Crowdfunding Vs. Fundraising: Which is Best?

March 2, 2022

crowd funding concept

Choosing the best online fundraising platform for your school, club or group can be difficult. While peer-to-peer fundraising and crowdfunding have been used interchangeably, they’re actually two completely different concepts, especially when it comes to how your organization can collect funds.

So, what is the difference between crowdfunding vs. fundraising, and which is the best option for your next fundraiser? In this article, we’ll cover everything you need to know to make the right decision for your group.

What Is Crowdfunding?

Crowdfunding is the process of funding a project or venture by raising money from a large number of people, typically through the internet. Online crowdfunding platforms allow individuals to post their projects and collect donations from interested parties.

Some examples of crowdfunding include:

  • Social Projects (supporting people in need)
  • Business Startups
  • Environmental and Conservations
  • Political Campaigns

Crowdfunding websites have become very popular in recent years as a way for startups and small businesses to raise money without having to turn to traditional bank loans. In addition to this, many individuals have also used crowdfunding platforms to raise funds for various personal reasons, including medical emergencies and funerals.

The Benefits Of Online Crowdfunding

If you’re an individual or have an obscure cause that could use financial assistance, online crowdfunding can be a great way to receive donations from complete strangers. Since there are many platforms to choose from that allow crowdfunding, it should be simple for individuals to find the right platform to get started with their fundraiser.

The Downsides To Online Crowdfunding Vs. Peer-to-Peer

This method isn’t the best when it comes to raising money as a group since less than 25% of campaigns will actually reach their target goal. Out of that 25%, the most common industries include gaming, charities, and graphic novels. The reason why this number is so low is that many people choose to ignore online crowdfunding efforts on websites such as GoFundMe simply because it doesn’t feel personalized, and it only allows users to donate instead of allowing them to receive something in return. On top of that, crowdfunding platforms require one primary user to host the campaign, making it difficult for teams, schools, and groups to work together on a single goal.

What Is Peer-to-Peer Fundraising?

Peer-to-Peer fundraising is rated as the number one tactic to prompt donors to give to charity. While crowdfunding relies solely on the generosity of random people, peer-to-peer fundraising is completely different. It works by asking your supporters to become a part of your online fundraising platform by donating to your school, group, or team. 

Some peer-to-peer fundraising ideas include:

  • Bake Sale Fundraiser
  • Car Wash Fundraiser
  • Athletic Events Fundraiser
  • Holiday Giving Fundraiser
  •  A-Thon Events Fundraiser

Each individual is able to reach out to their personal circle of influence and ask them to donate to their cause through their own link or QR code, increasing the overall contributions and success of the campaign.

The Benefits Of Peer-To-Peer Fundraising

Personal Investment

It allows each participant to become personally invested in the campaign. They are given a sense of ownership and responsibility that spurs them to ask their friends, family members, and coworkers to donate.


Online peer-to-peer fundraising platforms allows groups to control their campaign fully. Unlike online crowdfunding, the organization doesn’t need to depend on the main host for the duration of their fundraiser. Instead, each participant is able to have their own unique or personal page with various offerings, whether that includes selling products, running events, or collecting donations.

Return on Investment

Most importantly, peer-to-peer fundraising ideas allow participants to receive something in return. With 80% of people wanting something in return for their contribution, this method of raising funds allows your group, club, or school to reach a wider audience of potential contributors by giving them something in return for their donation.

The Downsides To Peer-To-Peer  Fundraising

The only downside to peer-to-peer fundraising is that it requires participants to be involved with the campaign. For instance, if you have a large number of people on your team but they aren’t willing to put in the time or effort needed for the campaign to be successful, then it will not reach its full potential.

Peer-To-Peer fundraising may not be the best online fundraising platform for you if you’re an individual who is looking to raise money for a personal cause. However, if you’re part of a group or team that is looking to fundraise for a specific purpose, then online peer-to-peer fundraising platforms are the best way to go.

Which Is The Best? Crowdfunding Vs. Peer-to-Peer?

At the end of the day, it all comes down to what you’re looking for in a fundraising platform. For example, suppose you’re an individual looking for an online platform that allows you to receive donations from random people without having to give anything back in return. In that case, online crowdfunding is your best bet. This method has traditionally been more hands-off but has a much lower success rate. 

However, if you’re part of a group or team that is looking to run a successful campaign that raises funds for your cause, then peer-to-peer fundraising platforms are the best way to go. Traditionally, this method has a massive amount more upside but has required more work. Until now, that is. 

Make Fundraising Even Easier With MoneyDolly

When you need to choose the best fundraising method for your group, club, or school, look no further than MoneyDolly’s peer-to-peer fundraising platform. Not only will this online fundraising platform help you raise more funds faster and easier, but it’ll also give your school, club, or group various ways to engage and attract donors to your cause. MoneyDolly completely revolutionizes the process. Now, the most lucrative fundraising method is easy.

Dedicated Team & Top Notch App

With MoneyDolly, you’ll work with a dedicated fundraising expert from start to finish to help you plan out your entire peer-to-peer fundraising ideas and campaign, promote your fundraiser through social media and other online platforms, and learn how to make your fundraiser succeed every time. Plus, since everything is handled in the app, collecting donations, running events, and selling products all on your own is a thing of the past. You can simply watch the sales roll in from your phone as you track the progress of your team. It makes the entire process simple and easy for everyone involved.

Contact Us!

If you’re in need of fundraising help, get advice from fundraising experts plus a demo of MoneyDolly. You can get started free by creating an account today!

Damion Smith-profile 2

Damion Smith

Founder and CEO

Prior to starting MoneyDolly, Damion spent the last 25 years helping teams, schools & organizations raise money while growing multiple companies across the country. He has served in many capacities including Sale Representative, Sales Manager, Senior VP of Sales & President.