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Crowdfunding opened up new opportunities for nonprofits to mobilize resources in the increasingly competitive world. Systematic knowledge regarding key factors linked with funding outcome is lacking, making it hard to offer practical suggestions to help nonprofits launch successful crowdfunding campaigns. In this study, we looked at 109 grassroots nonprofit campaigns on Tencent Philanthropy, one of China’s largest nonprofit crowdfunding platforms. We investigated to what extent demonstration of legitimacy, arguments for worthiness and social network influence campaign outcome. Results show that Chinese donors do not care much about the organization’s legal status or accountability measures. Demonstration of organizational competence, the use of concrete personal stories in the pledge, and to offer low-risk solutions (such as direct cash and in-kind assistance) are linked with campaign success. Comparing with the pledger’s own social network and marketing capacity, viral network and viral marketing are more important in crowdfunding.
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations – Springer Journals
Published: Jun 4, 2018
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