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2023 | OriginalPaper | Chapter

9. Collaboration or Community? The Impact of the Institutional Forces in Promoting Social Crowdfunding

Authors : Antonio Minguzzi, Michele Modina, Stefano Filomeni, Marilena Bredice

Published in: Contemporary Issues in Sustainable Finance

Publisher: Springer International Publishing

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Abstract

Our paper explores whether social crowdfunding triggers the success of social projects by focusing on the role of the Italian platform Meridonare. By examining 140 projects between 2016 and 2018, our study analyzes how the platform acts in facilitating the interaction between non-profit organizations and private investors willing to participate in the financing of social projects. Our results support the relevant role a social crowdfunding platform has on the success of a campaign. The involvement of the population through actions that leverage the human-touch relationship, and the social nature of the project increases the propensity to achieve the funding objectives.

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Footnotes
1
Crowdfunding could be classified into two macro-areas: donation crowdfunding and investing crowdfunding (Belleflamme et al., 2010). The first one encompasses the donation-based model, i.e., charity online fundraising campaign from companies structured as a non-profit organization; the second, instead, can be distinguished in active and passive investing crowdfunding. Passive investing crowdfunding encloses the lending-based and reward-based models, which differ from each other for the type of return provided to the investors, both of them, however, do not offer any possibilities for investors to become actively involved in the initiative. Active investing crowdfunding defines the equity-based model, that could be easily named crowd investing, and offers investors the opportunity to be actively involved in the initiative, in addition to offering rewards to them. This allows the investor base to actively contribute to covering the financial needs of small entrepreneurial ventures (Schwienbacher & Larralde, 2010).
 
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Metadata
Title
Collaboration or Community? The Impact of the Institutional Forces in Promoting Social Crowdfunding
Authors
Antonio Minguzzi
Michele Modina
Stefano Filomeni
Marilena Bredice
Copyright Year
2023
Book
Contemporary Issues in Sustainable Finance

Print ISBN: 978-3-031-22538-3

Electronic ISBN: 978-3-031-22539-0

Copyright Year: 2023

DOI
https://doi.org/10.1007/978-3-031-22539-0_9