Crowdfunding as a Financing Tool for NGO Projects. An Analysis of Motivational Factors for Contribution

Table of Contents

• 1. Introduction
• 2. Crowdfunding for German NGOs
• 2.1 From Classical Fundraising to Crowdfunding
• 2.2 Features, Advantages and Limitations
• 2.3 A Comparison of German Crowdfunding Platforms
• 2.3.1 Betterplace.org
• 2.3.2 Helpdirect.org
• 2.3.4 Ammado.com
• 3. Classification of Donors
• 3.1 The Donor Pyramid
• 3.2 Donor Segmentation
• 3.3 German Donor Statistics and Developments
• 4. Motives for Donating to Crowdfunding Projects
• 4.1 Motivational Theory
• 4.2 General Motives for Charitable Giving
• 4.2.1 Socially-oriented Motives
• 4.2.2 Identity-oriented Motives
• 4.2.3 Development-oriented Motives
• 4.2.4 Morally-oriented Motives
• 4.3 The Motives' Relevance for Crowdfunding
• 5. Creating Incentives for Contribution to a Crowdfunding Campaign
• 5.1 Influencing Donor Behavior
• 5.1.1 Commitment
• 5.1.2 Reciprocity
• 5.1.3 Social Comparison
• 5.1.4 Tangible Incentives
• 5.2 Incentives in Applications and Features
• 5.2.1 The Community of Funders and the Meaning of Social Media
• 5.2.2 The Fun Factor: Gamification
• 5.2.3 The Democracy in Crowdfunding
• 5.3 Incentives in Content
• 5.3.1 Storytelling
• 5.3.2 Credibility and Transparency
• 5.3.3 Updates and Further Contact

Objectives and Key Themes

This thesis aims to analyze how web-based crowdfunding projects should be designed and presented to effectively attract and retain donors for charitable causes. The focus is on the initial stages of the funding process, exploring strategies to convince potential contributors to support crowdfunding campaigns sustainably. The study exclusively examines donation-based crowdfunding for non-profit organizations.

• The evolution of fundraising from traditional methods to online crowdfunding.
• An analysis of donor motivations and classifications, including the donor pyramid and segmentation.
• An examination of various crowdfunding platforms in Germany and their features.
• The role of incentives in influencing donor behavior and fostering long-term engagement.
• Strategies for creating compelling project content and utilizing platform features to maximize contributions.

Chapter Summaries

1. Introduction: This introductory chapter sets the stage by highlighting the transformative impact of the internet on fundraising. It emphasizes the shift towards online participation and the rise of crowdfunding platforms as tools for both for-profit and non-profit organizations. The chapter introduces the central research question: how to design and present crowdfunding projects to effectively engage potential donors. The study's limitations, focusing solely on donation-based crowdfunding for charitable purposes, are also clearly stated. The chapter concludes by outlining the structure and methodology of the thesis, emphasizing the need to understand both the fundraisers' and funders' perspectives.

2. Crowdfunding for German NGOs: This chapter provides a comprehensive overview of crowdfunding within the context of German NGOs. It begins by distinguishing "fundraising" from simple fund collection, emphasizing the broader resource acquisition involved. It then introduces the concept of crowdfunding, contrasting it with traditional fundraising methods and exploring the advantages and limitations of this approach. A comparative analysis of various German crowdfunding platforms, such as Betterplace.org and Helpdirect.org, highlights the diverse tools and features available to both fundraisers and donors. This section critically evaluates the platform landscape, setting the stage for a deeper investigation into donor behavior and effective fundraising strategies.

3. Classification of Donors: This chapter delves into the classification of donors, examining frameworks such as the donor pyramid and donor segmentation. It explores the different types of donors and their characteristics, providing a deeper understanding of who contributes to charitable causes and their motivations. It also investigates German donor statistics and trends to build a comprehensive context of the donation landscape in Germany. By understanding the various donor profiles, the chapter paves the way for more targeted and effective fundraising strategies within the crowdfunding context.

