How many times do we hear a board member say, “Let’s throw a fundraiser!”
Often the job of an Executive Director or Development Officer is to raise funds. Frequently a board member or even staff will suggest some type of fundraising event. The question is whether or not an event is worth it.
I’m not here to question the validity of certain events. I have seen very successful galas and fundraising events whether celebrity golf tournaments or fancy dinners.
What I want to talk about is the effect it has on the staff.
A typical fundraising event is an annual event that brings in the public and people with checks to the organization. Some of the things that need to be asked are:
- How much will the event bring in, vs how much will it cost?
- How many hours of work will it entail to put on? Staff time is money spent as well.
- How many donors that bring checks to the event, would donate anyway?
- Does the event bring public notice that increases donations otherwise?
- Does the event fulfill the mission?
I have witnessed countless dedicated employees or volunteers become despondent over the hours and hours that can be spent, the worry about getting people to show up, the lack of experience in putting on events, or the panic on the days leading up to the event.
Let’s use a real-world example of an annual BBQ fundraiser. It took a full year, each year to have the event planned and completed. Over the course of that year, staff completed more than 1800 hours of work to recruit participants, arrange materials, location, contracts, advertising and donated goods.
The day of the event, was always great, lots of turnout, lots of interest, serving the max capacity of attendees. At the end of the event, the numbers get cranked out, and a healthy $30K was sold in tickets, or brought in with donations. Food items including beverages and other materials ran $2500. The Board was thrilled, a net of $27,500 was huge in their minds.
The reality, is that they lost 2 good experienced staff over the event. That means, at minimum, training time and cost to replace those 2 staff. Say 90 days each for replacement training. Plus the time spent on the event of 1800 hours, at an average of $16/hr, including taxes and benefits costs. The real net of the event, a ‘loss’ of over $12K!
If you would like to have a conversation with us about viable fundraising, and what it means to increase revenue, fill out the contact form below. We’ll schedule a 30 minute call at no charge to your organization.