Project “Luci nel Parco”: realizing social impact projects without public money
Is it possible to carry out social impact projects without public money? And even without resorting to the support of wealthy philanthropists?
Yes. The “Luci nel Parco” social impact investment project, created by Fondazione Etica, was born relying only on the contribution of private savings, which in Italy exceeds 4,000 billion euros. A huge figure. A wealth that can be invested to create other wealth through innovative projects with a dual economic and social value. Private savings must not be asked to do charity in the traditional sense of the term, but to select the object of the
investment by privileging those financial securities envisaged by the 2016 Third Sector Reform.
These are securities that allow the saver to obtain a remuneration financial investment (the interest rate) and, at the same time, a social remuneration (the regeneration of a public property and the creation of jobs) as well as, obviously, reputational.
The Luci project provides for the enhancement of a disused building in the Tuscany Region with the aim of launching social but also economic activities: a bio-tavern, a music laboratory and a training activity on social innovation. The project finances its
start, but then the activities must stand up independently.
All without even a public euro, because it was private savings that intervened: individual citizens from all over Italy chose not to do in the classic sense, but to allocate a small part of their profit to the project and of the Luci activities.
A bank rooted in the territory intervened as a private financial partner “It is a deposit account – they explain – that anyone can subscribe with cuts from a thousand euros up, therefore within everyone's reach. The individual subscriber receives a six-monthly coupon, a percentage of which is donated to Luci as a donation, also receiving a tax benefit ". The half-yearly donations of all subscribers will cover Luci's financial plan, prudently estimated at three hundred thousand euros for turnkey delivery and the start of activities.
With the Social Cid 35 million were collected from over 400 subscribers throughout Italy, which allow to collect donations equal to 0.50% per annum of the amount subscribed.
Convention and placement of the innovative financial title The first step was the formalization of the agreement between the bank and the Luci Aps association
The placement of the innovative financial security, inspired by the recent regulations in
force on the Third Sector, had an answer beyond expectations in terms:
. both in amount
. both in number of subscribers
. both of placement speed.
In a few days, in fact, over four hundred subscribers have joined the initiative, signing the Social Cid for more than three times the estimated target.
This is a demonstration of the growing attention and sensitivity of citizens and businesses to the issue of social impact investments and urban regeneration, according to a trend that has started internationally.
Every single use of the donations is reported online on the www.luciaps.it website, as early as the end of February 2020.
Furthermore, the individual subscribers can personally check the progress of the project with on-site inspections, activating widespread civic monitoring that involves the entire community.
First coupon to subscribers and first flow of liberal payments
In January 2020, the first coupon for Social Cid subscribers accrued.
The relative credit on the current account of the individual subscribers for an amount equal to 1% per half year automatically led to the liberal disbursement of 0.25% to the dedicated current account in the name of LU.C.I. Aps.
The total amount of donations from over 400 Social Cid subscribers at January 22 exceeded € 85,000.
The second coupon will mature in July 2020.