Peer-to-peer fundraising is a charity fundraising method in which supporters raise money on behalf of a charitable organisation. Each participant creates a personal fundraising page and asks people in their network to make charitable donations. For example, someone might run a marathon to support a youth charity. They could create a fundraising page, share their story and encourage friends to donate. The charity benefits from both the funds raised and the exposure to new audiences.
Peer-to-peer fundraising is sometimes called P2P fundraising. It uses personal connections to encourage giving. People may feel more motivated to donate when a friend, colleague or family member explains why a cause matters to them. Common examples include sponsored challenges, such as running, cycling or swimming events; birthday fundraisers, where supporters ask for donations instead of gifts; workplace campaigns that bring employees together for a shared cause; community events, such as walks and trivia nights; and tribute fundraising in memory of a loved one.
Peer-to-peer fundraising is different from traditional crowdfunding, although the two approaches can overlap. Crowdfunding typically involves collecting contributions for a particular project, goal or individual. Peer-to-peer fundraising focuses on supporters raising money through their personal networks for a cause or organisation.
How Does Peer-to-Peer Fundraising Work in Australia?
Peer-to-peer fundraising Australia campaigns usually follow a straightforward process. However, charities need a clear plan to make sure supporters feel confident and donations reach the intended cause.
First, the charity identifies the purpose of the campaign. This might involve funding community programs, supporting medical research or providing essential services. A clear fundraising target helps participants understand what they are working towards.
Next, the charity selects a suitable fundraising platform. Charities can use these platforms to create campaign pages, register participants and collect donations online. Depending on the platform, features may include team fundraising, progress trackers, automated receipts and social media sharing. Australian charities may consider platforms such as Raisely, GiveNow and Grassrootz. The right choice depends on the charity’s needs, fees, available features and payment processing arrangements.
The charity then recruits and supports fundraisers. These may include volunteers, existing donors, employees, community groups or event participants. Providing simple instructions, sample messages and fundraising tips can help people get started. Participants should understand the campaign’s purpose and feel comfortable sharing it with their networks.
Once registered, each participant creates a personal fundraising page explaining their connection to the cause. They then share the page through email, social media and personal conversations. Personal stories are especially valuable because they help potential donors understand why the cause matters. Regular updates can also encourage people to contribute throughout the campaign.
Finally, the fundraising platform processes donations and records campaign activity. Charities should thank donors promptly and keep participants informed about progress. After the campaign, sharing the total raised and explaining how the money will be used helps build trust. It also encourages supporters to take part in future fundraising campaigns.
Are peer-to-peer fundraising donations tax-deductible in Australia?
Not all charitable donations are tax-deductible. In Australia, a donation is generally tax-deductible for the donor when it is made to a deductible gift recipient (DGR), meets the relevant requirements and is not given in return for a benefit.
A charity’s registration status alone does not guarantee that every donation is deductible. Fundraising pages should clearly explain the tax-deductibility of contributions. Charities should also ensure that donation receipts and tax information are handled appropriately.
What Are the Benefits of Peer-to-Peer Fundraising for Charities?
Peer-to-peer fundraising offers several benefits beyond raising money. When planned well, it can help charities build lasting relationships and reach people who may not have encountered their work before.
One major benefit is the ability to reach new audiences. Each fundraiser introduces the charity to their own network. This can help organisations connect with potential supporters beyond their existing donor base.
Peer-to-peer fundraising can also build trust through personal connections. People often respond to recommendations from someone they know. A personal story can make a charitable cause feel more relevant and encourage people to learn more.
Another benefit is increased engagement. Supporters become active participants rather than simply donors. They can share their experiences, involve their communities and develop a stronger connection to the charity’s mission.
Online fundraising also makes participation more accessible. Digital platforms allow people to donate and fundraise from different locations. They can simplify campaign administration by bringing donation collection, participant pages and reporting together.
Finally, peer-to-peer fundraising creates opportunities for long-term support. A successful campaign can be the beginning of an ongoing relationship. First-time donors may later volunteer, attend events or contribute to other fundraising initiatives.
Charities should assess more than the total amount raised when measuring campaign success. A combination of financial and engagement measures provides a clearer picture of performance.
Useful measures include: the total funds raised after accounting for platform fees and campaign costs, the number of active fundraisers, and the average amount raised per participant. Charities can also track donor acquisition to understand how many first-time donors have been introduced to the organisation.
Where data is available, donation conversion rates can show how many fundraising page visitors make a contribution. Donor retention can reveal whether supporters give again in a later period. Page visits, social shares and other interactions can also help charities understand how audiences engage with a campaign.
Comparing these measures with the campaign’s original goals helps charities identify what worked and what could improve. Tracking results over time can also inform future fundraising strategies.
How The Giving Advisory Can Help
Ultimately, peer-to-peer fundraising can help Australian charities turn personal connections into meaningful support. With a clear purpose, suitable fundraising platforms and strong supporter communication, organisations can raise funds, expand their reach and build a more engaged community of donors.
At The Giving Advisory, we understand that initiating and maintaining conversations about giving in the family can sometimes be challenging. Our services team is here to help guide your family through the process of family philanthropy, whether you’re starting a donor advised fund, planning your first charitable contribution, or seeking advice on how to align your giving with your family’s values.
If you want to learn more about how to engage your family in giving and create a lasting philanthropic legacy, contact us today. We’re here to help you reach your philanthropic goals and make a positive impact together.
The information in this article is general information only and has been prepared without taking into account your individual objectives, financial situation or needs. It should not be relied upon as personal financial, taxation or legal advice. Before acting on any information contained in this article, you should consider its appropriateness having regard to your circumstances and, where appropriate, seek professional advice.