4. Motives for Donating to Crowdfunding Projects: This chapter explores the psychological and social motivations behind charitable giving. It draws upon motivational theory to explain the decision-making process involved in donating and explores the different types of motives, such as socially-oriented, identity-oriented, development-oriented, and morally-oriented motives. The chapter connects these general motivations for charitable giving to the specific context of crowdfunding, examining how these factors influence the decision to donate online. This is crucial for understanding how to create compelling crowdfunding campaigns.

5. Creating Incentives for Contribution to a Crowdfunding Campaign: This chapter focuses on the practical application of understanding donor motivations, delving into how fundraisers can actively influence donor behavior. It explores various strategies, including leveraging commitment, reciprocity, social comparison, and tangible incentives to encourage contributions. It also examines the role of platform features such as community building via social media, gamification, and the democratic nature of crowdfunding. The chapter further emphasizes the importance of compelling content, including storytelling, transparency, and regular updates to build trust and maintain donor engagement.

Keywords

Crowdfunding, NGO, Non-profit, Fundraising, Donor Motivation, Charitable Giving, Online Philanthropy, German Crowdfunding Platforms, Incentives, Donor Behavior, Social Media, Gamification, Storytelling, Transparency.

FAQ: Comprehensive Language Preview on Crowdfunding for German NGOs

What is the main focus of this research?

This research analyzes how web-based crowdfunding projects should be designed and presented to effectively attract and retain donors for charitable causes, specifically focusing on donation-based crowdfunding for non-profit organizations (NGOs) in Germany.

What are the key themes explored in this document?

Key themes include the evolution of fundraising from traditional methods to online crowdfunding; an analysis of donor motivations and classifications (donor pyramid and segmentation); an examination of German crowdfunding platforms (Betterplace.org, Helpdirect.org, Ammado.com); the role of incentives in influencing donor behavior and fostering long-term engagement; and strategies for creating compelling project content and utilizing platform features to maximize contributions.

What is covered in the "Crowdfunding for German NGOs" chapter?

This chapter provides an overview of crowdfunding in the context of German NGOs. It differentiates fundraising from simple fund collection, introduces crowdfunding, contrasts it with traditional methods, explores its advantages and limitations, and compares various German crowdfunding platforms, critically evaluating the platform landscape.

How are donors classified in this research?

The research explores donor classification frameworks like the donor pyramid and donor segmentation, examining different donor types and characteristics, and analyzing German donor statistics and trends to understand the donation landscape in Germany. This allows for more targeted fundraising strategies.

What motivates donors to contribute to crowdfunding projects?

The research explores psychological and social motivations behind charitable giving, drawing upon motivational theory. It examines various motives (socially-oriented, identity-oriented, development-oriented, morally-oriented) and connects these to the specific context of crowdfunding to understand how to create compelling campaigns.

What strategies are discussed for creating incentives in crowdfunding campaigns?

The research discusses strategies to influence donor behavior using commitment, reciprocity, social comparison, and tangible incentives. It also examines the role of platform features (community building, gamification, democratic nature of crowdfunding) and compelling content (storytelling, transparency, regular updates) to maximize contributions.

What are the key takeaways from each chapter?

The document provides summaries for each chapter, outlining the key findings and contributions of each section to the overall research. Chapter 1 provides an introduction and outlines the research question and methodology. Chapter 2 focuses on the landscape of crowdfunding in Germany. Chapter 3 analyzes donor classifications. Chapter 4 investigates donor motivations, and Chapter 5 explores strategies for creating effective incentives within crowdfunding campaigns.

What are the key words associated with this research?

Key words include Crowdfunding, NGO, Non-profit, Fundraising, Donor Motivation, Charitable Giving, Online Philanthropy, German Crowdfunding Platforms, Incentives, Donor Behavior, Social Media, Gamification, Storytelling, Transparency.

What is the overall objective of this thesis?

The thesis aims to analyze how web-based crowdfunding projects should be designed and presented to effectively attract and retain donors for charitable causes, focusing on the initial stages of the funding process and strategies for sustainable support.

What types of crowdfunding are included in this study?

The study exclusively examines donation-based crowdfunding for non-profit organizations.