**3. Civic crowdfunding**

Alessio Barollo and Daniela Castrataro during the "Torino Crowdfunding" convention defined civic crowdfunding as "collective funding of public works and projects – outside the budget of the interested entity or administration - collected by citizens, organizations and private companies sometimes in match funding with the administrations themselves" [17].

The decrease in public funding, due to the difficult economic crisis, has favored the inception of civic economy, a new economics model based on the social responsibility of the citizens who take part in the development and production of **"**common property and infrastructure which neither the Government nor the market economy alone were able to realize" [18]. This civic economy expresses itself in the participation of the citizens to the construction of public infrastructures, to the environment requalification, and to the protection of the artistic and cultural heritage.

The most impressive one is the reconstruction of Città della Scienza (City of Science) in Naples, which was destroyed by a terrible arson, and for which DeRev collected Euro 1,463,867 through fundraising with the involvement of 2584 investors and most of all through a mas-

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The gathering of Euro 339,743 by the platform Ginger was also very important, to restore the San Luca Portico in Bologna. The operation was successful thanks to the involvement of 7111 investors, and it was the demonstration that the collaboration and the participation of the citizens can improve not only the quality of life but also give honor to the city. The third case involves the Palazzo Madama Museum in Turin, which was the first Museum in Italy to enjoy the potential of crowdfunding to the benefit of arts and culture. Indeed, the Italian website dedicated to the fundraising activity, by using the reward-based model, managed to collect 96,203.90 euro and to buy a porcelain tea set dating back to 1730 and belonging to the Turin's family Taparelli d'Azeglio. The tea set was for sale in London up until March 31, 2013, for the price of 66,000 pounds. The main feature of this winning campaign was a valid communication strategy based on four questions: What makes this initiative unique? What value is it trying to promote? What value does it have in common with the museum's mission? What is

The fourth place is occupied by "Adopt a Majolica for the House Museum Stanze al Genio" set up in Palazzo Torre Pirajno in Palermo. The 12,000 euro fundraising target was broadly exceeded, and the museum continued the crowdfunding campaign beyond Indiegogo, con-

Last but not the least, since this top five list may change at any time, the creation of a new way to run after school programs is in Salluzzo (CN). The project was created for children who, thanks to the commitment of volunteers, teachers, and educators, every afternoon get together to study and to learn how to have fun through sports. The citizenry, the schools, the Council, and several associations have participated in the fundraising that has collected

These crowdfunding campaigns have simplified funds access by putting into place a democratization of the process of funding culture that makes the projects sustainable without hav-

What emerges from these excellent examples is that when local administrations or institutions have limited funds, if the citizens share a project of high social or cultural value, they actively participate in civic crowdfunding actions, improving their territory and the quality of life of

Barollo and Castrataro have proposed, for Italy, an integrated crowdsourcing, crowdvalidating, and crowdfunding platform based on a few important steps that integrate the decisions of the administrators with the indications offered by the crowdfunders to increase the feed-

The cases of civic crowdfunding abroad are many and increasing. The Tous Mecenes DIY campaign initiated in 2010 by the Louvre Museum in Paris to acquire a wonderful painting ("The

back within the local communities and to highlight the positivity of the project.

tinuing to receive contributions from all over the world to save the Sicilian Majolica.

12,378 euro through the support of 123 sponsors.

ing to turn to traditional forms of funding.

sive participation of the citizens.

the target?

its inhabitants.

The tool that allows such participation is civic crowdfunding, which allows the citizens to operate in person for the public thing.

We define this "shared government" [19] in which the citizens, pushed by an emotional value toward their territory, become players and promoters of their own well-being in a contest of absolute transparency.

This way, the crowd, an indistinct group of people that are potential investors, becomes peer, a community of supporters and co-creators who share the same values and take interest in the realization of the project. The possibility to obtain some sort of reward adds up to this last feature of civic crowdfunding, just as it happened with the initiative launched by the platform do-it-yourself (DIY) crowdfunding "I Make Rotterdam." All the citizens who participated to the realization of a footbridge to connect an isolated part of the city had the possibility to write a message or a mention on the wooden planks of the bridge or to just place on them their name and signature.

The civic, innovative, and creative projects are realized via web, and this, despite connecting users without any geographical barrier, hinges especially on the sense of belonging toward the territory. In order to protect this close relationship between citizens and territory, we are seeing a new variation of crowdfunding that goes by the name of do-it-yourself (DIY).

DIY or independent crowdfunding expects the crowdfunder (creator of the project) to use personal websites and platform, rather than public ones. There are several advantages to DIY:


The only element to take into consideration in a DIY campaign is that the creator must own a good media exposure so as to be able to spread the project's objective and to increase the number of crowdfunders.

Civic crowdfunding is expanding because the citizens are linked to their territorial community, their schools, the Church, the parks, and they positively share its growth and improvement.

Despite civic crowdfunding in Italy being less common compared to other European Countries and the United States, there have been five successful cases.

