Crowdfunding v/s Peer-To-Peer Fundraising: Which One is Better?


Crowdfunding and peer-to-peer fundraising are fast becoming top choices for fundraisers. However, there is sometimes a debate over which of these two options is better. Well, the thing may not necessarily be about picking one over the other but going with a mechanism through which funds can be raised effectively. This is why it suffices to get a clue about both options. It is in line with this that the two fundraising models will be extensively discussed in this article.


What Is Crowdfunding?

As the name suggests, crowdfunding has to do with receiving funds from a host of people who give selflessly to aid a cause. It allows a fundraiser to access an extensive network of donors – whether known beforehand or not. This is simply down to the impact of the internet, which makes borderless connection possible. Individuals and organizations have adopted crowdfunding in diverse ways.


For instance, start-ups can use it to raise the capital needed for their businesses. Likewise, individuals unable to meet specific urgent needs – offsetting academic needs, medical bills, etc. – often turn to this fundraising model. We can have a donation-based or investment crowdfunding model.


To run a crowdfunding campaign, the fundraiser must first set up a personal crowdfunding page. You can select from any of the trusted crowdfunding platforms to get started. Once you have your preferred platform, you can set up your campaign page.


You will have to set your fundraising goal from the onset. This goal-setting act mainly concerns how much you are looking to raise through the campaign. Furthermore, you must tell people about your story while crowdfunding. This story-telling can move or inspire people to donate more towards the completion of the project.


You can roll the ball on your fundraising drive once the nitty-gritty is completed. The crowdfunding platform will see to managing the whole process thereafter. But then, you will have to share the link to your crowdfunding page with your contacts from time to time. You can also create social media posts about it.


The funds can be received once the target has been met or some days after the deadline. You will receive all the funds minus the (agreed) percentage, which goes to the crowdfunding platform.



  • The fundraising process is easy to manage and monitor.
  • It is cost-effective.
  • It is pretty safe to use, with low risk involved.
  • It paves the way for non-profits to build a community of donors.
  • It allows communication to flow from a central point.



  • Crowdfunding campaign is somewhat time-consuming.
  • Delay in the release of funds. This could make for a frustrating experience.
  • It is somewhat highly competitive, with a lot of fundraisers adopting it.


What Is Peer-To-Peer Fundraising?

Peer-to-peer fundraising is a form of fundraising that involves soliciting for funds among peers. It is such that your team volunteers or supporters inform people within their close (social) circle about the fundraising project. The volunteers will be better positioned to convince their peers to join the campaign.


Other names for this fundraising model are social fundraising, team fundraising, and P2P fundraising. Peer-to-peer fundraising is sometimes classified as a form of crowdfunding. This is quite understandable, considering how it (that is, P2P fundraising) involves multiple donors. You will also need to share your story, vision, and value with your audience while going the route of peer-to-peer fundraising.


However, one may not require an established platform for donations through a peer-to-peer strategy. You can look to your network of followers to take care of the basics. As such, the fundraising management burden will be lifted to an extent. That said, you will need to provide an online donation link or text-to-give information for collection purposes.

Peer-to-peer fundraisers can have individual pages from which they will send requests. A message template can be developed for the fundraisers to follow. Using such a template will sustain the integrity and mutuality of all fundraising campaign efforts.

Additionally, a central peer-to-peer fundraising campaign page should be set up for your use. From there, you will be able to monitor the process and follow up on the input of every fundraiser.     



  • It enables you to optimize the limited available resources.
  • It promotes organic awareness of your fundraising campaign.
  • It is highly cost-effective.
  • Helps to achieve fundraising objectives promptly.
  • Enhances the prospect of gaining new donors.



  • Taking volunteers through the basics of effective fundraising may sometimes be time-consuming.
  • Demotivated supporters may hurt fundraising campaign progress.



The peer-to-peer fundraising strategy appears enticing, to say the least. This is why we may also show some bias towards it, as it ensures a meaningful fundraising outcome. The reach and increased level of fund generation from it can sometimes be insane – if tactfully engaged.

However, it should not go without saying that P2P fundraising can only thrive when one has a sound support system. Running the (peer-to-peer) model will not be smooth without such support. The lack of motivation on the part of the volunteers is another concern in this fundraising model.


Given the foregoing, one may have to consider crowdfunding. In this case, the issue of the support system is well-taken care of with crowdfunding. However, you will have to contend with some of the problems raised above when selecting crowdfunding.

From this end, the peer-to-peer option is the more tenable of the two strategies.

For this reason, investing in building a team of volunteers and finding ways to get their interests is advisable. You can start with your friends and families and also look at your Facebook or Twitter connections. You should see this as a way of finding people who share or appreciate your vision. You may never know the value of your networks until you engage them.


Both crowdfunding and peer-to-peer fundraising options may be seen as efficient, but the latter has the edge over the former. This boils down to better cost-effectiveness of P2P fundraising. Moreover, it also creates an avenue for a fast and increased fundraising drive.