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Appealing to the Crowd
Appealing to the Crowd
The Ethical, Political, and Practical
Dimensions of Donation-Based
Crowdfunding
J E R E M Y SN Y D E R
Oxford University Press is a department of the University of Oxford. It furthers
the University’s objective of excellence in research, scholarship, and education
by publishing worldwide. Oxford is a registered trade mark of Oxford University
Press in the UK and certain other countries.
This is an open access publication, available online and distributed under the terms of a
Creative Commons Attribution – Non Commercial – No Derivatives 4.0
International licence (CC BY-NC-ND 4.0), a copy of which is available at
http://creativecommons.org/licenses/by-nc-nd/4.0/.
DOI: 10.1093/oso/9780197658130.001.0001
Acknowledgments vii
Introduction 1
1. Giving and the rise of crowdfunding 9
2. Crowding out privacy 32
3. Proving your worth 50
4. Who gets funded? 66
5. Missing and masking injustice 83
6. Crowdfrauding 101
7. Misinformation and hate 119
8. Crowdfunding during a pandemic 137
9. Crowdfunding as a mediated practice 157
Conclusion: Making crowdfunding more appealing 173
Notes 189
Bibliography 225
Index 251
Acknowledgments
Leigh Palmer read and commented on the entire manuscript of this book
and helped my research on crowdfunding during countless conversations
over the past few years. Iva Cheung edited this manuscript and pushed me to
make it better. Thank you to a wide range of audiences who have listened to
different facets of my research on crowdfunding over the past few years and
helped to clarify and improve my work. Some of the research I drew on in this
book was supported by the Greenwall Foundation, the Canadian Institutes of
Health Research, and the Social Sciences and Humanities Research Council
of Canada. My thinking on crowdfunding was shaped by conversations with
people who have used crowdfunding for themselves and their loved ones
and by people working in the crowdfunding industry. My work has also
benefitted by reading countless crowdfunding campaigns, many of which
contain devastating stories of unmet needs. Finally, my wonderful family has
always supported me without question, with their only reward being hearing
about this topic far more than they would like—thank you and I love you
Leigh, Jude, and Merit.
Introduction
Asking for and giving financial help is a normal part of life for most people.
A few days before writing this, both of my children emptied their backpacks
on the kitchen counter and presented me with forms for their elementary
school walkathon. If I agreed to donate to the fundraiser, my kids would join
their classmates in walking a certain number of times around their school’s
track. The money they earned would go to buying library books and musical
instruments for the school. I was happy to make a pledge, and my kids went
on to request the same thing from their grandparents. Their grandparents
probably remembered when my wife and I had participated in similar
fundraisers for our schools and pledged their support, too.
For my kids, the tradition of the school fundraiser this year was made a
little more complicated by the COVID-19 pandemic. There was less going
around in person to friends and neighbors to seek pledges, and there was a
strict requirement that all donations be transferred to the school electron-
ically. The pandemic is probably part of the reason fundraisers among my
university colleagues have increasingly moved online as well. Instead of
passing around an envelope at an in-person faculty meeting or leaving a col-
lection box out at the front office, recent requests to help a professor fleeing
the Taliban takeover of Afghanistan or to pay for the legal fees of a climate
change protest took the form of “starting a GoFundMe.”
Online crowdfunding campaigns like these—which in my and many other
communities have become synonymous with the GoFundMe brand—have
increasingly taken over from offline giving activities. In the recent past,
someone needing help to pay for medical treatment might have put a de-
scription of their need and a collection tin at the front counter of the local
gas station. This kind of community-based crowdfunding is now commonly
supplemented or replaced by online forms. While both offline and online
crowdfunding involve appealing to community members for donations to di-
rectly support an individual or specific cause, the online version of this prac-
tice uses social networks to promote the campaign, thus greatly increasing its
potential exposure. The online nature of this form of crowdfunding makes
Appealing to the Crowd. Jeremy Snyder, Oxford University Press. © Oxford University Press 2024.
DOI: 10.1093/oso/9780197658130.003.0001
2 Appealing to the Crowd
it easier to transfer funds and makes it more likely that people beyond one’s
geographically proximate community of acquaintances will learn of the cam-
paign and be moved to donate to support it.
Precise figures on the global scope of crowdfunding can be difficult to
find given limited reporting by the platforms that host them. That said, it
is clear that this practice has a large and quickly growing global presence.
