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Benefits of Peer-to-Peer Fundraising [+ Disadvantages]

Benefits of Peer-to-Peer Fundraising [+ Disadvantages]

Peer-to-peer fundraising, often called P2P or social fundraising, has taken the fundraising world by storm in recent years. Its success lies in this fundraising approach, leveraging the power of social networks and community connections to raise funds and spread awareness for charitable causes.

In this blog, we’ll explore the benefits and disadvantages of peer-to-peer fundraising, shedding light on why it works, how to encourage P2P donor participation, and what makes a successful peer-to-peer fundraiser.

What is Peer-to-Peer Fundraising?

Peer-to-peer (P2P fundraising) is a type of crowdfunding in which supporters raise money for a nonprofit organization or cause. Participants build personal fundraising pages and ask friends, family members, and coworkers for donations. This decentralized fundraising approach empowers individuals to advocate for the cause they care about.

Why Does Peer-to-Peer Fundraising Work?

Peer-to-peer fundraising harnesses the power of social connections and personal networks. It taps into the inherent human desire to make a positive impact and be part of something bigger than ourselves. Here are a few reasons why this approach has proven successful:

  • Amplified Reach: By involving participants and encouraging them to share their fundraising efforts, the campaign’s reach expands exponentially. Each supporter becomes a voice for the cause, amplifying the message to their network of friends.
  • Trust and Authenticity: People are more likely to donate to something when approached by someone they know and trust. Peer-to-peer fundraising capitalizes on the existing relationships between supporters and their networks, making the fundraising ask more compelling and effective.
  • Sense of Community: Peer-to-peer fundraising creates a sense of belonging and community. Participant volunteers feel connected to a larger movement, sharing their stories and successes. This fosters engagement and motivates others to join in the movement as participants or donors.
Benefits of Peer-to-Peer Fundraising

Benefits of Peer-to-Peer Fundraising

Peer-to-peer fundraising offers numerous advantages for nonprofits and participants.

Increased Fundraising Revenue

The personal ask and connection to a cause often result in higher donation amounts and increased fundraising revenue for nonprofits.

Community Building


Peer-to-peer fundraising is less expensive than traditional fundraising methods, as it relies on volunteer supporters to propel the campaign, eliminating the need for costly marketing or advertising. The role of the development staff is to support these volunteers.

Personalized Appeals

Personalized appeals from supporters during peer-to-peer fundraising campaigns greatly enhance their effectiveness, as they can tailor their messages based on their unique stories and relationships.

Community Building

P2P fundraising encourages donor engagement and community building; everyone feels part of the mission. Peer-to-Peer campaigns are often Run/Walk/Ride community events that encourage everyone to join in the fun.

Donor Acquisition and Retention

Peer-to-peer fundraising can help your cause by attracting new donors. Friends and family members of participants unfamiliar with the charity can be introduced through a social fundraising campaign. This personal connection between participants and donors often increases donor loyalty and retention.

Are There Disadvantages of Peer-to-Peer Fundraising?

While peer-to-peer fundraising often yields impressive results, it’s essential to consider potential drawbacks and disadvantages when compared to other fundraising options. Here are some key points to keep in mind with P2P.

Lack of Messaging and Control

Disadvantages of Peer-to-Peer Fundraising

One of the most difficult challenges of P2P fundraising is the lack of control organizations have over the process. Maintaining consistent messaging, branding, and execution can be difficult because the organization relies on voluntary participation to convey its message. This may lead to inconsistencies that dilute the organization’s mission and goals.

Time and Resource Intensity

Recruiting, coordinating, and engaging fundraisers requires significant time and effort, which can strain limited resources at nonprofits. Volunteer fundraisers may struggle to meet their targets without adequate support, impacting the overall campaign success.

Dependency on Personal Networks

Peer-to-peer fundraising depends heavily on the personal networks of volunteer participants. If these networks are small or participants lack the motivation to leverage them effectively, achieving fundraising goals can become challenging.

Encouraging Peer-to-Peer Fundraising in your Supporter Base

To maximize donations, participation, and success in peer-to-peer fundraising, be sure to implement the following p2p strategies:

Encouraging Peer-to-Peer Fundraising in your Supporter Base

●     Clear Communication

Clearly communicate the cause’s impact and how participants can contribute. Set fundraising goals for participants. To inspire and motivate fundraisers, provide engaging content, such as videos or personal stories.

●     Easy-to-Use Fundraising Platforms

Utilize a user-friendly p2p fundraising platform that makes it simple for participants to create and share their campaign pages. Seamless integration with social media networks allows for easy sharing and amplification.

●     Incentives and Recognition

Offer incentives, such as prizes and exclusive experiences, to motivate fundraisers. Everyone loves to win prizes! Recognize and publicly appreciate their efforts to boost morale and encourage healthy competition.

Check out our Awesome Peer-to-Peer Toolkit for fundraising success.

What Makes a Good Peer-to-Peer Fundraiser?

Successful peer-to-peer fundraisers possess 3 top qualities that contribute to their effectiveness:

#1. Passion and Authenticity: Fundraisers who genuinely believe in the cause they support inspire others to get involved. Authenticity is key to building trust and motivating donors.

#2. Strong Social Networks: Individuals with wide social circles or influential online platforms have a higher potential to reach a larger, diverse, and inclusive audience, increasing the campaign’s impact.

#3. Effective Storytelling: The ability to convey the organization’s mission and impact through compelling storytelling can significantly enhance the fundraiser’s success.

What Makes a Good Peer-to-Peer Fundraiser?

Last Thoughts on the Benefits of Peer-to-peer Fundraising

Peer-to-peer fundraising has emerged as a powerful tool for nonprofits to mobilize communities and achieve their fundraising goals. By embracing this inclusive and participatory approach, nonprofits can empower individuals to make a difference and create lasting change. DoJiggy can help with free P2P fundraising websites.

Sarah Bender

About Sarah Bender

Originally from Surrey, UK, Sarah has worked remotely in various online fields for the last 8 years. Currently, she is focusing on writing blogs on online fundraising and special events for a UK audience. When she is not spending her days researching and writing, you can find her running around after her two highly active young sons which constitutes a serious workout program!

See other posts from Sarah Bender