Economics of the Private Welfare State at 'Hard Times': the Role of Italian Foundations of Banking Origin

Contemporary Welfare States are affected by the international financial crisis. Concentrated on deficit cutting and deleveraging, they have to limit their social spending and several ‘good causes’ risk their survival. Next to the Public Welfare State, a Private One is emerging: especially, foundations play very important subsidiary roles. Analyzing the most recent (2009 and 2010) Financial Statements and Statements of Revenues and Expenses of the Italian Foundations of banking origin we empirically estimate their ‘Welfare Role’ classifying five main groups thanks to the kmeans cluster analysis. The research gives evidence that Italian ‘good causes’ are surviving thanks to these very generous grant-makers, but these ‘Welfare Players’ may contemporarily suffer of losses in their financial assets, therefore risking their future sustainability.