Crowdfunding can give a chance to minority but important research

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It is not easy for the culture of patronage from the Anglo-Saxon world to be transferred directly to the Latin world. To begin with, because, from the point of view of the citizen, there is little custom and limited knowledge on the subject. In fact, the initial opinion is usually contrary, based on the fact that social needs (and in particular the so-called preferred goods) should be covered, fundamentally, by public subsidies and not through patronage.

Furthermore, from the point of view of the legal framework, the legacy of the Napoleonic Code of 1804 restricts the procedures, making them very protective but not very versatile due to fear of the probability of negative practices (the picaresque ).

Finally, from a political point of view, there is a tendency to reduce the scope of action by eliminating intermediaries in the final decision on the application of funds. We must not forget that, in most cases, this is a matter of specific or conditional financing.

What do we talk about when we talk about philanthropy?

The Spanish model of society is based on solidarity and the distribution of wealth for equal opportunities as basic principles. This welfare state must not be incompatible with the consideration of other complementary and alternative financing systems, through the acquisition of external private funds such as patronage and sponsorship.

At this point it is important to clearly differentiate between fundraising , patronage, sponsorship, donation and micro-patronage.

  • Fundraising : Anglo-Saxon term referring to the raising of external private resources by non-profit entities (NGOs, public universities and foundations, among others).
  • Patronage: protection or support for a cultural, artistic or scientific activity.
  • Sponsorship: support or financing, usually for advertising purposes, for a specific activity.
  • Donation: free transfer of an asset in favor of another person who accepts it.
  • Micro-patronage or micro-donation ( crowdfunding ): alternative mechanism for financing projects through multiple individual contributions by individuals or legal entities.

Crowdfunding in a public university

There are several basic axes on which a university crowdfunding initiative must pivot. The most important thing is to create a climate of trust within and outside the institution by building a homogeneous structural framework between donors and companies and the university.

The Sumo Valor project has been launched at the University of Santiago de Compostela , a crowdfunding programme with its own platform that connects companies, individuals and institutions with the activities, projects and services offered by the university.

Sumo Valor is structured around four strategic lines: aid to people from conflict zones, cultural and sporting activities, scientific dissemination activities and research activities. Each of these can lead to specific actions or projects with social, economic or environmental impact.

Transparency and traceability

In each of the lines of action, the objectives are defined, both basic and complementary. In addition, transparency of information has been sought regarding the impact and destination of the funds raised. Sumo Valor complies with the laws of patronage to guarantee tax benefits for donors and recipients.

Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage, continues to define the framework of tax benefits for individuals and legal entities. In addition, each autonomous community can have its own additional tax deductions, as is the case in Galicia.

The limit for an annual contribution per individual or legal entity for the Sumo Valor programme was set at €3,000. Above this amount, a specific collaboration agreement must be drawn up.

Crowdfunding allows citizens to support activities or research (in its initial phase) for which it is difficult to obtain funding in competitive calls. On the other hand, funds from this funding model can promote research not considered as a priority in standard national and international calls for proposals.

The use of funds obtained from public calls must comply with the conditions imposed; applying crowdfunding programs would allow Spanish public universities to open up their range of expenses, while maintaining the commitment to transparency and traceability in the use of the resources raised.

As the Anglo-Saxons say, to raise philanthropic funds you just have to dare to ask for them.

Author Bios: Gumersindo Feijoo Costa is Professor of Chemical Engineering. CRETUS Singular Center at the University of Santiago de Compostela and Carmen Perez-Esparrells is Professor of Applied Economics at the Autonomous University of Madrid

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