In the United Kingdom, a quarter of all people donated to a crowdfunding
campaign between mid-2020 and mid-2021, and younger donors are more
likely to participate in this form of giving than older donors.1 The crowd-
funding platform GoFundMe, with users across the English-speaking world
and much of the European Union, collected $625 million in donations from
9 million donors for COVID-19–related needs between March 1 and August
31, 2020.2 Eighteen percent of Americans donated to health-related crowd-
funding campaigns alone in the year leading up to April 2021, and nearly a
third of Americans donate to crowdfunding campaigns yearly.3,4 Donation-
based crowdfunding (as opposed to reward-based crowdfunding for start-
up companies or other enterprises) is increasing in Brazil, China, India,
Indonesia, and elsewhere.5,6 In upper-and lower-middle-income countries
where institutionalized giving is less well established, crowdfunding for
individuals is increasing overall participation in giving practices.7
The reasons for this growth in crowdfunding are numerous and to some
degree complicated. But the basic appeal is simple: as with other online
technologies, it makes a long-standing practice—in this case, fundraising—
more convenient. Instead of organizing the transfer of funds in person,
crowdfunding takes advantage of electronic funds transfers to make helping
out incredibly easy. In the case of the crowdfunding campaign my colleague
organized for an Afghan professor, the online nature of the campaign meant
that the campaign organizer could easily provide updates on the professor’s
journey, including escaping Afghanistan, navigating the Canadian visa
process, and, eventually, arriving in their new country safely. Not inciden-
tally, these updates were a good way to encourage continued giving and pro-
vide donors with a sense of meaning and accomplishment.
Crowdfunding, then, is in many respects a continuation of long traditions
of offline fundraising while taking advantage of online technologies. It makes
both giving and receiving easier, streamlining existing giving patterns.
Boosters of this form of fundraising have also hyped it as having a trans-
formative effect—including, in tech-sector parlance, “disrupting” traditional
giving so that “when you layer asking for help with social media, it turns one
Introduction 3
necessity of asking the public for help with basic needs. In this view, crowd-
funding is a helpful and even lifesaving but necessary evil, symptomatic of
the failures of the government, market mechanisms, and even philanthropic
institutions to help provide for these needs.
Other criticisms of donation-based crowdfunding target the practice it-
self, focusing on the observation that making a successful public appeal for
support requires making oneself appealing to the crowd. Campaigners must
perform for the public to establish their deservingness for financial sup-
port. As with other forms of social media, crowdfunding has the “effect of
publicizing private struggles.”20 This can include parading vulnerability and
need in uncomfortable ways and “revealing intimate details of their life for
a chance at having strangers pay their bills.”21 By the logic of this popularity
contest for public support, those who do not receive any or enough support
are not deserving. This outcome can be deflating for campaigners on top of
the suffering that motivated their campaign in the first place. As one cam-
paigner put it, “I suppose if I’d been one of those people who found an aban-
doned hedgehog and created a backyard sanctuary for hedgehogs and asked
for $50 and got $100,000, I’d be super happy with GoFundMe. But all I’ve
done is expose myself.”22
While crowdfunding can be enormously helpful for some people, it also
does little for many and generally fails to address the underlying causes of
these needs. So-called viral campaigns get a great deal of publicity and are
promoted as uplifting public interest stories demonstrating the goodness of
people who come together to help someone in need. In reality, most crowd-
funding campaigns fail to meet their goals, and many do not receive any
donations at all. Distributing funding in this way creates a “marketplace
of compassion, which is what crowdfunding sites amount to,” and which
“produces winners and losers like any other marketplace,” meaning that
“everyone must beg to survive, and most will not beg well enough.”23
People with large and wealthy social networks have an advantage in the
interconnected environment of online crowdfunding. While people with
smaller or poorer networks can also go viral in online crowdfunding, factors
like telling a sympathetic story or catching the eye of an online influencer
help determine success such that “whoever has the most heartrending story
wins.”24 Campaigns typically focus on immediate and superficial needs
rather than their underlying causes. As such, campaigns can be “well-
intentioned” but “cringeworthy” when raising funds, ignoring structural
causes of need while positioning the campaigner as a “white savior” stepping
Introduction 5
My focus in this book is on crowdfunding for basic needs like housing, food,
medical care, and education. While donation-based crowdfunding is also
used to raise money for honeymoons and religious mission trips, among
many other things, these kinds of activities generally fall outside the scope of
the book. My first aim for this book is to look critically at the ethical, political,
and practical dimensions of donation-based online crowdfunding against a
backdrop of traditional giving practices. These traditional practices include
giving directly to individuals and indirect giving through intermediaries
such as nonprofit organizations. Crowdfunding has genuine advantages
over some aspects of these traditional forms of giving. At the same time, it
reproduces and deepens some of the shortcomings of traditional forms of
giving while also introducing new concerns.
