Peer Influence Fundraising Models

Ostrom’s Law in Action For decades, mainstream economists pushed the idea (and still do) that shared resources must be privatized or controlled by the state to prevent overuse. The dominant fear? The so-called “Tragedy of the Commons”—where people deplete shared resources due to self-interest. But Elinor Ostrom proved them wrong. 🔹 Ostrom’s Law: “A resource arrangement that works in practice can work in theory.” This principle wasn’t coined by Ostrom herself—it was named in her honor by scholars who saw how her research overturned traditional economic assumptions. She demonstrated that communities worldwide have successfully managed common resources for centuries—without centralized control. Her work, which earned her the Nobel Prize in Economics in 2009, showed that self-governance, local rules, and social trust create sustainable economies, independent of external control. Before money became the dominant medium of exchange, communities thrived using commitment-based economies—systems where trust, labor-sharing, and reciprocal exchange sustained livelihoods. Commitment Pooling, as practiced in Grassroots Economics, revives these traditions by structuring resource-sharing agreements where people contribute labor, goods, or services into community-led pools. These systems didn’t collapse from overuse—instead, they thrived for generations because social accountability and trust replaced top-down enforcement. ✅ Communities create their own rules for managing shared resources—customized to their realities. (Grassroots Economics pools operate through local agreements rather than imposed regulations.) ✅ The "Tragedy of the Commons" doesn’t happen when clear rules, trust, and accountability exist. (Commitment Pools use rotational labor, mutual credit, and resource limitations to maintain balance.) ✅ Reputation and relationships matter more than external enforcement. (People honor commitments because they are socially accountable to their community.) ✅ Top-down economic policies fail to recognize local needs, but community governance adapts efficiently. (Commitment Pools respond to real-time conditions, unlike rigid financial systems.) ✅ Technology can enhance these traditional structures. (Blockchain tools like Sarafu.Network track commitments transparently, ensuring trust at scale.) Ostrom’s Law tells us that real-world solutions should guide economic theory, not the other way around. Grassroots Economics is proving this today—using ancient economic structures combined with modern digital tools to build resilient, decentralized economies. 💡 The future isn’t about top-down control—it’s about communities reclaiming economic sovereignty, one commitment at a time. 🔥 How do you see Ostrom’s insights shaping today’s decentralized economies? Let’s discuss! ⬇️ #OstromsLaw #GrassrootsEconomics #CommitmentPooling #CommunityWealth #RegenerativeEconomics

Feeling grateful for an incredible weekend on Cycle for the Cause - and reflecting on a few Peer-to-Peer fundraising lessons learned while hitting my $15k fundraising goal! 🙌🏼 Cycle for the Cause: The Northeast AIDS Ride has been taking place for nearly 30 years. I joined in 2016 in honor of my Uncle Marlin ❤️ Hundreds of us ride 275 miles from Boston to NYC in 3 days, & raised over $2 million for The NYC LGBT Center’s life-saving HIV / AIDS services 🚴🏼♂️ 1️⃣ P2P fundraising works because people in your network want to be a part of something bigger than themselves. So invite them in & make it exciting! ⚡ The best ways to dial up the excitement are: 👉🏼 Share specifics about the mission that give them something concrete to connect their gift to (I heard that knowing their gift could provide an at-risk person with a year of HIV prevention meds was incredibly eye opening for my donors). 👉🏼 Set a goal! Several people upsized their gift to be “the one” that got me over a certain total fundraising threshold. People like playing a role in your achievement! 2️⃣ Email remains my most valuable channel. It takes time to keep an email list up to date, but it has the highest payoff! 📈 Pro tip: if you have some likely large donors in there, send them a direct personal email if they haven’t given in response to your broader one yet. It’s super effective, but time consuming 😁 3️⃣  I never post on Instagram, but I have to come back to it for fundraising because it’s SO engaging. The ability to tag & thank your donors in stories + include a direct link to your fundraising page… works magic. Was doing this all weekend and led to an extra 50+ gifts 🥳 4️⃣ LinkedIn was actually a great source of donations! I could directly attribute at least a dozen gifts to people that encountered a post of mine - several were folks I didn’t even know! Don’t be afraid to give it a shot 😉 5️⃣ I got 12+ DAFpay gifts thanks to the integration with DonorDrive! I can see a roughly 2x impact on those donor’s gift size vs. their standard credit card gift. There were a few other DAF gifts not made through DAFpay that I’m still waiting on so weren’t in my total at the finish line 😢 6️⃣ Start early! I remember hearing at one point that the average person requires 7 reminders to donate… So the earlier you can start asking, the better. Plus many people will end up giving again towards the end! ⏰ 7️⃣ P2P is about much more than fundraising - it binds participants to the organization & mission in a way that nothing else can 🫂 Especially in the challenging fundraising environment we’re in, I’d encourage folks to measure success as you would a program or service your organization offers, in addition to your revenue total & return on spend like other kinds of fundraising ✅ Thank you to all of the riders, crew, staff and donors that make this an unforgettable experience each year 🫶🏼 #nonprofit #fundraising #philanthropy

