Determinants of success of donation-based crowdfunding through digital platforms: The influence of offline factors

Abstract

The purpose of this research consist of exploring the extent to which factors traditionally explaining the success of offline fundraising campaigns for social causes may also influence the success of donationbased crowdfunding (DCF) campaigns promoted by social economy organizations (SEO) through digital platforms. Firstly, factors determining the success of offline fundraising campaigns for social causes are identified from previous literature. Secondly, a set of hypotheses linking these determinants to DCF campaigns is proposed. Thirdly, their explanatory capacity is measured through quantitative analysis based on a database of 360 campaigns fostered by small, medium and large-size organizations via Microdonaciones, a donation-based crowdfunding digital platform, for the period between 2012 and 2017. Logistic regression analysis is used to test the hypotheses proposed. Results confirm the high explanatory capacity of determinants related to the geographical scope of the campaign, the volume of potential beneficiaries involved -in these two cases in unexpected ways-, and the information provided by the promoting organizations. However, factors related to the timing of the campaigns do not influence their success. This research suggests that not only the funding channels and tools but also the nature of the fundraising campaigns themselves have been digitally transformed. Implications of this research may assist SEO in establishing effective relationships with new digital donors in order to achieve sustainable growth.

The Influence of Signals on Donation Crowdfunding Campaign Success during COVID-19 Crisis

“…Previous studies about crowdfunding campaigns before the COVID-19 pandemic mainly focused on (1) the success factors of offline social causes campaigns in relation to where, whom, how, and when [ 19 ], (2) whether project’s goal and subject, geography, duration, number of backers and amount funded are successful determinants [ 73 ], (3) discussing crowdfunding performance with campaigns, crowd funders, crowdfunding platforms, and fund-seeker-related factors [ 74 ], (4) investigating the effects of backer endorsement and creator credibility on the success to crowdfunding campaigns [ 9 ], (5) exploring pledgers’ motivations such as funding duration, target amount, and word, video, and image counts [ 75 ], (6) the relationship between project funding and duration, and fundraising success [ 76 ], and (7) identifying the key drivers of a successful crowdfunding campaign through a machine learning approach [ 77 ]. As Briggs et al [ 78 ] mentioned that during COVID-19, the general public firmly kept a solid attachment to the pre-lockdown normality, but this “event” had changed and stimulated a social change to a more fundamental change.…”

“…Our study complements existing research on DbC’s success determinants before the pandemic crisis. As the number of DbC studies increase [ 9 , 10 , 18 , 19 , 20 , 21 ], it is vital to have better conceptual models through which scholars can interpret and provide definite success factors. This study proposed a model and explained some contextual similarities and differences that negate the generic factors for successful crowdfunding campaigns to create better DbC campaigns strategies to induce potential donors to donate, especially during a health crisis.…”

“…In addition, there is little research on the signaling strategies of DbC campaigns during a natural disaster. Most previous studies about DbC campaigns are done before the COVID-19 pandemic [ 9 , 10 , 18 , 19 , 20 , 21 ].…”

Crowdfunding para el rescate de microempresas. Factores y percepciones de inversionistas potenciales en México

“…De acuerdo con Salido et al (2019), la mayoría de los modelos de CF están basados en el concepto de equity o inversión de capital, es decir, una recompensa económica que puede significar participación en la propiedad del proyecto. Sin embargo, existe un creciente interés en algunos segmentos de la población por apoyar causas sin fines de lucro.…”

Fundamental Principles of the Institutionalization of a Digital Economy in the Contemporary Russian Society

“…Veselovsky, Izmailova, Yunusov, Pradhan, Kassen, Colangelo, Eferin [8,9,10,11,12] studied theoretical and applied aspects of the quality of digital transformation management on the way to the development of the innovative Russian economy. The studies of Mustafa, Ansong, Salido-Andres [13,14,16] are also important in the research of the focused issues. The researchers studied methods of survival in the Digital Age in terms of developing business models of digital enterprises in developing economics (DE).…”