This paper focuses on how Italian performing arts organizations were funded between 2003 and 2005. How does policy regulate the financing system for performing arts? What are the underlying logics that govern financing choices? In this paper the authors move beyond the simple examination of formal policies by analysing the funding data and organizational routines of the ministerial offices responsible for the allocation of grants. The authors implemented a multi-method research methodology consisting of document analysis, in-depth interviews, and quantitative analysis of funding data. The main findings can be summarized as follows. First, funds are continuously allocated to the same group of organizations. Second, although rigid, the system...