MUNICIPAL CROWDFUNDING AS A POTENTIAL INSTRUMENT OF LOCAL SELF-GOVERNMENT

Abstract

The article considers crowdfunding as a form of direct participation of the members of local community in the local self-government. In particular, through the analysis of crowdfunding platforms «Kickstarter», «Indiegogo», «Project Auction» and «Spilnokosht» were identified the features of crowdfunding as a private-law institute. It has been identified that the main actors in the crowdfunding process are sponsors, project initiators and crowdfunding platforms. On the basis of selected features author provided his own definition of crowdfunding. The article also makes a comparative analysis of the institutions of crowdfunding and self-taxation, as the closest institution in Ukrainian law. It is noted that, due to the low popularity of the institute of self-taxation, it`s lack of voluntary participation and freedom to determine contributions, the institute of self-taxation will not compete with the potentially integrated institution of municipal crowdfunding. The paper develops the model and basic principles of creation and regulation of municipal crowdfunding as a form of direct participation of the local community in the local self-government. In particular, the potential risks of adaptation of the private-legal nature of the crowdfunding institute of crowdfunding to public-law needs were identified, the roles of local self-government bodies and members of the territorial community in the public-legal relations of the municipal crowdfunding are outlined, as well as the criteria for selecting projects to be addressed. The article outlines the key principles of the potential legal support for municipal crowdfunding as an instrument for members of the territorial community.