Addressing racial inequities in crowdfunding

A new study in the Journal of Marketing reveals how racial stereotypes tied to emotional expressiveness in campaign images create disparities in donation outcomes on crowdfunding platforms like GoFundMe. This research, conducted by Elham Yazdani (Georgia State University), Anindita Chakravarty (University of Georgia), and Jeffrey Inman (University of Pittsburgh), highlights how visual cues interact with societal biases to undermine equity.

The study, titled “Racial Inequity in Donation-Based Crowdfunding Platforms: The Role of Facial Emotional Expressiveness,” examines over 4,100 campaigns to explore how racial stereotypes shape donor behavior. Yazdani explains, “While emotional expressiveness generally elicits empathy and generosity, it backfires for Black beneficiaries due to deeply ingrained stereotypes that discount their genuine need.”

Key Findings

The study demonstrates that Black beneficiaries displaying high emotional expressiveness are perceived as less needy than their White counterparts, who are viewed as uniquely in distress. These biases lead to lower donations for Black beneficiaries, highlighting a systemic inequity in platforms designed to democratize financial access.

Chakravarty notes, “Our findings show how societal stereotypes influence donor behavior, creating barriers for underrepresented groups. These biases challenge the notion that crowdfunding platforms provide equitable opportunities.”

Practical Implications for Campaign Creators

The study proposes actionable strategies for campaign creators to address these inequities:

• Call-to-Action Cues: Including phrases like “urgent help needed” in campaign descriptions can redirect donor focus from racial stereotypes to the immediacy of the cause.
• Affective Storytelling: Personal narratives that emphasize the beneficiary’s emotional and financial struggles foster empathy and engagement.
• Leveraging Shared Identity: Campaigns tailored to connect with donors who share racial or gender identities with beneficiaries can build trust and increase donations.

“By crafting campaigns that emphasize urgency and storytelling, creators can shift donor perceptions and reduce biases,” Inman adds.

Role of Crowdfunding Platforms

The study emphasizes the need for platforms to adopt equity-focused design practices. Yazdani explains, “Platforms must move beyond engagement-focused algorithms and prioritize fairness to ensure all users have equitable opportunities.”

Recommendations include implementing algorithms that boost the visibility of campaigns for underrepresented beneficiaries and offering training resources to help creators design inclusive campaigns. Transparency in how campaigns are curated and promoted is also critical to fostering donor trust and engagement.

Broader Implications for Policymakers and Donors

Policymakers can enforce guidelines that promote transparency and fairness in platform algorithms and campaign promotion. Donors, too, play a role in addressing systemic inequities. Reflecting on biases and prioritizing need-based giving over superficial judgments ensures that contributions align with equity-focused values.

This research highlights how visual cues and racial stereotypes shape outcomes in digital spaces, revealing systemic inequities in crowdfunding. Addressing these challenges requires collective action from platform managers, campaign creators, policymakers, and donors. By adopting thoughtful design practices, fostering inclusivity, and championing equitable policies, crowdfunding platforms can better fulfill their promise of empowerment and democratization. Together, stakeholders can create a system where financial support is accessible to all, regardless of race.

Full article and author contact information available at: https://doi.org/10.1177/00222429241300320

About the Journal of Marketing 

The Journal of Marketing develops and disseminates knowledge about real-world marketing questions useful to scholars, educators, managers, policy makers, consumers, and other societal stakeholders around the world. Published by the American Marketing Association since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline. Shrihari (Hari) Sridhar (Joe Foster ’56 Chair in Business Leadership, Professor of Marketing at Mays Business School, Texas A&M University) serves as the current Editor in Chief. https://www.ama.org/jm

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