Education Crowdfunding and Student Performance: An Empirical Study

67 Pages Posted: 26 May 2020 Last revised: 22 Jul 2020

See all articles by Qiang Gao

Qiang Gao

Zicklin School of Business, City University of New York

Mingfeng Lin

Scheller College of Business, Georgia Institute of Technology

D. J. Wu

Georgia Institute of Technology - Ernest Scheller Jr. College of Business

Date Written: June 30, 2018

Abstract

Despite the growing popularity of online public funding for education (i.e., crowdfunding), controversy persists about whether teachers’ efforts to use this channel are justified and whether donations thus received can actually make a difference in students’ academic performance. We present the first empirical evidence of the positive influence of online education crowdfunding after teachers successfully raise funds. Using data from California public school teachers and their students, as well as the teachers’ fundraising activities on DonorsChoose.org, we find significant academic performance improvements among students after their teachers receive donations through this platform. Such improvements in students’ academic performance are stronger when more local donors participate in teachers’ fundraising campaigns. Notably, teachers who attempt to raise funds online but are unsuccessful are still able to improve their students’ performance. These findings not only document the positive impact of online education crowdfunding on students’ academic performance, but also demonstrate that such impacts are at least partially attributable to the non-financial motivational benefits on teachers from receiving such donations. Our study therefore contributes to the literature on crowdfunding, as well as the ongoing debates surrounding the financing of public education.

Keywords: Donation crowdfunding, donations, education, offline impact, student performance

Suggested Citation

Gao, Qiang and Lin, Mingfeng and Wu, D. J., Education Crowdfunding and Student Performance: An Empirical Study (June 30, 2018). Georgia Tech Scheller College of Business Research Paper No. 18-26, Available at SSRN: https://ssrn.com/abstract=3206103

Qiang Gao (Contact Author)

Zicklin School of Business, City University of New York ( email )

17 Lexington Avenue
New York, NY 10010
United States
6463123192 (Phone)
6463123192 (Fax)

Mingfeng Lin

Scheller College of Business, Georgia Institute of Technology ( email )

United States

D. J. Wu

Georgia Institute of Technology - Ernest Scheller Jr. College of Business ( email )

800 West Peachtree Street, NW
Atlanta, GA 30308
United States
404-894-4364 (Phone)
404-894-6030 (Fax)

HOME PAGE: http://scheller.gatech.edu/wu

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
160
Abstract Views
899
Rank
334,612
PlumX Metrics