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Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis

During the first seven months of the COVID-19 pandemic, more than 175,000 crowdfunding campaigns were established in the US for coronavirus-related needs using the platform GoFundMe. Though charitable crowdfunding has been popular in recent years, the widespread creation of COVID-19 related campaign...

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Autores principales: Igra, Mark, Kenworthy, Nora, Luchsinger, Cadence, Jung, Jin-Kyu
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Ltd. 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8411868/
https://www.ncbi.nlm.nih.gov/pubmed/34139479
http://dx.doi.org/10.1016/j.socscimed.2021.114105
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author Igra, Mark
Kenworthy, Nora
Luchsinger, Cadence
Jung, Jin-Kyu
author_facet Igra, Mark
Kenworthy, Nora
Luchsinger, Cadence
Jung, Jin-Kyu
author_sort Igra, Mark
collection PubMed
description During the first seven months of the COVID-19 pandemic, more than 175,000 crowdfunding campaigns were established in the US for coronavirus-related needs using the platform GoFundMe. Though charitable crowdfunding has been popular in recent years, the widespread creation of COVID-19 related campaigns points to potential shifts in how the platform is being used, and the volume of needs users have brought to the site during a profound economic, social, and epidemiological crisis. This study offers a systematic examination of the scope and impacts of COVID-19 related crowdfunding in the early months of the pandemic and assesses how existing social and health inequities shaped crowdfunding use and outcomes. Using data collected from all US-based GoFundMe campaigns mentioning COVID or coronavirus, we used descriptive analysis and a series of negative binomial and linear models to assess the contributions of demographic factors and COVID-19 impacts to campaign creation and outcome. We find significant evidence of growing inequalities in outcomes for campaigners. We find that crowdfunding provides substantially higher benefits in wealthier counties with higher levels of education. People from these areas are more likely to initiate campaigns in response to adverse health and economic impacts of COVID-19, and they also receive more funding compared to people living in areas with lower income and education. Modeling also indicates differential outcomes based on the racial and ethnic composition of county population, though without more detail about who is creating and funding campaigns we cannot explain causality. A targeted qualitative analysis of the top earning COVID-19 campaigns offers further evidence of how user privilege and corporate practices contribute to highly unequal outcomes. Taken together, these findings demonstrate how a market-oriented digital technology used to respond to large-scale crisis can exacerbate inequalities and further benefit already privileged groups.
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spelling pubmed-84118682021-09-03 Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis Igra, Mark Kenworthy, Nora Luchsinger, Cadence Jung, Jin-Kyu Soc Sci Med Article During the first seven months of the COVID-19 pandemic, more than 175,000 crowdfunding campaigns were established in the US for coronavirus-related needs using the platform GoFundMe. Though charitable crowdfunding has been popular in recent years, the widespread creation of COVID-19 related campaigns points to potential shifts in how the platform is being used, and the volume of needs users have brought to the site during a profound economic, social, and epidemiological crisis. This study offers a systematic examination of the scope and impacts of COVID-19 related crowdfunding in the early months of the pandemic and assesses how existing social and health inequities shaped crowdfunding use and outcomes. Using data collected from all US-based GoFundMe campaigns mentioning COVID or coronavirus, we used descriptive analysis and a series of negative binomial and linear models to assess the contributions of demographic factors and COVID-19 impacts to campaign creation and outcome. We find significant evidence of growing inequalities in outcomes for campaigners. We find that crowdfunding provides substantially higher benefits in wealthier counties with higher levels of education. People from these areas are more likely to initiate campaigns in response to adverse health and economic impacts of COVID-19, and they also receive more funding compared to people living in areas with lower income and education. Modeling also indicates differential outcomes based on the racial and ethnic composition of county population, though without more detail about who is creating and funding campaigns we cannot explain causality. A targeted qualitative analysis of the top earning COVID-19 campaigns offers further evidence of how user privilege and corporate practices contribute to highly unequal outcomes. Taken together, these findings demonstrate how a market-oriented digital technology used to respond to large-scale crisis can exacerbate inequalities and further benefit already privileged groups. Elsevier Ltd. 2021-08 2021-06-07 /pmc/articles/PMC8411868/ /pubmed/34139479 http://dx.doi.org/10.1016/j.socscimed.2021.114105 Text en © 2021 Elsevier Ltd. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Igra, Mark
Kenworthy, Nora
Luchsinger, Cadence
Jung, Jin-Kyu
Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title_full Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title_fullStr Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title_full_unstemmed Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title_short Crowdfunding as a response to COVID-19: Increasing inequities at a time of crisis
title_sort crowdfunding as a response to covid-19: increasing inequities at a time of crisis
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8411868/
https://www.ncbi.nlm.nih.gov/pubmed/34139479
http://dx.doi.org/10.1016/j.socscimed.2021.114105
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