Crowdfunding public projects: Collaborative governance for achieving citizen co-funding of public goods

Sounman Hong, Jungmin Ryu

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study explores the potential of crowdfunding as a tool for achieving “citizen co-funding” of public projects. Focusing on philanthropic crowdfunding, we examine whether collaborative projects between public and private organizations are more successful in fundraising than projects initiated solely by private organizations. We argue that government involvement in crowdfunding provides some type of accreditation or certification that attests to a project's aim to achieve public rather than private goals, thereby mitigating information asymmetry and improving mutual trust between creators (i.e., private sector organizations) and funders (i.e., crowd). To support this argument, we show that crowdfunding projects with government involvement achieved a greater success rate and attracted a greater amount of funding than comparable projects without government involvement. This evidence shows that governments may take advantage of crowdfunding to “co-fund” public projects with the citizenry for addressing the complex challenges that we face in the twenty-first century.

Original languageEnglish
Pages (from-to)145-153
Number of pages9
JournalGovernment Information Quarterly
Volume36
Issue number1
DOIs
Publication statusPublished - 2019 Jan

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funding
governance
citizen
fundraising
accreditation
asymmetry
twenty-first century
certification
private sector
evidence

All Science Journal Classification (ASJC) codes

  • Sociology and Political Science
  • Library and Information Sciences
  • Law

Cite this

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abstract = "This study explores the potential of crowdfunding as a tool for achieving “citizen co-funding” of public projects. Focusing on philanthropic crowdfunding, we examine whether collaborative projects between public and private organizations are more successful in fundraising than projects initiated solely by private organizations. We argue that government involvement in crowdfunding provides some type of accreditation or certification that attests to a project's aim to achieve public rather than private goals, thereby mitigating information asymmetry and improving mutual trust between creators (i.e., private sector organizations) and funders (i.e., crowd). To support this argument, we show that crowdfunding projects with government involvement achieved a greater success rate and attracted a greater amount of funding than comparable projects without government involvement. This evidence shows that governments may take advantage of crowdfunding to “co-fund” public projects with the citizenry for addressing the complex challenges that we face in the twenty-first century.",
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Crowdfunding public projects : Collaborative governance for achieving citizen co-funding of public goods. / Hong, Sounman; Ryu, Jungmin.

In: Government Information Quarterly, Vol. 36, No. 1, 01.2019, p. 145-153.

Research output: Contribution to journalArticle

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