The future of digital donation crowdfunding

Abstract

Amidst the Coronavirus crisis, many fundraising projects have emerged to relieve financial burdens resulting from social distancing policies. Crowdfunding is a way to raise money to fund a business, project or charity, through either social media or other online platforms to reach hundreds of potential sponsors. We developed guidelines for effective donation-based crowdfunding through online platforms. Using Futures Research (FR) technique, we conducted our analyses in 3 phases. In Phase 1, we reviewed relevant literature and conducted in-depth interviews of related parties. In Phase 2, we interviewed experts using Ethnographic Futures Research (EFR) technique. In Phase 3, we visualized the future using the principles of Futures Wheel, Cross-impact Matrix and Scenarios. Based on our findings, effective donation-based crowdfunding platforms should adopt Blockchain technology for transparency and accountability, and incentivize donations to keep backers loyal. Founders should be required to obtain fundraising licenses from relevant regulators. Finally, laws and regulations that protect platform users should be standardized internationally. Our proposed guidelines hope to improve the quality and transparency of future fundraising activities.

Understanding Crowdfunding via Social Media: A Review of the Relevancy of Previous Studies

“…Eisenbeiss et al (2023) specifically focuses on equity crowdfunding and examines the influence of social media marketing on crowd participation. Sirisawat et al (2022) discuss the future of digital donation crowdfunding, emphasizing its potential during crises such as the COVID-19 pandemic. Teixeira and Jorge (2021) map the use of crowdfunding platforms and social media in the financing strategies of alternative media.…”

The Impact of Quality Signals on the Performance of COVID-19 Related Crowdfunding

“…Reducing or waiving fees also does not influence campaign performance even though this approach has been used by platforms to stimulate the usage of those platforms. Sirisawat et al (2022) discovered that, in the eyes of donors, their level of satisfaction when contributing funds holds greater significance than the fees imposed by the platforms. Furthermore, these donors may, to some extent, convert from a free platform to becoming a premium user who pays fees if they are content with the outcomes of their previous donations.…”

Regulatory Evolution: Addressing Challenges and Enhancing Legal Certainty in Indonesian Donation-Based Crowdfunding Services

“…To create regulations that provide legal certainty and fairness in DBC services in Indonesia, it is necessary to evolve regulations in line with the development of DBC services and address the various challenges it faces. An established DBC regulation is crucial because regulation is one of the elements in the crowdfunding ecosystem that can ensure safety and fairness for all other stakeholders, such as website providers, backers, founders, and traditional capital markets (Sirisawat et al, 2022). Unstable regulations can prevent creators and supporters from participating in the implementation of DBC services (Noonan, 2021).…”