ABSTRACT
The dramatic rise of charitable crowdfunding has changed the landscape of fundraising and giving. Little empirical work, however, has been done to explore critical factors that are associated with successful charitable crowdfunding campaigns run both by formal charities and non-charities. To advance the literature on donation-based charitable crowdfunding, we draw on a unique dataset of 427 COVID-19 crowdfunding campaigns in China, examining whether and how external and internal quality signals are related to crowdfunding success measured by total donation amount. Our results show that crowdfunding success is positively associated with internal signals (updates and predefined duration), whereas the role of external signals (platform and award) is less certain. While we find a positive relationship between award information and funding success, informal campaigns using an alternative medium seem to generate more donations than formal campaigns using authorized platforms. The implications of this study for theory, practice and policy are also discussed.
ABSTRACT
Crowdfunding was first used by individuals and entrepreneurs to collect small-sized investments from crowds to support for-profit ventures, but now it is being touted as a valuable alternative to raise money for non-profit causes. Similar to various online settings, a key challenge for online charitable crowdfunding platform is the problem of donor retention. In this research, we disentangle donor retention behavior and build up a structural model to jointly examine donors' donation and latent attrition. By incorporating donation relationship and action related covariates into the model, we illustrate the drivers of donor retention and quantitatively examine their influence on individual donor's contribution and attrition activity. After calibrating the model with longitudinal donation transaction data from a leading charitable crowdfunding platform which enables teachers to request materials and resources for their classrooms, we find that (1) Teacher-donors (people who can be both donation makers and fundraisers) usually exhibit higher donation rate and lower attrition rate than normal donors on the platform; (2) Compared with site-donors (donors directly acquired through website visit), donors acquired through teacher referral usually have lower contribution and attrition rates; (3) The provided "charity gift card" and "donation matching offer" prosocial marketing programs on the platform seem to be a double-edged sword to donor retention. They have positive impact on donors' contribution rate, at the same time, they significantly increase donors' attrition rate; (4) Donors' initial contribution amount to the platform, successful donation result and "Thank-You" feedback from fundraisers can significantly decrease their attrition rate. Our results provide insights on new donor acquisition and donor relationship management in online charitable crowdfunding market.
ABSTRACT
Charitable crowdfunding provides a new channel for people and families suffering from unforeseen events, such as accidents, severe illness, and so on, to seek help from the public. Thus, finding the key determinants which drive the fundraising process of crowdfunding campaigns is of great importance, especially for those suffering. With a unique data set containing 210,907 crowdfunding projects covering a period from October 2015 to June 2020, from a famous charitable crowdfunding platform, specifically Qingsong Chou, we will reveal how many online donations are due to endogeneity, referring to the positive feedback process of attracting more people to donate through broadcasting campaigns in social networks by donors. For this aim, we calibrate three different Hawkes processes to the event data of online donations for each crowdfunding campaign on each day, which allows us to estimate the branching ratio, a measure of endogeneity. It is found that the online fundraising process works in a sub-critical state and nearly 70-90% of the online donations are endogenous. Furthermore, even though the fundraising amount, number of donations, and number of donors decrease rapidly after the crowdfunding project is created, the measure of endogeneity remains stable during the entire lifetime of crowdfunding projects. Our results not only deepen our understanding of online fundraising dynamics but also provide a quantitative framework to disentangle the endogenous and exogenous dynamics in complex systems.
ABSTRACT
The COVID-19 outbreak has been a public health crisis of international concern, causing huge impact on people's lives. As an important part of social public crisis management, how to quickly and effectively raise resources to participate in emergency relief in the era of self-media is a common challenge faced by global charitable organizations. This article attempts to use empirical evidence from Tencent charitable crowdfunding platform, the largest charitable crowdfunding platform in China, to answer this question. We consider 205 COVID-19 charitable projects and 11,177,249 donors to assess the process by which non-profit organizations raise funds through the information about project descriptions. Based on the effects of information and emotional framing, we explore the effects of the readability (i.e., complexity and understandability) and negative tone of the project description on fundraising amount. We then investigate the mediating role of forwarding times, as affective response to the text might explain forwarding times, which in turn affects money raised by increasing the visibility of the campaign. On this basis, the moderating role of recipient's crisis involvement is tested during this process. The empirical results indicate that the complexity of the description will reduce the fundraising amount, while understandability and negative tone help to improve it. Furthermore, we found that forwarding times played an important mediating role in this process. Then the buffer effect of crisis involvement on the negative effect of complexity was validated, and its amplification on the positive effects of understandability was also verified.
ABSTRACT
Whereas the effect of people's motivations to give to traditional, off-line charities has been extensively investigated, their motivations to support online charitable crowdfunding projects are largely unexplored. The present study examines the influences of extrinsic motivations (such as reputation, the wish to signal a certain image; and reciprocity, the expectation on future return for their present contribution), intrinsic motivations (such as a sense of belonging, the feeling of belonging to an integral part of a positive community; joy of giving, the anticipated positive emotions experienced by helping others; altruism, intrinsic desire to help others without expectation of a return; and financial constraints, individuals' personally felt financial stresses induced by donations), and social interactions (such as social influence, people's perception of how their close acquaintances believe they should support the project; and social ties, the strength of the relationship between the individual and the project initiator) on intentions to support charitable crowdfunding behaviors, namely, the willingness to share (WTS) project information and the intention to donate (ITD) money. Hierarchical multiple regression analyses on self-reported survey data from 617 respondents in China reveal support for the hypotheses. The results show that intrinsic motivations and social ties are predictors for both supporting behaviors. Reputation and social influence motivate people to share projects, but have no significant effects on their ITD. Reciprocity is positively, and financial constraints are negatively, related to ITD but have no significant effects on WTS. These findings offer insights into the motivations driving individuals' participation in charitable crowdfunding. The implications for both platforms and fundraisers are discussed.