Crowdfunding motivations: A focus on donors' perspectives

Abstract

Crowdfunding has emerged as an effective method to raise fund for new venture creation and success. Nonetheless, our knowledge is limited about motivations for the selection into and financial support of crowdfunding, specifically for donors in charity crowdfunding who do not gain monetary rewards for their contributions. The main purpose of this study is to explore the motivations of individuals who donate money for funding the projects in charity crowdfunding platforms. We analyzed qualitative data derived from the real experiences of 13 donors who were involved in funding charity crowdfunding projects. The findings revealed a combination of intrinsic and extrinsic motivations directed funding behaviour of donors. More specifically, this study suggested a set of intrinsic individual motivations including shared problems, values, thoughts and beliefs, helping a minority, technical knowledge and capacity of the project to learn from and helping to realize ideas and create value that led donations to charity crowdfunding. Furthermore, this research explored contribution to fulfilling collective efforts, perceived effectiveness and few risks of crowdfunding as the intrinsic social motivations for donations to charity crowdfunding projects. Finally, this study contributed solving social problems, improving people's awareness and knowledge about the problems, and creating mobility and action in the people and society to solve the problems as the social extrinsic motivations that regulated donors to financially support charity crowdfunding. The findings are discussed in light of their implications for the development of crowdfunding theory, practice, and research.