Local cultural foundations are established to promote local culture and art, so that their finances are highly dependent on the central government (the state) and local governments. Owing to this influence, local cultural foundations have not been free from the issues of their autonomy, independence, and identity. In order to fulfill local cultural foundations' roles and functions, it is necessary to secure their own finances stably. Moreover, Local Culture Promotion Act was enacted in 2014 to provide a legal basis to raise funds, and further some local cultural foundations raise and operate local culture promotion funds. However, because local cultural foundations differ in the scale of their funds and the trend of low interest rates is prevalent due to current economic situations, it is necessary to discuss the efficiency, profitability, and stability of fund operation.
So, the purpose of this study is to explore the methods for expanding their finances in local cultural foundations which play a pivotal role in their local culture, and so operate their finances (funds) efficiently. That is, the concrete purpose of this study is to reduce budget dependence on local governments, and so reestablish local cultural foundations' roles and functions through finance raising and efficeint finance operation. For these purposes, this study performed diverse literature reviews, foreign case studies, and comparison and analysis on finance, management, and operation in local cultural foundations (provincial-level). Furthermore, this study conducted its questionnaire survey over the subjects of persons in charge of local cultural foundations' (provincial-level) funds.
Through this analysis, this study examined the problems of finances in local cultural foundations and arranged the strategies for enhancing finance expansion and efficient finance operation as follows.
First of all, the problems of finances included high dependence on public finances, vulnerable systems for ensuring expert manpower, and limitations to revenue structure. Based upon these problems, the plans for expanding finances were presented as follows. First, it is necessary to prepare a legal basis for financial stability. Second, it is necessary to secure professional personnel. Third, it is necessary to expand private donation programs and improve awareness and recognition. Fourth, it is necessary to raise finances through revenues from operating funds.
The problems of operating finances(funds) included fund management systems with systemic incompletion, unsufficient expertise in managing leaders and asset operations, the reduction of interest profits due to low interest rates, and limitations to fund raising through profitable business. Based on these problems, the programs for improving fund operation efficiency were presented as follows. First, it is necessary to strengthen regulations on fund establishment and management. Second, it is necessary to heighten the expertise of fund operation. Third, it is necessary to reinforce the computerization of fund operation and finance management. Fourth, it is necessary to raise the continuous finance of funds. Fifth, it is necessary to establish the feedback systems of fund audits.
This study examined the structure of finances in local cultural foundations, and so explored the measures for expanding finances as well as the measures for enhancing the efficiency of finance (fund) operations, so that the results of this study will be able to be utilized as basic data for ensuring autonomy, independence, and self-sustainability in operating local cultural foundations.