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Financing

Financing: Sharing credit, sharing surplus

The Cultural Cooperative Network fund will be created by launching a general crowdfunding campaign and will be composed of a combination of €uros and alternative currency, the Faircoin*.

The fund will be hosted by The Bank of the Commons, an ethical banking cooperative with the aim of rethinking money and finances as commons by replacing the current banking system with growing, fair and self-managed ones.

* The importance of using the Faircoin: Faircoin is a cryptocurrency developed in 2014. As cryptocurrency, it supports an alternative economic system with the aim of creating a new global and cooperative ecosystem. It sustains a new policy of economic justice and mutual relations between people, collectives, cooperatives, and NPO. The more Faircoin is used, the more its values (economic and symbolic) will grow in order to compete with the current capitalist market and create another economic ecosystem based in cooperation.

The fund will be used to economically sustain spaces, artists, cultural events, and it will be provided to the member as interest-free credit.

Our goal is to make our network economically autonomous. Therefore, the fund should be used to cover production costs, and both emergency and extraordinary expenses. Not being able to pay one month’s rent can be an emergency for an art space, and the network can decide to help. However, it will be fundamental not to constantly rely on the fund for daily/monthly expenses.

Every member of the CCN can submit a project proposal featured by a detailed budget that both describes how the fund is going to be used and recovered.
By a collective vote (stated through local and global specific assemblies), the community decides to fund the project or not.
Every member can submit a new funding request after the same amount of time needed to bring money back to the fund.
i.e. if the money goes back to the fund after six months, the member will be allowed to submit a new request after 6 months starting from the consignment.
In this way, the fund will be able to guarantee a balance between debt and credit cycles.
Furthermore, the fund will be a great tool in relation to the timing of public funding.
Indeed, very often projects depend on public funding to be realized. However, the time needed by the public bureaucracy to release the fund can be endless and, in this way, affects the production. In these cases, the CCN fund can be used to obtain the money in advance and return it once the public payment has been received: this will allow members to save precious working time and guarantee that they will have all the money at the exact moment it is needed.

The process of recovering money, especially for not-for-profit art spaces can be complicated: in this moment the network intervenes.
Collectives, spaces, artists can gather their abilities and work together in order to collectively recover the money by organizing, for example, a fundraising event. They can also support each other by sharing good practices or spreading crowdfunding campaigns through their contacts.