Before it was about getting donors to write checks. Now it’s about involving them in your ecosystem. Here’s 5 steps to get started today: You’re not just fundraising anymore. You’re onboarding stakeholders. If you want repeatable, compounding revenue from donors, partners, and decision-makers, you need to stop treating them like check-writers… …and start treating them like collaborators in a living system. Here’s how. 1. Diagnose your “center of gravity” Most orgs center fundraising around the mission. But the real gravitational pull for donors is their identity. → Ask yourself: What is the identity we help our funders step into? Examples: Systems Disruptor. Local Hero. Climate Investor. Opportunity Builder. Build messaging, experiences, and invites around that identity, not just impact stats. 2. Turn every program into a flywheel for new capital Stop separating “program delivery” from “fundraising.” Your programs are your best sales engine → Examples: • Invite donors to shadow frontline staff for one hour • Allow funders to sponsor a real-time decision and see the outcome • Let supporters “unlock” bonus services for beneficiaries through engagement, not just cash People fund what they help shape. 3. Use feedback as a funding mechanism Most orgs treat surveys as box-checking. But used right, feedback is fundraising foreplay. → Ask donors and partners to co-define what “success” looks like before you report back. Then build dashboards, stories, and events around their metrics. You didn’t just show impact. You made them part of the operating model. 4. Make your “thank you” do heavy lifting Thanking donors isn’t the end of a transaction. It’s the first trust test for future collaboration. → Instead of a generic “thank you,” send: • A 1-minute voice memo with a specific insight you gained from their gift • A sneak peek at a challenge you’re tackling and ask for their perspective • A micro-invite: “Can I get your eyes on something next week?” You’re not closing a loop. You’re opening a door. 5. Build a “Donor OS” (Operating System) Every funder should have a journey, not just a transaction history. → Track things like: • What insight made them first say “I’m in”? • Who do they influence (and who influences them)? • What kind of risk are they comfortable taking? • What internal narrative did your mission fulfill for them? Then tailor comms, invitations, and roles accordingly. Not everyone needs another newsletter but someone does want a seat at the strategy table. With purpose and impact, Mario

While everyone's talking about the funding crisis, forward-leaning NGO leaders are quietly experimenting with radically different approaches to sustainability. These aren't theoretical frameworks—they're real models being tested by organizations who refuse to wait for the old system to fix itself. Here are the four distinct models, each offering a different approach to building resilience in the post-BIG-aid era: 🤝 The Cooperative Model Inspired by Jacqueline Asiimwe Mwesige's NAFASI approach The Vision: Pool resources with peer organizations to create shared financial independence. Start with 3-5 partner organizations, each contributing modest monthly amounts to build collective resilience and reduce donor dependency. Key Operational Capability: Financial pooling + shared governance systems. Requires robust mechanisms for collective decision-making about resource allocation and transparent financial management across organizations. 🕸️ The Network Model Drawing from Kim Kucinskas's ecosystem approach The Vision: Transform from individual organization to network weaver. Focus on connecting, convening, and catalyzing rather than direct implementation. Measure success by ecosystem health, not program outputs. Key Operational Capability: Relationship mapping and network facilitation skills. Need to excel at identifying key stakeholders and designing convenings that create lasting connections. 💰 The Hybrid Model Based on Jenny Hodgson's blended approach The Vision: Combine "warm money" from communities with "cold money" from traditional donors. Build local donor bases while maintaining strategic international partnerships, creating co-owned, co-funded initiatives. Key Operational Capability: Dual fundraising and relationship management systems. Separate but integrated approaches for cultivating community donors and institutional funders, with different strategies for each. ✊ The Movement Model Following Jenna Thoretz's solidarity approach The Vision: Dissolve artificial boundaries between INGOs and local NGOs. Operate as one global civil society, sharing resources and power across geographic lines. Key Operational Capability: Cross-border collaboration and resource sharing platforms. Your organization needs systems for coordinating with international partners and sharing resources fluidly across boundaries. Each model requires different organizational DNA, leadership capabilities, and risk tolerance. Before choosing your path: ✅ Assess your organizational strengths: Which capabilities do you already possess? ✅ Evaluate your stakeholder readiness: Are your board, staff, and communities prepared for this shift? ✅ Consider your context: What regulatory, cultural, and competitive factors will impact your success? ✅ Plan your transition: How will you manage the operational and cultural changes required? Read the full essay series and dive deeper into these approaches. https://lnkd.in/gm_PSfV6

