Peer to Peer Fundraising:
How It Works
Maybe you’ve heard that Peer to Peer Fundraising is an excellent strategy for nonprofit organizations and schools, but aren’t quite sure what it is or what the benefits are? What’s the difference between peer-to-peer fundraising and crowdfunding? How can peer-to-peer campaigns benefit your organization or charity, beyond raising needed funds?
Peer to peer is a powerful method of fundraising that leverages supporters to fundraise on behalf of your organization or cause. It’s also known as P2P (p2p) fundraising or crowdfunding. The power of a peer-to-peer fundraising campaign lies in your participants’ fundraising abilities. By tapping into their social network of friends and supporters, your organization is able to reach a much larger audience, therefore spreading greater awareness of your cause and raising significantly more dollars than traditional fundraising campaigns.
Benefits of Peer-to-Peer Fundraising
P2P fundraising campaigns can be wildly successful, when well managed. Benefits of these fundraising campaigns include:
- Peer-to-peer fundraising is a great way to expand your organization’s reach and share your cause with new donors and potential supporters.
- As individuals actively fundraise on your school or nonprofit’s behalf, the connection that the individual supporter has for your mission and organization is strengthened.
- P2P is a unique way of empowering individuals to raise funds on their own, with more of a supporting role in the fundraising approach for organizational staff.
- Since peer to peer participants are volunteers, it decreases the need for staff time and resources. Of course, you still need to support and encourage your fundraisers to succeed!
The Best Peer-to-Peer Fundraising Events
P2P campaigns are best suited for active events (think run/bike/ride) and friendly competitions that promote community. These types of nonprofit fundraising events work well because new supporters and donors can get excited about supporting the individual who participates in the event, and thereby learn more about your cause. The best peer-to-peer campaigns include:
Organizing Peer-to-Peer Fundraising Events
Successful peer-to-peer fundraising events hinge on the recruitment and action of a strong leadership team. Your team should include not only your development department, but volunteers who have a strong connection to your cause or charity. Members of your leadership team will take on various event and planning responsibilities including:
- event logistics and permits,
- event budgeting and financial planning,
- recruiting and supporting event participants and volunteers,
- gaining sponsorships and in-kind donations,
- managing your peer to peer software platform,
- and day of event operations.
So be sure to start early and plan for at least 6 months prior to hosting a peer-to-peer event.
Utilizing Peer to Peer Software
By their nature, peer-to-peer campaigns rely on powerful peer-to-peer crowdfunding software tools and social media networks and integrations. Utilizing crowdfunding or peer-to-peer software allows your message to be organically spread by your supporters while your nonprofit or school is able to manage the over-arching fundraising campaign and maintain brand consistency.
Some features and tools of our P2P software include:
- Secure participant registrations
- Provides individual participants and teams with the ability to personalize the fundraising experience via their personal fundraising pages
- Fundraising pages include images and videos, fundraising thermometers, a personal statement, social media integration links to easily share with friends and family and more
- Administrators can view top fundraisers and post leaderboards and event fundraising thermometers
- Ability to easily track and distribute prizes and awards with our prize management system
- Sponsorship sales and promotion for local businesses
- Unlimited product sales (for t-shirts and event goods)
Tips for Peer-to-Peer Fundraising Campaign Success
- Ensure that your peer-to-peer website is responsive and readily visible on mobile devices. The majority of social media interaction is done on mobile devices and your crowdfunding website will be accessed through social media. Therefore, it’s vitally important for it to be responsive and professional in appearance and allow for easy donation collection to raise money online.
- Stories are of utmost importance. The individual raising the funds should share their reason for loving the mission of the organization, along with the organization being able to clearly define what makes their mission come to life. Taking the time to frame your success stories in a compelling manner helps to ensure that people feel connected to your work and compelled to give.
- It is important that individuals raising funds and giving funds are able to see the progress of a campaign. Check to see if the crowdfunding software that you are considering has a visual progress chart to illustrate how much money has been raised thus far towards a goal. This can be shown in the form of a thermometer or leaderboard. DoJiggy Pledge sites use fundraising thermometers at the campaign, team, and individual fundraiser levels.
- Every P2P campaign must be able to be shared on social media with ease. By ensuring that individuals can easily share links to events and the campaign itself creates an ease in access for people wishing to give their financial support.
- Your fundraisers are most likely busy people with limited time to spend raising money for your organization. Make it easy for them by providing resources and tools for peer-to-peer fundraisers.
- Create weekly campaign progress reports that are sent out to each campaign participant so that everyone understands where the campaign stands in terms of goals and which individuals are the highest performers. Your role as an administrator is to support and motivate your participants.
- Weave a culture of gratitude through every step of campaign progress. By making sure participants feel appreciated and supported, you will increase the likelihood of their enthusiastic support and future participation.
- Don’t give away a large percentage of your fundraising money in software and payment processing fees. Many crowdfunding platforms advertise themselves as a free service – but be sure to read the fine print. All e-commerce transactions carry a transaction fee (since Visa and MasterCard charge merchants for the privilege of accepting their cards – even for charitable donations). DoJiggy offers affordable payment processing fees that won’t break the bank – and we don’t take a percentage of your fundraising dollars.
Evaluating the Value of Peer to Peer Fundraising for Nonprofits
Some organizations have asked us to help them evaluate the benefits and value of peer-to-peer campaigns. We created this infographic to help answer the question – is peer-to-peer fundraising a good idea for my organization?
See just how much value a peer-to-peer fundraising campaign can bring to your cause today! Try DoJiggy’s peer-to-peer crowdfunding software out for your fundraising event today with a free trial. We support walk-a-thons, School Fun Runs, bike-a-thons, School Reading Fundraisers, bowl-a-thons, even car wash-a-thons, Community Service Projects, and more! And we are the only leading software provider in the peer-to-peer space that does not take a percentage of funds raised, so your organization can keep more money for your cause. Check out our pricing page to learn more or contact us in Sales today.
Peer to Peer Fundraising vs. Crowdfunding – What’s the Difference?
Peer to peer fundraising is a type of crowdfunding and the two terms are often used interchangeably. The difference is that with P2P fundraising, your supporters create personal fundraising pages on behalf of your cause. Your supporter shares his or her page with friends, family and other community members and donations are made directly to your organization via their page. With traditional crowdfunding for non-profits or school crowdfunding campaigns, donations are made by many people, directly to the organization or cause, but without the personal or team fundraising page or component.