Donation-based crowdfunding as corporate social responsibility activities and financing

Abstract

Both corporate social responsibility (CSR) activities and donation-based crowdfunding have potential synergistic effects to generate funds, but fundraisers face competition and challenges to achieve their donation target. For instance, on the one hand, CSR initiatives may create the opportunity to generate funds through crowdfunding. On the other hand, crowdfunding can be used to micro fund many social activities in line with a company’s CSR goals. This study explores the relationship among successful donation fundraisers in crowdfunding activities that have the potential to become CSR activities. Specifically, the study examines the relationship of the value and size of funds raised in the beginning (first day) of fundraising effort with its target funds by the fundraiser and type of activities. Data from crowdfunding activities in Southeast Asian countries are used to examine the funds raised through donations by comparing trends, cultures, and characteristics of fundraisers using donation-based crowdfunding. The results of the study show that the value of funds raised in the beginning (first day) has a significant positive correlation with small targeted funds. Art, culture, and product-based activities of crowdfunding show the potential to have synergistic effects with CSR activities, and they tend to be correlated with successful project financing in Southeast Asia.