Civic crowdfunding: A new opportunity for local governments

Abstract

In civic crowdfunding, local communities are asked to financially contribute to projects aimed at the regeneration of an area. Usually a local government acts as a co-funder. This paper employs a fuzzy set qualitative comparative analysis to discover which conditions are combined and may result in the collection of a significant amount of funds. Five conditions were selected: the nature of project, the number of backers, the number of rewards, the percentage of backers that did not require a reward and the percentage of rewards not required during the fundraising campaign. The study used a sample of 40 Italian successful civic crowdfunding rounds sponsored and match-funded by a local government. The nature of the projects and the presence of rewards seem to emerge as critical influencing factors. These findings open up further investigations on the attitudes of civic backers towards rewards and on the charitable nature of civic fundraising.

COVID-19 crisis impact on the stability between parties in crowdfunding and crowdsourcing

“…In 2019, the average amount of donations amounted to $ 303.70, which is 26.5% more than in 2018 ($ 223.08) [32]. About 0.55% of all donors donate over $ 5000 (68.42%).…”

“…Donors make donations basing on a comfortable amount, which remains almost unchanged [32]. Thus, the need arises to retain the donor not by the incentive to higher donations, but by maintaining the amount on a steady level.…”

“…This paper is a systematic review that uses meta-analysis of empirical data from multiple studies to assess the effect size of incentives in crowdfunding. Because there is very little literature on the problem of crowdfunding during COVID-19, and most sources focus on finding medicines and morbidity statistics, this study relied on materials from DonorsChoose.org, a crowdfunding platform for education projects [32].…”

Analysis of the Crowdfunding European Market: Performance and Perspectives

“…Future research can try to develop a deep understanding of how it works is important for both academics and practitioners (Alegre and Moleskis, 2021). Furthermore, the above analysis identifies clear path in the current and next research on crowdfunding and other related main issue in management, in example due diligence (Cumming et al, 2019), sustainability (Böckel et al, 2021), local goverments and civic initiatives (De Crescenzo et al, 2021) and many others. Approximately 50% of the offerings CF successfully reach their target (Vismara, 2019).…”

Empirical Analysis of the Global Supply and Demand of Entrepreneurial Finance: A Random Utility Theory Perspective

“…Following the various fundraising instruments available in the global entrepreneurial finance market, scholars have developed largely separate streams of literature in business angel financing [18][19][20], venture capital financing [21,22], bank financing [23,24], private equity financing [25,26], lease financing [27,28], supplier financing [29,30] and more recently, crowdfunding [31,32] and initial coin offerings [33][34][35].…”