{"id":1701,"date":"2019-08-28T18:30:51","date_gmt":"2019-08-28T18:30:51","guid":{"rendered":"https:\/\/www.grantnews.com\/?p=1199"},"modified":"2022-11-23T09:01:14","modified_gmt":"2022-11-23T14:01:14","slug":"online-giving-to-friends-and-family-is-the-most-popular-type-of-crowdfunding-donation","status":"publish","type":"post","link":"https:\/\/www.grantwatch.com\/grantnews\/online-giving-to-friends-and-family-is-the-most-popular-type-of-crowdfunding-donation\/","title":{"rendered":"Online Giving To Friends And Family Is the Most Popular Type of Crowdfunding Donation"},"content":{"rendered":"\n<p>By Aaron Smith<\/p>\n\n\n\n<p>High-tech inventions&nbsp;tend to dominate news stories about crowdfunding, as well as the \u201cmost-funded projects\u201d lists on many of these platforms. But Americans who use these sites are especially likely to say that they have donated to a project geared toward helping someone in need, most specifically friends or family. Some 68% of crowdfunding users report having contributed to a project to help an individual facing some sort of hardship or financial challenge, according to a&nbsp;<a href=\"https:\/\/www.pewinternet.org\/2016\/05\/19\/collaborative-crowdfunding-platforms\/\u00a0\" target=\"_blank\" rel=\"noreferrer noopener\">Pew Report<\/a>&nbsp;on Internet and Technology. Overall it has become pretty clear that online giving to friends and family is the most popular type of crowdfunding donation currently given and doesn&#8217;t seem to be changing anytime soon.<\/p>\n\n\n\n<p>Among those who have\ncontributed to this type of online project to help someone in need, 63% say\nthey have given to help a friend of a friend or an acquaintance, while 62% have\ncontributed to help a close friend or family member. By contrast, just 7% of\nthese donors have given to a campaign to assist a public figure, while 28% have\ngiven to help someone who was not a public figure, but whom they did not know\npersonally.<\/p>\n\n\n\n<p>Projects to help someone\nin need are an especially widespread use of crowdfunding platforms, but\ncontributions to other types of projects are relatively common as well. The\nsurvey asked about several other types of projects and found that:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>34% of crowdfunding donors have contributed to a\n     project to fund a new product or invention.<\/li><li>32% have contributed to a project for a school.<\/li><li>30% have contributed to a project for a musician or\n     other creative artist.<\/li><li>10% have contributed to a project for a new restaurant\n     or another type of business.<\/li><\/ul>\n\n\n\n<p>In addition to being the most popular type of donation in general, projects to help a person in need hold the widest appeal for frequent and infrequent donors alike. Some 68% of both casual donors (those who have contributed to five or fewer projects) and frequent donors (those who have contributed to six or more projects) have donated to projects of this sort. By contrast, other types of projects \u2013 especially those designed to fund a new product or invention \u2013 are much more popular among users who have contributed to a wide range of projects. Fully 65% of frequent donors have contributed to a project for a new product or invention, more than double the share of occasional donors (29%) who have done so. These frequent donors are also substantially more likely to have contributed to other types of fundraising projects (such as those to fund a musician or creative artist, or for a restaurant or other business) as well, although these differences tend to be more modest.<\/p>\n\n\n\n<figure class=\"wp-block-image\" datatext=\"\"><img decoding=\"async\" src=\"https:\/\/www.grantnews.com\/wp-content\/uploads\/2019\/08\/donation2.jpg\" alt=\"\" class=\"wp-image-1200\"\/><\/figure>\n\n\n\n<p>Female crowdfunding\ndonors are more likely to contribute to help someone in need; men tend to\ncontribute to a wider variety of projects, especially those funding new\nproducts or inventions<\/p>\n\n\n\n<p>Overall, women are a bit\nmore likely than men to donate to a crowdfunding project of any kind: 24% of\nwomen and 19% of men have done this. But among project contributors, men are\nmuch more active than women \u2013 both in terms of the number and type of projects\nthey fund and the size of the contributions they make.