Peer to Peer fundraising is the perfect psychological storm

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[no_dropcaps type="square" color="" font_size="" line_height="" width="" font_weight="" font_style="" text_align="" border_color="" background_color="" margin=""]P[/no_dropcaps]utting a psychologist with two peer to peer fundraisers is like putting two college seniors in a craft beer taste test. It's kind of fun.

Turns out, peer to peer fundraising is the perfect psychological storm. The relationship of the volunteer fundraiser with the nonprofit is a huge opportunity for raising money, but easy to screw up.

Social relationships happen when two entities WANT to be a relationship. There is no financial exchange. Market relationships happen when two entities have something the other wants, and an exchange of currency happens. Market relationship = payment. Unfortunately nonprofits trip up and fall into market relationships without really internalizing what that means, and it means a lot.

How do you get in a market relationship? You change the "currency" in your relationship away from "heart" and into "money." As an example, if you charge a registration fee, you have just flipped your participant into a market relationship. If you use incentives that can be mentally monetized ("That costs around $20") you have just paid your fundraiser. If you hit your fundraiser's credit card when they don't fundraise enough to participate, you just created a market relationship.

The largest amount of gross and net revenue comes from social relationships, represented by walks with no registration fee. Considerable fundraising income, with lower net revenue, comes from market relationships. Simply put, you have to pay people if you are in a market relationship, resulting in a lower net profit.

Dig into this kind of fun and more - Monday 10/26 at 1:15 pm, Convention Center, Room 14. Presenting will be Amy Braiterman, voted "Most Fun at Conference" three years running, Otis Fulton, a psychologist shanghaied into the study of the peer to peer fundraising, and Katrina VanHuss, a 27-year industry veteran determined enough to press the 6'10" Fulton into psychological service. She looked like a dachshund bringing down a black bear getting it done.