4 Big Peer-to-Peer Fundraising Benefits for Nonprofits and Individuals
Peer-to-peer fundraising, sometimes called team or social fundraising, is a highly lucrative practice that empowers individual supporters to act on the organizer’s behalf.
For those who need a refresher, let’s catch up on what peer-to-peer fundraising is.
Peer-to-peer fundraising, also known as P2P fundraising and social fundraising, is a way for nonprofits to raise more money and expand their donor base at a relatively low cost. Peer-to-peer fundraising relies on the fundraising efforts of the nonprofit’s existing donors. These supporters reach out to their networks via social media and email and encourage them to give to the nonprofit’s cause through an online donation page.
Peer-to-peer is used by nonprofits of all sizes and even individuals running their own crowdfunding campaigns.
In this article, we intend to answer why peer-to-peer fundraising is so popular by explaining exactly what the core benefits of the process are.
Those benefits of the team fundraising process are:
- Builds on current relationships.
- Boosts donor acquisition.
- Raises money quickly and easily.
- Increases awareness of your cause.
Now, we’ll examine each benefit individually.
When you think about proper donor stewardship, does the concept of donor engagement come up? It should!
Organizations that not only acquire new donors but actively seek to develop continued relationships with those same donors are almost always more successful than the organizations that do not.
So, whether you’re an individual running a personal crowdfunding campaign or a representative of a massive organization, you should be working to engage with your existing donors.
Why? The answer is two-fold:
- Engaging with your donors is the best way to retain them, and donor retention is paramount because donors that have given once are more likely to give again.
- Proper stewardship leads to happy donors and happy donors get involved in other ways and help promote your cause.
A peer-to-peer campaign is the perfect opportunity to engage existing donors and deepen that relationship.
By asking your strongest supporters to fundraise on your behalf, you’re enriching the relationship from three key angles:
- When a supporter becomes a fundraiser they get to interact with you and your cause without giving money. While donations are crucial, no supporter should feel like an ATM, and P2P lets supporters aid you without spending any of their own money.
- P2P campaigns are the prime time to get to know your supporters better. As you help your fundraisers coordinate and execute their campaigns, you learn more about them and they learn more about you.
- Supporters get a new prospective on your work. Peer-to-peer fundraising puts supporters in the driver’s seat and gives them an invaluable window into your cause and the hard work you’re doing to serve your mission.
When you bundle those three points together, you get the overarching benefit of deepening your bond with current donors.
In Closing: Peer-to-peer campaigns are the perfect excuse to spend more time with your donors and in turn, develop stronger connections with all your supporters.
Every fundraiser, from novice to expert, has thought, “How can I find more donors?”
It’s an age-old question, and peer-to-peer fundraising offers an incredibly natural solution.
By activating your most loyal and passionate supporters as fundraisers, your campaign and your cause get access to a whole new audience of potential donors.
Plus, individuals are much more likely to donate to their friend’s fundraiser than a random cause that they have no attachment to (i.e., your non-P2P-campaign).
That all said, it is imperative that you effectively train and equip your supporters to fundraise well.
Yes, your peer-to-peer fundraisers can help you expand your network and boost donor acquisition, but they can only do so if they are successful in their own asks.
Asking for donations is no easy feat, so give your newbie fundraisers the appropriate resources, tools, and support to reach their goals.
You can offer support via a number of channels including:
- Providing training packets and support documents.
- Offering in-person lessons.
- Providing P2P software that is user-friendly.
- Giving fundraisers a contact who can answer questions.
For more on asking for donations and the best practices around the process, check out our detailed article on the subject.
In Closing: While peer-to-peer provides the perfect opportunity to grow your network, you’ll only be able to do so if you help champion the efforts of your individual campaign organizers.
“Spend less than you make” is a basic economic tenant. In fundraising, that same rule applies. However, far too often, those who organize fundraisers end up with a low return on investment.
Outside of any capital investment (think paying for a fundraising event venue), you also have to consider the time and resource cost that goes into running a fundraiser (think staff hours and increased utilization of fundraising software).
Luckily, peer-to-peer fundraising is uniquely positioned to raise money quickly and easily.
Team fundraising has a high ROI because:
- Supporters are putting their time into the activity, rather than nonprofit staff.
- The whole campaign can be run online, which cuts down on cost.
- While the campaign is occurring, your team can be working on another initiative, essentially doubling what is accomplished over a given fundraising period.
All in all, if you need an effective and efficient fundraising model, look no further than peer-to-peer fundraising.
In Closing: Don’t overlook the practical benefits of peer-to-peer. It is cost-effective and fast-paced.
If your individual fundraisers aren’t able to raise tons of money or effectively convert every ask into a donation, they’re still accomplishing something essential.
Your P2P fundraisers are spreading the word about your cause.
Peer-to-peer fundraising is an organic way to reach new audiences and share the work you’re doing with a larger community.
For example, imagine that one of your fundraisers is a supporter who has been giving to your organization for 5 years.
Now, assume that supporter has never spoken about your cause across their social media accounts (which is a safe assumption).
When they begin promoting their campaign on Facebook (and Twitter and Instagram) tons of friends and followers are being introduced to your work.
Now, all of those folks are not going to give; however, raising awareness while starting a dialogue about your cause is a great first step.
Through the social fundraising process, you get the opportunity to educate and inform a broader network, so take advantage!
Make sure all fundraisers are equipped to speak accurately and eloquently about your cause and mission, and be sure that your contact information is given to any prospective donor.
In closing: While not every ask will lead to a donation, every ask will lead to a conversation, and getting people to talk about your cause and share it is half the fundraising battle.
After reviewing all four of these benefits, it’s hard to argue against the relevance of peer-to-peer fundraising. No matter your cause or the scope of your fundraiser, peer-to-peer comes in handy.
If you want to continue to learn about peer-to-peer and related fundraising techniques, check out this list of additional resources:
- Peer-to-Peer Fundraising: A Nonprofit’s Guide — To find out more about peer-to-peer fundraising, there’s no better place to start than our detailed guide.
- The 8 Best Peer-to-Peer Fundraising Platforms — Once you know that you want to run a peer-to-peer campaign, you’ll need to select a platform, and this article can help you do that.
- Crowdfunding 101: Raising Money and Awareness Online — Crowdfunding is often confused with peer-to-peer fundraising. And while they’re not the same thing, they are both excellent fundraising models worth trying out. This guide will give you the rundown of all things crowdfunding.