Contribution of the Social Media and Transparency Needed on Crowdfunding Website

Abstract

IT artifacts (platforms) can be used for various interests of the organization or company to gain profit, encourage online fundraising and motivate someone to contribute through the crowdfunding website [1].  Fundraising by online is not always successful. One of the succeeding factors of online fundraising (crowdfunding) is influenced by the dissemination of information through social media and friendship [2]. The weaknesses of the crowdfunding websites based fundraising are the lack of transparency, unclear benefits, and chances of any potential fraud [3]. This research discussed the contribution of social media toward dissemination of fundraising information and the importance of transparent indicators of the use of funds on the main page of crowdfunding websites. Researchers conducted a survey and analyzed the main page of crowdfunding websites (kickstarter, indiegogo and kitabisa.com) to find out information about steps of the projects launch and projects information, use of the donated funds from the beginning of promotion till the end of the projects. Based on the results of research, 61.9% of respondents stated that social media (instagram and facebook) has a large contribution toward dissemination of information. There is no indicator of project development information and funds that have been used after the promotion period on the main page website, 83.3% of respondents stated that transparency is required, and 66.7% of respondents agree that indicators of the use of donated funds and project achievements are displayed on campaign project page.