The most impressive one is the reconstruction of Città della Scienza (City of Science) in Naples, which was destroyed by a terrible arson, and for which DeRev collected Euro 1,463,867 through fundraising with the involvement of 2584 investors and most of all through a massive participation of the citizens.

who take part in the development and production of **"**common property and infrastructure which neither the Government nor the market economy alone were able to realize" [18]. This civic economy expresses itself in the participation of the citizens to the construction of public infrastructures, to the environment requalification, and to the protection of the artistic and

The tool that allows such participation is civic crowdfunding, which allows the citizens to

We define this "shared government" [19] in which the citizens, pushed by an emotional value toward their territory, become players and promoters of their own well-being in a contest of

This way, the crowd, an indistinct group of people that are potential investors, becomes peer, a community of supporters and co-creators who share the same values and take interest in the realization of the project. The possibility to obtain some sort of reward adds up to this last feature of civic crowdfunding, just as it happened with the initiative launched by the platform do-it-yourself (DIY) crowdfunding "I Make Rotterdam." All the citizens who participated to the realization of a footbridge to connect an isolated part of the city had the possibility to write a message or a mention on the wooden planks of the bridge or to just place on them

The civic, innovative, and creative projects are realized via web, and this, despite connecting users without any geographical barrier, hinges especially on the sense of belonging toward the territory. In order to protect this close relationship between citizens and territory, we are seeing a new variation of crowdfunding that goes by the name of do-it-yourself (DIY).

DIY or independent crowdfunding expects the crowdfunder (creator of the project) to use personal websites and platform, rather than public ones. There are several advantages to DIY:

• personally chosen projects with peculiar objectives which do not have a limited due date but that can last long. Indeed, the proposers create, together with the supporters, a cooperative path with a community of fans that is linked to the project. This relational network

• cost reduction due to the public platform which gets a percentage of the sum collected.

The only element to take into consideration in a DIY campaign is that the creator must own a good media exposure so as to be able to spread the project's objective and to increase the

Civic crowdfunding is expanding because the citizens are linked to their territorial community, their schools, the Church, the parks, and they positively share its growth and improvement. Despite civic crowdfunding in Italy being less common compared to other European Countries

can serve as the base for future online collaborations;

and the United States, there have been five successful cases.

• campaigns that do not get lost between many; and

cultural heritage.

120 Public Management and Administration

absolute transparency.

their name and signature.

number of crowdfunders.

operate in person for the public thing.

The gathering of Euro 339,743 by the platform Ginger was also very important, to restore the San Luca Portico in Bologna. The operation was successful thanks to the involvement of 7111 investors, and it was the demonstration that the collaboration and the participation of the citizens can improve not only the quality of life but also give honor to the city. The third case involves the Palazzo Madama Museum in Turin, which was the first Museum in Italy to enjoy the potential of crowdfunding to the benefit of arts and culture. Indeed, the Italian website dedicated to the fundraising activity, by using the reward-based model, managed to collect 96,203.90 euro and to buy a porcelain tea set dating back to 1730 and belonging to the Turin's family Taparelli d'Azeglio. The tea set was for sale in London up until March 31, 2013, for the price of 66,000 pounds. The main feature of this winning campaign was a valid communication strategy based on four questions: What makes this initiative unique? What value is it trying to promote? What value does it have in common with the museum's mission? What is the target?

The fourth place is occupied by "Adopt a Majolica for the House Museum Stanze al Genio" set up in Palazzo Torre Pirajno in Palermo. The 12,000 euro fundraising target was broadly exceeded, and the museum continued the crowdfunding campaign beyond Indiegogo, continuing to receive contributions from all over the world to save the Sicilian Majolica.

Last but not the least, since this top five list may change at any time, the creation of a new way to run after school programs is in Salluzzo (CN). The project was created for children who, thanks to the commitment of volunteers, teachers, and educators, every afternoon get together to study and to learn how to have fun through sports. The citizenry, the schools, the Council, and several associations have participated in the fundraising that has collected 12,378 euro through the support of 123 sponsors.

These crowdfunding campaigns have simplified funds access by putting into place a democratization of the process of funding culture that makes the projects sustainable without having to turn to traditional forms of funding.

What emerges from these excellent examples is that when local administrations or institutions have limited funds, if the citizens share a project of high social or cultural value, they actively participate in civic crowdfunding actions, improving their territory and the quality of life of its inhabitants.

Barollo and Castrataro have proposed, for Italy, an integrated crowdsourcing, crowdvalidating, and crowdfunding platform based on a few important steps that integrate the decisions of the administrators with the indications offered by the crowdfunders to increase the feedback within the local communities and to highlight the positivity of the project.

