Social Innovation and Crisis in the Third Sector in Spain. Results, Challenges and Limitations of ‘Civic Crowdfunding’.

Based on the evolution and institutional transformation of the Welfare State and its relationship with the Third Sector of Social Action, the present article describes and analyzes the aspects of the financial crisis and resources that the sector is currently suffering. In regards of these structural transformations the evolution, characteristics, limitations and opportunities offered by ‘civic crowdfunding’ in Spain between the years 2011 and 2015 as an innovative social practice for the increase of the own funding between the entities of the Third Sector of Social Action and the changes that must be experienced by the sector in order to optimize and improve its self-funding ratios through this mechanism are examined. The high index of success of financing social projects (96.5%) through this tool, and the annual growth during the analyzed period shows the potential of civic crowdfuding. On the other hand, the small size of the bankable projects (95.2% less than 10,000 euros), as well as the low total amount collected (2,665,384 euros) indicates that civic crowdfunding is still an insufficient mechanism to mitigate the severe public resource cuts suffered by the entities of the Third Sector of Social Action and also to bring these entities closer to the objective of self-financing. Finally, we formulated a series of recommendations aimed at improving the self-financing ratios of the Third Sector of Social Action, including a more efficient and cooperative use of civic crowdfunding. [ABSTRACT FROM AUTHOR]

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