<\/p>\n\n\n\n<p>Male donors are roughly\ntwice as likely as female donors to have contributed to six or more projects\n(17% of male donors have done so, compared with 9% of female donors), and also\nnearly twice as likely to have contributed more than $100 to an individual\nproject (22% vs. 12%). They are also substantially more likely to have\ncontributed to projects seeking to fund a new product or invention, as well as\nprojects for a musician or other creative artist. On the other hand, women are\nsignificantly more likely than men to contribute to a project to help someone\nin need \u2013 75% of female donors have contributed to this type of project,\ncompared with 58% of men.<\/p>\n\n\n\n<p>Looking within the male\ndonor population, younger men, in particular, stand out for their interest in\nfunding projects relating to new products or inventions. Nearly half of men\nages 18-49 who have contributed to a crowdfunding project (48%) have given to a\nproject to fund a new product or invention \u2013 a figure that is substantially\nhigher than the share of similarly aged women (31%), older women (20%) or older\nmen (27%) who have done so. By the same token, younger male donors (that is,\nthose ages 18-49) are substantially <em>less likely<\/em>&nbsp;to have contributed\nto a project to help someone in need \u2013 just 54% have done so, compared with 75%\nof younger women, 74% of older women and 67% of older men.<\/p>\n\n\n\n<p>Crowdfunding donors\nvalue their personal connection to the projects they support and the ability to\nhighlight causes that might not get much attention from established charities<\/p>\n\n\n\n<p>When asked about\npotential attributes that might describe crowdfunding platforms, users\nresponded especially strongly to the notion that these services foster personal\nconnections between donors and the causes they support and offer a space to\nhighlight businesses or projects that are not widely known. Fully 87% of\ncrowdfunding donors believe that these platforms help contributors feel more\nconnected to the projects they support (just 5% think this is not the case),\nwhile 84% believe that these platforms are a good way to highlight causes that\nmight not get much attention otherwise (4% do not think this describes\ncrowdfunding well). And around three-quarters of users (77%) believe that\ncrowdfunding is a simpler way to raise money than applying for a loan or grant.<\/p>\n\n\n\n<p>In terms of negative\nperceptions, a slight majority of users (56%) believe that crowdfunding\nplatforms contain a lot of frivolous projects. At the same time, most users\ndon\u2019t think these services take attention away from more-deserving charities \u2013\njust 11% of users believe that this statement describes crowdfunding services\nwell, while 68% feel it does not describe them well.<\/p>\n\n\n\n<p>Users\u2019 views on the\nmerits of crowdfunding show relatively little variation based on the demographic\ncharacteristics of donors, although there are some differences in the attitudes\nof younger and older donors. Compared with older users, crowdfunding donors\nunder the age of 50 are more likely to feel that these services contain lots of\nfrivolous projects (60% vs. 46%), but also to feel that they are a simpler way\nto raise money than applying for a grant or loan (80% vs. 70%).<\/p>\n\n\n\n<p>By the same token, crowdfunding users tend to have similar views about these services regardless of the quantity or level of their donations. However, users who have donated more than $100 to an individual project are especially likely to indicate that these services are a good way to highlight lesser-known causes or businesses \u2013 94% of these donors believe this statement describes these services well. For other news related to why this and other forms of funding have become so popular and how they&#8217;re being used make sure to check our <a href=\"https:\/\/www.grantnews.com\/category\/business\/\">business <\/a>news section.