Civic Crowdfunding in Local Governments: Variables for Success in the Netherlands?

Montfort, Kees van; Siebers, Vinitha; Graaf, Frank Jan de

doi:10.3390/jrfm14010008

Cited by 15 publications

(13 citation statements)

References 28 publications

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“…In this sense, the current literature, although limited in scope so far, provides overall positive outcomes when it comes to investing private or public funds to complete positively evaluated crowdfunding calls. In a recent study, Van Montfort et al (2021) found that civic crowdfunding projects matched with extra funds by local governments does increase the chances of success.…”

Section: Types Of Matchfunding and The Incentive Mechanismmentioning

confidence: 99%

“…The literature on the matchfunding model via crowdfunding platforms is still in its infancy. Recent studies demonstrate that partnering with governments or other external funds tends to increase the success of crowdfunding calls (Montfort, Siebers and De Graaf, 2021). NESTA previously implemented a famous pilot study based on the platform Crowdfunder, whose results demonstrate how matchfunding calls are more likely to succeed compared to non-matchfunding calls within the crowdfunding system (Baeck et al, 2017).…”

Section: Types Of Matchfunding and The Incentive Mechanismmentioning

confidence: 99%

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Matchfunding goes digital: The benefits of matching policymaking with the crowd’s wisdom

Chiesa

Alexopoulou

2022

Eur. j. cult. manag. policy

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Markets and governments have been increasingly intertwined when it comes to funding for the arts. This is the case with matchfunding schemes in which governments explore the crowd’s validation by providing funds to successful cultural projects. By matching public funds with the “crowd”, four parties benefit from this process: the artists, the platform, the donors, and the public institutions. Artists benefit from accessing more funds and credibility signals for their projects; the platform benefits from enlarging the scope of funds given to artists; donors benefit from increasing the likelihood of project success; and public institutions benefit from granting part of the decision-making process on cultural budget to the crowd and cutting expenses on project management. This article conceptually explores the benefits, consequences, and the constraints of matchfunding mechanisms for policymaking. We argue that while matchfunding brings benefactors closer to policymaking and governments closer to novel funding models through online means, it also reduces the role of governments in elaborating cultural policy. It is vital to ponder the benefits and hindrances of this model given that matchfunding can potentially shift the structure of policymaking for the arts and culture.

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Section: Types Of Matchfunding and The Incentive Mechanismmentioning

confidence: 99%

Section: Types Of Matchfunding and The Incentive Mechanismmentioning

confidence: 99%

Matchfunding goes digital: The benefits of matching policymaking with the crowd’s wisdom

Chiesa

Alexopoulou

2022

Eur. j. cult. manag. policy

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“…Crowdfunding is viewed as a prospective fundraising method, as a smaller amount of money is collected from a larger number of people (Van Montfort et al., 2021). Crowdfunding takes many forms like, equity crowdfunding, debt crowdfunding, reward based crowdfunding and donation crowdfunding.…”

Section: Literature Reviewmentioning

confidence: 99%

Bias‐driven marketing that instigates pledging to a crowdfunding campaign: An experimental consideration of behavioral anomalies

Theerthaana¹,

Arun²

2022

Int J Consumer Studies

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Bias‐driven marketing leverages the behavioral biases of investors for greater marketing gains. To transform cognitively biased individuals from antagonists into allies, the marketers need to decipher the critical crowdfunding attributes, which ultimately motivate behaviorally biased crowdfunders to invest in crowdfunding campaigns. Hence, this study seeks to investigate the influential factors concerning four behavioral biases that accelerate crowdfunding adoption. A conceptual model, parameterized using conjoint analysis, is developed and administered in an agent‐based behavior model to effectively determine the influential crowdfunding attributes, which will induce the biased investors to adopt crowdfunding. The results revealed that status quo biased individuals adopted the crowdfunding campaign when launched by well‐known and reputed fund raisers. Whereas, hyperbolic discounting bias accelerated the adoption when the campaign reached more than 75% of subscription and duration was lesser than 30 days. The results also indicated that framing bias enhanced the adoption when the risk inherent in the project is disclosed. Finally, the results also claimed that individuals liable to loss aversion bias expected a known funder, who posts frequent updates and preferred the All‐or‐Nothing crowdfunding model. The experimental results of the study provide insights to the marketers that crowdfunding campaigns can be successfully strategized through the exploration of underlying cognitive biases and the corresponding motivational cues that accentuate the pledging behavior of the funders. Given the importance of an effective marketing strategy in crowdfunding adoption, this study offers one such recommendation to the crowdfunding campaigners by demonstrating how bias driven marketing strategy enhances the adoption rate of the campaigns. With the strong pieces of evidence obtained from this study, it is anticipated that behavioral biases, drawn from the neuromarketing theory, will no longer be viewed as cognitive errors from the investor's perspective. Rather, it will be viewed as a boon from the marketer's perspective as the bias‐based marketing strategies have the potential to achieve a fully subscribed crowdfunding campaign.

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“…In addition to the registered status of the NPOs, the literature on charitable giving provides evidence that tax-deduction on eligible donations also reflects legitimacy and motivates people to donate (Auten et al 2002;Brown 1999;Morgan et al 1979). However, the literature on crowdfunding has not examined the impact of signals that incentivize donations for social causes (Van Montfort et al 2021). André et al (2017) study reciprocal giving from the perspective of theory by Mauss (1923) and show that reward-based crowdfunding projects that have an element of reciprocal giving are more successful than other campaigns.…”

Section: Signalling Legitimacymentioning

confidence: 99%

Legitimacy and Reciprocal Altruism in Donation-Based Crowdfunding: Evidence from India

Khurana

2021

JRFM

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The donation-based crowdfunding platforms witness a mix of different entities seeking funding for numerous campaigns, adding complexities in understanding the donor behavior and factors that motivate donation. This study builds upon the economic theory of charitable giving and examines the ethical dilemma that donors face during the selection process. Using the data from Ketto.org, the biggest crowdfunding platform in India, this paper investigates the rank-order preference of donors while making a selection across heterogeneous entities and campaigns. The results show that campaigns run by non-profit organizations registered with causes that qualify for a tax-deduction receive a higher level of funding. Donors then fund unregistered non-profit organizations, followed by campaigns run by individuals. Demonstrating legitimacy by using subtle cues, like tagging “with tax-benefit,” motivates the donors to provide a higher amount of funding.

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Civic Crowdfunding in Local Governments: Variables for Success in the Netherlands?

Cited by 15 publications

References 28 publications

Matchfunding goes digital: The benefits of matching policymaking with the crowd’s wisdom

Matchfunding goes digital: The benefits of matching policymaking with the crowd’s wisdom

Bias‐driven marketing that instigates pledging to a crowdfunding campaign: An experimental consideration of behavioral anomalies

Legitimacy and Reciprocal Altruism in Donation-Based Crowdfunding: Evidence from India

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