What drives individuals to initiate donation-based crowdfunding appeals? An application of the charity disintermediation typology

The term ‘disintermediation’ is well understood in the commercial sector and is defined as the elimination of the ‘middleman’ (usually via digital means) in business transactions. The concept of disintermediation is less clear-cut in the non-profit context and is complicated further by a wider array of stakeholders who are involved in the conversion of philanthropic contributions into goods and services in aid of beneficiaries. This chapter presents recent scholarship on the development of a typology of disintermediation in the non-profit sector. This typology allows us to identify the significant changes, challenges, and opportunities that disintermediating actors and technologies pose for the future of charity marketing. The second part of the chapter looks at applying and unpacking the typology further. Specifically, it explores inter-disciplinary literature to try and understand what drives individuals to initiate donation-based crowdfunding appeals: Type Bi category within MacQuillin et al.’s (2023) typology. The typology points to two growing trends: donation-based crowdfunding is set to replace some of the more traditional fundraising methods in the future whilst donors’ growing influence and proactive behaviour within the non-profit sphere highlights a shift in power balance away from the charity sector to the individual philanthropist. Understanding the motivations behind disintermediated giving, will help charities orientate themselves in this new philanthropic landscape.