A pioneering matchfunding initiative in the public sector will raise R$ 4 million for the financing of cultural projects, either tangible or intangible. In the largest matchfunding in Brazilian history, each R$ 1 donated by the public will be matched by a R$ 2 donation from BNDES. The raised amount can exceed R$ 6 million, number that can be reached by donations from those interested in the initiatives.
Co-idealized by Benfeitoria, Vivo Museum e SITAWI Finance for Good, the partnership encopasses all three sectors – public, private, and third. The program will be led by SITAWI, whose responsibility also includes managing the initiative and, alongside Benfeitoria, following-up with the benefiting companies. Benfeitoria is one of the largest crowdfunding platforms in Brazil and the creator of this particular matchfunding system.
“SITAWI manages over 20 philanthropic funds, but this is the first time that we will oversee one aimed towards the cultural sector. This has come to fruition thanks to a collaboration between all three sectors. When you finance in partnership, there is a larger group of interested people, allowing society to participate, giving the project more visibility and legitimacy. This innovative model corroborates SITAWI’s efforts to keep mobilizing capital for projects that generate impact alongside the public sector”, says Leonardo Letelier, SITAWI’s CEO.
Eligibility to participate in the program is determined by one’s capacity to leave a legacy, which means leaving perennial benefits to the Brazilian Cultural Heritage, either tangible or intangible, recognized or in process of recognition in the federal, state, municipal or global spheres (UNESCO).
The program also offers crowdfunding training. “Besides engaging society, the initiative aims to reach larger capacitation in the heritage chain, give a larger financial sustainability and instruct institutions to elaborate and submit projects through the crowdfunding platforms”, explains Eduardo Bizzo, manager of the Culture and Education department at BNDES.
It is expected that up to 80 projects will be selected through a bidding process between 2019 and 2020. Follow SITAWI’s social media accounts for more information about the public call.
What is a matchfunding?
The concept is a combination of sponsorship and crowdfunding, in which an agent of development doubles or triples the amount earned by a project in a crowdfunding, matching each Brazilian Real invested by the general public. The “BNDES Culture Matchfunding Program” is the first public sector matchfunding with civil society. The initiative creates a new alternative for the financing of public projects with a cultural background directly aligned with society’s interests.