Spring is in the air – bringing with it a mailbox and inbox full of invitations to a myriad of special event fundraisers.
The recent flurry of mailbox activity got me thinking about a finding released last month by The Conference Board:
- 55 percent of companies surveyed said they will decrease funding for event sponsorships in 2009.
I spoke with several local corporate grantmakers as I wrote articles for the spring issue of MCF’s Giving Forum, which will be published in mid-April. They echoed similar concerns about continuing their funding of special events amidst increasing inquiries for support.
As the universe of funding dollars is getting squeezed, worthy causes are working extra hard to garner the financial support they need to continue their work. For some nonprofits, this means making an extra push to seek contributions toward special events. This comes as many corporate grantmakers rethink whether their limited resources are best given directly to putting food on the food shelves or to the dinner gala that then puts food on the food shelves.
The Charity Navigator analyzed the efficiency and effectiveness of special events fundraisers in 2007. Some food for thought:
- About half of all charities use special events as a way to fundraise.
- Organizations in the Midwest receive 13 percent of their contributions from special events (compared to 20 percent in the Northeast).
- Health and arts charities are the most likely to hold special events.
- On average, the charities studied spent $1.33 to raise $1 in special events contributions, compared to an average overall fundraising rate of $.13 to raise $1.
There are, of course, so many good reasons to host special event fundraisers in addition to the actual fund-raising: They rally volunteers, increase visibility for the organization and its cause, strengthen ties to current supporters, cultivate prospective donors and volunteers, and provide leadership and organizational opportunities.
I’ve invested, as I’m sure many of you have, a great amount of time and resources supporting the missions of many organizations by attending or helping with dinners, auctions, raffles, concerts, walk/run/bike/read-a-thons, carnivals, races. All have depended heavily on support from grantmakers, as well as from individuals.
As economic struggles continue to stress all of us, what will be the ramifications if I, we, funders choose to skip the event? Will we still give to the cause without the event to inspire us? What is it about a special event makes it special and worth the investment by organizers, attendees and supporters? What does the future hold for fundraising through special events?
- Chris Murakami Noonan, MCF Communications Associate
I think some organizations feel like they have to do special events as a “softer” way to ask for money, rather than just asking for money, despite the immense amount of work they take to plan and the resources they eat up. I also think that some fear that people won’t give on their own without an event as the focal point.
A few years ago, a fundraising consultant told me that it’s rare that people will give without being asked. The question is: How do you ask?
At that time, the organization I was volunteering with was extremely short-staffed, so we decided to skip our event and just send a letter. Turns out, we raised just as much by making our case in writing, and it took hundreds of hours less to do – hours that we could then refocus on our purpose for existing in the first place.
We did miss all the camaraderie-building and new-prospect interaction that come with an event, but as you point out, maybe now is the time to stick to the basics.
Much as I love fundraising events, spending $1.33 to raise $1.00 seems plain wrong in this economic climate. If there are ways to hold less expensive events (skip the gala and hold a fun-run instead??), then I’m all for it. But right now, I think it’s imperative that we all do the cost-benefit calculation, and avoid spending money on events that cost more than they raise.