Is crowdfunding & peer-to-peer fundraising the same thing?

“Crowdfunding” was first coined after the successes of Indiegogo and Kickstarter. Since then, the term has become overused, increasingly as a blanket term for any peer-to-peer fundraising campaign.

However, crowdfunding projects and general peer-to-peer fundraising projects are rather different.

What’s the difference between crowdfunding & general peer-to-peer fundraising?

General peer-to-peer fundraising (everydayhero)

General peer-to-peer fundraising involves projects that are fundraising events, like running a marathon or skydiving. A charity then receives the funds raised.

This model is used by both JustGiving and everydayhero. Everydayhero is an online service that allows individuals to fundraise for charities and enables charities to showcase all fundraising events running on their behalf in one place.

Crowdfunding

Crowdfunding focuses on raising funds for specific projects. The key distinction involves where funds land and who receives them. For platforms like Kickstarter and Hubbub, individuals or groups receive funds to carry out their projects (such as a performance at the Edinburgh Fringe). In contrast, models like everydayhero direct funds straight to charities.

How can universities support students’ crowdfunding projects?

Students frequently run crowdfunding projects on external sites like Kickstarter and IndieGoGo. Universities are now using their own centralized crowdfunding platforms for students and staff to run their projects.

To keep student and staff projects in-house, institutions must offer technology comparable to, or exceeding, third-party alternatives. Otherwise, creators will continue using external platforms.

Can I hack everydayhero to act like a crowdfunding platform?

While technically possible, limitations exist around fundraising methods. Features such as “all-or-nothing” funding (creating urgency) and “rewards” (making participants feel less like they’re soliciting) are critical to crowdfunding success.

What does a university crowdfunding program look like?

Students and staff submit projects to university administrators, who publish them if they meet agreed requirements.

Project creators then fundraise for their own initiatives. The university handles registration (including tax relief) and transfers funds to projects.

Donors are subsequently stewarded for future gifts. For example, 14% of donors to the University of Essex’s crowdfunding platform (Click) opted to be contacted about regular giving.

What should I do next?

Decide what project types you want to support.

For charity projects like marathon runs or similar events, either everydayhero or JustGiving will serve your needs. To support varied projects created by students and staff, explore a dedicated “crowdfunding” platform instead.