The Italian foundations of banking origin as community developer: a cross-case study analysis

Abstract This paper explores the significant role of the Italian Foundations of Banking Origin (FBOs) in Community Development (CD), emphasizing their evolution from mere financial grant-makers to proactive promoters of welfare. Through a qualitative analysis of four case studies, the research highlights how Italian FBOs have transformed into key players in local development policies, driving community growth and fostering the development of the Third Sector (TS). Initially established through legislation in the 1990s, these foundations have progressively adapted their missions, focusing on building social infrastructure and creating generative welfare systems tailored to the needs of their territories. The study demonstrates how FBOs collaborate closely with local governments and TS organizations, enabling these entities to modernize and develop innovative solutions for local needs. The research also underscores the FBOs’ ability to respond swiftly to emerging challenges, such as during the COVID-19 pandemic, where they played a crucial role in restructuring local governance and implementing horizontal subsidiarity. By fostering social capital and supporting local networks, FBOs have become essential in promoting sustainable CD and enhancing the resilience and well-being of the communities they serve.