A safety net with many holes: Nora Kenworthy and Ken Igra on the limitations of crowdfunding

Organizations like GoFundMe claim to tap into the power of social networks: those in need of financial assistance post on their social media sites and gather donations from people far beyond their immediate circle of family and friends. Yet according to researchers Nora Kenworthy and Ken Igra, crowdfunding sites like GoFundMe “have been largely unsuccessful in solving financial problems for most of the people who use them.” Kenworthy and Igra detail the reasons why and argue that the uptick in crowdfunding campaigns points toward growing inequities in our society.

Nora Kenworthy and Ken Igra, "Crowdfunding Isn't Enough in a Crisis," Scientific American, 4 February 2022

 

1. According to Kenworthy and Igra, what percent of crowdsourcing campaigns reach their financial goal? What groups of people are more likely to be successful in raising money through crowdfunding campaigns? Why?
   
2. Kenworthy and Igra introduce two key concepts in their argument: “attention economy” and “homophily.” Pick one of these concepts and describe how it contributes to the inequities Kenworthy and Igra found in the success rate of crowdsourcing campaigns. Look at the paragraphs where they introduce these terms. How do you see them using metacommentary to explain these concepts to a reader who may be unfamiliar with these terms? Point to where they use specific metacommentary phrases and templates from Chapter 10.
3. In their second to last paragraph, Kenworthy and Igra respond to a naysayer argument. Use a template from Chapter 6 to re-state this naysayer argument. Then, explain where you see them responding to the naysayer, offering concessions, or standing their ground. What phrases and templates from Chapter 6 do they use to do this? How would you describe their tone in responding to this naysayer argument? How does their tone affect the credibility of their argument?
4. In this op-ed, the CEO of GoFundMe argues that the platform has become a place for people to seek assistance “basic living needs,” especially in response to the financial stressors of the COVID-19 pandemic. How does his argument support Kenworthy and Igra’s argument? What do you think? How could crowdfunding platforms become more equitable? What role should the government play in supporting people’s basic living needs? Respond to this op-ed and Kenworthy and Igra’s essay using a template from Chapter 4.

Comments

[Diana Gonzalez]

I agree that crowdfunding is not the solution to raising money. Many people are in desperate need of help, and often don’t get that help because of others. Many people on the internet have lied in the past, and have used the money on themselves. Unfortunately, people don’t know who to trust anymore. Platforms like GoFundMe are misused, and the information appears to go unchecked Plus many scammers have posted fake pictures and stories, which takes away the money from other people who actually need it. Two main points are the amount of media exposure one has to have, and the income that generates throughout each family. The article found that people with higher incomes donated less than people with lower incomes. Those who had lower incomes donated what they could to help support the causes. People who had accounts on social media were also able to reach the public easily. Perhaps a solution is an app that provides people who check to see if someone truly has a need to raise money. Then once they are approved they could be posted for people to start donating money. This app could have different categories. One could be for medical purposes, the other to start a business, starting a community project, and so forth. The code used would also have to be secure in order for hackers to not steal information. The government could also start a non-profit organization for people to feel more secure in their donations going to the cause it is meant for. Going back to my previous point, those with the lower-income donated more within their means. The government could do a greater tax-write for them. It might seem unfair for them to have a bigger tax write-off, but at the same time, their income is lower than others.

[Marlee Remenap]

I agree with you that crowdfunding is not a solution to raising money, but I also believe that it is a good way to raise money when unforeseen instances occur.