Question

Crowdfunding vs peer to peer fundraising

Answer 1

Answer:

Crowdfunding is the practice of funding a project, campaign, or program by collecting many smaller donations from multiple donors instead of relying on large donations from one or two supporters.

Peer-to-peer fundraising is like crowdfunding on steroids. You recruit participants to ask their friends and family to make donations to your campaign. Many donors make small donations like they do in crowdfunding. But peer-to-peer fundraising, each participant has their own crowdfunding-style page. Peer-to-peer fundraising is usually accompanied by an event like a walk or a run.

Pretend you want to raise money for a new playground. A crowdfunding campaign would include a single fundraising page with a set goal. A peer-to-peer fundraiser would include multiple participants, each with their own fundraising page and goals.

Explanation:

Peer-to-peer fundraising is more complex. It relies on recruiting participants who raise money for you, so you’ll need to plan on finding and training participants. They’ll need ongoing support, too, as they raise money for you. Peer-to-peer fundraising requires more time and planning, but it can generate more attention and visibility than a crowdfunding campaign.

Crowdfunding is a great choice if you:

Have a moderate fundraising goal for a specific goal or campaign

Have a small staff

Are ready to actively share your campaign on all your communication channels

Have an active base of supporters who can share your form

Want to raise money with the set of tools you’re already using

Peer-to-peer fundraising is a good choice if you:

Have time to plan and execute a large fundraising event or campaign

Have enough staff to support numerous fundraising participants

Have a base of willing participants who are comfortable with online tools

Are okay with adding a new tool to your fundraising toolbag

Can plan an accompanying event.