According to Fundable, 270,000 jobs and $65 billion will be added to the global economy because of crowdfunding. Massolution has found that crowdfunding raised an estimated $5.1 billion in 2013. And according to Network for Good, peer-to-peer (P2P) giving represents 23% of all online giving, with an average gift size of $100.
Do we have your attention yet?
Even if any of these figures is off by just a small percentage, they still represent an enormous piece of the fundraising pie; a piece that’s growing larger every year on the nonprofit side. That same study from Network for Good found that P2P grew by 70% from 2013 to 2014.
Why is peer-to-peer out-pacing other fundraising channels by such a wide margin? Here are nine possible reasons:
- P2P empowers a large quantity donors to give small amounts
- P2P allows individuals to support very specific projects
- P2P provides regular updates and feedback on project progress
- P2P providers enable “best practices” in communications (third-party giving pages are typically optimized for look and feel to generate donations)
- P2P, as the name implies, truly takes advantage of existing personal relationships
- P2P projects are easily discoverable and via social media, email and other digital channels
- P2P takes advantage of gamification by encouraging giving levels and rewards
- P2P enables peer recognition (people love to put their philanthropy on display!)
- P2P makes it easy to give via a mobile device
What’s ironic here is that all nine of those items can be implemented (and work!) in other traditional fundraising channels. While they are completely pervasive within P2P campaigns, they are typically lacking elsewhere.
On this episode of Bloomerang TV, Brady Josephson of Chimp and recharity.ca joins us to define crowdfunding and P2P in plain english and offer some tips on how to get started.
Should all fundraisers engage in peer-to-peer fundraising?
Maybe. Everyone should at least try it in some experimental manner, as they should with any unused fundraising techniques. In the case of P2P, your first test-run should perhaps be centered around a single project that your most dedicated supporters can relate to.
Has your nonprofit ever conducted a peer-to-peer fundraising campaign, or used a crowdfunding tool? Can you share what happened with your initial try? Let us know in the comments below!