cultural editorial board. The decision must be unanimous in favor of person or an organisation, whose good influence on Estonian culture is beyond doubt.