Paper Number

1975

Paper Type

Complete

Description

Crowdfunding platforms enable individuals or groups to appeal to the public to support a variety of ventures or campaigns. Whilst the majority of campaigns raise funds for private causes, some of the issues for which help is being sought have arisen as a direct consequence of world events and crises. Nevertheless, the research on charitable crowdfunding has largely ignored this connection. We use the COVID-19 pandemic, and related public health policies, to explore the impact of the global crisis on donation behavior on the donation-based crowdfunding platform GoFundMe. By using a quasi-experimental research design, we find that after the introduction of stay-at-home orders, campaigns in U.S. states with such measures experienced a significant decline in the number of donors and amounts donated, which is more pronounced for crisis-related than for non-crisis-related campaigns. Our findings contribute to the literature by providing novel insights on crowdfunding behaviors in times of societal crisis.

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05-SocImpact

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Dec 12th, 12:00 AM

Tackling Crises Together? – An Econometric Analysis of Charitable Crowdfunding During the COVID-19 Pandemic

Crowdfunding platforms enable individuals or groups to appeal to the public to support a variety of ventures or campaigns. Whilst the majority of campaigns raise funds for private causes, some of the issues for which help is being sought have arisen as a direct consequence of world events and crises. Nevertheless, the research on charitable crowdfunding has largely ignored this connection. We use the COVID-19 pandemic, and related public health policies, to explore the impact of the global crisis on donation behavior on the donation-based crowdfunding platform GoFundMe. By using a quasi-experimental research design, we find that after the introduction of stay-at-home orders, campaigns in U.S. states with such measures experienced a significant decline in the number of donors and amounts donated, which is more pronounced for crisis-related than for non-crisis-related campaigns. Our findings contribute to the literature by providing novel insights on crowdfunding behaviors in times of societal crisis.

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