Let’s Get Together and Make A Difference: Experiencing A Community In Donation-Based Crowdfunding

Social-causes campaigns are the largest category in crowdfunding and donation-raising campaigns hold a big portion of this category (www.statista.com). However, most of the research in crowdfunding focused on equity-based crowdfunding and very little research has focused on donation-based crowdfunding. While there is a common assumption that virtual communities benefit equity-based crowdfunding campaigns (Belleflamme, Lambert, & Schwienacher, 2013; Colombo, Franzoni, & Rossi-Lamastra, 2015; Kraut et al., 2012), this assumption has not been tested in donation-based crowdfunding. The potential effect of community in such campaigns is interesting given past findings on prosocial behavior in the context of others. Past studies have suggested that the existence of others promotes prosocial behavior (Fischbacher, Gachter, & Fehr, 2001; Frey & Meier, 2004; Van Bommel et al., 2012; Garcia et al., 2009; Levine et al., 2002) while other studies have shown that the existence of others may hinder prosocial behavior (Darley & Latane, 1968; Fischer et al., 2011; Garcia et al., 2002). In light of these contradicting findings, it is important to explore how emphasizing the existence of a community in donation-based crowdfunding campaigns influences prospective donors. This research shows that when prospective donors’ experience the existence of a community in such campaigns it substantially impacts the campaigns’ bottom line. As humans we have a fundamental need to connect with others and belong to a group (Alderfer 1972; Baumeister & Leary 1995; Maslow 1943; McClelland 1987; Ryan & Deci 2000), this research shows that when experiencing the existence of such communities, even when donors are strangers to each other, this need is activated and influences donation-giving. Furthermore, the need to connect with others is heightened when concerned with social exclusion, but weakened when feeling socially secured (Maner et al. 2007). In doing so, this research demonstrates how subtle cues in the campaign webpage can induce the perception of a community, activating the psychological need to connect with others to influence online donations.