What is Peer-to-Peer Fundraising?
Peer-to-Peer Fundraising is the process of raising capital, usually via social media, from others who believe in a venture or cause, and make small donations that add up to a lot. It’s one of the fastest growing fundraising mechanisms, and can be used to raise money for a variety of purposes, from philanthropy and political campaigns to loans and music albums.
However, a new focus for many crowdsourcing platforms is funding education or paying off student loans. Here are samples of some of the top peer-to-peer fundraising resources that can help you pay down your student loan debt.
To fund your education or business:
Social Financing for MBA Students:
What are the benefits?
Peer-to-peer fundraising is a power technique that features three main benefits:
- Scalable relationships – Traditional fundraising involves large investments in developing a trustworthy relationship with your donors. Peer-to-peer fundraising helps you leverage relationships that already exist with your friends, family, and colleagues.
- Resources – We’re all limited by the amount of time and resources that we have. For nonprofits, you feel this constraint every single day. Peer-to-peer fundraising augments your fundraising function and helps you create an army of advocates that will tell your story, think of creative ideas, and raise funds for you.
- Awareness building – In addition to being able to raise funds, giving your mission exposure allows you to raise awareness in new networks.
What types are there?
P2P fundraising comes in many forms. There are three proven types that you can craft your peer-to-peer fundraising efforts around.
- Campaigns – These involve defined start and end dates. It typically has an overall fundraising or impact goal. To participate in the campaign, fundraisers are asked to set a fundraising goal.
- Personal Event/Challenge – These are individual events such as a birthday or graduation. It can also be a personal challenge such as climbing a mountain or growing a mustache.
- Activity – Typically, these are mass activities such as marathons or walkathons. Participants fundraise against a goal to participate in the activity.
How do you get started?
It’s not difficult to get started with peer-to-peer fundraising, and there’s no set formula to follow. Here are three steps that can guide you.
- Think of an idea – Create an idea for your peer-to-peer fundraising that is fun, engaging, and reflects the personality of your nonprofit.
- Setup your platform – Define your goals and form a team to manage peer-to-peer fundraising. Create a fundraising platform to host your fundraising pages and integrate compelling storytelling.
- Manage the fundraising – Focus on coaching your fundraisers with tools and tips to help them become successful.