<\/p>\n\n\n\n<p>The share of Americans\nwho created a fundraising project of their own using a crowdfunding platform is\nrelatively small, with 3% saying they have done so. Many of these project\ncreators are themselves donors to other projects; fully 72% of these project\ncreators have made their own contributions to other people\u2019s projects (looked\nat a different way, 10% of crowdfunding donors have also created a project of\ntheir own).<\/p>\n\n\n\n<p>In addition to asking\nwhether they had created a project of their own, the survey also asked\nrespondents to describe a specific project they had created. A selection of\ntheir responses is included below.<\/p>\n\n\n\n<p>Many responses mentioned starting a project in order to pay for medical, veterinary or other personal expenses (either for themselves or for someone else). In a number of instances these projects were designed to appeal to a relatively small group of friends and family, rather than to a wider audience. This has been a key factor on why online giving to friends and family is the most popular type of crowdfunding<\/p>\n\n\n\n<p><em>&nbsp;\u201cI have to see a\nspecialist in Florida from Maryland. There were expensive tests that I had to\npay out of pocket, traveling expenses and 10 days\u2019 hotel costs. Yes, I met my\ngoal. Support was mostly from family &amp; friends.\u201d<\/em><\/p>\n\n\n\n<p><em>\u201cI held a fundraiser for\na friend who was diagnosed with stage 4 cancer. We raised over $5,000 in one\nmonth. We exceeded our goal.\u201d<\/em><\/p>\n\n\n\n<p><em>\u201cFound a stray puppy\nwith a broken hip that needed surgery. The goal was to raise enough money to\nget the puppy the surgery. And yes, thankfully raised enough money, I got the\npuppy the surgery and found her a wonderful home to live in!\u201d<\/em><\/p>\n\n\n\n<p>Others were more\nprofessional or quasi-professional in nature:<\/p>\n\n\n\n<p><em>\u201cMy band raised money to\nrecord an album, with varying rewards for donors. We did meet our goal, and it\nwas great!\u201d<\/em><\/p>\n\n\n\n<p><em>&nbsp;\u201cIt was to benefit\na feminist conference organized by a volunteer collective. We raised several\nthousand dollars. It was successful.\u201d<\/em><\/p>\n\n\n\n<p><em>\u201cTo fund a business\nstartup idea based out of a college project. We were fully funded and ran the\nbusiness for the semester.\u201d<\/em><\/p>\n\n\n\n<p>Some noted that even\nthough they didn\u2019t meet their initial goal, they still thought of the\nexperience as a positive one:<\/p>\n\n\n\n<p><em>&nbsp;\u201cI am a foster\nparent and was raising money for a larger vehicle to support our family. I did\nnot meet the goal but did get quite a bit of money. Around $3,000.\u201d<\/em><\/p>\n\n\n\n<p><em>\u201cI raised $5,000 for the\nearthquake victims of Nepal. No, I did not reach my goal but was able to\nprovide money to five different ministries including an orphanage.\u201d<\/em><\/p>\n\n\n\n<p><em>\u201cThe goal was to fund a summer intensive for my daughter. It was a good way to get exposure but for the most part it was family who contributed, and we didn\u2019t completely meet our goal. We came close enough though and did much better than when we held fundraisers locally where there was a lot of labor and expense going in with a less than stellar payoff. If I were to do it again, I think I\u2019d want to not just ask for money but have the ability to give something back to the donors for helping us (some kind of reciprocity) \u2026 it may have created happier donors and made me feel like I did something tangible to say thank you.\u201d<\/em><\/p>\n\n\n\n<p><em>Featured Photo by <a href=\"https:\/\/musicoomph.com\">Gavin Whitner<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Aaron Smith High-tech inventions&nbsp;tend to dominate news stories about crowdfunding, as well as the \u201cmost-funded projects\u201d lists on many<\/p>\n","protected":false},"author":16,"featured_media":1201,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[104,139,147],"tags":[],"class_list":["post-1701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archived-posts","category-education","category-latest"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Online Giving To Friends And Family Most Popular Type of Crowdfunding<\/title>\n<meta name=\"description\" content=\"Online Giving To Friends And Family Is the Most Popular Type of Crowdfunding Donation. 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