A sustainable crowdfunding model for natural disaster victims

Natural disasters are calamitous incidents that affect people, buildings, and properties. Thus, financial aid from the government is crucial to overcome the losses resulting from the aftermath. However, the government is facing difficulties in providing assistance to the victims in terms of financial resources due to a constraint in the availability of recovery funds. Consequentially, the current study aims to investigate the effect of information disclosure on charitable giving behaviour in order to promote organizations’ transparency, which will encourage potential donors to donate and serve as a means for sustainable funding sources to aid the victims. The study addresses the gap by using the Mediated Philanthropical Model (MPM) in Social Exchange Theory. Furthermore, this research also aims to offer a mode of sustainable financing for the victims of natural disasters using the cash Waqf principle. The development of the present study is based on examining relevant literature on natural disasters and the issues that the government and non-government institutions face in raising funds for post-disaster recovery planning in order to present a model that provides sustainable funding to support affected victims. The findings will offer valuable insights that could prove beneficial for charitable organizations to attract new donors. Moreover, this study also supports the government in establishing a viable crowdfunding charity model, which in turn will alleviate the financial strain caused by limited government funding. The current research does not contain any empirical analysis; however, future studies can conduct surveys of funders and interview beneficiaries on the practicality of the proposed model.