The donor who declined your request last month just referred their business partner to you. Sometimes "no" to the ask means "yes" to the relationship. Keep the door open for everyone. I watched a development director handle rejection beautifully last month, and it paid off in ways she never expected. She'd been cultivating David for eight months. Great relationship, clear capacity, genuine interest in their youth programs. When she finally made the ask for $25,000, he said no. "I'm overcommitted this year with other charitable obligations. I just can't take on another major gift right now." Most development directors would have been disappointed and moved on. But she did something different. "I completely understand," she said. "Thank you for being honest about your capacity. I hope we can stay in touch and maybe revisit this in the future." She sent a gracious follow-up email thanking him for his time and consideration. She kept him on their newsletter list. She invited him to their annual event with no expectation of a gift. Three weeks later, David called. "I've been thinking about our conversation," he said. "While I can't make a gift right now, I have a business partner who's been looking for youth organizations to support. Would you be interested in meeting him?" That referral turned into a $50,000 gift and an ongoing relationship with someone who became a board member. Here's what this development director understood: David's "no" wasn't personal rejection. It was honest communication about his current capacity. By respecting his decision and maintaining the relationship, she kept the door open for future opportunities. The prospect who can't give today might refer someone who can. The donor who declines your ask might increase their gift next year. The foundation that turns you down might recommend you to another funder. But only if you handle rejection with grace and keep relationships intact. Because in fundraising, "no" often means "not now" or "not this" - but it doesn't have to mean "not ever."

Global climate finance is failing the people who need it most because it’s built for top-down pledges and compliance, not for getting resources into the hands of vulnerable communities. Today, less than 1% of funds reach grassroots adaptation, while 1.3 billion people remain excluded from basic financial services—leaving them unable to absorb climate shocks. In this Forbes article by Felicia Jackson, Tom Mitchell, Executive director of the International Institute for Environment and Development (IIED) and myself at CGAP argue that, to turn commitments into real resilience, we must redesign climate finance to prioritize locally led approaches, radically simplify and speed up access to funds, and align risk perception with market realities. We call for donors, MDBs, and governments to widen local access to climate finance through simplified approvals at major climate funds, channeling more financing through local intermediaries, and setting explicit targets for adaptation and direct community access—so climate money finally reaches the frontlines where it has the greatest impact. Read more at: https://lnkd.in/d8sfiSU4 #climatefinance #inclusivefinance #financialinclusion #locallyledadaptation

🔹 Struggling to Find New CSR Donors? Here’s the Strategy That Works 🔹 In my recent poll, the #1 fundraising challenge that stood out was: Finding New Donors. And I get it. The usual advice—"research prospects, send cold emails, apply for grants"—isn’t enough. The real problem isn’t finding donors, it’s attracting them. Here’s how I’ve helped organizations consistently acquire new funders: 1️⃣ Donors Fund What They See—Are You Visible Enough? Most NGOs expect funders to find them, but in reality, funders are actively looking for high-impact organizations. The question is: Are you in their line of sight? 🔹 Be active on LinkedIn—Thought leadership builds credibility. 🔹 Attend sector-specific events—Grantmakers and CSR heads don’t sit in isolation. 🔹 Leverage media & PR—A published impact story can attract unexpected funders. 💡 New donors don’t come from new emails; they come from new visibility. 2️⃣ Your Outreach Isn’t the Problem—Your Positioning Is Most fundraisers send out asks. Instead, think like a strategic partner: ✔ Speak funders’ language—Link your work to their ESG, CSR, or SDG goals. ✔ Show long-term impact, not just needs—Funders fund solutions, not problems. ✔ Use warm introductions—Cold outreach has a lower success rate than referrals. 💡 Stop “seeking donors.” Start attracting them with a compelling impact proposition. 3️⃣ Expand Your Donor Pipeline Strategically The best organizations don’t rely on one donor type. They diversify: 🔹 Corporate Partnerships – Target ESG-driven companies, not just CSR teams. 🔹 High-Net-Worth Individuals – Engage philanthropists via networking events. 🔹 Institutional Funders – Focus on multi-year grants instead of one-time funding. 🔹 Community Giving – Crowdfunding and individual giving add resilience. 💡 If you only rely on grants, you’ll always struggle to find new donors. 4️⃣ Funders Talk—Make Sure They Talk About You A warm referral from an existing donor is 10x more effective than a cold approach. How? ✅ Keep existing funders engaged—They will introduce you to their networks. ✅ Ask for introductions—Many funders know other funders. ✅ Share impact updates regularly—Make it easy for funders to showcase your work. 💡 Fundraising isn’t just about acquiring donors; it’s about making them your ambassadors. Final Thought: The Best Fundraisers Don’t “Find” Donors—They Position Themselves to Be Found. If you’re struggling with new donor acquisition, it’s time to shift from chasing funding to attracting funders. #FundraisingStrategy #NGOFunding #NewDonors #CorporatePartnerships #NonprofitGrowth #SocialImpact #DonorEngagement

