Peer to peer fundraising and crowdfunding are commonly used interchangeably, however, the two are very different and can benefit your organization in different ways. Crowdfunding can be used by individuals and nonprofits where peer to peer fundraising can only be used by nonprofits. Essentially, crowdfunding involves a fundraiser asking for a direct donation and peer to peer fundraising asks for supporters to donate to their individual page and then send in the entire donation to the nonprofits campaign.
These are two great options for raising money for your organization, depending on what you plan on doing can help decide which one will work best for that particular fundraiser. Peer to peer fundraising is known as the social fundraising technique. When enlisting the help of your supporters to raise money on your behalf, it typically needs to be tied to some sort of event.
The Susan G. Komen 3-Day Walk is a perfect example of peer to peer fundraising perfectly executed.
Peer to Peer Fundraising and Crowd Funding
This fundraiser has become a household name that almost everyone is familiar with. When people sign up to participate in the 3-Day walk, each individual is responsible for letting their friends and families know they are raising money for the walk and in that way, obtain “sponsors”. After collecting the donations from all of their sponsors, the participants then in turn donate all of the money to the Susan G. Komen 3-day Breast Cancer Foundation.
Crowdfunding has a different approach in the fact the organization asks for donations directly after explaining what they are raising money for. A great example of crowdfunding is when someone or an organization sets up a GoFundMe. When there is a GoFundMe or a similar donation site set up, there are usually pictures and an explanation with what the raised money will be going towards.
Along with the explanation there is typically a tracker that lets people know what the goal is, how much money has been raised towards it and how much time is left in the fundraiser. This is also a great option to reach many people because when someone donates, many times you can share on multiple social media platforms the fundraiser happening, so the organizations donors are promoting the fundraiser for them.
Although very opposing options in the sense of being executed differently, they both have the same end goal in mind. Choosing which will work best for your organization, you will need to weigh the pros and cons of each. It is possible that both could work for your organization for different fundraising needs.
When beginning a peer to peer fundraiser, a lot of ground work has to be done opposed to crowdfunding. With crowdfunding, you start the fundraiser online and set up the donation page and let the donors do the rest. With peer to peer fundraising, you have to get volunteers involved who are passionate about your organization but also trustworthy. They will really be the face of your fundraiser when out collecting donations from strangers or sponsors. Although possible, it can be difficult to track how much each individual volunteer is raising if there are cash donations being collected. You want to make sure you have honest and trustworthy volunteers on the forefront of your organizations fundraiser.
Peer to peer fundraising is a lot for an organization to arrange but can be very rewarding since it is shared on so many platforms by so many different people, there is opportunity to reach so many potential donors and new networks of people.
With peer to peer funding, there has to be something these volunteers are going out and raising money for. There needs to be a marathon or a dance-a-thon or like the 3-day foundation, a 3-day walk organized and coordinated. The volunteers raising money for your organization are typically offering themselves to participate in the event if people will pay to support them.
When your organization creates a peer to peer fundraiser, it can become something that is done annually and that way builds a reputation and your organization can become recognized as the ones who put on that event. When planning on making something annual, all of the hard work that went into planning the original peer to peer fundraiser can be reused when planning for the next one.
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