Since crowdfunding hit the mainstream several years ago, it has been a concept shown to help people raise money for all manner of causes, from paying healthcare bills to funding their startup. It’s estimated that over $1 billion is invested via crowdfunding per year. Research from the USC Marshall School of Business finds that social entrepreneurs appear to struggle more than those raising money for other causes, however.

Social impact

The researchers wanted to test how social entrepreneurs can better attract support for their projects through crowdfunding. They began by looking to understand the motivations behind contributing to social impact projects in the first place.

The authors build on previous work, which showed that financial rewards aren’t as important for things like volunteering or donating. One’s emotional state while doing so is far more important, however, especially in terms of prosocial motivation.

The researchers found that these emotions can be successfully appealed to by using prosocial narratives in one’s communication, with an emphasis on affirming the positive emotional state. If tangible gifts are offered, they should be in line with the social or environmental cause the project is supporting.

The researchers are confident that crowdfunding remains a good avenue for social entrepreneurs to pursue, but urge entrepreneurs to ensure that they successfully target the emotions and internal motivations of potential backers to ensure they get the support they need. The key to success is to ensure that backers both care for the cause itself and feel something toward it.