Here we will understand the fundamentals of peer-to-peer fundraising and will go through peer-to-peer fundraising statistics which can help everyone to get clarity on how they work and how effective such fundraisers can be focusing on crowdfunding organisations. Before I ramble more about it, let’s find out what peer-to-peer fundraising is and why it is an integral part of non-profit fundraising.
Table of Contents
What is Peer-to-Peer Fundraising –
Imagine you helping someone dear to you without practically being there for the person. Peer-to-peer fundraising encourages supporters of a charity or non-profit organisation to individually raise money. It’s a bit a subcategory of crowdfunding. Instead of having one main crowdfunding page where everybody donates, you will have multiple individual fundraising pages with peer-to-peer fundraising, which the individual people will share with their own networks. All raised money will be received by the non-profit organisation at the end.
Contrary to crowdfunding, which is used by individuals, companies and non-profit organisations, peer-to-peer fundraising is usually only used by non-profit organisations. This strategy uses the network of existing donors as it encourages supporters to get in touch with family, friends, colleagues, and peers for donations.
Peer-to-peer fundraising is effective because it builds on existing relationships, it uses existing donors of non-profit organisations, and it builds social proof. People are more inclined to trust a story when a friend or family member shares it. In most cases, peer-to-peer fundraising is linked to an event such as a walkathon or marathon.
How Peer-to-Peer Fundraising Works –
Non-profit organisations have to identify a project/event/cause and identify its prominent supporters. After non-profit organisations can contact those supports to ask them if they would like to participate in the fundraiser. Then they train the interested supporters, either themselves or by sending them an online manual, after which the individual supports will set up their own individual fundraising pages.
The fundraisers will then ask their family, friends, and their private network to donate money on their own individual fundraising pages. All the funds raised by each of the individual fundraisers will go to the main fundraising page of the respective non-profit organisations. Non-profit organisations usually have their own websites on which they will host peer-to-peer fundraising campaigns.
Peer-to-Peer Fundraising Statistics –
There is no wonder that the 2020-21 Covid-19 has massively hit all the sectors, even including the crowdfunding sector. Given the circumstances, many non-profit organisations have taken massive hits in their financials. This means the peer-to-peer fundraising statistics can explain how deep crowdfunding have been affected during the pandemic. According to Peer-to-Peer Fundraising Thirty Survey, fundraising revenues for the 30 largest U.S. programs dropped 33.9%, or $401.2 million, to $900.1 million, representing the largest single-year drop in the 15-year history.
Peer-to-peer fundraising statistics can explain how peer-to-peer fundraising is more complex and requires more time and planning. Since it will be your support who will be raising the money, you will need to find them first and then provide them with training. Additionally, there should be constant support available to them. However, since peer-to-peer fundraising is exponential, as all individual campaigns of your supports have a ripple effect and bring you more donors, it can bring you more visibility and raise more money than a crowdfunding campaign.
According to Non-profit Tech for Good: 2019 Global NGO Technology Report’s peer-to-peer fundraising statistics, worldwide 33% of non-profits who use peer-to-peer fundraising and 2.2 million people took part in peer-to-peer fundraising programs in 2020 (Source –Peer-to-Peer Professional Forum: Peer-to-Peer Fundraising Thirty).
Another peer-to-peer fundraising statistics point depicts how Dutch peer-to-peer programs are now dominated by exciting events, which by their very nature attract a small but intense following. Also, in the year 2021, there is visible growth in the overall charity sector which explains the overall 4.1% growth in donations while 45% of worldwide donors are enrolled in a monthly giving program.
Some more facts about peer-to-peer fundraising statistics –
- Female donors are more likely to donate because of social media marketing, while male donors are more likely to give because of email messages.
- Corporations gave over $20 billion to non-profit organisations last year.
- 40% of Fortune 500 companies offer volunteer grant programs.
- Overall online revenue increased by 23% over the past year, up from 15%.
- 31% of worldwide donors give to organisations located outside their country of residence.
- 92% of surveyed corporate human resources executives agree that contributing business skills and expertise to a non-profit can be an effective way to improve employees’ leadership and broader professional skill sets.
Peer-to-peer fundraising strategy can generate good revenue if done in a planned way. Allowing individuals to create a customized page for their fundraiser can attract a lot more donors than usual. Also, it is important to give clarity on the cause and the development of the fundraiser in order to maintain the peer-to-peer fundraising statistics.
Having a great team for donor management can maximise the engagement for peer-to-peer fundraising. We, the Whydonate Team, as a crowdfunding platform can help you to reach your goal in a peer-to-peer fundraising campaign. Now you can start your own fundraiser without any doubt.