The Science of Philanthropy in
Crowdfunding
René Bekkers
Philanthropic Studies
VU University Amsterdam
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
30
x 10.000
1965
Philanthropic Studies
60
140
50
120
100
40
80
60
20
40
10
20
0
0
Number of publications per year on philanthropy in various disciplines
(empirical studies on determinants of giving, 1899-2005)
May 27, 2014
3
Why do people give?
People give more (often) when
1. There is a clear need
2. They are being asked
3. Costs are lower, and benefits are higher
4. They care about the recipients
5. They receive social benefits
6. They receive psychological benefits
7. The cause matches their values
8. Donations are perceived to be efficient
need
solicitation
costs/benefits
altruism
reputation
self-rewards
values
efficacy
Source: Bekkers, R. & Wiepking, P. (2011). ‘A Literature Review of Empirical Studies of
Philanthropy: Eight Mechanisms that Drive Charitable Giving’. Nonprofit and Voluntary Sector
Quarterly, 40(5): 924-973. Available at www.understandingphilanthropy.com
Why do people give?
HERE IS THE CROWD
People give more (often) when
1. There is a clear need
2. They are being asked
3. Costs are lower, and benefits are higher
4. They care about the recipients
5. They receive social benefits
6. They receive psychological benefits
7. The cause matches their values
8. Donations are perceived to be efficient
AND HERE
need
solicitation
costs/benefits
altruism
reputation
self-rewards
values
efficacy
Giving in the Netherlands 2011
Amounts donated in € million
5
Households
294
498
Corporations
1829
539
Bequests
Lotteries
Foundations
1378
Crowdfunding
Source: Schuyt, T., Gouwenberg, B.M. & Bekkers, R. (2013).
Geven in Nederland 2013. Amsterdam: Reed Business.
What works in crowdfunding?
• Raising funds online for specific projects
shares important commonalities with
offline fundraising.
• What makes people give online is similar to
what makes them give offline.
• Philanthropic crowdfunding also benefits
from offline work to create the buzz.
Social influence
• Knowing that others are giving…
Creates a feeling of belonging.
Creates a social norm: it is good to give.
Creates trustworthiness: others trust this.
• Letting others know you are giving…
Gives you / maintains a reputation.
Creates an obligation – sparks reciprocity.
% donating
Who’s watching?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
7
19
74
17
18
24
18
60
61
base
donated 0
donated 5
donated 10
9
The power of suggestion
Ten Trends in Philanthropy
Events
Bequests
Less loyalty
Local causes
Mega-donors
Crowding-out
Declining confidence
Corporate volunteering
Transparancy and Impact
DIY Philanthropy with crowdfunding
Giving to ‘Voor de Kunst’ projects
• We analyzed donations to projects advertised
on ‘Voor de Kunst’ (Jan-June 13) per day.
• We selected 5 successful and 5 unsuccessful
projects.
• Social media activity: (#tweets and #facebook
updates)
• Individual donations are aggregated per day.
• Initiators were interviewed to identify the type
of relationship with each donor.
• PRELIMINARY RESULTS…
Cases
Failed projects
Een wereld vol
licht
It’s not easy to be a
borderliner
Arthur en de strijd
om Camelot
Het liep voorbij
Sean Bergin
Success rate
Succesful
projects
Success rate
5%
Bongomatik
100%
15%
Ctr+N
102%
22%
Wladiwostok
103%
80%
Corso Zundert
108%
81%
De Tostifabriek
125%
Number of donations per day
40
35
30
25
20
15
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
Amount donated per day
250
200
150
100
50
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
Amount donated by tie strength
250
200
206
150
100
67
59
62
WEAK
LATENT
50
0
SELF
STRONG
Tie strength per day
100%
90%
80%
70%
60%
LATENT
50%
WEAK
40%
STRONG
30%
SELF
20%
10%
0%
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
Tie strength per day
100%
90%
80%
70%
60%
50%
WEAK
40%
STRONG
30%
3 day
moving
average
20%
10%
0%
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
Amount donated per day
by social media use
70
60
61
58
48
50
40
30
20
10
0
Facebook
Project updates
Twitter
Social media activity
20
18
16
14
12
FB
10
updates
8
Tweets
6
4
2
0
1 3 5 7 9 11 13 15 17 19 21 23 25 2729 31 33 35 37 39 41 43454749
Tweets and donations
40
35
30
25
Tweets
20
#donations
15
10
5
0
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
Deviations from the average
3,0
2,5
2,0
Tweets
1,5
#donations
amount
1,0
0,5
0,0
1
4
7 10 13 16 19 22 25 28 31 34 37 40 43 46 49
Deviations from the average
3,0
2,5
2,0
1,5
1,0
0,5
0,0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
Tweets
amount
Open questions
•
•
•
•
Timing
Contents
Reach
Directed
Contact
• ‘Geven in Nederland’, Filantropische
studies, Faculteit Sociale Wetenschappen,
Vrije Universiteit Amsterdam:
www.geveninnederland.nl
• René Bekkers, r.bekkers@vu.nl
• Blog: renebekkers.wordpress.com
• Twitter: @renebekkers