Crowdfunding Versus Peer-to-Peer Fundraising: What's the best for you

it is a common misconception  that peer-to-peer funding and crowdfunding are terms that can be used  interchangeably they both use the power of social networks and personal connections  to spread awareness and to raise funds however these two terms are two different  types of fundraising styles and require separate strategies in order to reach success  it's important to know the difference between these two styles before choosing which  is best for you so let's get started both crowdfunding and

peer-to-peer are fundraising  methods that take advantage of supporters digital networks and social media sharing the difference  between the two lies mainly in the structure of the two methods crowdfunding only uses the  campaign page the link to this page can be shared across social networks and leads everyone back to  the same central donation site on the other hand peer-to-peer fundraising uses a more decentralized  method where supporters set up their own donation pages and collect funds on

behalf of the  organization this is often seen as a more organic form of fundraising as people donate within their  existing networks rather than being redirected to one central location both crowdfunding and  peer-to-peer have their own benefits and shortfalls so choosing which is the best fit for  you relies on what you're fundraising for and the goals of your campaign crowdfunding campaigns can  work very well for organizations with specific reasons for raising money like raising money  to b

uild a school or for specific events that last only a certain amount of time however they  are the best choice for individuals looking to fund projects or personal fundraising needs like  medical expenses crowdfunding allows you to unite a large group of people under one campaign to  expand your reach to every individual who donates to your cause you also have full control over the  look and the feel of your campaign because you create the customized pages you have the power  to choose the infor

mation and the photos you want to share with your donors this way you can  create consistent messaging across your campaign peer-to-peer does not work well for individuals  because it requires a wider network filled with dedicated stakeholders for organizations it  is a great way to work closely and strengthen the bond between you and your supporters while  working together to reach your campaign goals peer-to-peer is a great way to strengthen your  donor relationships while also leveraging thei

r networks for funding though you cannot have  full control over every aspect of the campaign allowing your supporters to be in charge of  fundraising is a great way to save time and money your supporters create their own personalized  giving pages and customize them to better suit their own networks this personal touch may be  persuasive because the messaging comes from a person rather than the organization now if you  did want some more consistency to your message you can create templates and

pre-made shareable  content for your donors to use this allows you some personalization but the larger coordinated  effort of the campaign is still apparent so now that you have an idea of what each of these  fundraising methods are and how they work next we can go over how to start the campaigns and some  of the key practices to ensure success in order to start a crowdfunding campaign you must first start  with picking a platform that best suits your needs and not all crowdfunding sites are cre

ated equal  there are many different forms many of the choices out there are specific to non-profits and have  different features restrictions and requirements so it's worth the time to do some research  about exactly what you'll need from the site some considerations to take into account are the  software ease of use platform affordability fees subscriptions integration with your own donor  software as well as your goals and budget for your campaign next you can customize your  donation page an

d include a formative copy all about your cause paired with compelling  stories and powerful pictures to encourage donations and raise awareness for your cause then  create shareable content to promote your donation page on social media and other online platforms  and depending on the platform you are using that site may actually provide you with templates for  others to share on their page and their social networks lastly always thank those who donate to  your cause it is important to ensure th

at your donors know how much they are appreciated for  their help and to keep them up to date on the progress throughout your campaign even if you do  not reach your goals send them an acknowledgement and let them know that how thankful you  are and outline what you plan to do with that money similar to crowdfunding peer-to-peer  campaigns start with choosing the right software consider the needs of your organization but  also the needs of your volunteers and funders these would be things like m

icrosites for your  fundraisers to raise money through and social templates that they can use to market the campaign  and an easy donation process for their donors also take into account the budget and the  transaction fees associated with the platform you may also want to set up a central  campaign page that outlines your goals and gives supporters information about how to  set up their own donation pages you can also use the page to collect direct donations if you  don't already have this feat

ure on your website so next you can recruit and train the participants  that are going to help you fundraise create a team of supporters who will help you reach your goal  and train them in the art of fundraising give them all the tools that they need to be successful and  this includes access to the microsite templates for social media and email templates or email  drafts now one of the biggest questions that I get asked is how do you ask for money so make sure to  subscribe because next week I

’m going to take you through the art of making the ask once again you  want to make sure to track your progress where are things succeeding what needs work who is excelling  and who needs help empower your participants and remember to give them updates about the progress  towards your goal so that they can share it with their networks also be sure to acknowledge the  help and hard work of your supporters emphasize their value to your organization and success to  your campaign personalize your me

ssage so that they know they are appreciated I hope this video  gave you a good overview of the difference between crowdfunding and peer-to-peer fundraising and if  you have any questions please leave a comment down below or feel free to email me dm give me a call  I am always happy to talk to non-profits as always if you like this video please make sure to like  comment subscribe and have yourself an amazing day