Matchfunding: how it affects universities' crowdfunding programs

Crowdfunding matched funding challenges are widely used on giving days, but less so in crowdfunding. This research examined 3 universities using matchfunding as part of their crowdfunding programs to understand its effects on projects.

The schools studied were chosen because they have each been matchfunding for over 2 years:

• University of York
• University of Southampton
• Somerville College, University of Oxford

Average donations to a matchfunded project are double

First, average donation amounts to projects with and without matched funding were compared. Results showed donations nearly double when matchfunding is present. This likely occurs because donors want to “unlock” more of the matchfunding and see their donations going further.

Analysis of average number of donations revealed that matched projects receive nearly twice as many donations. Projects receiving matchfunding likely set higher goals and invested greater effort promoting their campaigns to unlock available matching funds.

Matched funding can triple donations

The combined effect is that matchfunding produces projects which raise over 3x as much as those without matched funding (excluding the matched funds from the total raised).

A positive effect on crowdfunding

A limiting factor to this analysis is that higher quality projects are likely to receive larger amounts of matchfunding. However, matched funding clearly has a significant and positive effect on crowdfunding campaigns.

Susie Braithwaite, Deputy Director of Development, University of York, observed:

“Matched funding gives crowdfunding projects an initial boost, getting their campaigns off to a flying start. This momentum builds confidence in asking which can present a barrier to fundraising.”