Crowdfunding in the Portuguese social sector: User profile

Abstract

CF is an emerging financing source that aims to take advantage of information technology to fundraise money for new business projects. There are different models of CF that can be used in both the for-profit and social sectors. This article aims to study the use of crowdfunding in the Portuguese social sector. For this purpose, the objectives of the study are threefold: (i) to analyze the extent to which social organizations in Portugal have used CF; (ii) to analyze whether or not the use of CF is conditioned by the profile of these organizations; (iii) to assess whether the use of CF as a financial tool influences the capacity of the social organization to acquire other types of resources. The study uses a quantitative approach based on an online survey of 313 social organizations in Portugal. The results show that CF is not widely used by social organizations, although some characteristics seem to be associated with the use of CF, namely age, geographical scope, size and presence on social media. In addition, a positive relationship is found between the use of CF and the ability of social organizations to acquire resources and information.