Crowdfunding Acts as a Funding Substitute and a Legitimating Signal for Nonprofit Performing Arts Organizations

This research examines the relationship between crowdfunding campaigns by nonprofit performing arts organizations and their overall fundraising portfolio. Using a dataset compiled from the CrowdBerkeley Initiative and the Cultural Data Project, we find an important link between campaign success and organization age. For young organizations, crowdfunding success attracts funding in the subsequent year, while a failed campaign significantly...