Non-government organizations (NGOs) increasingly rely on digital platforms to deliver services and raise funds, generating concerns about the influence of market practices on the civic sector, a process called nonprofit marketization. Scholars have heatedly debated the consequences of nonprofit marketization in different sociopolitical settings. Western scholars often view nonprofit marketization as inhibiting civil society in democratic countries, while other scholars argue that a similar, yet distinct, process in nondemocratic regimes instead facilitates the civic sector’s development. Nevertheless, existing studies lack systematic data to evaluate the outcome of nonprofit marketization in a nondemocratic regime.
To what extent can nonprofit marketization accelerated by platform economy facilitate civic sector’s development in nondemocratic countries? The proposed study addresses this urgent inquiry into the interplay among the civic sector, platform capitalism, and government. I focus on an empirical case in China, given its rapid platform economy development, dynamic state-society relations, and policy implications on a vast population.
In one aspect of nonprofit marketization—crowdfunding--nonprofits now compete among each other to raise funds, ostensibly independent of the state’s direct control. For example, tech giant Tencent launched China’s biggest internet crowdfunding event, having channeled billions into thousands of NGOs since 2015. However, as NGOs have found success in crowdfunding, they have also attracted the attention of and competition from state actors. This in turn has risked further state intrusion into the civic sector. The state is now calling on platform companies to contribute to the country’s “common prosperity.” Tech giants are rushing to answer the call.
To unpack this complex phenomenon, this study proposes a longitudinal mixed-method approach to track the evolution of Tencent’s crowdfunding platform at the field level. The project will comprise two phases. The first phase builds a longitudinal data set comprising crowdfunding campaigns spanning 2017-2021. The expected data will allow me to analyze trends and identify key players and funding distributions. The second phase will focus on understanding mechanisms for market mobilization among different types of NGOs through statistical analysis of the data and interviewing NGO representatives and experts. Preliminary analysis suggests an increasing domination of NGOs backed by the government.
The study will contribute to the nonprofit marketization debate by providing systematic data and a field approach. Platform operators and government officials will find important information to design a better system to give voices to different NGOs. Building a transparent crowdfunding platform will enhance the Chinese civic sector’s long-term development.