Peer-to-Peer Fundraising: The Ultimate Multiplier Imagine if every donor could become a fundraiser for your cause. That's the power of peer-to-peer fundraising. I recently witnessed this power firsthand in a campaign that blew past its goal by 300%. The secret? It wasn't fancy tech or a big marketing budget. It was the passion of our supporters turned advocates. Here's why peer-to-peer fundraising can be a game-changer: 1. Trust Factor: People trust recommendations from friends more than organizations. 2. Extended Reach: You tap into networks you'd never reach otherwise. 3. Personal Stories: Supporters share why your cause matters to them, adding authenticity. 4. Lower Cost: Your supporters do the heavy lifting, reducing your marketing expenses. 5. Donor Acquisition: It's a great way to bring new supporters into your orbit. But here's an unconventional tip: Success isn't just about the tools or the campaign structure. It's about empowering your supporters to be storytellers. We created a 'Storytelling Toolkit' for our peer fundraisers. It included: - Templates for social media posts - A guide to crafting their 'why' story - FAQs about our organization and impact - Tips for having donation conversations The result? Our peer fundraisers felt confident, our message stayed consistent, and the donations poured in. Remember, in peer-to-peer fundraising, your supporters are the heroes. Your job is to give them the cape and show them how to fly. Now, I'm curious: What's been your most successful peer-to-peer campaign? Share your story in the comments. What made it work? What would you do differently next time? Let's learn from each other's experiences and unlock the full potential of peer-to-peer fundraising!

Yesterday a nonprofit leader told me exactly how a cold contact on Linkedin led to a referral to the owner of a $500 million business. First off, I see a lot of people setting themselves up for failure in referrals. **Make your referral ask super actionable!** Don’t say “Can you give me referrals?” Do Say, “Can you open up the contacts on your phone and tell me 1-2 names of people in Metro Detroit that you think would love what we do?” This is an application of a theory of change metaphor called "Shape the Path" from Chip and Dan Heath's book "Switch: How to Change When Change is Hard." That's what this leader was up to! He made the refferal completion a simple path to follow instead of an open-ended monster. What was his outreach plan that got him to this point? He made a plan to do 25 outreach actions here on the platform every work day for 7 weeks so that he could fund a $25k match with new donor dollars. Those who responded and were not interested got this request: "Could you tell me which month and year you would like me to follow up? If I'm still kicking, I will be reaching out! Could I ask you to do something that doesn't cost any money?" That's when he asked for the referral. Only 2 of the uninterested parties said yes to giving a referral. One referral struck out and didn't return any communication. The other one was the $500m business owner. That owner agreed to an hour coffee. Make your asks easy to say yes to. To quote Donald Miller: "If you confuse, you'll lose"

A lot of development organizations today expect professionals to be familiar with concepts like blended finance and impact investing. But did you know there are other innovative funding mechanisms transforming how resources are distributed? In India, where poverty, inequality, and rapid urbanization intersect, these tools are being applied with immense potential for driving inclusive and sustainable development. Participatory budgeting (PB) has been a game-changer in Kerala and cities like Pune. By empowering communities to decide how public funds are spent—on projects like schools or water access—it strengthens grassroots democracy and supports marginalized groups. Delhi’s Mohalla Sabhas have also experimented with PB, though challenges like elite capture remain. Chit funds, India’s version of rotating savings and credit associations (ROSCAs), serve as financial lifelines for rural communities excluded from formal banking systems. Fintech innovations are now scaling these traditional models to bridge the $300 billion MSME credit gap. Social impact bonds (SIBs), piloted in Punjab for girls’ education, tie investor returns to measurable outcomes, shifting financial risks from governments while ensuring accountability. This model could expand to healthcare or rural infrastructure, where outcome-driven financing is critical. Quadratic funding (QF), powered by Web3 technologies, could revolutionize corporate social responsibility (CSR) spending by amplifying community preferences. Projects like rural solar grids or health clinics could be funded based on local votes, aligning with India’s inclusive growth goals. India’s Islamic finance tools like Waqf and Zakat also offer lessons in equitable resource distribution. Pakistan’s Zakat system supports millions annually—a model India could adapt to complement welfare programs. While promising, these mechanisms face challenges such as corruption and inefficiencies. Emerging technologies like blockchain audits and impact tracking systems offer hope for improving transparency. Hybrid approaches—combining PB with QF or integrating SIBs with Zakat—could unlock innovative solutions tailored to India’s scale and diversity. As India balances economic growth with social equity, these allocative innovations provide a roadmap for addressing unemployment, poverty, and regional disparities while offering lessons for global development strategies. 📚 Explore more tools like Harberger Taxes and Impact Certificates at https://lnkd.in/gmRZ3SjU. Which of these mechanisms do you think could make the biggest difference in India? Let’s discuss!