Washington Post, Wonkblog:
Indeed, people have been saying since last year that Kickstarter funds more art-related projects than the NEA. And it’s true! For 2012, the NEA had a total federal appropriation of $146 million, of which 80 percent went toward grants. Kickstarter funded roughly $323.6 million of art-related projects if you include all design and video-related projects, which make up $200 million of the total.
It looks like a shocking disparity between government grants and a technology start up, but here’s why it isn’t surprising.
Individuals have always been the backbone of arts funding. The NEA has never tried to compete with individual donors, and that’s the premise of Kickstarter—it’s a platform that allows individual donors to fund projects. In 2011, individuals contributed $13 billion to arts and cultural charities. According to the NEA, individuals make up 75 percent of all private giving, much more than corporations or foundations. Kickstarter, in essence, simplifies the long-held American tradition of individual private donors giving to the arts.
H/t Tyler Cowen.