Abstract
AbstractDonation crowdfunding is a form of internet-enabled fundraising where backers provide funding based on philanthropic motivations without expectation of monetary or material rewards. Despite accounting for only a marginal share of global crowdfunding volumes, donation crowdfunding is a unique model for supporting a wide range of prosocial and charitable causes, while allowing fundraisers to leverage benefits afforded by ICT solutions for more effective and efficient fundraising. The chapter provides an overview of the limited research on donation crowdfunding while highlighting donor motivations and behaviour, as well as drivers of success in donation campaigns. We find that current research suggests that donation behaviour is driven by impure altruism closely linked to intrinsic motivations such as satisfaction, joy, and a sense of belonging. Furthermore, several success drivers of donation crowdfunding campaigns have been identified with respect to factors at the fundraiser, campaign, and platform levels.
Highlights
Crowdfunding, as an innovative fundraising channel, aims to exploit the power of the crowd for supporting various kinds of projects which may not get funded through traditional ways of fundraising (Lambert and Schwienbacher 2010)
Despite representing a small share of global crowdfunding volumes, donation crowdfunding is a unique model for supporting a wide range of prosocial and charitable causes, while allowing fundraisers to leverage benefits afforded by ICT solutions for more effective and efficient fundraising efforts than traditional methods and channels
This chapter has taken stock of the knowledge emerging from the limited research available in the donation crowdfunding context
Summary
Crowdfunding, as an innovative fundraising channel, aims to exploit the power of the crowd for supporting various kinds of projects which may not get funded through traditional ways of fundraising (Lambert and Schwienbacher 2010). In the realm of donation funding, crowdfunding has simplified the process of fundraising for prosocial purposes by integrating information collection, donation transaction, and interactive communication into one standardized process (Belleflamme et al 2013). This has led some to claim that donation-based crowdfunding has redefined the way of charitable giving is done, as it fuses traditional charitable giving and IT-enabled crowdfunding together (Gleasure and Feller 2016). The success factors of donation-based crowdfunding campaigns are summarized based on a review of earlier studies examining them This is followed by a literature review and discussion concerning the factors impacting donor behaviour. We conclude by suggesting implications for practice and research
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