University of Technology Sydney · FACULTY OF MANAGEMENT

21778 Chap.7 Digital Fundraising and Peer-to-Peer Giving

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Chapter 7 of 11 · 21778

Digital Fundraising and Peer-to-Peer Giving

Online giving, honestly assessed

Week 4 treats technology as the factor that has permanently disrupted donor engagement. This chapter weighs the benefits of digital fundraising against its costs, including slacktivism and the hours effective social media takes, and sets out the 1:1:1 posting rule.

It then reads the Nedd’s Uncomfortable Challenge case through social impact theory and the two kinds of trust that crowdfunding research describes.

Using the case well

The Nedd’s Uncomfortable Challenge case ends with reflection questions on purpose, peer-to-peer features, profiles, storytelling, trust, social proof and stewardship.

Answering them for your own case organisation’s website is a quick way to build the technological part of the audit, and the stewardship question in particular leads naturally into a recommendation about donor retention.

In this chapter

What this chapter covers

  • 01

    Technology as a PEST factor

  • 02

    Information, community and action

  • 03

    Benefits of digital fundraising

  • 04

    Problems and slacktivism

  • 05

    The 1:1:1 posting rule

  • 06

    Peer-to-peer fundraising

  • 07

    Cognitive and affective trust

Worked example · free

Plan a month of posts with the 1:1:1 rule

Q [3 marks]. Prepared by AskSia as practice; any marks shown here reflect our weighting, not an official university allocation. A youth mental health charity will post 24 times in the month before a giving day. Using the 1:1:1 rule and the information, community and action sequence, plan the posts.
Ask last, not first.Ask last, not first. Each step stands on the one before it: supporters need information about the cause and a community to join before a call to donate or share is likely to work.Informationwhy the cause mattersCommunitypeople to belong withActiondonate, share, register
Ask last, not first. Each step stands on the one before it: supporters need information about the cause and a community to join before a call to donate or share is likely to work.
  • 1Split: 24 ÷ 3 = 8 original updates and thank-yous, 8 shares of partners’ content and 8 posts linking to the giving day.
  • 1Order: run information and community posts in the first weeks so the links arrive after supporters understand and belong.
  • 1Measure: count donations and new fundraisers from the linked posts, not likes.
Eight posts of each kind, sequenced so the eight donation links come after the information and community posts, with success measured by conversions rather than reach.
Sia tip — Schedule the call-to-action posts last and track conversions, because likes alone can be slacktivism.
Glossary

Key terms

Social Network Effect
The recruitment of new donors through current donors’ own social networks, described by Saxton and Wang.
Social Impact Theory
Latané’s theory that influence depends on the strength, immediacy and number of its sources.
Cognitive Trust
Belief that an organisation is competent and believable, built by explaining where money goes and reporting impact.
Affective Trust
Emotional trust built through empathy, stories and connection with the people involved.
Social Proof
Visible evidence that others are giving, such as live totals and donor messages, which encourages more people to give.
Donor Stewardship
The care of donors after a gift, such as thanks and impact updates, aimed at turning a one-off gift into a continuing relationship.
FAQ

Digital Fundraising and Peer-to-Peer Giving FAQ

Why must information and community come before the call to action?

A stranger asked to donate without context has little reason to act. Supporters who understand the cause and see others involved are far more likely to give, so a campaign builds information and community first and places the ask on top of them.

What are the main problems with digital fundraising?

The lecture lists a medium return on heavy investment, 12 to 36 hours a week for effective social media, hard platform choices, scarce skills, noise such as excess email, a skew toward small gifts, and slacktivism, where online support does not become donations or volunteering.

Why does peer-to-peer fundraising work?

Supporters ask their own networks, drawing on trust and social capital they already hold. Research cited in the case links stronger relationships, urgent needs and visible donor numbers with more giving, and finds that successful campaigns highlight the fundraiser more than the cause.

How does social media help peer-to-peer giving?

It lets supporters reach friends and family quickly, share their reasons for taking part and show progress in public. The lecture notes that peer-to-peer fundraising uses the individual’s network and trust, which legitimises the organisation with new donors and widens the range of people who might give.

Is digital fundraising cheap?

It is often perceived as low cost compared with face-to-face events, but the lecture warns of only a medium return on heavy investment and puts effective social media use at 12 to 36 hours a week. The real cost is skilled staff or volunteer time, so a plan should name who will run each channel.

What is donor-splitting in online giving?

The Week 4 lecture lists donor-splitting among the benefits of digital fundraising, and the subject’s reading list includes Burt and Williams (2014) on donor-specified splitting of donations. In practice it lets a donor choose how a gift is divided; the article uses it to study how an organisation’s financial management affects donor trust.

Study strategy

Assessment move

For any digital case, list its information, community and action features, then its cognitive and affective trust signals. Count the hours the channel needs and name who supplies them. Recommend measures based on conversions, repeat gifts and new fundraisers rather than reach. Note one stewardship step for every channel, since retention is where digital campaigns most often fall short.

Working through Digital Fundraising and Peer-to-Peer Giving in 21778? Sia is AskSia’s AI Management tutor — ask any 21778 Digital Fundraising and Peer-to-Peer Giving question and get a clear, step-by-step explanation grounded in how 21778 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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