What's Happening?
A new study has highlighted significant flaws in peer-to-peer (P2P) fundraising strategies, particularly concerning the 'second ask' to donors. The report, co-authored by GoFindMe Pro and GivingTuesday, reveals that while P2P fundraising is effective
in attracting new donors, many organizations fail to convert these donors into recurring contributors. The study suggests that the second ask often mirrors the initial one-time donation amount, which may not be suitable for donors who are not ready to commit to a larger recurring gift. The report emphasizes the potential of P2P fundraising to expand donor bases, especially for small to medium-sized organizations, but notes that recurring giving remains largely untapped.
Why It's Important?
The findings of this study are crucial for nonprofit organizations seeking to optimize their fundraising strategies. P2P fundraising has proven effective in reaching new donors, with a significant portion of donations coming from first-time contributors. However, the failure to convert these donors into recurring supporters represents a missed opportunity for sustained funding. As Gen Z becomes a more prominent donor demographic, with a focus on social change, nonprofits must adapt their strategies to engage this group effectively. The study's insights could lead to more strategic approaches in P2P fundraising, potentially increasing the financial stability and reach of nonprofit organizations.
What's Next?
Nonprofits are likely to reevaluate their P2P fundraising strategies in light of this study. Organizations may focus on developing more personalized and strategic 'second asks' to encourage recurring donations. Additionally, there may be an increased emphasis on leveraging the trust and credibility of personal relationships in P2P campaigns to enhance donor engagement. As the nonprofit sector continues to evolve, the adoption of more effective P2P strategies could lead to a broader and more sustainable donor base, ultimately supporting the long-term goals of these organizations.
