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What is peer to peer fundraising and can you use it for your organization?

Published
Aug 8, 2019
Reading time
2 min
Categories
New Tech
Guitar case, street musician and donate

Some of the most persuasive fundraisers a charity, club or school can have are not on its staff at all. They are the volunteer running a half marathon, the parent organising a bake sale or the alumnus who sets a target and asks friends to chip in. Harnessing that kind of supporter-driven effort is the basic idea behind peer-to-peer fundraising.

How the model works

Instead of the organisation asking every donor directly, supporters raise money on its behalf from their own circles. Typically each participant creates a personal fundraising page linked to a central campaign, sets a goal and shares it with family, colleagues and social media contacts. Donations flow to the organisation, while the participant's story provides the personal reason to give.

Campaigns can take many forms: sponsored challenges, birthday fundraisers, team competitions, events, or simply a personal pledge to raise a certain amount within a set period. What unites them is that supporters lead and the organisation provides structure, tools and encouragement. Platforms built for peer to peer fundraising usually handle the pages, payments and progress tracking.

Why organisations use it

  • Reach beyond existing donors: each participant introduces the cause to people who may never have heard of it.
  • Trust through personal connection: people often give because someone they know asked, not only because of the cause itself.
  • Lighter load on staff: the organisation coordinates rather than making every ask.
  • Engaged supporters: participants often feel more connected to the mission after championing it publicly.

The less glamorous side

Peer-to-peer campaigns are not effortless. Participants need guidance, ready-made messages, images and regular encouragement, or pages stay half-finished. Results vary widely between individuals, so planning should not rely on every participant hitting their goal. Organisations also need to think about data protection when handling new donors' details, about platform fees, and about thanking both participants and donors promptly. Any tax or gift-aid rules depend on the country and the organisation's status, so checking with an adviser is sensible.

Is it right for your organisation?

It tends to work well when an organisation has a group of committed supporters, a story that is easy to tell and the capacity to support participants for the length of a campaign. A few questions help decide:

  1. Do we have supporters who would be comfortable asking their networks?
  2. Can we explain the impact of a donation in a sentence or two?
  3. Who on our team will look after participants?
  4. Which platform fits our budget and data requirements?

Starting small, perhaps with one event or a team challenge, allows an organisation to learn what motivates its supporters before scaling up. Done well, peer-to-peer fundraising turns loyal supporters into ambassadors and widens the circle of people who care about the work.

And if you want some inspiration on the subject, this TED talk on fundraising is well worth the time:

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