The cases of civic crowdfunding abroad are many and increasing. The Tous Mecenes DIY campaign initiated in 2010 by the Louvre Museum in Paris to acquire a wonderful painting ("The

segment of people, it is able to involve, as well as the fact that it focuses on creative projects. The use that can be done on this platform is the classic crowdfunding one: a subject publishes his/her idea on the website and only upon the operator's approval the idea becomes a page and is turned into a project. Anyone who signs up may become a supporter of one or more projects by promising to fund them with a minimum amount of 1\$. It is possible to change the sum amount (pledge) at any time before the completion of the project, and the money is collected by Kickstarter only if the project reaches the goal set. According to the value of the "pledge," in case the project is successful, the donors will have access to specific prizes. In 2015, Kickstarters arrived in Italy since the Ceo Yanccey Strickler, co-founder of the platform,

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The most famous platform in Italy is Starteed, established in 2011 and launched in September 2012 from an idea by Claudio Bedino and Valerio Fissore. It offers a complete service to whoever has an idea, integrating the crowdfunding campaign with the final sale phase. The gather of funds for projects and ideas integrates with co-creation. This is a formula, then, which mixes both crowdfunding and crowdsourcing. It is essentially a reward-based platform whose originality revolves around the figure of the influencer, who may share the initiative on social networks, convince its Facebook or Twitter friends to donate something, give advice and suggestions on how to improve and/or develop the idea, and answer to surveys related

It is evident that the success of any platform is based on a few essential elements, such as the use of a charming yet clear and understandable graphic design. The projects must be divided into categories with an immediate and accessible view. Transparency is another element that grants success to the proposed projects and increases the number of sponsors who participate

Crowdfunding is spreading more and more as an alternative and complementary financial instrument; therefore, it has been deemed necessary to perform a SWOT [20] analysis in order

The success factors in fundraising operations are linked to the viral nature of the net that, breaking down all geographical barriers and using real-time information, becomes a driver of projects that have a social, environmental, artistic, and cultural impact and that have a developmental effect on new enterprises. Crowdfunding turns citizen from users to actors, who actively participate in the improvement of their territory, by cooperating financially with local institutions. Therefore, it affirms itself as an entity in full evolution, confirming the positive growth trends. The opportunities lie in offering the citizens the possibility to exchange ideas and opinions both online and offline and to promote projects according to the principle of democracy and meritocracy. Transparency, at the base of every financial campaign, can be seen as an example of accountability and best practice, whereas the products obtained constitute a marketing and

declared that "Italian ideas are appreciated all over the world."

**5. Success factors and criticalities of crowdfunding**

to pinpoint its strengths, its weaknesses, its opportunities, and threats.

to the product.

engagement tool.

in the project with interest and passion.

**Source:** Barollo A, Castrataro D., *Il crowdfunding civico: una proposta,* 2013 www.issuu.com.

three Graces" by Canach) is very famous. The Louvre created a webpage where it was possible to donate: all the donors were rewarded, according to the amount donated, with a private visit to the museum or with an invitation to a special evening event. The project was a success and it raised the 1,200,000 euro that were needed to acquire the painting. This campaign is the first experiment of a fundraising model that has given the museum the possibility to organize more campaigns to gather funds to restore the "Nike" of Samothrace and to acquire two statues of public figures to complete the sculpture group already hosted at the Museum. A very important initiative has taken place in the United Kingdom in 2013 for the whole region. Indeed, from August 12 to 15, London and other English cities were transformed into an open air gallery, thanks to an idea from Art Fund and Tate Gallery, which had 22,000 posters affixed reproducing 10 British masterpieces that could be voted by anyone, thanks to a Facebook page. The funds raised in a few weeks amounted to 35,000 pounds. The citizens participated actively, choosing the works to affix, and admired their beauty in the streets of their city.

#### **4. The main crowdfunding platforms**

A platform is a virtual place acting as an intermediary for the gathering of funds. Among some of the world famous ones, the American "Kickstarter" stands out for the number of projects completed. Its mission is to find new ways to finance initiatives linked to the world of arts, music, and technology. The strength of this platform stands in its notoriety, and in the segment of people, it is able to involve, as well as the fact that it focuses on creative projects. The use that can be done on this platform is the classic crowdfunding one: a subject publishes his/her idea on the website and only upon the operator's approval the idea becomes a page and is turned into a project. Anyone who signs up may become a supporter of one or more projects by promising to fund them with a minimum amount of 1\$. It is possible to change the sum amount (pledge) at any time before the completion of the project, and the money is collected by Kickstarter only if the project reaches the goal set. According to the value of the "pledge," in case the project is successful, the donors will have access to specific prizes. In 2015, Kickstarters arrived in Italy since the Ceo Yanccey Strickler, co-founder of the platform, declared that "Italian ideas are appreciated all over the world."

The most famous platform in Italy is Starteed, established in 2011 and launched in September 2012 from an idea by Claudio Bedino and Valerio Fissore. It offers a complete service to whoever has an idea, integrating the crowdfunding campaign with the final sale phase. The gather of funds for projects and ideas integrates with co-creation. This is a formula, then, which mixes both crowdfunding and crowdsourcing. It is essentially a reward-based platform whose originality revolves around the figure of the influencer, who may share the initiative on social networks, convince its Facebook or Twitter friends to donate something, give advice and suggestions on how to improve and/or develop the idea, and answer to surveys related to the product.

It is evident that the success of any platform is based on a few essential elements, such as the use of a charming yet clear and understandable graphic design. The projects must be divided into categories with an immediate and accessible view. Transparency is another element that grants success to the proposed projects and increases the number of sponsors who participate in the project with interest and passion.
