Donation crowdfunding as a source of relief for small businesses

Abstract

Purpose: The purpose of this chapter is to examine advantages and limitations of donation crowdfunding as away of providing relief for small businesses and assessing its potential development in that field in the post-pandemic future. Design/methodology/approach: The chapter is based on critical literature analysis, supported by empirical examples for illustrative purposes. Findings: Donation crowdfunding can be aviable way of providing relief to small companies during the times of crisis, by positioning companies as beneficiaries of charitable endeavors carried out by consumers. Practical implications: Companies ability to trigger altruistic responses in their consumers is an important information in times of crises. Moreover, the information serves as an additional argument for building meaningful relationships with consumers and establishing locally embedded or virtual communities, which make securing relief through donation crowdfunding easier. Originality and value: The subject of using donation crowdfunding by companies to secure relief funds has seen very limited elaboration in the current literature.