My second aim for this book is to suggest ways to shape and engage with
donation-based crowdfunding more responsibly. In doing this, I situate
crowdfunding as a practice that has a strong appeal to many people and is
growing worldwide. While we might prefer that people’s basic needs be met
6 Appealing to the Crowd
THANK YOU everyone for your generosity. Every dollar has made
a difference and is greatly appreciated. . . . Three different times I was
certain I would need to redirect funds to Mom’s burial expenses, but
then at the last moment she would rebound. Three times. That was
not fun. However, as I said, being able to take care of a few issues for
them, without having to deal with financial stress over it, was a god-
send for everyone.
The giving practices of people who aim to support others’ basic needs have
varied across cultures and throughout history. Understanding the arguments
for and against some of these traditional giving practices can offer con-
text for the recent development of online donation-based crowdfunding.
Crowdfunding mirrors many of the benefits, limitations, and drawbacks of
these other giving practices. At the same time, crowdfunding includes dis-
tinctive advantages and shortcomings that can only be understood through
the context of other giving practices.
Throughout the book I draw a broad distinction between (1) giving by
individuals directly to those in need or to their agents and caregivers with the
aim of addressing their basic needs and (2) giving by individuals indirectly,
to groups or organizations that act as intermediaries to distribute these re-
sources to those in need. In the first category of direct giving, I include di-
rect gifts to people for their benefit, such as giving spare change to a person
experiencing homelessness to buy lunch or purchasing tickets for a con-
cert benefiting a specific person who needs money for a medical treatment.
On this understanding, direct giving overlaps with religious practices of
almsgiving to poor people. The second category of indirect giving includes,
for example, donations to support a soup kitchen that feeds many hungry
people in a specific area or giving to a nonprofit organization promoting
democratic reforms in a foreign country. Giving indirectly through an
Appealing to the Crowd. Jeremy Snyder, Oxford University Press. © Oxford University Press 2024.
DOI: 10.1093/oso/9780197658130.003.0002
10 Appealing to the Crowd
reducing poverty is not in itself the aim of liberality, then; rather, liberality is a
matter of giving to those who are worthy of receiving wealth. While differing
in the details of what forms of giving count as achieving the mean, contem-
porary or neo-Aristotelian accounts of virtue ethics similarly consider how
we should use our resources to help others.3,4
David Hume picks up on the centrality of human character to morality
in virtue ethics but in a significantly different way from Aristotle. Hume
argues that benevolence, understood as concern with the welfare of others,
is fundamental to both human nature and morality. This connection to
human nature allows for universality in how we respond to certain events
and objects—what Hume calls virtues. Hume catalogues virtues according
to their usefulness and agreeableness to ourselves and others. This catalogue
includes a category of virtues centering on mental qualities that are useful to
others, among which is the virtue of charity. As Hume states, “Giving alms
to common beggars is naturally praised; because it seems to carry relief to
the distressed and indigent: But when we observe the encouragement thence
arising to idleness and debauchery, we regard that species of charity rather as
a weakness than a virtue.”5 Thus, giving to those in need is virtuous insofar as
it is useful in relieving suffering. When such giving encourages the recipient
to turn down income from working or to feed substance use, it is not useful
to the recipient or society and is thus not a virtue.
For Hume, the usefulness of giving speaks in large part to our sentimental
reaction to these actions. Efficacy is at the heart of utilitarian arguments
around giving as well in that the value of helping others should be judged by
the outcomes of the gift, with emphasis on creating the best or most effective
outcomes possible in terms of relieving suffering or improving welfare. The
canonical utilitarian approach to assessing the value of gifts is given by John
Stuart Mill, who argues that the value of actions should be assessed by their
outcomes. Creating goodness in the world, understood as increased welfare,
is the single principle of right and wrong. This understanding of the value of
giving can be highly demanding in that it requires that we do the most good
through our actions, with less beneficial actions deemed morally inferior.6
More recently, this utilitarian approach has given rise to the effective al-
truism movement. Effective altruism urges people to assess the value of
giving to others based on the outcomes of these gifts. Effective altruism is
particularly associated with Peter Singer, who has articulated a range of
stronger and more moderate versions of a broadly utilitarian view that we
ought to give our excess resources to others, with a focus on doing the most
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