Isn’t it all the same anyways? Difference between Peer-to-Peer and Crowdfunding
- August 5, 2019
- / Ravin Floyd Nettles
- / peer-to-peer
Whether it’s your organization’s annual fundraiser or your nonprofit is just starting out, you’ll need to raise money at some point to reach your goals and accomplish your overall mission. So, you set out to do some online fundraising. Peer-to-Peer or Crowdfunding? What’s the difference? We’ll 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 gain some momentum. As people engage with your crowdfund you will need to encourage them to share the campaign with their friends and family.
If you decide to launch a crowdfunding campaign, expect to work hard to build momentum and visibility for your campaign. You’re going to be the driving force behind this campaign’s success.
Peer-to-Peer fundraising campaigns can reach a larger audience because individuals ask for donations from their networks. These campaigns typically have a set fundraising goal. The purpose of peer-to-peer fundraising is for supporters to solicit on behalf of your organization. To get off to a fast start you will need to recruit key supporters and get them involved in the effort early on. Your key supporters 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. With P2P, the primary drivers of engagement and fundraising are those who have volunteered to raise money. The nonprofit then becomes responsible for producing the tools, motivation, and support that is needed to make the campaign successful.
Why the Reason Funding Platform is right for your organization
Reason Funding is a peer-to-peer fundraising platform and in some situations, this form of fundraising is best for your organization.
Reason Funding is your best option when you want to raise a substantial amount of money, find new donors, and build relationships with your most loyal supporters. Peer-to-peer requires more planning, execution time, and direct engagement with participants than crowdfunding campaigns, but the reward can be substantial. Using the Reason Funding Platform will assist you with donor retention and engage new supporters.
Reason Funding is great for nonprofits who are getting creative with DIY fundraising and individual fundraisers that are related to important milestones in supporters’ lives. Many nonprofits are using individual fundraising pages for board members and stakeholders which makes it easy for board members to reach out to their friends, family, and colleagues online instead of making face-to-face asks.
Do you want to learn more about Reason Funding to help your organization meet your goals? Learn more about our solutions.