The Nonprofit FAQ

Are events really a good way to raise money for an organization?

In September 1995, after numerous posts on soc.org.nonprofit by companies promoting various fund-raising ideas for non-profits, and several non-profits requesting new ideas for fund-raising events, Pete Cafarchio began this thread called "gimmicks vs. fundamentals": I have a GREAT idea for fund raising! Instead of selling things and only getting part of the profit, why don't we go out and (get this) ASK people to give us $$$ for our causes! No middle man, and 100% profit for our organizations! Of course, I'm being somewhat sarcastic, but my point is that this newsgroup is filled with the latest schemes/gimmicks/ideas. Part of that is salesmen selling their wares, but it's also people who are ignorant of the fundamentals of fundraising looking for quick $. No gimmick can replace a sound fund raising program. You must have a solid cause, mission statement, involved board & volunteers, identified constituency, well-thought-out marketing plan, clearly articulated needs and rewards for donors, good evaluation, and regular review of all of these items. This is the "high road" to fund raising and done well, can produce the resources needed for current program and future needs. Anyone wanting to raise $ for a legitimate cause should know that special events and selling products (or services) are some of the LEAST effective ways to raise money! Gravity Girl agreed, but felt special events are sometimes necessary and appropriate: I agree with your post about gimmicks being useless. I'm sick of hearing about credit cards and flower delivery and all the junk one can push to raise a very little bit of money. However, I do think appropriate special events can be important to the overall campaign of a NP. For instance, the church reading series I worked for did a production of writing by residents of the homeless shelter. This is a benefit event that can become a "signature" event for a company. Signature events can bring public attention around to that company once a year, just in case some major givers want to get their recognition -- it's a good way to highlight them, too. Finally, it can be an interesting way to get new people involved as volunteers and individual donors, even if the CASH doesn't add up to much after the special event. Down the road, there may be a larger benefit. Roger Tang, Artistic Director PC Theatre, agreed: Such "signature events" are okay if it "is clear from the top on what the event's purpose is. The trouble comes when you try to mix purposes and fail to allocate resources properly. One group I was involved with has been convinced that a special dinner is a 'major' fundraiser---yet, for the past three years, it has consistently failed to reach even 20% of its stated goal, due to lack of follow through, planning and manpower. >b>Leigh Guinn, who is associated with Omnium Gatherum Membership Management Software, responded to Roger's post with this: I agree that some nonprofits can overlook the bottom line by special events and products that they fail to actually raise money. However, the organizations I work with run membership programs that are very successful. These benefits can be as simple as memebership cards allowing discounted or free admissions or as expensive as signed art. However, the cost of the membership outweighs the cost of the benefits, and ultimately the organization raises money, while encouraging people to use their museums, parks, etc. Also, it's true that that members are more likely to give year after year, and more likely to give above and beyond their membership dues. I am also struck by how many members forgo their benefits for tax purposes, yet still give hundreds of dollars each year. Perhaps it's the 'status' of membership? This topic was edited by Jayne Cravens, 6/7/96; reformatted 7/7/01 -- PB