Donation-based crowdfunding as corporate social responsibility activities and financing

Abstract

Both corporate social responsibility (CSR) activities and donation-based crowdfunding have potential synergistic effects to generate funds, but fundraisers face competition and challenges to achieve their donation target. For instance, on the one hand, CSR initiatives may create the opportunity to generate funds through crowdfunding. On the other hand, crowdfunding can be used to micro fund many social activities in line with a company’s CSR goals. This study explores the relationship among successful donation fundraisers in crowdfunding activities that have the potential to become CSR activities. Specifically, the study examines the relationship of the value and size of funds raised in the beginning (first day) of fundraising effort with its target funds by the fundraiser and type of activities. Data from crowdfunding activities in Southeast Asian countries are used to examine the funds raised through donations by comparing trends, cultures, and characteristics of fundraisers using donation-based crowdfunding. The results of the study show that the value of funds raised in the beginning (first day) has a significant positive correlation with small targeted funds. Art, culture, and product-based activities of crowdfunding show the potential to have synergistic effects with CSR activities, and they tend to be correlated with successful project financing in Southeast Asia.

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

“…First, many scholars examined the determinants of crowdfunding success for equity-based crowdfunding [ 14 , 18 , 56 , 83 ] and reward-based crowdfunding [ 23 , 55 ], but little attention has been given to DbC in both conceptual work and empirical evidence. Second, there is a lack of underlying theories and theoretical models in the current DbC literature [ 9 , 84 ]. In addition, the majority of studies on the critical antecedents of success focus on equity-based and reward-based crowdfunding campaigns, leaving the DbC study underdeveloped [ 20 ].…”

Donor's Intention on the Crowdfundingamong University Students: An Extension of the Theory of Planned Behaviour

“…So, it can be concluded that the essence of donation-based crowdfunding is broad fundraising from the community consisting of individuals, organizations, or companies in the scope of small and medium-sized businesses for certain purposes, including social, health, education, creative industries that are voluntary. Donation-based crowdfunding is perhaps best known for facilitating a social project that is more profitable and more valuable than others (Rijanto, 2018). According to Gleasure & Feller (2016), the concept of this crowdfunding focused more on funding social projects and microfinance in helping the most vulnerable people in developing countries.…”

Social Infrastructure Needs: Financing Through Digital Platform

“…Nuisances in current financing options impel us to explore alternative financing options for social infrastructure which leads towardscrowdfunding which is pooling of funds from group of investors through a digital platform for a specific project, business venture or social cause.If thefunds are raised towards social, artistic or other philanthropic purpose, mostly on a fin-tech platform through microfinancing, donations and social activities without in exchange for anything of financial value; it is recognised as donation-based CF[15], [16]; however, concept of volunteering is also evolving with time and in Indian context Seva (unpaid selfless service like in Gurudwara) is a perfect example of it where anyone can go and contribute.The concept of mobilizing funding in small pieces is old and can be found in every incorporation [17]; CF is not a novel idea itself as for long time donations to temples, schools, food charity to election CF have existed in India.Crowdfunding can be grouped as 'crowdfunding' (donation and reward models) and 'crowdfunding investing' (equity, debt and royalty models) [18]. [19] analysed factors of appropriate technology which brings social innovation and results in developing local and cultural environment, and found that CF can finance sustainable projects.…”

“…Another important factor is participation in movement and feeling of making a difference. Donors tend to give recurring donations if they are regularly informed about project progress; they get an opportunity to solve local issues with priority and efficiency, to help, seek satisfaction and appreciation and are benefitted with better amenities and improved quality of life.Other potential donors include companies which can endorse fundraising campaigns in their CSR initiatives, and utilize it for brand visibility, awareness creation, community involvement, and social recognition which not only improve sales performance but aids in fundraising for CSR [16] and NRIs who have money and intention to help both but channels to route that money to specific projects conveniently is not explored.…”

“…Loyalty points can be issued to donors and after certain number of points a token of respect or acknowledgement can be issued or for specific infrastructure donation, name can be put as we have seen in case of Rotterdam bridge or in temples. Online recognition for a small donation and/or gets a personalized gift or publicized recognition for large donations can be desirable [16].…”