Special events? Bah! Humbug!
By
Women waiting for the start of the KC Women’s Tri back in 2007. One of the many events I (and my team) created and managed.
Note: there are lots of caveats and qualifications to what I’m about to suggest. I know that. There are tons of examples that refute (or at least SEEM to refute) my premise. Regardless, I stand by my core assertion, which is …
Looking for, creating, planning, and holding a special event to raise money is a waste of time, energy, and resources that could be better spent developing an annual giving program focused on individuals.
I know that you will immediately think of a dozen events that are HUGELY successful in your community that raise THOUSANDS of dollars every year. Yep. We have them here in Kansas too. You may already have an event that you are very proud of. There are also lots of people who make their living planning special events that will vehemently deny that they are a waste of time. I know. I used to be one of them.
But what I’m trying to suggest is that UNTIL a nonprofit has a comprehensive and successful individual donor program in place, special events (with fundraising as a goal) should be a secondary consideration.
If, like me, you’ve been on a board of directors or worked for a nonprofit organization, you’ve encountered a well-intentioned board member or volunteer who suggests that you create an event like so-and-so across town. “They raised $35,000 from their pancake feed in just two days. We could do that!”
Unless you’ve actually organized an event like that, you’ve no clue what it takes in staff time, volunteer effort, and resources to create a successful fundraising event. In my experience, it takes way more energy and effort than what you think it will. Way, way more. Plus, it’s a diversion from more effective and sustainable strategies.
Of course there can be lots of great outcomes to a special event. They can be great at raising awareness, building rapport with donors, and generating excitement among your volunteers. But it comes at a cost that you won’t fully understand until it’s too late.
The first thing nonprofits have to create is a sustainable annual giving and major gift campaign that focuses on individual donors and board involvement. Until that’s in place, you shouldn’t get sidetracked with a special event. And while a donor cultivation event can be a nice addition to the annual campaign, that’s not what I’m talking about here.
Bottom line: I think special events are too often seen as a panacea for struggling nonprofits. While an event can be part of a comprehensive fundraising plan, it shouldn’t be your main focus or the first thing you attempt.
What do you think?
I tell the clients that I work with that special events have their place in a non-profit but it is NOT fundraising, at least not as a large aspect of the fundraising goal. They can help with awareness building, stewardship, and donor identification, but given the amount of time and energy spent of them, including by staff, rarely do they make money. Even the largest events require so much staff time that if that was added in, my guess it they would make very little. That time could be better spent cultivating individual donors.
Great article! In my experience, events take a lot of time and more money than planned to be successful. The best event is where your organization is the beneficiary of someone else’s work. If you have a group that wants to organize and run a good event and give you the proceeds – great! Also, small events like lunch and learns can help to bring new individual donors to your organization without too much time and expense. I have been a part of $500,000 banquets and for years successful ran a cycling event that raised $150,000 or more. Both events were much more work and took time away from cultivating individual donors. No one tracks the amount of employee time as an expense for an event, nor do they calculate the cost of lost time that could have been spent on individual donor asks.
Shifting away from an event mentality is what’s holding back many small- and medium-sized nonprofits. Thanks Steven.
Clay – very well put. Important that we realize that cash may not be the only (or highest) priority. Events may have more value in cultivation and awareness than anything else. I agree though, if raising funds is priority, an event likely isn’t the answer!
Spot on Nathan. Thanks.
I agree! I would also say that if you are going to have an event, there needs to be CLEAR goals, objectives, and follow up steps. The next generation of givers really likes events like “a-thons,” but without stewardship and next steps after the event, you’re not developing an ongoing relationship. In other words, the org has lost a long-term donor with fundraising possibilities. To me, an event is just one entry point into longer-lasting relationships. There are so many other ways!!!
Most organizations think the event is over after the clean up is finished. Nope. There’s lots of work to do to make sure you take advantage of all the conversations and inquiries that the event generated. Thanks Emily.
I simply want to thank you for these reflections. As the chair of the board of a non-profit, we have been considering the cost/benefit of these sorts of ventures. While visibility and educational benefit (training is the core of what we do) do add value to such ventures, they are truly demanding for both staff and volunteers. We are currently weighing how we move forward with these sorts of events.
Del, I’m glad you find some value here. I’d be happy to talk on the phone with you about the nonprofit your serve and how to use events in a smart way. Just let me know.
OMG. Couldn’t agree more. I’ve often found that volunteers jump first to events, kind of like Judy Garland and Mickey Rooney saying “let’s put on a show!”. Why? Cynically i’ve thought that it’s a way to deflect responsibility. In other words, if you put on an event I’ll buy a ticket and come. That’s a lot easier than signing on to make solicitations, or even to make a personal stretch gift. Events are the most expensive form of fundraising and, when staff time is factored in, they often don’t raise any real money. Plus, there’s the lost opportunity cost. Staff who work 50% of their hours on a money-losing event could’ve have been asking individuals to give. The cost per dollar raised on annual campaigns is much higher. And there you have it!
Clay, this is a great post. We have to really work hard on making sure our events fit into all the rest of what we do in attracting and cultivating donors. Events can be a great way to interact and energize donors. However, I agree that you should have the culture of appreciating donors, cultivating and meeting with donors individually to see the full rewards of events.
One danger of an event is to create a buzz and great response that hits a stone wall with your organization because you are not ready to interact with them. The donors can become disillusioned and frustrated that you really don’t care.
Additionally, events are a spotlight on your organization. They will either bring attention and focus to your message and organizationally efficiency or all its warts. It will bring to light who you are and what you are not.
The balance on events and personal interaction with donors is a balance that I have learned from great training: http://bit.ly/OCnClx
I love your gutsy blog posts and how you’re willing to take a stand against things that just don’t work well in the nonprofit sector. I agree with you re events – after your total costs, exactly how much was raised? Not usually enough to warrant the amount of time and stress the event took to put together.