Cause Marketing: The Evolution of Crowdfunding

This thesis provides an analysis on the crowdfunding environment in comparison to traditional fundraising methods in an effort to understand the relationship between the two types of fundraising and why crowdfunding has gained traction. Additionally, this thesis provides a study on good vs. bad crowdfunding to formulate a strategy for crowdfunding success. Methods of analysis include the execution of a situational analysis for both fundraising environments, and the collection of primary and secondary data of case studies of both crowdfunding failures and successes. Results showed that although crowdfunding provides lower search cost, greater efficiency, and eliminates geographical limitations leading to successful fundraising, the industry itself is too new and unexplored to be solely relied upon. Fundraising campaigns are most effective when crowdfunding is used complimentary to traditional fundraising methods. This thesis finds that crowdfunding offers unparalleled connectivity between creators and funders, but the transparency of the crowdfunding process is not ready to be trusted entirely. Until more data is collected on the crowdfunding environment, crowdfunding is best utilized in conjunction with traditional fundraising methods.