Education Crowdfunding and Student Performance: An Empirical Study

Information Systems Research, forthcoming

67 Pages Posted: 29 May 2019 Last revised: 7 Aug 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: March 18, 2020

Abstract

Despite the growing popularity of online education crowdfunding, controversy remains as to whether teachers’ efforts to use this channel are justified and whether donations thus received can actually make a difference. We present the first empirical evidence of the use and impact of education crowdfunding donations after campaign success. Using data on California public school teachers and their students as well as the teachers’ fundraising activities on DonorsChoose.org, we find that students’ academic performance improves after their teacher successfully raises funding on the platform. This finding survives a large number of robustness tests. More importantly, through a series of tests, we show that this positive impact is partly due to the nonfinancial benefits of receiving online crowdfunding donations. Our study contributes not only to the literature on crowdfunding and charitable giving but also ongoing debates on 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 (March 18, 2020). Information Systems Research, forthcoming, Available at SSRN: https://ssrn.com/abstract=3383879 or http://dx.doi.org/10.2139/ssrn.3383879

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://mgt.gatech.edu/wu

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