Peer-to-peer fundraising or P2P fundraising is getting a lot of attention by nonprofits these days. Although crowdfunding and P2P are being used interchangeably, it is important to note that the two are different. P2P fundraising is a specific type of crowdfunding, wherein you can leverage your supporters and advocates to raise funds for your non-profit. It helps you reach a large number of audiences and donors, with added advantage of increased network, as it is the network of your supporters also that you get to tap to boost your fundraising efforts.
Though the concept is not new, it has been here since years. You might have seen celebrities’ events to fundraise for a charity, or even school children raising funds for a Cancer Aid Society. All these are examples of this unique personal or social type of fundraising. How your nonprofit can leverage its social capital, supporters, advocates, and well-wishers to fundraise and further the cause? What are the benefits? Read ahead:
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Benefits of P2P Fundraising:
- Trust factor: Your supporters and advocates for your cause find support for you in their networks, so there is a trust factor involved. It is because of them that you find more support in terms of funds and resources.
- Vast reach potential: As a result of its multi-tier or multi-level mechanism of raising funds, P2P fundraising has the potential to make your voice heard to a larger audience. You can reach out to a larger donor population with this approach.
- Least costs, most chances to get funds: This approach does not require huge funds or resources, not even time and efforts like other fundraising efforts like events, campaigns, etc. Yes, of course the preparatory work, roll out and post-campaign efforts have to be put in diligently. Yet, the cost of implementation is very very low if compared with other fundraising methods. Plus the chances to get funds are very high because of added advantages. So cost-versus-benefit ratio makes it a valuable proposition for a nonprofit.
- Online platforms: all the ease and all the speed: With so many online platforms available these days, the nonprofits can have all the ease to spread the word with great speed. Even your peer fundraisers can tap the potential of these online platforms. There are many successful examples of the use of these for raising funds. P2P helps you to reach to un-accessed e-groups and online communities this way.
- Social media: Social media is everywhere. Everyone is out there expressing, sharing, liking, and doing so many things on this virtual world where everyone is connected to everyone else. P2P can help you and your peers to use social media for your cause. In fact, you can complement the efforts of your peer fundraisers by using social media for well-timed, focused and campaign-mode communication efforts. It can up their efforts a million times.
- Mobile makes money mobile: In this super connected world, mobile has brought revolutionary changes in the ways we function. Ranging from personal interactions, social life to formalized ones like banking, everything can be done the mobile-way. P2P also can tap the opportunity to use mobiles for tracking donations, spreading the word, campaigning activities, and so many other ways.
- Lets everyone know you and strengthens bonds: Apart from raising funds from unexplored networks of your supporters, it gives your supporters an opportunity to do good for the cause they believe in. So it strengthens the bond that your organization and the supporter share. Remember, only those who believe in you will ask others to support you. So, involve your supporters and well-wishers and thank them adequately for doing so.