Difference between Peer-to-Peer and Crowdfunding
- May 10, 2021
- / Jamie Walker
- / peer-to-peer,Fundraising Ideas
If your nonprofit organization is just getting started or if you are new to nonprofit fundraising, you are most likely spending quite a bit of time researching the best option to raise money to support your programs. Two of the primary fundraising methods that you will read about is crowdfunding and peer-to-peer fundraising. In the article below we break it down for you and tell you why peer-to-peer might be the best for you.
Typically, crowdfunding campaigns focus on creating digital campaigns that attract many small donations. Crowdfunding is a fundraising tool that can be used by individuals or nonprofit organizations to help raise money for a specific event, cause or project. A successful crowdfund will engage people across social media and through email campaigns to rally a crowd of supporters to your cause. Your organization is the primary force behind all the promotions involved with the fundraiser so be prepared to put in some effort to hype your campaign and reach people willing to support your cause. As people donate and engage with your crowdfund you will need to encourage them to share the campaign with their friends and family so that word continues to spread.
If you decide to launch a crowdfunding campaign, expect to work hard to build momentum and visibility for your campaign. There is a lot of competition on crowdfunding platforms, and it can be difficult to break through and get noticed. You are going to be the driving force behind your campaign’s success. Also, crowdfunding does have a higher-than-normal cost so expect to pay platform fees between 4% to 8% of the money raised.
Peer-to-Peer Fundraising (P2P)
Peer-to-Peer fundraising campaigns can help you reach a large audience because supporters of your organization can create their own fundraising page in support of your campaign and every dollar that they raise rolls up to your organization’s fundraising goal.
To get off to a fast start you will need to recruit key supporters such as past donors, board members and volunteers and get them involved in the effort early on. Once your fundraising team is ready to go they will then appeal to their personal networks and encourage their friends, family and colleagues to get involved in the campaign by either making a donation and/or joining the campaign.
Peer to peer fundraising works well because you can cast a wide net by tapping into free word of mouth advertising through your team of fundraisers. This is an important element of peer to peer because a supporter’s individual fundraising page gives them the ability to express enthusiasm and commitment to your cause that is helpful in getting other people to learn more about your organization and convincing them to your support your campaign with a donation.
About Reason Funding Peer to Peer
Reason Funding Peer to Peer allows you to build a fully branded P2P Campaign page using our campaign page builder. There is no coding involved and you do not have to enlist the services of an expensive web designer. You have access to an experience customer support team, and we will provide you tools to get the most out of your campaign.
If you are interested in learning more about Reason Funding Peer To Peer please schedule a demo: Schedule A Demo