Societal Impacts of IS

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Paper Number

1082

Paper Type

short

Description

For issues receiving heightened media attention (e.g., natural disasters or social movements), charitable crowdfunding platforms offer an easy way of generating donations. However, since media attention is typically short-lived, little is known about the long-term impact of temporary attention spikes on donation behavior for different types of crowdfunding campaigns. To address this gap, we examine how the Black Lives Matter movement and the associated media attention after the death of George Floyd have influenced fundraising behavior for campaigns supporting the black community. By applying a differences-in-differences approach on a dataset from GoFundMe, we find that campaigns with a smaller funding goal only see an increase in donations for about one month, compared with over four months for campaigns with a larger funding goal. If charitable crowdfunding platforms aim to help smaller campaigns, they need to signpost donors to such campaigns well beyond the temporal spike in the associated media attention.

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Dec 12th, 12:00 AM

Moment or Movement – An Empirical Analysis of the Heterogeneous Impact of Media Attention on Charitable Crowdfunding Campaigns

For issues receiving heightened media attention (e.g., natural disasters or social movements), charitable crowdfunding platforms offer an easy way of generating donations. However, since media attention is typically short-lived, little is known about the long-term impact of temporary attention spikes on donation behavior for different types of crowdfunding campaigns. To address this gap, we examine how the Black Lives Matter movement and the associated media attention after the death of George Floyd have influenced fundraising behavior for campaigns supporting the black community. By applying a differences-in-differences approach on a dataset from GoFundMe, we find that campaigns with a smaller funding goal only see an increase in donations for about one month, compared with over four months for campaigns with a larger funding goal. If charitable crowdfunding platforms aim to help smaller campaigns, they need to signpost donors to such campaigns well beyond the temporal spike in the associated media attention.

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